A Guide Presentation for

Business Feasibility Writing

Carl Mark B. Miniano, Ph.D.
What is a Feasibility
Study?
• It is defined as controlled process for
identifying problems and opportunities,
determining objectives , describing
situations, defining successful outcomes,
and assessing the range of cost and
benefits associated with several
alternatives for solving problems.
(Thompson, 2003)
• It is used to support a business decision
process, based on cost benefit analysis of
the actual business or project viability.
• A feasibility study looks at the
viability of an idea with an
emphasis on identifying potential
problems and attempts to answer
one main question:
• Will the idea work and should you
proceed with it?
A comprehensive business feasibility study
contains detailed information about your :
• business structure,
• your products and services,
• the market,
• logistics of how you will actually deliver a
product or service,
• the resources you need to make the business
run efficiently,
• as well as other information about the
business.
• Feasibility studies address things
like where and how the business
will operate.
• They provide in-depth details
about the business to determine if
and how it can succeed, and serve
as a valuable tool for developing a
winning business plan.
Why Are Feasibility Studies so Important?
By Lahle Wolfe, About.com Guide

The information you gather and present in your

feasibility study will help you:
• List in detail all the things you need to make
the business work;
• Identify logistical and other business-related
problems and solutions;
• Develop marketing strategies to convince a
bank or investor that your business is worth
considering as an investment; and
• Serve as a solid foundation for developing
your business plan.
• Even if you have a great business idea you still have
to find a cost-effective way to market and sell your
products and services.
• This is especially important for store-front retail
businesses where location could make or break your
business.
• For example, most commercial space leases place
restrictions on businesses that can have a dramatic
impact on income.
• A lease may limit business hours/days, parking
spaces, restrict the product or service you can offer,
and in some cases, even limit the number of
customers a business can receive each day.
The Components of a Feasibility Study

• Market Feasibility: Includes a description of the industry,

current market, anticipated future market potential,
competition, sales projections, potential buyers, etc.
• Technical Feasibility: Details how you will deliver a
product or service (i.e., materials, labor, transportation,
where your business will be located, technology needed,
etc.).
• Financial Feasibility: Projects how much start-up capital
is needed, sources of capital, returns on investment, etc.
• Management/ Organizational Feasibility: The product
or services to be offered and how they will be delivered,
Organizational Set-up andStructure.
Feasibility Content Outline
By Don Hofstrand, and Mary Holz-Clause,

