Full Feasibility Analysis

From Preparing Effective Business Plans by Bruce R. Barringer

Note: All fields can be expanded to provide additional space to respond to the questions. A
copy of this template, along with each of the assessment tools, is also available in
PDF format at the authors Web site at www.prenhall.com/entrepreneurship.

Introduction
A. Name of the proposed business
Onigi
B. Name of the founder (or founders)
Supachip Thongrong
C. One paragraph summary of the business
It is a drive through station and shop selling the Onigiri or Sushi.
The meal is contained many different types of flavors. For examples,
salmon, Japanese seaweed salad, and Thai flavor. The drive through
station is not required a huge space for itself (400-600ft). Its need only
the kitchen and the drive through part. Because of the size of the
station, we can easily open it in the city, which large amounts of
customer have been provided. We have been hired a Japanese chef to
create a high quality and good taste Onigiri.

Part 1: Product/Service Feasibility

Issues Addressed in This Part
A. Product/service desirability
B. Product/service demand

Assessment Tools
Concept Statement Test

Write a concept statement for your product/service idea. Show the concept statement
to 5 to 10 people. Select people who will give you informed and candid feedback.
Attached a blank sheet to the concept statement, and ask the people who read the
statement to (1) tell you three things they like about your product/service idea, (2)
provide three suggestions for making it better, (3) tell you whether they think the
product or service idea is feasible (or will be successful), and (4) share any additional
comments or suggestions.
Summarize the information you obtain from the concept statement into the following
three categories:

* Strengths of the product or service ideathings people who evaluated your

product or service concept said they liked about the idea
* Suggestions for strengthening the ideasuggestions made by people for
strengthening or improving the idea

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 * Overall feasibility of the product or service conceptreport the number of
people who thing the idea is feasible, the number of people who think it isnt
feasible, and any additional comments that were made
* Other comments and suggestions

Buying Intentions Survey

Distribute the concept statement to 15 to 30 prospective customers (do not include
any of the people who completed the concept statement test) with the following
buying intentions survey attached. Ask each participant to read the concept statement
and complete the buying intentions survey. Record the number of people who
participated in the survey and the results of the survey here.
Along with the raw data recorded here, report the percentage of the total number of
people you surveyed that said they would probably buy or definitely would buy your
product or service if offered. This percentage is the most important figure in gauging
potential customer interest.

One caveat is that people who say that they intend to purchase a product do
not always follow through, so the numbers resulting from this activity are almost
always optimistic. Still, the numbers provide you with a preliminary indication of
how your most likely customers will respond to your potential product or service
offering.

How likely would you be to buy the product or service described above?
__2____ Definitely would buy
__5____ Probably would buy
__1____ Might or might not buy
__1___ Probably would not buy
__1____ Definitely would not buy
Additional questions may be added to the buying intentions survey.

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Product/service desirability
Our product is kind of attractive to customers and its also related to the trend. The
trend of healthy and fast to eat. Moreover, our brand also followed Japanese trend
in Thailand. Our company introduced new product to community and industry,
which is Japanese rice ball. Moreover, there is no Japanese rice ball in fast food
industry.
B. Product/service demand
The demand of customers is quite high 2 definitely would buy and 5 probably
would buy, which is satisfied for me as an owner. Because of the trend
C. Product/service feasibility (circle the correct response)

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 Not Feasible Unsure Feasible
D. Suggestions for improving product/service feasibility.
Create a variety of flavor and develop a better drive through system. However,
drive through station is possibly open outside city. In my opinion, I will open small
restaurant inside the city to serve large amount of customers and decrease
production cost of business.

Part 2: Industry/Market Feasibility

Issues Addressed in This Part
A. Industry attractiveness

B. Target market attractiveness

C. Timeliness of entry into the target market

Assessment Tools
Industry Attractiveness
To the extent possible, assess the industry at the five-digit NAICS code level your
potential business will be entering. Use a broader industry category (less NCICS
digits) if appropriate (http://www.census.gov/epcd/www/naicstab.htm).
Assess the attractiveness of the industry the potential business plans to enter on each
of the following dimensions.

