Thesis Because college corresponds to a challenging time for

Thesis: Because college corresponds to a challenging time for
many students, those students who attend college are posed
at a greater risk of suffering from mental health issues such as
depression, anxiety, eating disorders, and addiction.
I am responsible for explaining how students who attend college
are posed
to a greater risk of suffering from depression and suicidal
ideations.
Student Name
Professor’s Name
CRN
Group Number
Depression and Suicidal Ideations Among College Students
Not only is there a rise in mental health issues among college
students, but
they are also being left untreated. Mental health issues such as
depression and suicidal
ideations are associated with substantial current role
impairments (Ebert, 2019). The
rise of mental health challenges facing college students today is
becoming such a
substantial issue that experts and researchers are using terms

such as “epidemic” and
“crisis” to characterize the problem. This shows there is a huge
concern that needs a
solution. There are many statistics to back up these claims.
According to 2018 and
2019 student surveys from the American College Health
Association (ACHA), about 60%
of respondents felt "overwhelming" anxiety, while 40%
experienced depression so
severe they had difficulty functioning. This shows that about
three out of five students
can experience overwhelming anxiety and depression, further
supporting the idea that
college students are at risk and need help and treatment. Not
only do these students
have to adjust to their new lifestyle but they also must think
about finances, work
after graduation and failed relationships. If these students do
not have the proper
coping strategies depression can be an outcome.
Introduction
Student Name
How My Research Strategy Changed Over
Time
Initial Strategy
• I was making very random
searchers and getting topics that
had no relation to my thesis

• My searches were too specific
limiting my results
• I had no developed outline and
my results were making my topic
seem unorganized and sloppy
• I was skipping through articles
missing information
Current Strategy
• Strategically used keyword
searchers
• Use the subject heading searchers
• Have a developed thesis and
reference back to my outline
when searching
• Looking at abstract introduction
and conclusion before trying to
read the entire article
Student Name
Elhai, J. D., Levine, J. C., Alghraibeh, A. M., Alafnan, A. A.,
Aldraiweesh, A. A., & Hall, B. J.
(2018). Fear of missing out: Testing relationships with negative
affectivity, online social
engagement, and problematic smartphone use. Computers in
Human Behavior, 89, 289-298.
doi: 10.1016/j.chb.2018.08.020

• Currency: This article was published in 2018
• Relevance: This article was not relevant as it focused mainly
on Fear of Missing Out (FOMO)
and social engagement, while I am focusing on how college
students experience greater risks
of depression and anxiety.
• Authority: published by APA PsychNet which provides
trustworthy articles through Old
Dominion University,
• Accuracy: The study showed that more research needs to be
conducted on college students’
FOMO related negative affectivity.
• Purpose: To inform readers on what FOMO is and how it
affects college student's depression,
anxiety, and psychopathology- related constructs.
• Overall evaluation: This article was rejected because while
this is a huge problem in colleges
this does not have any relation to my topic even though it came
up in the search results.
While depression is mentioned, the discussion on it is brief and
only in the introduction.
While analyzing the article the sources and quality of
information is good, however it is
lacking relatability.
Rejected Source 1
Student Name

Becker, S. P., Holdaway, A. S., & Luebbe, A. M. (2018).
Suicidal Behaviors in College Students:
Frequency, Sex Differences, and Mental Health Correlates
Including Sluggish Cognitive Tempo.
Journal of Adolescent Health, 63(2), 181-188. doi:
10.1016/j.jadohealth.2018.02.013
• Currency: This article was published within the last five years
on August of 2018
• Relevance: This journal article provides arguments on my
thesis topic and provides
several sources to back up the information, further supporting
my argument.
• Authority: Written by Stephen P. Becker, PhD, Alex S.
Holdaway, PhD, and Aaron M. Luebbe, PhD.
This article was also published by an adolescent health journal
• Accuracy: The information has been reviewed multiple times
before final publish date.
• Purpose: The purpose of this journal article was to inform by
describing the rates of
suicidal behaviors among college students.
• Overall evaluation: this source was accepted because it is very
useful in explaining
suicidal behaviors of college students. This will be useful in
discussing suicidal
ideations within college students and the signs of it. This article
also discusses how
suicidal ideations relate to other mental health issues. I like
how this article
organizes the information and provides a lot of supporting facts