•I. Description of the Project

• Identification and exploration of business scenarios.
• Identify alternative scenarios or business models of
what the project will entail, how it will be organized, and
how it will generate profits. These may come from the
idea assessment or market assessment that you may
have already completed.
• Eliminate scenarios that don’t make sense.
• Flesh-out the scenario(s) that appear to have potential
for further exploration.
• Define the project and alternative scenarios
• Describe the type and quality of product(s) or
service(s) to be marketed.
• Outline the general business model (i.e. how
the business will make money).
• Include the technical processes including size,
location, kind of inputs, etc.
• Specify the time horizon from the time the
project is initiated until it is up and running at
capacity.
• Relationship to the surrounding
geographical area.
• Outline the economic and social
impact on local communities.
• Describe the environmental impact
on the surrounding area.
• II. Market Feasibility
• This can be based on a market assessment that you may
have already completed.
• Industry description
• Describe the size and scope of the industry, market and/or
market segment(s).
• Estimate the future direction of the industry, market and/or
market segment(s).
• Describe the nature of the industry, market and/or market
segment(s). Is it stable or going through rapid change and
restructuring?
• Identify the life-cycle of the industry, market and/or market
segment(s). Is it emerging, growing, mature, declining?
• Industry competitiveness
• Describe the industry concentration. Are there just a few large
producers or many small producers?
• Describe the major competitors?  Will you compete directly
against them?
• Analyze the barriers to entry of new competitors into the
market or industry. Can new competitive enter easily?
• Analyze the concentration and competitiveness of input
suppliers and product/service buyers.
• Describe the price competitiveness of your product/service.
• Market potential
• Identify whether the product be sold into a commodity
market or a differentiated product/service market.
• Identify the demand and usage trends of the market or
market segment in which the product or service will
participate.
• Examine the potential for emerging, niche or
segmented market opportunities.
• Explore the opportunity and potential for a branded
product.
• Assess market usage and your potential share of the
market or market segment.
• Access to market outlets
• Identify the potential buyers of the
product/service and the associated
marketing costs.
• Investigate the product/service
distribution system and the costs
involved.
• Sales projection
• Estimate sales or usage.
• Carefully identify and assess the
accuracy of the underlying
assumptions in the sales
projection.
• Project sales under various
assumptions (i.e. selling prices,
services provided, etc.).
• III. Technical Feasibility
• Facility needs.
• Estimate the size and type of production facilities.
• Investigate the need for related buildings, equipment,
rolling-stock, etc.
• Suitability of production technology
• Investigate and compare technology providers.
• Determine reliability and competitiveness of technology
(proven or unproven, state-of-the-art, etc.).
• Identify limitations or constraints of the technology.
• Availability and suitability of site
• Investigate access to:
• raw materials
• transportation
• labor
• production inputs (electricity, natural gas, water, etc.)
• Investigate potential emissions problems.
• Analyze other environmental impacts.
• Identify regulatory requirements.
• Explore economic development incentives.
•Raw Materials
• Estimate the amount of raw materials needed.
• Investigate the current and future availability and
access to raw materials.
• Assess the quality and cost of raw materials.
• Other inputs
• Investigate the availability of labor including wage rates,
skill level, etc.
• Assess the potential to access and attract qualified
management personnel.
• III. Financial/Economic
Feasibility
• Estimate the total capital requirements
• Assess the “seed capital” needs of the business project during
the investigation process and start-up, and how these needs
will be met.
• Estimate capital requirements for facilities, equipment and
inventories.
• Estimate working capital needs.
• Estimate start-up capital needs until revenues are realized at
full capacity.
• Estimate contingency capital needs due to construction
delays, technology malfunction, market access delays, etc.
• Estimate other capital needs.
• Estimate equity and credit needs
• Estimate equity needs.
• Identify alternative equity sources and capital availability -
family, producers, local investors, angle investors, venture
capitalists, etc.
• Estimate credit needs.
• Identify and assess alternative credit sources - banks,
government (i.e. direct loans or loan guarantees), grants and
local and state economic development incentives.
• Budget expected costs and returns of various alternatives
• Estimate the expected revenue, costs, profit margin and
expected net profit.
• Estimate the sales or usage needed to break-even.
• Estimate the returns under various production, price and sales
levels. This may involve identifying “best case”, “typical”, and
“worst case” scenarios or more sophisticated analysis like a
Monte Carlo simulation.
• Assess the reliability of the underlying assumptions of
the analysis (prices, production, efficiencies, market
access, market penetration, etc.)
• Benchmark against industry averages and/or
competitors (cost, margin, profits, ROI, etc.).
• Identify limitations or constraints of the economic
analysis.
• Calculate expected cash flows during the start-up
period and when the business reaches capacity.
• Prepare pro forma income statement, balance sheet,
and other statements of when the business is fully
operating.
•IV. Organizational/Managerial
Feasibility
• Business structure
• Identify the proposed legal structure of the business.
• Outline the staffing and governance structure of the
business along with lines of authority and decision
making structure.
• Identify any potential joint venture partners, alliances or
other important stakeholders.
• Identify the availability of skilled and experienced
business managers.
• Identify the availability of consultants and service
providers with the skills needed to realize the project,
including legal, accounting, industry experts, etc.
• Business founders
• Character matters - are the people involved of
outstanding character?
• Do the founders have the “fire in the belly” required to
take the project to completion?
• Do the founders have the skills and ability to complete
the project?
• What key individuals will lead the project?
• Is there a reward system for the founders? Is it based
on business performance?
• Have the founders organized other successful
businesses?
I. What is a Market Feasibility
Study?
By Lahle Wolfe, About.com Guide

• All feasibility studies should look

at how things work, if they will
work, and identify potential
problems.
• Feasibility studies are done on
ideas, campaigns, products,
processes, and entire businesses.
• Feasibility studies assess
something and consider both pros
and cons.
• They analyze potential business
scenarios. A Marketing Plan maps
out specific ideas, strategies, and
campaigns based on feasibility
study investigations, that are
intended to be implemented.
What Should be Included in a Market Feasibility Study?