Industry Attractiveness Assessment Tool

(used to assess the broad industry, rather than the specific target market, you plan
to enter)
Low Potential Moderate Potential High Potential
1. Number of competitors Many Few None
2. Age of industry Old Middle aged Young
3. Growth rate of industry Little or no Moderate growth Strong growth
growth
4. Average net income for Low Medium High
firms in the industry
5. Degree of industry Concentrated Neither Fragmented
concentrate on concentrated nor
fragmented

6. Stage of industry life Maturity Growth phase Emergence

cycle phase or phase
decline phase
7. Importance of industrys Ambivalent Would like to Must have
products and/or services have
to customers

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8. Extent to which business Low Medium High
and environmental
trends are moving in
favor of the industry
9. Number of exciting new Low Medium High
product and services
emerging from the
industry
10. Long-term prospects Weak Neutral Strong

Target Market Attractiveness

Identify the portion or specific market within your broader industry that you plan to
target.
Assess the attractiveness of the target market on each of the following dimensions.

Target Market Attractiveness Assessment Tool

(used to assess the specific target market, rather than the broader industry, you plan
to enter)
Low Potential Moderate Potential High Potential
1. Number of competitors Many Few None
in target market
2. Growth rate of firms in Little to no Slow growth Rapid growth
the target market growth
3. Average net income for Low Medium High
firms in the target
market

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 Low Potential Moderate Potential High Potential
4. Methods for generating Unclear Somewhat clear Clear
revenue in the industry
5. Ability to create barriers Unable to May or may not be Can create
to entry for potential create able to create
competitors
6. Degree to which Satisfied Neither satisfied or Unsatisfied
customers feel satisfied by dissatisfied
the current offerings in the
target market
7. Potential to employ low Low Moderate High
cost guerrilla and/or buzz
marketing techniques to
promote the firms product
or services
8. Excitement surrounding Low Medium High
new product/service
offerings in the target
market

Market Timeliness
Determine the extent to which the window of opportunity for the proposed business
is open or closed based on the following criteria.
Determine the timeliness of entering a specific target market based on other criteria.

Market Timeliness Assessment Tool

Low Potential Moderate Potential High Potential
1. Buying mood of Customers are Customers are in a Customers are
customers not in a buying moderate buying in an aggressive
mood mood buying mood
2. Momentum of the market Stable to losing Slowly gaining Rapidly gaining
momentum momentum momentum
3. Need for a new firm in the Low Moderate High
market with your offerings
or geographic location
4. Extent to which business Low Medium High
and environmental trends
are moving in favor of the
target market
5. Recent or planned Large firms Rumors that large No larger firms
entrance of large firms entering the firms may be entered the
into the market market entering the market market or are
rumored to be
entering the

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 market
Conclusion (expand fields and report findings, in discussion form, for each area)
A. Industry attractiveness
My business located in food industry, which now the growth of industry is in rising
phase following the population growth of World. There are many competitors in
the industry and people today really care about their food. Therefore, I decided to
open Japanese fast food restaurant in Bangkok. People wanted something fast to
and at the same time they also
B. Target market attractiveness
In Thailand there is no Japanese fast food restaurant and Thai people now start
focusing on their health. Moreover, Japanese culture trend is start rising in
Thailand. People today want something fast and healthy to eat.
C. Market timeliness
I think my brand will take around 1 to 2 years to gain customers interest. 4 years to
gain customer royalty and 2 years to return an investment.
D. Industry/market feasibility (circle the correct response)
Not Feasible Unsure Feasible
E. Suggestions for improving industry/market feasibility.
Have to return the investment as soon as possible to decrease risk of business.
Promoting through social media and increase varieties of products.
http://www.boi.go.th/index.php?page=opp_food

http://www.boi.go.th/upload/content/BOI_edit_9-8-58_19610.pdf

https://www.scbeic.com/th/events_calendar/file/1448942417159/e9luzo
613s/Industry%20outlook
%202016_FB_Tuna_fruitsandveggies_20151127_final.pdf
Part 3: Organizational Feasibility
Issues Addressed in This Part
A. Management prowess
B. Resource sufficiency

Assessment Tools
Management Prowess
Use the following table to candidly and objectively rate the prowess of the founder
or group of founders who will be starting the proposed venture.

