Feasibility Analysis

Objectives
Feasibility
Analysis
What?
How?
Why?
When?
What is Feasibility Analysis (FA)?
… is the process of determining whether a business idea
is
viable (capable of working successfully)
… preliminary evaluation of a business idea, conducted
for the purpose of determining whether the idea is worth
pursuing

Why conduct Feasibility Analysis (FA)?
To screen ideas before a lot of resources are spent on
them
Allows ample opportunity for the idea to be revised

When to conduct Feasibility Analysis (FA)?
… early in thinking through the prospects for a new
business

Types of Feasibility Analysis (FA)?
Feasibility Analysis
Product/ Service
Desirability Demand
Industry/ Target Market
Industry
Attractiveness
Target Market
Attractiveness

Product/ Service Feasibility Analysis
… assessment of the overall
appeal
of the product or service
being proposed
… be sure that the product or
service is
what prospective
customers want
Avoiding “shiok sendiri product/
services

• Does it make sense?
• Is it
reasonable?
• Is it something consumers will get
excited about?
• Does it take advantage of an
environmental
trend, solve a
problem(s), or take advantage of a
gap in the marketplace?
• Is this the
right time to introduce the
product or service to the market?
Product/Service Desirability
1.
Ask the
questions to
determine the
basic appeal of
the product or
service

a one page description of a business,
that is distributed to people who are asked
to provide
feedback(s) on the potential of
the business idea
.
Product/ Service – features, sketches
Target Market – consumers, businesses
Benefits – how it adds value or solve
problem
Position – relative to competitor(s)
Management Team
Product/Service Desirability
2.
Develop a
Concept
Statement

Example:
New Venture
Fitness Drink
ʼs
Concept
Statement

Show the concept statement to at least 10
experts
Conduct a short survey:
• List
3 things you like about the product/
service idea described in this statement?
• Provide
3 suggestions for making the idea
better?
• Do you think the idea is
feasible?
• Provide any additional
comments or
suggestions you think might be helpful?
Product/Service Desirability
3.
Administer a
Concept Test
Determine if there is demand for the
product/ service
One of the most effective things an
entrepreneur can do to identify
demand is to
hit the streets and talk
to potential customers
Product/Service Demand
… an instrument that is used to gauge
customer interest
in a product or service.
Consists of a concept statement or a
similar description of a product with a
short survey attached to 20 – 30
potential customers
.
Where?
Contact trade associations
Attend industry trade shows
Product/Service Demand
Buying
Intentions
Survey

Product/ Service Demand: Buying Intention Survey
Industry/ Target Market Feasibility Analysis
… assessment of the overall
appeal
of the industry and the target
market for the proposed business.
Industry: a group of firms
producing a similar product or
service.
Target market: the limited portion
of the industry it plans to go after.
Industry
Target
Market
Attractive
Attractive Industry
Target Market (Startup)
Total Available
Market
(TAM)
Serviceable
Available
Market (SAM)
Serviceable
Obtainable
Market
(SOM)
Target Market
How big is the industry?
How many can I reach with my sales
channel?
Who will be the most likely buyers?

Total Available Market (TAM): Halal Industry
USD9.71 Trillion (2025)
Serviceable Available Target Market
Market (SAM)

How to Conduct Feasibility Analysis (FA)?
Feasibility Analysis
Primary Research Secondary Research
Data from industry experts, feedback from
prospective customers, focus groups and surveys
Data from industry studies, census bureau data,
analyst forecast, library & Internet research
First Screen: template for primary research Internet Resource Table: template for
secondary research