A market feasibility study include:

• Description of the Industry
• Current Market Analysis
• Competition
• Anticipated Future Market Potential
• Potential Buyers and Sources of
Revenues
• Sales Projections
How do we write an Industry Description?

• Give a brief one- to two-paragraph

description of the industry your
business is categorized 
Analyzing Your Current Market

• This section of a market feasibility

study describes the current market
for your product or service.
• If you are offering something so
unique that there are few market
statistics, you can either use
related industry information, or
even conduct your own
independent study.
• Several ways to conduct your own
research for new ideas include:
• polling Internet forums,
• questionnaires addressed to
targeted consumer groups or the
general population, or even
• customer surveys.
• Any "proof" you have that there is a
demand (or market) for your product or
services will help you sell your idea.
• This is particularly important if you are
marketing something unique, or within a
very small, specialized market.
• You need to show that your ideas is
novel because you have found a niche
and not because there is no existing
market for the idea.
Tips on How to Research Local Competition in
Business

• If you are planning to serve only a

local market, start by identifying
every competitor within a fifty (50)
mile radius.
• The fastest way to do this is using
a telephone book or online
business locator.
• List each competitor by location and
distance from you, and from each other.
You should closely examine all competing
businesses that are within fifteen miles of
your location.
• Consider their locations, business hours,
and how long they have been in business.
• These things can help you determine how
hard it will be to establish a similar
business in the same geographic area.
• You should also make note of any similar
businesses in your area that have recently
gone out of business.
• There may be a reason such as poor
location, high taxes or operating restrictions,
or there may be not enough demand for the
product or service in that area to sustain a
business.
• Researching local competitor information
can tell you two things: What works and
what has not worked.
How to Calculate Sales Projections

• Sales projections can be a challenge

for any new business owner because
there is little, or no track record to
support how fast you will grow, or what
products or services will sell best.
• Sales projections should factor in how
much time and money will be invested
into the business, and the markets you
will be targeting.
• For this reason, it is important that
you write market feasibility study
first.
• Your market study will help you
decide where to sell your product
of services, and what products and
services are most likely to
generate the most revenue.
How to Identify Potential Customers, Clients, and Contract
Sources

• This component of your small business

market feasibility study should be
descriptive.
• Your potential customers, clients, and
contract sources should include the
following:
• A list of current customers, clients, and
contracts and the potential for new or
renewed contracts.
• Any sales leads that may generate new
customers or clients.
• A list of government contracting
agencies with a brief description of
what type of contracts they solicit,
and how they pertain to your
industry.
• A list of market types you currently,
or intend to target such as seniors
citizens, working mothers,
organizations, specialty retailers,
etc.
• Depending upon the nature of your
business, it may not be possible to
associate specific amounts of
revenue with a particular market,
but you can at least try to estimate
the percentage of total revenue
expected from each source.
II. What is a Technical Feasibility
Study?

• The Technical Feasibility Study assesses

the details of how you will deliver a
product or service (i.e., materials, labor,
transportation, where your business will
be located, technology needed, etc.).
• Think of the technical feasibility study as
the logistical or tactical plan of how your
business will produce, store, deliver, and
track its products or services.
• A technical feasibility study is an
excellent tool for trouble-shooting
and long-term planning. In some
regards it serves as a flow chart of
how your products and services
evolve and move through your
business to physically reach your
market.
The Technical Feasibility Study Must Support Your
Financial Information