Management Prowess Assessment Tool

Low Potential Moderate Potential High Potential
1. Passion for the business Low Moderate High
idea
2. Relevant industry None Moderate Extensive
experience
3. Prior entrepreneurial None Moderate Extensive
experience
4. Depth of professional Weak Moderate Strong

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 and social networks
5. Creativity among Low Moderate High
management team
members
6. Experience and expertise None Moderate High
in cash flow
management
7. College graduate No college Some college Graduated or
education education but not are currently
currently in college in college

Resource Sufficiency
The focus in this section is on nonfinancial resources. Use the following table to rate
your resource sufficiency in each category.
The list of resources is not meant to be exhaustive. A list of the 6 to 12 most critical
nonfinancial resources for your proposed business is sufficient.

An explanation of the rating system used in the first portion of the table is as follows:
1 Available
2 Likely to be available: will probably be available and will be within my budget
3 Unlikely to be available: will probably be hard to find or gain access to, and
may exceed my budget
4 Unavailable
5 NA: not applicable for my business

Resource Sufficiency Assessment Tool

Ratings Resource Sufficiency
1 2 3 4 5 Office space
1 2 3 4 5 Lab space, manufacturing space, or space to launch a
service business
1 2 3 4 5 Contract manufacturers or outsource providers
1 2 3 4 5 Key management employees (now and in the future)
1 2 3 4 5 Key support personnel (now and in the future)
1 2 3 4 5 Key equipment needed to operate the business
(computers, machinery, delivery vehicles)
1 2 3 4 5 Ability to obtain intellectual property protection on key
aspects of the business
1 2 3 4 5 Support of local and state government if applicable for

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 business launch
1 2 3 4 5 Ability to form favorable business partnerships
Ratings: Strong, Neutral,
or Weak
Neutral Proximity to similar firms (for the purpose of knowledge
sharing)
Strong Proximity to suppliers
Strong Proximity to customers
Neutral Proximity to a major research university (if applicable)

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Management prowess
As a manager, Im quite new about this industry and business but I have passion
about business. Im s big fan of Japanese food and I also interested in food and
drinks. I have one brother who opened rice factory and one of my family friends
that selling seafood. Therefore, I have many professional that can advice toward
food business beside me, and also high quality supplies to support my business.
B. Resource sufficiency
Thailand is a farming and agriculture country. Therefore, we will have unlimited
number of resources to support our company. Our main material is rice, which
very easy to gather in Thailand.
C. Organizational feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving organizational feasibility
Sometime, we have to store rice and meat to serve our customers. The storage
might not be able to store raw material. So I might not have to increase or upgrade
storages or refrigerator later on when I made a lot of profit.
Part 4: Financial Feasibility
Issues Addressed in This Part
A. Total startup cash needed
B. Financial performance of similar businesses
C. Overall financial attractiveness of the proposed venture

Assessment Tools
Total Start-Up Cash Needed

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 The startup costs (which include capital investments and operating expenses) should
include all the costs necessary for the business to make its first sale. New firms
typically need money for a host of purposes, including the hiring of personnel, office
or manufacturing space, equipment, training, research and development, marketing,
and the initial product rollout.
At the feasibility analysis stage, it is not necessary for the number to be exact.
However, the number should be fairly accurate to give an entrepreneur an idea of the
dollar amount that will be needed to launch the firm. After the approximate dollar
amount is known, the entrepreneur should determine specifically where the money
will come from to cover the startup costs.

The total startup cash needed can be estimate using the following table.

Total Startup Cash Needed (to Make First Sale)

Capital Investments Amount

Property Land 1,000,000

Furniture and fixtures Counter and Table

60,000

Computer equipment One PC computer and

Cashier 30,000

Other equipment Refrigerator 40,000

Vehicles -

Operating Expenses Amount

Legal, accounting, and professional services -

Advertising and promotions Social Media10000

Deposits for utilities Deposit cash 50000

Licenses and permits Food license 10000

Prepaid insurance Insurance 20000

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Lease payments 10000

Salary and wages 4 employees 1 manger

60000

Payroll taxes 30000

Travel -

Signs -

Tools and supplies Cooking tools 35000

Starting inventory Refrigerator 20000

Cash (working capital) For buying

supplies200000

Other expense 1 Utilities Expense

20000

Other expense 2 Rent and 30000

Total Startup Cash Needed = 1,595,000

Comparison of the Financial Performance of Proposed Venture to Similar Firms

Use the following tables to compare the proposed new venture to similar firms in
regard to annual sales (Year 1 and Year 2) and profitability (Year 1 and Year 2).

