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

The company is herein referred to as “Find a Date Agency”

B.

Name of the founder (or founders)

Steven Onyna- CEO

Kerry Ohm- Founder

Flevia Otini- Co founder

She Sensei- Co-founder

C.

One paragraph summary of the business

“Find a Date Agency” is a dating service provider that seeks to connects male and female partners across the globe. The company may only be 2 months old; the company is your natural choice when it comes to seamless dating across gender and geographical divides.

Part 1: Product/Service Feasibility

Issues Addressed in This Part

A.

Product/service desirability

Find the market segments desire a date app. Finding a dating app that connects dates across countries is difficult because all the existing apps offer geographically segmented services. The a[pp will adequately serve the market place as it can be used by everyone across the world. The product is also downloadable and can be easily installed in all the smart devices

B.

Product/service demand

The demand for the dating app is very high considering the fact that there are many buying intentions surveys that points at the same. The demand for a concise dating app amongst the surveyed 50 randomly chosen people indicates that 85% of the population is in need of dating apps

Assessment Tools

Concept Statement Test

According to survey 65% of American are within the legal age of dating, while 45% of these are youths between 20 – 45years of age. While these groups are legally allowed to make their dating decision, their dating needs are limited to the cities and towns because of the localized and aggregated services offered by the existing dating apps. This app seeks to address the dating problem faced by potential cupids across the word by offering seamless dating and communication system for potential dates with the smart devices such as lumia, android and apple devices. Considering current demand for dating apps, the products is estimated to serve 30% of the market niche. However, because this is a predominantly Nokia IOS apps, the app will be developed for the android and iPhones

*

Strengths of the product or service idea:

The key products features include aggregated search services done I real time. The products specificity when it comes to searching for potential dates, and the general availability of the products from the apps stores where they can download it at a fee.

*

Suggestions for strengthening the idea:

The products needs to be provided for all smart phones and other devices users such as android and iPhone users

*

Overall feasibility of the product or service concept:

Out of the 50 people surveyed 80% of the sample felt the products is very feasible, while 15% felts it is not feasible. Only 5% were indifferent as they didn’t know whether it was feasible or not

*

Other comments and suggestions:

The products will be developed for all the smart devices to help all segment find a date as the company’s policy is to have a pervasive system for all groups of people

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 usually 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?

__50%____ definitely would buy

____20%__ probably would buy

____15%__ Might or might not buy

___5%___ probably would not buy

___10%___ definitely would not buy

Additional questions may be added to the buying intentions survey.

Conclusion (expands fields and report findings, in discussion form, for each area)

A.

Product/service desirability

The products are highly desirable as everyone wants to have a date across the world to hear from different cultures, races, and social classes.

B.

Product/service demand

Th4 demand for the products is very high because the buyer intention surveys indicate that a larger percentage of the target market demand a pervasive dating system (apps)

C.

Product/service feasibility (circle the correct response)

The products are very feasible considering he fact that the existing products do not meet the extended needs of the target market. This product is expected to be a game changer in the industry.

D.

Suggestions for improving product/service feasibility.

The product needs further tweaking to enable all the smart device users access the services across all platforms. Not only ios (lumia), but also android and iPhones. The company should also develop java-based products to run on the Symbian system.

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

Few

2.

Age of industry

Young

3.

Growth rate of industry

Strong growth

4.

Average net income for firms in the industry

Medium

5.

Degree of industry concentration

Fragmented

6.

Stage of industry life cycle

Emergence phase

7.

Importance of industry’s products and/or services to customers

“Must have”

8.

Extent to which business and environmental trends are moving in favor of the industry

High

9.

Number of exciting new product and services emerging from the industry

Low

10.

Long-term prospects

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 in target market

Few

2.

Growth rate of firms in the target market

Rapid growth

3.

Average net income for firms in the target market

Medium

Low Potential

Moderate Potential

High Potential

4.

Methods for generating revenue in the industry

Clear

5.

Ability to create “barriers to entry” for potential competitors

May or may not be able to create

6.

Degree to which customers feel satisfied by the current offerings in the target market

Satisfied

7.