• Do not make the mistake of trying to

entice investors with your staggering
growth projections and potential returns
on their investment that only includes
income (revenue) to the business.
• With any increase in revenue there is
always an increase in expenses.
Expenses for technical requirements
(i.e., materials and labor) should be
noted in the technical feasibility study.
• You should also not strictly rely on feasibility
study conclusions to impress an investor.
• An experienced investor or lending institution
will read your entire report and come to their
own conclusions.
• Therefore, it is critical that the technical and
financial data in your study reconcile.
• If other parts of your feasibility study shows
growth, you will also have to project labor and
other costs and the technical ability to support
that growth.
• The technical component serves as the
written explanation of financial data
because if offers you a place to include
detailed information about why an expense
has been projected high or low, or why it is
even necessary.
• It demonstrates to potential investors and
lenders (and in some cases, potential
clients) that you have thought about the
long-term needs your business will have as
it grows.
Preparing an Outline for Writing Your Technical Feasibility
Study

• The order that you present

technical information is not as
important as making sure you
have all the components to show
how you can run your business.
• You do not have to include specific financial
information in the technical portion of your
feasibility study, but all information in this
component must support your financial data
represented elsewhere.
• Basic things that most businesses need to include
in their technical feasibility study are:
• Materials
• Labor
• Transportation or Shipping
• Physical Location
• Technology
Calculating Material Requirements

• In this section you list the materials

you need to produce a product or
service, and where you will get
those materials.
• Include information such as if
volume discounts will be available
as your business grows, or
• if you ever plan to manufacture
your own parts at some point in
time.
Things to include in your list of
materials:
• Parts needed to produce a
product,
• Supplies (glue, nails, etc.), and
• Other materials that are involved in
producing or manufacturing your
product.
• You do not need to include actual
financial data in this portion of the
study but financial data supporting
your narrative assessment should
be included in a separate
spreadsheet as an attachment.
Calculating Labor Requirements

• You cannot run a business, offer services, or

manufacturer products for free.
• Even if you start your business with you as your
only employee, at some point, if you plan to
grow you will need to add to your labor pool.
• In most cases, labor will be one of your biggest
small business expenses.
• In this section you will list the number and types
of employees needed to run your business now,
and that may be employed in the future as your
business grows. 
You can break labor into categories if
necessary:
• Senior Level Management
• Office and Clerical Support
• Production or Distribution
• Professional Staff (i.e., lawyers,
accountants, engineers, marketing)
• Fulfillment (i.e., mail room, shipping
department)
• If you plan to outsource (hire
another company to do a job for
you) order fulfillment, fundraising,
or other aspects of your
company’s business be sure to list
what functions will be outsourced
and to where.
Transportation and Shipping Requirements

• If you need to ship items from one place to another,

how will you transport these items? Small items can
be shipped via local carriers, but heavy or bulk items
may need to be transported via a freight or trucking
company.
• If you are shipping perishable items, you will need
special overnight handling.
• You may also need special permits to ship certain
items, and nonprofits organizations should consider
applying for discounted postal rates.
• These are all things that affect the technical, or
“how” of moving your goods from one place to
another.
• if you offer services, how will
trainers, educators, consultants,
sales personnel get to customers
and clients?
• if you offer a product that is
governed by law (such as
medications or prescription
medical supplies), do you need a
licensed distributor or pharmacy to
ship on your behalf?
In the Transportation Feasibility component,
list things that will affect how you get your
goods or services to other businesses or
individuals, including:
• The methods of transportation and
shipping services that will be needed to
get your product or services to a customer;
• Special handling or other unique
arrangements required to transport your
product;
• Any special permits that will be
required, including postal rate
discounts; and
• Cars (company- or privately-
owned) and other vehicles needed
to conduct your business.
Physical Location of Your Business

• Where you run your business will have an effect on

your success. If you are starting out in a home-
based office, project whether or not, and when, you
might need any of the following:
• A “Brick and Mortar” Office (office space outside
your home)
• Warehouse Facilities
• Your Own Factory
• Your Own Trucking Facility
• Retail Storefront
• Any other purchased or rented facilities needed to
conduct your business.
• In the Physical Location Feasibility
component, you should also discuss the pros
and cons of where these facilities will be
located.
• Should they be in one central location, or
across other areas?
• Do you need to have special parking
considerations for customers or trucks?
• Do you need to be near other facilities such as
an airport, commerce center, or shopping
mall?
Technology Requirements to Run Your Business