to back up the
claims.
Accepted Source 1
Student Name
https://www.ncbi.nlm.nih.gov/pubmed/?term=Becker%20SP%5
BAuthor%5D&cauthor=true&cauthor_uid=30153929
First Screen
Feasibility Analysis Report[footnoteRef:1] [1: From “Preparing
Effective Business Plans” by Bruce R. Barringer]
First Screen
From “Preparing Effective Business Plans” by Bruce R.
Barringer
Part 1: Strength of Business Idea
For each item, circle the most appropriate answer and make note
of the (-1), (0), or (+1)
score.
Low Potential (-1) Moderate Potential (0) High Potential
(+1)
First Screen – Feasibility Analysis Report Fall 2021-
2022
Page 11 of 12

Copyright © 2019 Pearson Education, Inc. Publishing as
Prentice Hall
1. Extent to which the idea:
• Takes advantage of an environmental trend
• Solves a problem
• Addresses an unfilled gap in the marketplace
Weak Moderate Strong
2. Timeliness of entry to market
3. Extent to which the idea “adds value” for its buyer or end
user
Not timely Moderately timely Very timely
Low Medium High
4. Extent to which the customer is satisfied by competing
products that are already available
Very satisfied Moderately satisfied Not very satisfied or
ambivalent
5. Degree to which the idea requires customers to change
their basic practices

Substantial changes required
Moderate changes required
Small to no changes required
or behaviors
Explanation/Justification of Results of Part 1

Part 2: Industry-Related Issues
(+1)
1. Number of competitors
Many Few None
2. Stage of industry life cycle
Maturity phase or decline phase
Growth phase Emergence phase
3. Growth rate of industry
4. Importance of industry’s products and/or services to
customers

5. Industry operating
Little or no growth Moderate growth Strong growth
“Ambivalent” “Would like to have” “Must have”
Low Moderate High
margins

Part 3: Target Market and Customer-Related Issues
Insert here a definition of your Target Market:
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Low Potential (-1)
Moderate Potential (0)
High Potential (+1)
1.
Identification of
target market for the proposed new venture
Difficult to identify
May be able to identify
Identified

2.
Ability to create “barriers to entry” for potential competitors
Unable to create
May or may not be able to create
Can create
3.
Purchasing power of customers
Low
Moderate
High
4.
Ease of making customers aware of the new product or service
Low
Moderate
High
5.
Growth potential of
Low
Moderate
High
target market

Part 4: Founder- (or Founders-) Related Issues
(+1)

1. Founder or founders experience in the industry
2. Founder or founders skills as they relate to the proposed
new venture’s product or service
3. Extent of the founder or founders professional and
social networks in the relevant industry
4. Extent to which the proposed new venture meets the
founder or founders personal goals and aspirations
No experience Moderate experience Experienced
No skills Moderate skillsSkilled
None Moderate Extensive
Weak Moderate Strong
5. Likelihood that a team can be put together to launch and
grow the new
Unlikely Moderately likely Very likely

venture

Part 5: Financial Issues
1. Initial capital investment
2. Number of revenue drivers (ways in which the company
makes money)
(+1) High Moderate Low
One Two to three More than three

3. Time to break even More than two years
One to two years Less than one year
4. Financial performance of similar businesses
5. Ability to fund initial product (or service) development
and/or initial startup expenses from personal funds or via
Weak Modest Strong
Low Moderate High
bootstrapping