Potential to employ low cost guerrilla and/or buzz marketing techniques to promote the firm’s product or services

Moderate

8.

Excitement surrounding new product/service offerings in the target market

High

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

Customers are in an aggressive buying mood

2.

Momentum of the market

Rapidly gaining momentum

3.

Need for a new firm in the market with your offerings or geographic location

High

4.

Extent to which business and environmental trends are moving in favor of the target market

Medium

5.

Recent or planned entrance of large firms into the market

No larger firms entered the market or are rumored to be entering the market

Conclusion

A.

Industry attractiveness

The overall industry attractiveness is high because the industry is young and the growth rate is high. The net income earned by the companies in the industry is high and the potential customers and the current user consider the products important. The products is expected to grow faster in the long term

B.

Target market attractiveness

The target market is in need of dating apps that can e used across borders. The proportion of the population considered as target market is estimated at 60% worldwide

C.

Market timeliness

The customer are aggressive and in a buying mood and this mean that this products will be the most demanded apps by close to 60% of the entire population. The market is gaining momentum slowly and the general perception is that products will be highly demanded.

D.

Industry/market feasibility (circle the correct response)

Not Feasible Unsure Feasible

E.

Suggestions for improving industry/market feasibility.

The industry ad market feasibility can be improved through market awareness campaign and advertising across many channels. The company can use an integrated marketing strat5egy to reach out to the customer worldwide.

Part 3: Organizational Feasibility

Issues Addressed in This Part

A.

Management prowess

B.

Resource sufficiency

Assessment Tools

Management Prowess

Use the following table too 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 idea

High

2.

Relevant industry experience

Extensive

3.

Prior entrepreneurial experience

Moderate

4.

Depth of professional and social networks

Strong

5.

Creativity among management team members

High

6.

Experience and expertise in cash flow management

High

7.

College graduate

Graduated or are currently 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

Unavailable

5

NA: not applicable for my business

Resource Sufficiency Assessment Tool

Ratings

Resource Sufficiency

1

Office space

1

Lab space, manufacturing space, or space to launch a service business

5

Contract manufacturers or outsource providers

4

Key management employees (now and in the future)

4

Key support personnel (now and in the future)

5

Key equipment needed to operate the business (computers, machinery, delivery vehicles)

5

Ability to obtain intellectual property protection on key aspects of the business

5

Support of local and state government if applicable for business launch

3

Ability to form favorable business partnerships

Ratings: Strong, Neutral, or Weak

Strong

Proximity to similar firms (for the purpose of knowledge sharing)

Strong

Proximity to suppliers

Strong

Proximity to customers

Neutral,

Proximity to a major research university (if applicable)

Conclusion (expands fields and report findings, in discussion form, for each area)

A.

Management prowess

The management is highly capable with adequate market knowledge and entrepreneurial spirit. The management is in close proximity to other startup and industry leaders. this means that helps, support and advice is easily attainable

B.

Resource sufficiency

The company’s financial resources and human resources are adequate. The company can also get financial support from government and venture capitals.

C.

Organizational feasibility (circle the correct response)

Not Feasible Unsure Feasible

D.

Suggestions for improving organizational feasibility

The feasibility of the products can only be improved through having in place highly skilled and competent staff. This the company can easily realize by recruiting additional staff from the local Silicon Valley where other likeminded entrepreneurs can easily be reached

Overall Feasibility: Summary and Conclusion

Overall Feasibility of the Business Idea Based on Each Part

Suggestions for Improving the Feasibility

Product/Market Feasibility

Not feasible

Unsure

Feasible

Industry/Market Feasibility

Not feasible

Unsure

Feasible

Organizational Feasibility

Not feasible

Unsure

Feasible

Financial Feasibility

Not feasible

Unsure

Feasible

Overall Assessment

Not feasible

Unsure

Feasible

Conclusion

The assessment indicates that the demand for dating apps is very high and the market gap cannot be filled in the near future. The growth potential of the products in the market is very high as the market is just in its infancy. If introduced into the market now, the products can gain a larger market share 35% within one year because it has the first move advantage.

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