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 New GPS tracer
B. Name of the founder (or founders) Nuk Arisara Uttagosol
C. One paragraph summary of the business
Our business satisfy customers that usually lost their belongings. After buying our
product you dont have to be worry about where your belonging is. We produced
the GPS tracer to attach the GPS to whatever belongings you want and when you
cant find it you can just click the remote and choose wether to make it send a
sound signal or show the location of them on the map.

Part 1: Product/Service Feasibility

Issues Addressed in This Part
A. Product/service desirability: This product may convenience people that actually
forget their own stuffs
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
* 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

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 * 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?
___1__ Definitely would buy
___8__ Probably would buy
___1__ Might or might not buy
______ Probably would not buy
______ 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
This product may serve a convenience to those who usually lost their stuff
and has a hard time finding them. Most people surely used to face this problem. In
daily life we surely face this situation. People will desire to buy our product
because they no longer want to lost their stuff again. As we did the research it
seems like people usually forget where they drop their things and they may want to
have some apparatus to serve convenience to them.
B. Product/service demand
As many people are not capable of remembering every where they left their
stuff at so people need to have a tool that help them remembering location of
where they put it. No matter it is your pet, remote control or even your keys. We
could see the problem from everyday struggle that is they could not find their stuff.

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 Usually a group of people who need to go out as usual such as office worker. Or
people that usually rush. These group of people will easily forget a thing they drop
on the table or somewhere they could not remember
C. Product/service feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving product/service feasibility.
Customers said that it is a good tool to track your belongings but they were
also commented that its too complicated for the elder to use because as we know
nowadays the majority of people that understand and can use technology well are
the teenagers but elders would probably have some struggle using it. So we will set
the system to be easier to use for elders to use, for instance we will create a mode
for elder that it will be less complicated.

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
concentration concentrated nor
fragmented

6. Stage of industry life Maturity Growth phase Emergence

cycle phase or phase
decline phase

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

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Conclusion (expand fields and report findings, in discussion form, for each area)
A. Industry attractiveness
Overall, people are interested in my company. Most of them said that they
probably would buy it. As my product is not widely sell in the market so the more
people are interest in our product.
B. Target market attractiveness
As they are some group of company out there doing the GPS product that can
track. Such as track your pets. But that can only use with pets but our product can
attach to any kind of thing such as keys, phone , remote or even a pants But I
believe in the uniqueness of our company that provide the newest version of
technology that can make it easier to process with the satellite for location of your
belongings. There are not much people doing this specific apparatus than can find
everything.
C. Market timeliness
I think this is a proper time for my business to grow and expand widely. As this era
is the era of technology people will find it easy to use technology for their
convenience
D. Industry/market feasibility (circle the correct response)
Not Feasible Unsure Feasible
E. Suggestions for improving industry/market feasibility.
I would promote my product more to get more amount of people to see and to get
our product known widely. Maybe we will start with the advertise via the internet
first.

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
and social networks

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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 Unavailablel
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
business launch

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 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)
Weak Proximity to suppliers
Nuetral Proximity to customers
Proximity to a major research university (if applicable)

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Management prowess
My business have got a good management for our product. We can start producing
at any point and we are ready to serve a convenience to our customer. But we are
quite lack of the professional team for computer. We might find some professional
IT engineering to corporate with us.
B. Resource sufficiency
For the resources our company is ready for the resources because other firms not
far from us are providing the various kind of electronic devices but we are still
looking for professional in IT field and geographer to see the location to locate the
transmit of the signal.
C. Organizational feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving organizational feasibility
Maybe we need to look for the people in that particular area that we had mentioned
such as IT engineering and geographer to check the possibility.

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 500,000

Furniture and fixtures 3,500

Computer equipment 80,000

Other equipment 10,000

Vehicles -

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Operating Expenses Amount

Legal, accounting, and professional services 20,000

Advertising and promotions 60,000

Deposits for utilities 35,000

Licenses and permits 2,000

Prepaid insurance -

Lease payments -

Salary and wages 25,000

Payroll taxes 13,000

Travel 21,000

Signs -

Tools and supplies 10,000

Starting inventory 16,000

Cash (working capital) 20,000

Other expense 1 -

Other expense 2 -

Total Startup Cash Needed = 815,500

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

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 Annual Sales

Estimate of Proposed Ventures Explanation of How the Estimate

Annual SalesYear 1 Was Computed
Estimate of Year 1 Sales 43800000 Price: 1,200

Summary: How proposed annual sales, on Sell: 200

average, compares to similar firms (circle one)
1200x200= 120000
Below Average Average Above Average
120000x365 =43800000
Estimate of Year 2 Sales 94170000 Price 1,200

Summary: How proposed annual sales, on Sell 215

average, compares to similar firms (circle one)

Below Average Average Above Average

Net Income

Estimate of Proposed Ventures Explanation of How the Estimate

Net IncomeYear 1 was Computed
Estimate of Year 1 Net Income 25,550,000 Cost per 1 Product 500

Summary: How proposed net income, on Profit 700

average, compares to similar firms (circle one)
700x 100 = 70000
Below Average Average Above Average
70000x365 = 25,550,000
Estimate of Year 2 Net Income 54932500 Cost per 1 product 500

Summary: How proposed net income, on Profit 700

average, compares to similar firms (circle one)
700x215 =150500
Below Average Average Above Average
150500x365=54932500

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
The total start up cost is about 815,500 bath which included all the money and
expenses that we need to use. Such as computer equipment or the property and
other utilities expenses. We will look for sponsor and investor for making it
happen.
B. Financial performance of similar businesses
The financial performance of other business is less than ours because they have
been doing the business for a long time and they didnt use the newest technology
like us that cost a lot more.
C. Financial feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving financial feasibility
As we can see from the financial statement that the advertising expenses caused
big amount of money that they are not the main part of the project. So we can
decreases the expense maybe by promoting through internet first because it is free.

Overall Feasibility: Summary and Conclusion

Overall Feasibility of the Suggestions for Improving
Business Idea Based on the Feasibility
Each Part

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Product/Market Feasibility Not feasible We serve a convenience to
Uns re customers that they can
easily use our product with
F asi both elders or teenagers.
ble

Industry/Market Feasibility Not feasibl Some of a company do

similar thing but we sure
Unsure that our product is unique
Feasible and better.
Organizational Feasibility Not f asi We are still looking for a
ble professional engineer and
geographer to organize and
Unsure manage.
ea
ibl
e

Financial Feasibility Not feasible We can find a sponsors and

Unsure investor to support
Feasible financial feasibility.
Overall Assessment Not eas It is a great time to make a
ibl move for my business and
start up a business.

Uns re

Feasible

Conclusionbriefly summarize your justification for your overall assessment.

As we can see the daily struggle of most people is that they could not find their
belongings whenever they need to use it. So we satisfy the customers by producing our
newest product. My new GPS tracer built up by good component and have a good
growth. Most of people would by my product and can see advantages of it. Our product
provide new technology and also easy to use. Once our business is well known and a lot
of customers interesting in it we can expand the channel of selling to aboard and also can
look for more investors and sponsors to support us the money so we can expand more and
more.

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