Overall Potential
Each part has five items. Scores will range from -5 to +5 for
each part. The score is a guide: there is no established rule-of-
thumb for the numerical score that equates to high, moderate, or
low potential for each part. The ranking is a judgment call.
Score
(-5 to +5)
Overall Potential of the Business Idea Based on Each Part
Suggestions for Improving
the Potential
Part 1:
Strength of Business
Idea
High potential ⁮ Moderate potential ⁮ Low potential
⁮
Part 2:
Industry-Related
Issues
⁮

Part 3:
Target Market and Customer-Related Issues
⁮
⁮
Part 5:
Financial Issues
⁮

Overall Assessment
Summary—briefly summarize your justification for your overall
assessment:

Feasibility Analysis

⚫ Feasibility analysis is important to test the
potential viability of a business idea.
⚫ Proper time: after opportunity recognition,
before the completion of a business plan.
⚫ Testing business concepts
⚫ shown to industry experts and prospective customers
⚫ solicit feedback about the potential viability of the idea.
Chapter Objectives
1. Explain what a feasibility analysis is and why it’s
important.
2. Describe a product/service feasibility analysis,
explain its purpose, and discuss the two primary
issues that a proposed business should consider in
this area.
3. Describe an industry/market feasibility analysis,
explain its purpose, and discuss the two primary
issues to consider when completing this analysis.

Chapter Objectives
4. Explain what an organizational feasibility analysis
is and its purpose and discuss the two primary issues
to consider when completing this analysis.
5. Describe what a financial feasibility analysis is,
explain its importance, and discuss the most critical
issues to consider when completing this analysis.
6. Describe a feasibility analysis template and explain
when it is important for entrepreneurs to use this
template.
What Is Feasibility Analysis?
•Feasibility Analysis is the
preliminary evaluation of a
business idea, conducted
for the purpose of

determining whether the
business idea is viable and
worth pursuing.
When To Conduct a Feasibility Analysis
Timing of Feasibility Analysis
⚫ The proper time to conduct a feasibility analysis is
early in thinking through the prospects for a new
business.
⚫ The thought is to screen ideas before a lot of
resources are spent on them.
o A common mistake is to go forward with a plan based on false
expectations before establishing feasibility!
⚫ Good to include a concept statement referring to it in
the business plan
Components of Feasibility Analysis
(1) Product/Service Feasibility

(4) Organizational Feasibility
(2) Industry Feasibility
(5) Financial Feasibility
A properly conducted feasibility analysis includes four separate
components:
(3) Target Market Feasibility
First Screen
First Screen: a template for
completing a feasibility analysis.
⚫ It’s called “First Screen”
because it’s a tool that can be
used in the initial pass at
determining the feasibility of a
business idea.
⚫ If a business idea passes this
stage, the next step is to
complete a business plan.

Role of feasibility analysis in developing business ideas.
Outline for a Comprehensive Feasibility
Analysis
(1) Product/Service
Feasibility
Product/Service Feasibility Analysis
Product/Service
Purpose
• Is an assessment of the overall
appeal of the product or service
being proposed.
• Before a prospective firm rushes
a new product or service into

development, it should be sure
that the product or service is what
prospective customers want.
• Do they like it?
• Does it respond to an opportunity?
• Is it affordable? Accessible? Readily usable?
Understandable?
o Software, consulting/training, technology products
Product/Service
Two sub-components of product/service feasibility
analysis
(A) Product/Service
Desirability
(B) Product/Service
Demand

A. Product /Service Desirability
A. Product /Service Desirability: can be
determined through three steps:
(1) Administering a Concept Statement
(2) Self Questions
(3) Asking Industry Experts
A Concept Statement is a one-page description
of a business distributed to people who are
asked to provide feedback on the potential of the
business idea.
⚫ People who are familiar with the industry that the firm plans
to enter
o Reliable (not to discourage), but honest!
o Family members: if they are in the business
⚫ 1st step to bringing potential product to the market field!
⚫ The feedback will hopefully provide:
o A sense of the viability of the product or service idea.
o Suggestions for how the idea can be strengthened or
“tweaked” before