Every business needs at least some kind of technology to

operate. The Technology component includes discussions
about, and a list of the following:
• Telephone Answering Systems
• Computer Hardware and Software
• Inventory Management
• Cash Registers, Credit Card Collection, Check Processing
• Special Devices to Accommodate the Disabled
• Teleconferencing Facilities and Equipment
• Cell Phones, PDA’s, or Other Devices Needed to Conduct
Business
• Alarm or Camera Systems
• Manufacturing Equipment
Summary of the Technical Feasibility Study

• The order in which you present your technical

requirements is not as important as making sure that
you include all the technical requirements of your
business from production to customer receipt.
• This information will help investors know more about
the operations of your business.
• Having a great idea for a product or business is not
enough; you have to show how you can make money
from the idea.
• The technical feasibility study addresses the physical
and logistical mechanics of if, and how, you will be
able to get something into product, and back out the
door to customers.
III. What is a Financial Feasibility Study?

• A financial feasibility study is an

assessment of the financial aspects of
something. If this case, for starting and
running a business.
• It considers many things including start-
up capital, expenses, revenues, and
investor income and disbursements.
• Other portions of a complete feasibility
study will also contribute data to your
basic financial study.
Purpose of a Financial Feasibility Study

• A financial feasibility study projects

how much start-up capital is
needed, sources of capital, returns
on investment, and other financial
considerations.
• It looks at how much cash is
needed, where it will come from,
and how it will be spent.
• A financial feasibility study can focus on one
particular project or area, or on a group of
projects (such as advertising campaigns).
• However, for the purpose of establishing a
business or attracting investors, you should
include at least three key things in your
comprehensive financial feasibility study:
• Start-Up Capital Requirements,
• Start-Up Capital Sources, and
• Potential Returns for Investors.
Start-Up Capital Requirements

• Start-up capital is simply how

much cash you need to start your
business and keep it running until
it is self-sustaining.
• You should include enough capital
funds (cash, or access to cash) to
run the business for one to two
years.
Finding Start-Up Capital Funding Sources

• There are many ways to raise capital

for your business, but no matter what
route you take,
• investors are more likely to invest,
• banks are more likely to approve loans,
and
• large corporations are more likely to
give you contracts, if you have
personally invested into the business
yourself.
• When you make a list of funding
resources, be sure to include
anything that you can contribute to
the business, including free labor.
• If you are starting a nonprofit
organization, your donated
professional time may even be tax
deductible for you.
• This rundown of where to look for the start up money you
need and the most popular sources of business start up
money will help.
• 1) Your own pockets.
• This may be daunting at first glance, but it’s the most
popular source of business start up money. Don’t have a
start up money nest egg?
• Many people get the business start up money they need
by mortgaging or remortgaging their homes, or selling
property or possessions – even those who do succeed in
getting a start up business loan.
• Lending institutions and investors usually expect the
person starting a business to make a personal financial
commitment.
• 2) Family and friends.
• The second most popular source of
business start up money.
• Family and friends are often willing to
provide a business start up loan or
sometimes even an outright gift.
• After all, they’re likely to be already
“pre-sold” on the value of your business
idea to some degree, as your family
and friends believe in you.
• 3) A line of credit.
• While not recommended as a sole source of
business start up money, a line of credit is essential
for the start up phase.
• No matter how careful and detailed you’ve been in
preparing your business plan, there are always
unexpected expenses and expenses that you’ve
underestimated.
• Before you start a business, you should already
have prepared the way to access this source of
business start up money by having established a
relationship with your local bank manager and by
ensuring that your credit rating is in good shape.
• 4) A start up business loan from a bank.
• I’m using the term “bank” to refer to a
business start up loan from a traditional
lending institution (such as banks and
Credit Unions).
• It’s actually easier than ever to get a
business loan, as more people than ever
have been successfully starting small
businesses and the big banks have more
interest in small businesses than they used
to.
• 5) A start up business loan from a
business-related or government
sponsored organization.
• There are many organizations whose
purpose is to promote economic
development or provide assistance to help
particular types of people succeed in
business.
• Often (but not always) this assistance
includes financial support, such as start up
business loans. 
• 6) Participating in a
government-sponsored
business start up program.
• If you qualify, this is the best way
to start a business.
• 7) Finding investors.
• Angel investors, venture capitalists,
or private lenders all may be excellent
sources of business start up money for your
new business.
• While it’s certainly more difficult in most
cases to attract investors to a start up rather
than to an established venture, it’s not
impossible if you have the right business
idea at the right time backed by an
impressive business plan.
• 8) Government grant programs.
• While this is often touted as a great source
of business start up money, it’s not, because
most start ups simply don’t qualify as you'll
see .
• While there are government grants
available, finding one that can provide start
up money for your new business will be an
enterprise in itself (which is probably why
there are so many companies out there
providing grant-finding services).
Potential Returns for Investors Feasibility Study

