Professional Documents
Culture Documents
Financial Feasibility
Industry and
Market Feasibility
Product or
Service Feasibility
Suppliers
Bargaining
Power of
suppliers
Rivalry among
existing firms
Substitutes
Bargaining
Power of
buyers
Buyers
Rivalry
Number of competitors is large or few (less than 5)
Competitors are not similar in size or capability
The industry is growing at a fast pace
The opportunity to sell a differentiated product or
service is present
Suppliers
Many suppliers sell a commodity product to the
companies in it
Substitute products are available for the items
suppliers provide
Companies in the industry find it eas to switch
from one supplier to another
The items suppliers provide account for a relatively
small portion of the cost of finished products
Buyers
Switching costs to competitors is high
Number of buyers is large
Customers demand differentiated products
Customers find it difficult to gather info on suppliers
costs etc
The items account for a relatively small portion of the
customers finished products
New Entrants
Advantages of economic scale are not present
Capital requirements to enter are low
Cost advantages are not related to company size
Buyers are brand-loyal
Governments do not restrict entry
Substitute Products
Quality substitute products are not readily available
Prices of substitute products are not lower
Buyers cost of switching to substitute products is high
Product or Service
Feasibility Analysis
services?
Can we provide the product or service to our customers
at a profit?
Primary research
Customer surveys and
questionnaires
Focus groups
Secondary research
Trade associations and business
directories
Direct mail lists
Demographic data
Census data
Forecasts
Market research
Articles
Local data
WWW
Trials
Prototypes: an original, functional model of a new
Requirements
Estimated
Earnings
Return on
Investment
A Business Plan
A written summary of an entrepreneurs proposed
3 Functions
Guides an entrepreneur
Attracts lenders and investors
Reality Test
Competitive Test
Value Test
Represents/reflects its creator
Elements
ofContents
a Business Plan
Title Page and
Executive Summary
Vision and Mission Statement
Company History
Business and Industry Profile
Business Strategy
Description of the Firms Product or Service
Marketing Strategy
Competitor Analysis
Description of Management Team
Plan of Operation
Pro Forma Financial Statements
The Loan or Investment Proposal
Executive Summary
The companys business model and basis for
competitive edge
The companys target markets and the benefits its
product or service will provide
The qualification of the founders and/or key
employees
The key financial highlights
Business Strategy
Marketing
Strategy
Defining the target market
Who?
Where?
How many?
Why?
Proving that a profitable market exists
Showing customer interest
Documenting market claims
Marketing Strategy
Advertising
Market Size and trend
Location
Pricing
Distribution
Competitor Analysis
Plan of Operation
Organizational chart
Form of ownership