Business Feasibility Study Checklist

Let’s know about the business feasibility study checklist As the name implies, a utility study is an investigation of the viability of an idea. The feasibility study converges on helping answer the essential question of “should we proceed with the recommended project idea?” All activities of the study are conducted toward helping answer this mystery. We will know about the business feasibility study checklist but we should know about the feasibility study.

Table of Contents

Business feasibility study

Feasibility studies can be practiced in many ways but principally focus on recommended business ventures.

Farmers and different from a business idea should attend a feasibility study to discover the viability of their idea earlier proceeding with the development of the business. Ascertaining early that a marketing idea will not work saves time, money, and anguish later.

Possible business investment is one where the company will generate adequate cash flow and interests, withstand the risks it will encounter, settle viable in the long-term, and join the goals of the founders.

The venture can be either a start-up market, the purchase of an existing business, the development of current business operations, or a new project for an existing business.

Feasibility Study Outline is provided to give you guidance on how to proceed with the study plus what to include. How to Use and When to Do a probability Study will encourage you through the means and help you get the maximum out of your research.

A feasibility study is simply one step in the business approach assessment and business growth process. Reviewing this process and reading the knowledge below will help put the presentation of the feasibility study in outlook.

A feasibility study is similar to a personal financial plan. Individuals need to assess their total incomes and to allocate their expenses to keep within them.

Many people will spend a considerable amount of time developing a personal or family budget.

Here we provide a detailed discussion regarding the business feasibility study checklist below:

Feasibility study checklist

A well-prepared feasibility study contains at least six major sections:

Introduction, preface, or general overview,
Marketing,
Accounting, finances, and taxes
Management
Legal aspects.
Appendix

1. Introduction, Preface, or General Overview

The objective of the feasibility study
History (if you are purchasing an ongoing concern)
Overview of the industry

2. Marketing

Objective and supporting strategies
Price determination: competition’s prices, price fist with profit margin –
Promotion: specific detail plan ( how, when, where, and cost); personal selling, mass selling, sales promotion
Product Description: goods and/or services explained in detail.
Identify the target market, who where, and how many
Place: location, size, traffic counts, channel or distribution

3. Accounting, Finance, and Taxes

Start-up or turnkey cost (.itemized)
Equity, or unencumbered cash
Collateral
Credit references
Loans: amounts, types, and conditions
Proforma income statement (profit and loss statement)
Proforma balance sheet
Ratio analysis
Provision for taxation
Projected cash flow
Working capital
Break-even analysis

4. Management

Personal expertise
Organizational structure
Personnel management (wage and salary administration)
Policies (general and departmental)
Inventory control

5. Legal Aspects

Contracts licenses and other legal documents
Business structure
Insurance: types and costs
Provision for business termination
Type: sole proprietorship, partnership, corporation, etc.
Conditions and terms: responsibilities, liabilities, and compensation of principals

6. Appendix

Working papers
Diagrams
Layouts
Resumes
Charts
Graphs
Others

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