Podcast
Questions and Answers
What is the primary purpose of a feasibility study?
What is the primary purpose of a feasibility study?
- To evaluate if a business idea is marketable
- To create a comprehensive business plan
- To assess the workability and profitability of a business venture (correct)
- To develop marketing strategies for the business
How does a feasibility study differ from a business plan?
How does a feasibility study differ from a business plan?
- A feasibility study is used to secure funding for a business
- A feasibility study assesses business opportunity viability prior to the business plan (correct)
- A business plan focuses on risk assessment and profitability
- A business plan is created before a feasibility study is conducted
Which reason for conducting a feasibility study helps identify financial needs?
Which reason for conducting a feasibility study helps identify financial needs?
- Resource Estimation (correct)
- Risk Identification
- Market Validation
- Profitability Assessment
What is one of the key benefits of performing a risk identification in a feasibility study?
What is one of the key benefits of performing a risk identification in a feasibility study?
What might a feasibility study demonstrate to investors?
What might a feasibility study demonstrate to investors?
When should a business plan be developed in relation to a feasibility study?
When should a business plan be developed in relation to a feasibility study?
Which of the following is NOT a focus of a feasibility study?
Which of the following is NOT a focus of a feasibility study?
What does the profitability assessment in a feasibility study help evaluate?
What does the profitability assessment in a feasibility study help evaluate?
What is the primary purpose of Snowball Sampling in research?
What is the primary purpose of Snowball Sampling in research?
Which guideline emphasizes the need for clarity in survey questions?
Which guideline emphasizes the need for clarity in survey questions?
What aspect of survey response options is critical to ensure accurate data collection?
What aspect of survey response options is critical to ensure accurate data collection?
What is the first step in the instrument validation process?
What is the first step in the instrument validation process?
How should an Executive Summary be positioned in a feasibility study?
How should an Executive Summary be positioned in a feasibility study?
Which software is recommended for data analysis in research?
Which software is recommended for data analysis in research?
What is one of the key conditions that must be met for a feasible business opportunity?
What is one of the key conditions that must be met for a feasible business opportunity?
What should be avoided in the neutrality guideline for survey questions?
What should be avoided in the neutrality guideline for survey questions?
Why is it important for a business opportunity to offer a good return on investment?
Why is it important for a business opportunity to offer a good return on investment?
Which aspect contributes significantly to the success of a business opportunity?
Which aspect contributes significantly to the success of a business opportunity?
What is the primary focus of purposive sampling?
What is the primary focus of purposive sampling?
What should be assessed to evaluate the profit potential of business ideas?
What should be assessed to evaluate the profit potential of business ideas?
What is a critical component when analyzing demand for a business idea?
What is a critical component when analyzing demand for a business idea?
In ensuring that a business idea is unique, what aspect should be focused on?
In ensuring that a business idea is unique, what aspect should be focused on?
What role does pricing strategy play in business planning?
What role does pricing strategy play in business planning?
Why is understanding competition important when evaluating a business idea?
Why is understanding competition important when evaluating a business idea?
Which of the following is considered a primary source?
Which of the following is considered a primary source?
What distinguishes secondary data from primary data?
What distinguishes secondary data from primary data?
Which of the following is NOT a type of probability sampling technique?
Which of the following is NOT a type of probability sampling technique?
In what type of sampling do researchers select individuals based on their availability?
In what type of sampling do researchers select individuals based on their availability?
What is the main characteristic of stratified sampling?
What is the main characteristic of stratified sampling?
What is an example of non-probability sampling?
What is an example of non-probability sampling?
Which sampling technique involves gathering data from naturally occurring groups?
Which sampling technique involves gathering data from naturally occurring groups?
What distinguishes probability sampling techniques from non-probability sampling techniques?
What distinguishes probability sampling techniques from non-probability sampling techniques?
What is the primary purpose of collecting data in a feasibility study?
What is the primary purpose of collecting data in a feasibility study?
Which term best describes data that is specifically gathered by a researcher to address a particular research problem?
Which term best describes data that is specifically gathered by a researcher to address a particular research problem?
Which type of data includes personal papers and oral histories?
Which type of data includes personal papers and oral histories?
Which of the following is NOT a method for collecting primary data?
Which of the following is NOT a method for collecting primary data?
In a feasibility study, establishing a price point should consider which of the following factors?
In a feasibility study, establishing a price point should consider which of the following factors?
What is the main goal of highlighting unique offerings in a business idea?
What is the main goal of highlighting unique offerings in a business idea?
Which of the following best defines the target population in the context of research?
Which of the following best defines the target population in the context of research?
What aspect of research methodology is associated with validating whether sufficient demand exists for a startup venture?