proceeding further.
One-Page Concept Statement
Concept Statement is One Page that comprises the following
components:
⚫ Background about the product or service. This section
describes where the business idea
came from, and whether and how it might relate to certain
exposures, experiences,
observations, education/professional background, or other.
⚫ A description of the product or service. This section
describes the business concept, and
details the features of the product or service.
⚫ The intended target market. This section lists the consumers
or businesses who are
expected to buy the product or service.
⚫ The benefits of the product or service.* This section
describes the benefits of the product
or service, and includes an account of how the product or
service adds value, solves a
problem, fills a gap, addresses a market niche, and/or provides a
new solution to an already

existing problem.
⚫ A description of how the product or service will be
positioned relative to competitors. A
company’s position describes how its product or service is
situated relative to its rivals.
⚫ Project Team: This section mentions names of team members
with respective backgrounds,
and specifies role and function of each member, and his clear
contribution to the project.
⚫ Project Advisor(s) (if any): This section mentio ns any
specific industry experts, prospective
customers, mentors, family members, or friends who might have
given/be giving you insights
into the project, or whom you plan on soliciting respective
feedback from.
New Venture
Fitness Drink’s
Concept Statement

(1) Self-Questions to determine the basic
appeal of the product or service
a. Does it make sense? Is it reasonable?
b. Is it something consumers will get excited about?
c. Does it take advantage of an environmental trend, solve a
problem, or take advantage of a gap in the marketplace?
d. Is this good time to introduce the product or service to the
market?
e. Are there any fatal flaws in the product or service’s basic
design or concept?
Common Fatal Flaws
⚫ The problem doesn’t exist, or happens infrequently
⚫ Caring more about funding than the business opportunity
⚫ Wrong location

⚫ Tracking/Copying the competition
⚫ Tunnel vision – focusing too much on the product than the
market
⚫ Considerations in marketing / communication
o Social, cultural, improper channels, business/product name!
Asking Industry Experts – the Concept Statement
is handed along with a Product Desirability Survey to
10 industry experts to be developed
⚫ Product Desirability Survey Questions:
1. Do you think the idea is feasible (i.e., is a realistic or viable
business idea)?
2. List three things you like about the product or service idea
described in this statement.
3. Provide three suggestions for making the idea better.
4. Provide any additional comments or suggestions you think
might be helpful (including red flags).

B. Product/Service Demand
Assessing product/service demand is a research that can
be performed to assess product demand, i.e., likelihood
of potential customers to buy the product.
⚫ Performed through two techniques:
❑ Step 1: Talking Face-to-Face with Potential Customers to
administer a Buying Intentions Survey
❑ Step 2: Using Library and Online ResearchTools, Such as
Google Ads (previously AdWords) and Landing Pages,
B. Product /Service Demand
Step (1) - Talking Face-to-Face with Potential
Customers - to administer a Buying Intentions
Survey
⚫ The only way to know if your product or service is what
people want is by talking to them.

⚫ The idea is to measure customer reaction to the general
concept of what you want to sell, and tweak, revise, and
improve on the idea based on the feedback.
⚫ In some cases, talking with potential customers will cause an
entrepreneur to abandon an idea.
⚫ Entrepreneurs are often surprised to find that a product idea
they think solves a
problem gets lukewarm reception when they talk to actual
customers.
B. Product Demand
Buying Intentions Survey: an instrument used to
gauge customer interest in a product or service, and
consists of
(1) A Concept Statement or a similar description of a product or
service
(2) A Buying Intentions questions attached.
⚫ The statement and survey should be distributed to

⚫ 20 -30 potential (different) customers
o At least 10 face-to face
o Each participant should be asked to read the statement and
complete the survey.
B. Product Demand
B. Product Demand
Buying Intentions Survey
Step (2) – Online Research Tools, Such
as Google Ads and Landing Pages, to Assess
Demand and gauge reaction from potential
customers
⚫ A good idea: Some entrepreneurs purchase text ads
on search engines that show up when user is
searching for a product close to his idea.

