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What is the primary purpose of a feasibility study?
What is the primary purpose of a feasibility study?
How does a feasibility study differ from a business plan?
How does a feasibility study differ from a business plan?
Which reason for conducting a feasibility study helps identify financial needs?
Which reason for conducting a feasibility study helps identify financial needs?
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?
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What might a feasibility study demonstrate to investors?
What might a feasibility study demonstrate to investors?
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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?
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Which of the following is NOT a focus of a feasibility study?
Which of the following is NOT a focus of a feasibility study?
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What does the profitability assessment in a feasibility study help evaluate?
What does the profitability assessment in a feasibility study help evaluate?
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What is the primary purpose of Snowball Sampling in research?
What is the primary purpose of Snowball Sampling in research?
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Which guideline emphasizes the need for clarity in survey questions?
Which guideline emphasizes the need for clarity in survey questions?
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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?
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What is the first step in the instrument validation process?
What is the first step in the instrument validation process?
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How should an Executive Summary be positioned in a feasibility study?
How should an Executive Summary be positioned in a feasibility study?
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Which software is recommended for data analysis in research?
Which software is recommended for data analysis in research?
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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?
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What should be avoided in the neutrality guideline for survey questions?
What should be avoided in the neutrality guideline for survey questions?
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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?
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Which aspect contributes significantly to the success of a business opportunity?
Which aspect contributes significantly to the success of a business opportunity?
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What is the primary focus of purposive sampling?
What is the primary focus of purposive sampling?
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What should be assessed to evaluate the profit potential of business ideas?
What should be assessed to evaluate the profit potential of business ideas?
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What is a critical component when analyzing demand for a business idea?
What is a critical component when analyzing demand for a business idea?
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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?
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What role does pricing strategy play in business planning?
What role does pricing strategy play in business planning?
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Why is understanding competition important when evaluating a business idea?
Why is understanding competition important when evaluating a business idea?
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Which of the following is considered a primary source?
Which of the following is considered a primary source?
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What distinguishes secondary data from primary data?
What distinguishes secondary data from primary data?
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Which of the following is NOT a type of probability sampling technique?
Which of the following is NOT a type of probability sampling technique?
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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?
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What is the main characteristic of stratified sampling?
What is the main characteristic of stratified sampling?
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What is an example of non-probability sampling?
What is an example of non-probability sampling?
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Which sampling technique involves gathering data from naturally occurring groups?
Which sampling technique involves gathering data from naturally occurring groups?
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What distinguishes probability sampling techniques from non-probability sampling techniques?
What distinguishes probability sampling techniques from non-probability sampling techniques?
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What is the primary purpose of collecting data in a feasibility study?
What is the primary purpose of collecting data in a feasibility study?
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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?
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Which type of data includes personal papers and oral histories?
Which type of data includes personal papers and oral histories?
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Which of the following is NOT a method for collecting primary data?
Which of the following is NOT a method for collecting primary data?
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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?
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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?
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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?
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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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Description
This quiz explores the essential components of a feasibility study, comparing it with a business plan. It covers reasons to conduct a feasibility study, including profitability assessment, market validation, and risk identification to ensure informed judgments on business ventures.
