The following represents a structural outline for a Business

Feasibility Study:

Cover Sheet

Executive Summary
Table of Contents

Introduction
Product or Services
Technology
Market Environment
Competition
Industry
Business Model
Marketing and Sales Strategy
Production/Operating Requirements
Management and Personnel Requirements
Intellectual Property
Regulations/Environmental Issues
Critical Risk Factors

Finical Projections:
Balance Sheet
Income Statement
Cash Flow Projections
Break-Even Analysis
Capital Requirements & Strategy
Recommendations & Findings
Conclusion

Executive Summary
The executive Summary is a summary of all the key sections of the
Business Feasibility Study and should work as a separate stand- alone
documents. Interested parties will read all this sections first was glance
on the financial section when deciding whether or not they read the
rest of the plan. Key points to remember include:
Write this documents after finishing the drafting the feasibility
study
The Executive summary is written last, it is presented first.
The executive Summary should be no more than one page long.

Product/Service

Describe the enterprises, product or service in simple language.

Give product mix if the enterprise will initially be focusing on more
than one product.
Describe how customers would use and buy the product or service.
Give enough detail to help the reader judge the effectiveness of
your marketing and positioning plan.
Describe key components or raw materials that will be used in the
product, how the enterprise will source these and ho available they
are
Describe plans to test the products it ensure it works as planned
and is sufficiently durable, rugged, secure etc (e.g. consumer
product test, beta test with major company, etc)
Describe the plans to upgrade product or expand product line
Develop SWAT analysis

Technology

As necessary provide furthered technical information about the

product or service
Describe additional or ongoing research and development needs`

Competition

Describe direct and indirect competition (as it pertains to the target

markets only)
For key competitors give market share,, resources, product and
market focus goals, strategies and strengths and weakness
List all key barriers to enter
Describe what is unique about the eEnterprise's product/service
compared to the competition. Make sure this is consistent with the
unmet need of the target markets
State how difficult it will be for competitors to copy the enterprise
product/service
Describe how the competitions will most likely react to the
enterprise's product launch and the enterprise's response strategy.
Includes estimates of the time it might take a competitions to copy
your product or service
Industry
 `Clearly define and describe the industry in which the eEnterprise
operates. Include the size, growth rate, and outlook. Define key
industry segments and state where enterprise fit in
Describe demand and supply factors and trends.
Describe the larger forces that drive the market; that is, innovation,
cultural change, and regulation, whatever.

Business Model

Describe the proposed enterprise's business model. How will the

business generate revenue (i.e., sell the product; charge licensing,
retails sales)? Will there be recurring revenue?
Describe the model in enough detail to support financial projections
personated later.
Keep the description in simple terms and/or explain technical terms
enough to be understood by business but not necessarily
technology expert readers.

Intended Market Environment

Define and describe the target market or markets, and distinguish

between users and customers.
It essential to clarify how and why users and customers will benefit
from the product or service
What is the edge your product service will deliver and excel? How
bid is the potential and opportunity? What level of actual market
demand can be measured versus projected?

Competition

Explain direct and indirect competition for your target market and
environment
Asses market share of competitors, give market share, resources,
product and market focus, goals strategies, strength and weakness
(SWAT) ANALYSIS.
State how difficult for competition to copy the product service
Describe how the competitors will react to the new product /service
and the enterprise reaction and response strategy. Include time line
for competition to copy the idea, product or service

Industry

Describe the industry which the enterprise, service will operate.

This will include size, growth rate and future outlook. Define key
industry segments and state where enterprise fits in.
Describe demand and supply factors and trends
Describe the larger forces that derive the market; e.g. innovation,
culture change, regulation etc

Business Model
 Describe the proposed enterprise's business model. How will the
business generate revenue (i.e.; selling products; retail sales)? Will
there be recurring revenue
Describe the model in enough detail to support financial projections
presented later.

Marketing and Sales Strategy

Layout the basic marketing and sales strategy

Discuss any strategic partnership the enterprise has or is planning
to form. Do they provide market access or other resources? What
are their rights and responsibilities
Describe the destruction strategy (sell direct, through email,
Internet, sales force etc) .Provide projected profit mark up,
commission expectations.
Describe the pricing strategy and justification include typical
payment terms for customers
Quantify the marketing budget for at least the first 1-3 years

Production/Operation Requirements

Describe how and where the enterprise will manufacture, source

and create the final products or services and estimate costs.
What physical primes are required? Give location, size, age,
condition and capacity of planned production and warehouse
facilities and number of shifts planned
How complex is the manufacturing process? Describe equipment
needed and costs.

If enterprise will outsource production or distribute other's material:

Describe supply sources. Are sources of supply easily and readily

available?
Outline the relevant contract terms, manufacturer capacity
minimum order and tooling requirements, reputation, size and
financial condition
Describe enterprise plan to protect it proprietary processes and
trade secrets and quality control

If enterprise is providing services:

How will the services be designed, delivered, measured and
improved?
What stockholders exist, who will be trading partners with the
business? What will be the terms of the contract? Are substitute
partners?
Management and Personnel

List the proposed key managers, titles, responsibilities, relevant

background, experience, skills and costs
Sketch personnel requirements; what people will be needed now, in
a year, in long term? What skills and qualifications are required and
what financial implications result?

Critical Risk Factors

Describe critical risk faced y the enterprise (currently or in the

future). Much of these components will arise from SWOT analysis,
For example, internal characteristics, uniqueness,
Investment, economic forecasts, changes in regulations and
technical upgrade and obsolete etc.

Start Up Schedule

Develop the time line and tie table for activities and tasks to be
developed
Develop the relationship between events to keep the millstones,
financial requirements, personnel requirements etc.
Develop the enterprise project schedule

Financial Projections

Develop the enterprise assumptions and projections. Include

financial history, if any (e.g., equity and debt), and likely financing
stages including information about funding sources and uses.
Envelope spreadsheet explaining the assumptions behind each
major line item. Some corer tasks of this issues are:
Balance sheet projections; Three years capital inflows
Income projections; one year: Monthly or quarterly; 2 years and
3:annually
Cash Flow Projects; Year 1:monthy or quarterly; 2 years and 3
annually
Break Even Analysis-When will the firm begin to turn profit
Cost Benefit Analysis- Will the business provide a viable return on
investment for the owner and /or the investor

Capital Requirements and Strategy

How much funding (equity) will the firm need and when?
What projected revenue or assets does the proposed business have
to secure the financing
What sources will provide funding; that is, investors, lending
institutions
 What ratio of debt to equity financing will occur?
When will investors begin to see a return? What is the expected
return in investment (ROI)

Final Findings and Recommendations

Recommendations from the feasibility study regarding the viability of

putting the business
idea into practice should be reliable, simple and direct. When making the
findings or
recommendations arising from the Business Feasibility Study discussing
the variability of the
proposed business venture and the following:

Market Viability
Technical Viability
Business Model Viability
Management Model Viability
Economic and Financial Model Viability
Exit Strategy

A significant component of the findings should be related to the success

projected return on
Investment and how any identified risk should be mitigated.
The purpose of the feasibility study is to consolidate an argument based
on factual evidence
and analysis to help justify your decision and analysis to help justify your
decision in relation
to the core questions of where the business venture developments is
justified and reported.