⚫ https://ads.google.com/
B. Product Demand
Google Ads (previously Google AdWords, before July 24,
2018[2]) is an online advertising platform developed by Google
where
advertisers pay to display brief advertisements, service
offerings, product listings, video content and generate mobile
application
installs within the Google ad network to web users.(wikipedia)
https://ads.google.com/
https://en.m.wikipedia.org/wiki/Google_Ads#cite_note-
rebranding_support_answer-2
⚫ If the searcher clicks on the text ad, they are directed to a
landing page that describes the idea.
⚫ There may be a link on the landing page that says “For
future updates please enter your e-mail address.”
⚫ Demand assessed by how many people click on the text ad
and enter their e-mail address.

B. Product Demand
Step (2) – Online Research Tools
Other online tools to assess potential product/service demand
include:
⚫ Quirky provides feedback on business ideas (Foundersuite,
Quirky).
⚫ Market Research
o Crowd Picker – focus-test their ideas and products to get
valuable feedback.
o Google Trends - top search queries in Google Search
⚫ Online Surveys (Survey Monkey, Google Consumer Surveys).
⚫ Q&A Sites (Quora, Stack Overflow).
B. Product Demand
http://www.quirky.com/
First Screen
Part 1: Strength of Business Idea
(2) Industry/Target Market

Feasibility
Industry/Target Market
Industry/Target
Market
Feasibility
Analysis
Purpose: To assess the overall appeal
of the industry and the target market for
the proposed business.
• An industry is a group of firms
producing a similar product or
service. (airplanes, fitness drinks, or
children’s toys.)
• A firm’s target market is the limited
portion of the market the business
plans to go after.

o It is a place within a larger market segment
that represents a narrow group of customers
with similar needs.
Two sub-components of industry/target market
feasibility analysis
(B) Industry Attractiveness
(A) Target Market Attractiveness
First Screen
Part 3:Target Market & Customer-Related Issues
Target Market Attractiveness
(A) Target Market Attractiveness
⚫ Challenge in identifying an attractive target market:
o Finding a market large enough for the proposed business

o Yet small enough to avoid attracting larger competitors.
⚫ Assessing the attractiveness of a target market is tougher than
assessing the attractiveness an entire industry.
⚫ Often, considerable ingenuity must be employed to find
information to assess the attractiveness of a specific target
market.
⚫ Most attractive Target markets are easy to identify, with low
barriers, high purchasing power, high growth potential, and
high/easy product awareness
Industry Attractiveness
(B) Industry Attractiveness
⚫ Industries vary in terms of their overall
attractiveness.
⚫ This step explores characteristics of the generally
most attractive industries, and finds out into which
industry description the business fits
⚫ Particularly important would be the degree to

which environmental and business trends are
moving in favor rather than against the industry.
• Are young rather than old.
• Are early rather than late in their life cycle.
• Are fragmented rather than concentrated.
o Fragmented industry is one in which
no single enterprise dominates the market
o No market leader, a high number of small players
• Are growing rather than shrinking.
• Are selling products/services that customers
“must have” rather than “want to have.”
• Are not crowded
o Crowded Industries have a high number of similar, fiercely
competing players with little differentiation
(e.g. mobile phone shops)
• Have high rather than low operating margins.
• Are not highly dependent on the historically low price of key

raw materials.
Characteristics of Most Attractive Industries
Top declining Industries
⚫ Glass Products
⚫ Paper Products & Newspapers
⚫ Chemical pesticides & fertilizers
⚫ Miscellaneous relocated industries
o medical equipment, jewelry and flatware,
sporting and athletic goods, dolls, toys, and
games, office supplies, signs, concrete burial
vaults, Christmas tree ornaments, Christmas tree
lighting sets, beauty and barber chairs, burnt
wood articles, lamp shades, matches, metal
combs, and electric hair clippers.
36
Top Growing

Industries
• Renewables and
environment
• Internet
• Online publishing
• Philanthropy
• Corporate Social
Responsibility
• E-learning
• International trade &
development
• Computer games
First Screen
Part 2: Industry-Related Issues
(3) Organizational Feasibility