What aspect of research methodology is associated with validating whether sufficient demand exists for a startup venture?
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Study Notes
Feasibility Study
- An examination of a startup business's feasibility, including technical viability, financial cost projections, and potential profitability.
- Conducted to help all involved make an informed judgment about the business venture's success.
Feasibility Study vs. Business Plan
- Feasibility Study: Evaluates the workability and profitability of a business opportunity before starting.
- Business Plan: Developed after the feasibility study confirms a business opportunity's viability.
Reasons to Conduct a Feasibility Study
- Profitability Assessment: Determines if the business effort will be worthwhile, avoiding investment in unprofitable ventures.
- Market Validation: Shows market existence, liquidity, and expected return on investment to entrepreneurs and investors.
- Risk Identification: Highlights potential challenges, strengths, weaknesses, opportunities, threats, and unforeseen circumstances to mitigate risks.
- Resource Estimation: Determines required financial, human, and technological resources, including workforce requirements and salary scales.
- Capital and Budget Planning: Determines the capital needed and helps establish budget plans, working capital, and cash flow projections.
Feasible Business Opportunity Conditions
- Real Demand: The opportunity should address a genuine need or solve a market problem with proven demand.
- Good Return on Investment: Offers strong profitability potential and a solid return on investment.
- Competitiveness: The opportunity should be competitive or uniquely positioned to stand out in the market.
- Entrepreneur's Objectives: The business aligns with the goals and objectives of the entrepreneur.
- Competence: The entrepreneur and management team's skills and effectiveness are crucial for success.
Evaluating Profit Potential
- Market Demand: Ensure a real, genuine need and customer base for the product or service.
- Market Size: Evaluate the existing market size and its potential for growth.
- Market Type: Determine if it's a promising or mature market.
- Category: Identify if it's in a fresh or mature category.
- Prospective Customers: Understand who they are and their needs.
- Competition: Evaluate the competitive landscape and identify any unique selling points.
- Need: Examine social and economic impacts and if the idea addresses existing needs.
Research and Methodology
- The main objective is to understand the market and ensure sufficient demand for the startup venture's success.
Data Collection in Feasibility Study
- Purpose: Gather data from end-users to understand current and predicted usage and assess market impact.
- Methods: Surveys, questionnaires, and polls to get insights.
Data Collection for Feasibility Study
- Primary Data: Data collected firsthand by the researcher specifically for the research problem/survey.
- Secondary Data: Existing data, such as previous research, official statistics, mass media products, and historical information.
Sampling Design
- Probability Sampling: Each population element has a chance of being selected for the sample.
- Non-probability Sampling: The sample selection process doesn't give all population individuals equal chances of being selected.
Probability Sampling Techniques
- Simple Random Sampling: Equal chances of selection for all elements.
- Systematic Sampling: Elements chosen at regular intervals from the population.
- Stratified Sampling: Dividing the population into subgroups (strata) and sampling proportionally from each stratum.
- Cluster Sampling: Grouping population elements into clusters and randomly selecting clusters.
- Area Sampling: Clusters are geographic areas.
- Multistage Sampling: Sampling done consecutively in a hierarchy of units.
Non-Probability Sampling Techniques
- Convenience Sampling: Selecting easily accessible elements.
- Judgmental Sampling: Selecting elements based on the researcher's judgment.
- Quota Sampling: Ensuring sample distribution matches the population characteristics.
- Snowball Sampling: Using referrals from existing participants to find additional participants.
- Purposive Sampling: Selecting individuals representative of the research objective.
Target Population
- The group of individuals or objects the researcher aims to study.
- Inferences are made about this population.
Research Instruments
- Tools used to collect data from respondents.
- Questionnaires with standardized questions and response options.
- Address study objectives and collect demographic information.
Guidelines for Survey Questions
- Clarity: Contain only one idea or question.
- Scope: Define time period and activities relevant to the question.
- Neutrality: Avoid leading respondents to specific answers.
- Understandability: Use simple and easy-to-understand language.
- Response Options: Clear, consistent, and comprehensive.
- Categorical Responses: Mutually exclusive and exhaustive.
- Numeric Responses: Guided responses to numeric questions.
Instrument Validation
- Ensure the research instrument is accurate and effective.
- Process involves: recruiting 10+ sample representatives, having them complete the instrument, collecting feedback, refining, and explaining the validation to participants.
Data Processing Method
- Tabulation and processing of data retrieved from the survey questionnaire, manually or by machine.
- Statistical Package for the Social Sciences (SPSS) software is recommended for analysis.
Executive Summary
- Placement: Often the first thing in the feasibility study after the Table of Contents.
- Content: Summarizes all the supporting information and significant findings.
- Writing Order: Written last, after all supporting information is complete.
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