• Investors can be friends, family members,

professional associates, client, partners, share
holders, or investment institutions.
• Any business or individual willing to give you
cash can be a potential investor.
• Investors give you money with the
understanding that they will receive “returns”
on their investment, that is, in addition to the
amount that is invested they will get a
percentage of profits.
• In order to entice investors you need to
show how your business will make profits,
when it will begin to make profits, how
much profit it will make, and what
investors will gain from their investment.
• The investment return section should offer
both a description of how investors will be
involved and discuss different variables
that will affect the profitability of your
business, offering more than one scenario.
How Should I Pay Back Investors?

• How investors will be paid will vary

according to individual investment
offers.
• Read every offer over very
carefully – not all investors may be
right for your business.
• The investment section of your financial
feasibility study should not make specific or
binding offers to investors.
• Do not state investors will be paid specific
amounts by certain dates. Instead, list general
practices for how investments return will be
distributed, assuming different business
scenarios.
• For example, you might state that investors will
be paid X amount of peso or X% on their
investment at the end of any business quarter
where profits exceed a certain threshold.
• Project total revenue, deduct business
expenses, and then from the remaining
amount, decide what percentage will be
distributed to investors.
• You should never promise 100% of the
remaining amount to investors.
• You need to keep cash on hand to
continue operating your business, to
grow your business, and to build
reserves.
• Most investment returns are typically
distributed on a quarterly, bi-annual, or
annual basis.
• Consider how the various distribution
cycles could affect your business’ cash
flow during the first two years of operation.
• In other words, do not just run one set of
numbers, examine each type of
distribution and support why you think the
option you choose is the best one.
7 Tips on How to Choose a Business Partner

