Podcast
Questions and Answers
What is the main objective of conducting a feasibility analysis?
What is the main objective of conducting a feasibility analysis?
- To spend resources on the business idea
- To adjust the financials of the business
- To screen the idea from different aspects (correct)
- To collect primary and secondary research
What type of research is used in a feasibility analysis?
What type of research is used in a feasibility analysis?
- Only primary research
- No research is needed for a feasibility analysis
- Both primary and secondary research (correct)
- Only secondary research
When is the proper time to conduct a feasibility analysis?
When is the proper time to conduct a feasibility analysis?
- There is no proper time to conduct a feasibility analysis
- Early in the process before spending resources (correct)
- During the implementation of the business idea
- After spending resources on the business idea
Which of the following is NOT a key component of a feasibility analysis?
Which of the following is NOT a key component of a feasibility analysis?
What is the main purpose of secondary research in a feasibility analysis?
What is the main purpose of secondary research in a feasibility analysis?
Which of the following best describes the role of primary research in a feasibility analysis?
Which of the following best describes the role of primary research in a feasibility analysis?
What is the formula for calculating the Annual Rate of Return?
What is the formula for calculating the Annual Rate of Return?
Which area is NOT part of the four key areas of feasibility analysis mentioned in the text?
Which area is NOT part of the four key areas of feasibility analysis mentioned in the text?
What does RoR stand for in the financial feasibility analysis context?
What does RoR stand for in the financial feasibility analysis context?
How is the Financial Attractiveness of a proposed venture assessed according to the text?
How is the Financial Attractiveness of a proposed venture assessed according to the text?
What is the Total Start-Up Cash Needed part of in the feasibility analysis as per the text?
What is the Total Start-Up Cash Needed part of in the feasibility analysis as per the text?
Which book reference is NOT mentioned in the text?
Which book reference is NOT mentioned in the text?
What is the primary purpose of a financial feasibility analysis?
What is the primary purpose of a financial feasibility analysis?
What is the primary purpose of a concept statement?
What is the primary purpose of a concept statement?
Which of the following is NOT a component of the total start-up cash needed calculation?
Which of the following is NOT a component of the total start-up cash needed calculation?
What is the purpose of calculating the breakeven point?
What is the purpose of calculating the breakeven point?
Which of the following is NOT typically included in a concept statement?
Which of the following is NOT typically included in a concept statement?
How can a business estimate its financial performance?
How can a business estimate its financial performance?
What is the primary goal of gathering feedback on a concept statement?
What is the primary goal of gathering feedback on a concept statement?
What is the significance of the 'first $1 profit' in the context of the total start-up cash needed calculation?
What is the significance of the 'first $1 profit' in the context of the total start-up cash needed calculation?
Which of the following is NOT a recommended method for assessing product or service demand?
Which of the following is NOT a recommended method for assessing product or service demand?
What does the industry/target market feasibility analysis assess?
What does the industry/target market feasibility analysis assess?
Which of the following is NOT a factor considered in a financial feasibility analysis?
Which of the following is NOT a factor considered in a financial feasibility analysis?
Which of the following is NOT a typical component of a concept statement?
Which of the following is NOT a typical component of a concept statement?
What is the main purpose of a feasibility analysis?
What is the main purpose of a feasibility analysis?
Which of the following is NOT a key area of feasibility analysis?
Which of the following is NOT a key area of feasibility analysis?
What is the purpose of conducting a concept test in a Product/Service Feasibility Analysis?
What is the purpose of conducting a concept test in a Product/Service Feasibility Analysis?
Which of the following is NOT a key question to ask when assessing the desirability of a product or service?
Which of the following is NOT a key question to ask when assessing the desirability of a product or service?
Which of the following is a key component of Product/Service Feasibility Analysis?
Which of the following is a key component of Product/Service Feasibility Analysis?
Study Notes
Feasibility Analysis
- Feasibility analysis is the process of determining if a business idea is viable.
- It involves both primary (collected by the person completing the analysis) and secondary (already collected for another purpose) research.
Four Key Areas of Feasibility Analysis
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- Product/Service Feasibility Analysis: Assessing the overall appeal of the product or service.
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- Industry/Target Market Feasibility Analysis: Evaluating the appeal of the industry and target market.
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- Organizational Feasibility: Assessing the organization's ability to execute the business idea.
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- Financial Feasibility Analysis: Evaluating the financial viability of the business idea.
Product/Service Feasibility Analysis
- Product/Service Desirability: Assessing the appeal of the product or service idea.
- Involves developing a concept statement to solicit feedback from industry experts and potential customers.
- Feedback provides insights into the viability of the idea and suggestions for improvement.
- Product/Service Demand: Assessing the demand for the product or service.
- Involves talking to potential customers, utilizing online tools, and conducting primary and secondary research.
Financial Feasibility Analysis
- Total Start-Up Cash Needed: Determining the total cash required to prepare the business for its first sale.
- Involves preparing a budget that lists all anticipated capital purchases and operating expenses.
- Financial Performance of Similar Business: Estimating financial performance by studying similar, already established businesses.
- Overall Financial Attractiveness of the Proposed Venture: Evaluating the projected rate of return on investment.
- Calculated using the annual rate of return formula: (Current Value – Initial Value) x 100 / Initial Value.
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Description
Learn about Product/Service Feasibility Analysis, Industry/Target Market Feasibility Analysis, Organizational Feasibility, and Financial Feasibility Analysis in this lecture. Understand how to conduct these analyses and determine the viability of a business idea.