Comparison of the Financial Performance of Proposed Venture to Similar Firms

Assessment Tool

Annual Sales

Estimate of Proposed Ventures Explanation of How the Estimate

Annual SalesYear 1 Was Computed
Estimate of Year 1 Sales __4,106,250________

Summary: How proposed annual sales, on

average, compares to similar firms (circle one)

I can sell 250 Onigiri per day

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Price is between 40-50 Baht

250 x 45 = 11,250 Baht/day

11,250 x 365 days = 4,106,250 baht per year

Below Average Average Above Average

Estimate of Year 2 Sales __8,212,500________

Summary: How proposed annual sales, on

average, compares to similar firms (circle one)

Open a second branch.

Price is between 40-50 Baht

500 x 45 = 22,500 Baht/day

11,250 x 365 days = 8,212,500 baht per year

Below Average Average Above Average

Net Income

Estimate of Proposed Ventures Explanation of How the Estimate

Net IncomeYear 1 was Computed

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Estimate of Year 1 Net Income __800,000-
600,000 ________

Summary: How proposed net income, on

average, compares to similar firms (circle one)

800,000 (20%) is the highest average net profit

that I can get, and 600,000(15%) is the lowest.

4,106,250 baht x 0.2 = 821,250 baht per year

(The highest net income)

4,106,250 baht x 0.15 = 615,937 baht per year

(Lowest amount of net income)

Below Average Average Above Average

Estimate of Year 2 Net Income ___1,600,000
1,200,000_______

1,600,000 (20%) is the highest average net profit

that I can get, and 1,200,000 (15%) is the lowest.

8,212,500baht x 0.2 = 1,642,500 baht per year

(The highest net income)

8,212,500baht x 0.15 = 1,231,875 baht per year

(Lowest amount of net income)

Summary: How proposed net income, on

average, compares to similar firms (circle one)

Below Average Average Above Average

Overall Financial Attractiveness of the Proposed Venture

The following factors are important in regard to the overall financial attractiveness of
the proposed business.
Assess the strength of each factor in the following table.

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Overall Financial Attractiveness of Proposed Venture Assessment Tool
Low Potential Moderate Potential High Potential
1. Steady and rapid growth in Unlikely Moderately likely Highly likely
sales during the first one to
three years in a clearly
defined target market
2. High percentage of Low Moderate Strong
recurring incomemeaning
that once you win a client,
the client will provide
recurring sources of
revenue
3. Ability to forecast income Weak Moderate Strong
and expenses with a
reasonable degree of
certainty
4. Likelihood that internally Unlikely Moderately likely Highly likely
generated funds will be
available within two years
to finance growth
5. Availability of exit Unlikely to be May be available Likely to be
opportunity for investor if unavailable available
applicable

Conclusion (report finding for each area)

A. Total startup cash needed
Total start up cash is 1,595,000 baht this number might increase or decrease
depends on inflation and money current in Thailand. The budget included capital
investment and operating expense. This is lowest amount of money that can get
high quality of material and resources.
B. Financial performance of similar businesses
Our brand have such a good start on introducing new product into the market and
also following trends of people in Thailand. We used a low price material that suit
with our financial situation and minimal design of restaurant. So, we can reduce
the investment money to the lowest. Moreover, we can return the investment with
in 2 years, which is good for expanding our brand and reduce risk of business
failure.
C. Financial feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving financial feasibility

In a later year, I should upgrade material and stuff to reach a better quality of
product and provide a comfortable work place condition for employees.
Furthermore, I should

Overall Feasibility: Summary and Conclusion

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 Overall Feasibility of the Suggestions for Improving
Business Idea Based on the Feasibility
Each Part
Product/Market Feasibility Not feasible
Unsure
Feasible
Industry/Market Feasibility Not feasible
Unsure
Feasible
Organizational Feasibility Not feasible
Unsure
Feasible
Financial Feasibility Not feasible
Unsure
Feasible
Overall Assessment Not feasible
Unsure
Feasible

Conclusionbriefly summarize your justification for your overall assessment.

According to feasibility analysis my business is doing really good in theory. Many

customers are interesting in my product and most of them willing to effort it. Moreover,
my product also followed trends of customers such as healthy food and Japanese culture.
I also introduced new product so I will get the attention from many customers. In
addition, I used small amount of investment. Therefore, I will get a return of the
investment in a short time.

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