• 1. Find a Partner That Shares Your Values,

Entrepreneurial Spirit, and Vision
• Of all the things to look for in a partner this is
probably the most important.
• You will need to be able to communicate
effectively with your partner to make
decisions, set goals, and drive the business
forward.
• If you partner with someone that is reluctant,
combative, or unable to consider your
viewpoint it will be harder to be successful.
• 2. Find a Partner That Can Bring Skills and
Experience to The Business
• A good business partner should have skills that
support and compliment your own.
• No single person is a master of all things
business. If you have great interpersonal skills
but poor business finance skills, consider a
partner who understands business accounting.
• The more skills you and your partner bring to
the business together the easier it will be to
start, plan, grow, and run your business.
• 3. Look For a Partner Without A Lot of
Personal Baggage
• If your partner has serious challenges in
his/her personal life it may carry over into
the business.
• It is nice to be willing to give someone a
chance, but running a small business takes
focus, time, and tremendous energy.
• If your partner is dealing with one personal
crisis after another you may find yourself
carrying the weight of the business.
• 4. Find a Partner That Can Offer Resources
and Credibility to Your Business
• It is great to have a business partner that
has financial resources, but there are other
contributions a partner can bring to the
business that can be just as valuable
• A partner with a strong business network,
industry connections, client list, or certain
credentials and expertise can also increase
the value of your business and improve your
chances for achieving long-term success.
• 5. Choose a Partner That Practices Good
Personal and Business Ethics
• Only enter into partnerships with someone
you can trust. Look for someone who values
honesty and practices good personal and
business ethics.
• A poorly chosen business partner may end
up stealing from the company, taking your
ideas or clients to start their own business,
or breaking laws that could get your
business into legal trouble.
• 6. Choose a Partner That is Financially Stable
• Whether or not your partner contributes financially to the
business is less important than if your potential partner
is in dire financial straits.
• Someone in the middle of a financial crisis may not be
the best choice to go into business with for a variety of
reasons. Money, asset, and time management skills are
critical for small business entrepreneurs and someone
who has grossly mismanaged their personal or business
finances may not have the skills or discipline to make a
business partnership work. Worst case scenario, they
may even look for ways to steal from your business to
solve personal financial problems.
• 7. Respect: A Necessary Element to Forming a
Successful Partnership
• You should never partner with someone that you
do not respect.
• The main purpose in forming a partnership is to
achieve success as a team.
• You may not value the opinion and efforts of
someone you do not respect at least on a
professional level.
• You also want to partner with someone that will
show you respect as a partner, business
professional, and as the founder of your business.
IV. Organizational/Management Feasibility Study:

• To define the legal and corporate

structure of the business. An
Organizational Feasibility Study
may also include professional
background information about the
founders and principals of the
business and what skills they can
contribute to the business.
• Your organizational feasibility
study should include:
• Description of Your Business
Structure
• Description of Your Organizational
Structure
• Internal and External Principles
and Practices of the Business
• Professional Skills and Resumes
Description of Your Business Structure

• This section contains a narrative

description of the legal
requirements for establishing your
business and why you feel this is
the right structure for your
business.
• Discuss the pros and cons of
different business structures.
Organizational Structure

• Discuss your business’ organizational

structure. One of the best ways to
present this information is with an 
organizational chart.
• An organizational chart shows the
hierarchy, or chain of command in your
business. It lists key positions and
subordinate positions under department
heads, supervisors, and managers.
Principles and Practices of the Business

• Every business should have a

published code of ethics and
principals that govern how the
company conducts its business.
• In this section, include both
internal and external principals of
operations.
Internal Operations Business Principles and Practices

• Businesses that are incorporated

must have a board of directors.
• Do you offer services where clients
need to be screened for eligibility
for financial aid, social services, or
are there other pre-requisite
requirements such being a senior
citizen, minority, or disabled?
• Do you have hiring and employee
training and management
practices in place?
• Do you have an overall corporate
philosophy that inspires,
encourages, or offers incentives to
employees?
• Do you have an anti-discrimination
policy in place?
External Business Practices and Principles

• Do you have a customer policy or

philosophy? Examples of client/customer
philosophies include:
• We do not serve clients; we team with
clients to meet their goals.
• We value creativity and imagination and
use these to our client’s advantage.
• Our employees maintain high ethical
standards that reflect on how we treat
our clients.
Professional Skills and Resumes

• A business’ strengths come from the

talent, skills, and experience of those
running the company.
• In this section, you give a brief overview
of all founders, employees, and
partners involved in the business that
will be contributing their skills and input
into how the business is operated.
• You should also include any board
members, directors, and officers.
• Include in your list of principals (most
important people in your business or
organization), a brief overview of how
their particular skills will serve the
business.
• You can also include accomplishments
that relate to the business.
• It is also beneficial to attach resumes
for at least the top three principals
listed.
Tips for Writing a Professional Conclusion