Organizational Feasibility Analysis
Organizational
Purpose
• To determine whether a
proposed business has
sufficient management
expertise, organizational
competence, and resources to
successfully launch a
business.
o Focuses on non-financial resources.
Organizational Feasibility Analysis
Two Sub-components of organizational feasibility
analysis
(A) Management Prowess
(B) Resource Sufficiency

Management Prowess
(A) Management Prowess
A proposed business should candidly evaluate the Prowess,
or the Ability
Whether the management team satisfy itself that it has the
requisite passion and expertise to launch the venture.
⚫ Two of the most important factors in this area are:
⚫ How much Passion the sole entrepreneur or the founding
team has for the business idea.?
⚫ How much Understanding does the sole entrepreneur or
the founding team have?
o Of technicalities of the industry
o Of needs and behavior of the Markets in which the firm will
participate
More factors which add to the management prowess ➔
increase organizational feasibility:
1. Capable individual team members Venture team identified
they believe will join the firm after it is launched
1. lends credibility to the organizational feasibility of the
potential venture.

2. Capable partners who would join the board of advisor s
/directors upon launching
3. Professional and social networks managers have
4. Marketing Associates who can help launch the business
1. Experts in launching campaigns, distribution channel partners
(direct & indirect),
strategic partners (cross marketers; vendors, legal advisors)
Management Prowess
Resource Sufficiency
(B) Resource Sufficiency (non financial)
This pertains to an assessment of whether an entrepreneur has
sufficient resources to launch the proposed venture.
⚫ Meant mostly are Non-financial resources
⚫ To test resource sufficiency, a firm should list the 6 to 12
most
critical nonfinancial resources that will be needed to move
the business idea forward successfully.
⚫ If critical resources are not available in certain areas, it may
be impractical

to proceed with the business idea.
⚫ E.g. Proper Location
Examples of nonfinancial resources that may be
critical to the successful launch of a new business
• Affordable office space.
• Lab/manufacturing space, or space to launch service
business.
• Availability of contract manufacturers or service
providers.
• Key management employees (now and in the future).
• Key support personnel (now and in the future).
o Maintenance, quality control. customer support, crisis/risk
management, legal
Examples of nonfinancial resources that may be critical to the
successful launch of a new business

• Availability of intellectual property protection.
• Availability of favorable business partnerships.
o Industry associations; industry strategic partners; educational
bodies;
regulators & policy makers; suppliers
• Key equipment needed to operate the business
(computers, machinery, delivery vehicle
• Support of local governments and state government if
applicable for business launch
First Screen
Components of Feasibility Analysis
Product/Service Feasibility
Organizational Feasibility
Feasibility
Financial Feasibility

(4) Financial Feasibility
Financial Feasibility Analysis
⚫ For feasibility analysis, a preliminary
financial assessment is sufficient.
❑ As business will evolve, it is impractical to spend a
lot of time early on preparing detailed financial
forecasts.
❑ If a proposed new venture moves beyond the
feasibility analysis stage, it will need to complete
projected financial statements for the first 1-3 years
Financial Feasibility Analysis
Three sub-components of financial feasibility analysis
(A) Total Start-Up Cash (Capital)
Needed
(B) Financial Performance

Of Similar Businesses
(C) Overall Financial Attractiveness
of the Proposed Venture
Total Start-Up Capital Needed
(A) Total Start-Up Capital Needed
Cash needed to prepare the business to make its
first sale: generate the first $1 in revenues.
⚫ An actual budget should be prepared that lists
o all anticipated capital purchases (fixed)
o All operating expenses needed (ongoing)
⚫ The point of this exercise is to determine if the
proposed venture is realistic, given the total start-up
cash needed.
⚫ Total Start-up Capital= Fixed Costs + (Monthly Costs x 6)
Total Start-Up Capital Needed
Start-up cost

worksheets are
available via
⚫ SCORE
(www.score.org)
❑ Start-up Cash
https://www.score.org/resourc
e/start-expenses
❑ www.vertex42.com
⚫ Small Business
Administration (www.sba.gov)
http://www.score.org/
https://www.score.org/resource/start-expenses
http://www.vertex42.com/
http://www.sba.gov/
Source:
https://www.vertex42.com/ExcelTemplates/
business-startup-costs.html
https://www.vertex42.com/ExcelTemplates/business-startup-
costs.html