• When you write a document or prepare your

own financial statements it may be easy for
you to draw conclusions. But what you see
may not always be obvious to your readers.
• Your conclusion should state facts and
information that you need to make sure the
reader understands. This is especially
important when you are writing a
comprehensive feasibility study because it
has many parts that all need to be tied in
together in a summarized conclusion.
• Remember that a feasibility study
is just that, a study. Your
conclusions need to be based on
research, verifiable information,
and not on a simple belief that
your idea can work.
• A strong conclusion will:
• Discuss how the business can succeed.
Explain why, using research-based
information, not opinions, that is contained in
your study.
• If your business idea takes a nontraditional
approach to something, explain why this
approach will help you succeed. For
example, most restaurants do not survive
beyond two years. What makes your idea
different and more likely to succeed?
• Point the reader back to the
location of any examples you give
by listing section, page title and
page number.
• Summarize the most important
points you need to make. Do not
attempt to cover minor or
unimportant details.
• A good summary or conclusion
should be concise, no longer than
one to two pages and written in
plain terms.
• Do not attempt to persuade the
reader with jargon or an
advertising pitch; feasibility study
findings should be objective and
based on research and information
in the study.
• Avoid using phrases like “I believe,” or “in
my opinion,” “I hope, “I anticipate.” Do use
strong, impersonal phrases like “research
supports that this industry will continue to
grow.”
• A summarized conclusion helps to
develop an overall impression, but should
not replace the supporting documents. Be
sure to submit the summary as part of the
feasibility study, not as a substitute.
How to Assemble Your Feasibility Study

• How you present your final study is

just as important as the
information it contains. If you have
a lot of material put it in a portfolio
or binder. Finding information
easily and quickly is important to
busy lenders and investors, so
include tabs (type them it at all
possible) to indicate each
component in your study.
• Cover letters should not be generic, but
should be individualized depending upon
who you are submitting the study to.
• Before you actually submit your study, have
someone else proofread it for you to check
for content and errors. Typographical errors
will make your study appear rushed or
unprofessional and if your descriptions and
calculations do not make sense to the
reader they are worthless.
• Although you write your conclusion
last, it serves as a summary of all
the detail in your study. You can
place it at the end of your
document (before any exhibits and
attachments), but placing it first
(after the table of contents) sets
the tone and identifies key issues
for the reader to be aware of even
before they read the rest of the
Points to Remember

• A feasibility study is a process in which you

look at an idea to see if it is “feasible,” that is,
if and how it will work.
• A comprehensive feasibility study looks at the
entire structure, needs, and operations of a
business.
• A limited or project feasibility study looks at
one specific task, program, idea, or problem.
• A feasibility study looks at both sides,
considering pros and cons, and troubleshoots
potential problems.
• A feasibility study is not a business plan, but
serves as a foundation for developing your
business plan.
• A market feasibility study is not a marketing
plan, but studies markets and market
potential, and can be used to support or
develop a marketing plan.
• In addition to a business plan, an investor
or lending institution may require you to
submit a feasibility study before considering
your request for capital.
 References
• Ashton, Robert (2009), How to start your own
business for Entrepreneurs, Pearson
Education
• Covello, Joseph A., & Hazelgren, Brian (1995)
The Complete Book of Business Plans (Small
Business Sourcebooks) Sourcebooks, Inc.
• Ditablan, Eustaquio (2006), Feasibility Study
Handbook, National Bookstore, Manila
• Thompson, A., (2003), Business
Feasibility Studies, Dimensions of
Business Viability, Perth, Best
Entrepreneur
• Timmons, Jeffrey A., & Spinelli,
Stephen (2006), New Venture Creation:
Entrepreneurship for the 21st Century
with Online Learning Center access
card, McGraw-Hill/Irwin
Online Sources:

• www.feasibleproject.com 
• www.womenonbusiness.com
• www.extension.iastate.edu
• www.method123.com/feasibility-study.php
• http://www.smalltownmarketing.com/feasibility.
html
• www.websitemarketingplan.com/techniques/fe
asibility.htm
• www.wisegeek.com/what-is-a-feasibility-
study.htm
• www.umanitoba.ca/afs/agric.../MRAC/
feasibility.html
• www.projectsmart.co.uk/elements-of-a-good-
feasibility-study.html
• www.cs.toronto.edu/~sme/CSC340F/slides/05
-
feasibility.pdf
• www.klariti.com/.../Feasibility-Study