Financial Performance
of Similar Businesses
(B) Financial Performance of Similar
Businesses
Comparison to similar, already established businesses.
⚫ There are several ways to doing this, all of which involve a
little ethical detective work.
(1) Sourcing reports available - some for free and some that
require a
fee, offering detailed industry trend analysis and reports on
thousands of
individual firms.
(2) Simple observational research – e.g. owners of New Venture
Fitness Drinks could estimate their sales by tracking the number
of people
who support similar restaurants and estimating the average
amount each
customer spends.

⚫ www.BizStats.com shows average profitability and
expense percentages of U.S. businesses in the same
category.
⚫ www.IBISWorld.com provides a chart of the average
expenses for major items like wages, rent, office and
administrative expenses, and utilities for firms in the
industries they follow.
⚫ www.bizminer.com estimates a firm’s sales and net
profit for firms in the industries you follow
⚫ Regular online reports are issued by the Ministry of Trade,
Chambers of Commerce, top audit and consulting firms
(E&Y, PWC)
http://www.bizstats.com/
http://www.ibisworld.com/
http://www.bizminer.com/
World Bank’s

“Doing Business” Reports
⚫ http://www.doingbusiness.org/c
ontent/dam/doingBusiness/coun
try/s/saudi-arabia/SAU.pdf
http://www.doingbusiness.org/content/dam/doingBusiness/count
ry/s/saudi-arabia/SAU.pdf
Overall Financial Attractiveness of the
Proposed Venture
(C) Overall Financial Attractiveness of
the Proposed Investment
A number of other financial factors are associated with
(indication of) promising business start-ups.
⚫ In the feasibility analysis stage, the extent to which a
business opportunity is positive relative to each factor is
based on an estimate rather than actual performance.
⚫ factors that pertain to the overall attractiveness of the

financial feasibility of the business idea.
Factors associated with attractiveness of a proposed
venture are related a new venture’s projected financial
rate of return that justifies launch of the business, i.e.,
gain or loss on an investment over a specified time period,
❑ Number of income sources
❑ Amount of capital invested
❑ Risks assumed in launching the business
➢ Political; security; fluctuations; expensive storage; unclear
costs;
❑ Time needed for business to mature
❑ Opportunity Cost
• Existing alternatives for the money being invested
• Existing alternatives for the entrepreneur’s time and efforts
Proposed Venture

Proposed Venture
Financially Promising Business Opportunities are typically
characterized by the following:
❖Ability to forecast income and expenses with a reasonable
degree
of certainty.
o Income sources, sales unit, projected transactions
❖High percentage of recurring revenue — meaning that once a
firm
wins a client, the client will provide recurring sources of
revenue.
❖Steady and rapid growth in sales during the first 5 to 7 years
in a
clearly defined market niche.
❖ Internally generated funds to finance and sustain growth.
o If otherwise high risk of competition is associated if it takes
long time to grow
❖ Availability of an exit opportunity for investors to convert
equity
to cash.
Opportunities which demand
o substantial capital,

o requiring long periods of time to mature, and
o having a lot of risk involved
make little sense and better be
disregarded!
o unless they provide exceptionally high rates of return
Proposed Venture
First Screen
Part 5: Financial Issues
First Screen
Overall Potential
First Screen: a template for
completing a feasibility analysis.
⚫ It’s called “First Screen”
because it’s a tool that can be
used in the initial pass at

determining the feasibility of a
business idea.
⚫ If a business idea passes this
stage, the next step is to
complete a business plan.
First Screen
Overall Potential

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