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
Nutrient Capsule
B. Name of the founder (or founders)
Mr. Jonas Martin
C. One paragraph summary of the business
Nutrient capsule is the product that helps the body be satisfied faster and reduce
appetite. So it will suit with the people who want to lose their weight.

Part 1: Product/Service Feasibility

Issues Addressed in This Part
A. Product/service desirability
B. Product/service demand

Assessment Tools
Concept Statement Test

Write a concept statement for your product/service idea. Show the concept statement
to 5 to 10 people. Select people who will give you informed and candid feedback.
Attached a blank sheet to the concept statement, and ask the people who read the
statement to (1) tell you three things they like about your product/service idea, (2)
provide three suggestions for making it better, (3) tell you whether they think the
product or service idea is feasible (or will be successful), and (4) share any additional
comments or suggestions.
Summarize the information you obtain from the concept statement into the following
three categories:

* Strengths of the product or service ideathings people who evaluated your

product or service concept said they liked about the idea
* Suggestions for strengthening the ideasuggestions made by people for
strengthening or improving the idea
* Overall feasibility of the product or service conceptreport the number of
people who thing the idea is feasible, the number of people who think it isnt
feasible, and any additional comments that were made
* Other comments and suggestions

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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 almost
always 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?
__0____ Definitely would buy
___3___ Probably would buy
__1____ Might or might not buy
____8_ Probably would not buy
_____1_ Definitely would not buy
Additional questions may be added to the buying intentions survey.

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Product/service desirability
Our founder think that it is reasonable to make this product even this kind of
product is have a lot of competitors but we know for sure that if we put a lot of
effort and dedicated about it so we can achieve the goal. We know that it is not a
new kind of thing but as we said from the beginning, we will make the customer
excited about it by advertisement or the design of the container which is not the
same as another brand. Right now people are more interested in taking care their
health so we think that this is the right time to starting this kind of business and we
sure that our product can fill a gap in the marketplace. Because it is the first time
so there will have some flaws in the product but we will try our best to improve
and provide the best product for our customer.
B. Product/service demand
According to the survey, it can be seen that about 67% of the people decided to
choose probably would not buy and about 25% choose probably would buy. In
conclusion, it seem like our product is not attractive to the customer because
nowadays, in Thailand has a lot of company who making weight loss pills so it

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 seem like our product isnt different from another company.
C. Product/service feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving product/service feasibility.
We have to find something that makes our product has more reliability and different
from the other brand such as find more ingredients that can make the body burn more
calories and it safe. Also maybe have a promotion to guarantee that our product is
efficiency such as if in one month after the customer buys our product and their weight
doesnt decrease at least 2 kg., we will turn money back to them.

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 Many Few None
2. Age of industry Old Middle aged Young
3. Growth rate of industry Little or no Moderate growth Strong
growth growth
4. Average net income for Low Medium High
firms in the industry
5. Degree of industry Concentrated Neither concentrated Fragmented
concentration nor fragmented

6. Stage of industry life Maturity phase Growth phase Emergence

cycle or decline phase phase
7. Importance of industrys Ambivalent Would like to have Must
products and/or services have
to customers
8. Extent to which business Low Medium High

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 and environmental
trends are moving in
favor of the industry
9. Number of exciting new Low Medium High
product and services
emerging from the
industry
10. Long-term prospects Weak Neutral 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 Many Few None
in target market
2. Growth rate of firms in Little to no Slow growth Rapid growth
the target market growth
3. Average net income for Low Medium High
firms in the target
market

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 Low Potential Moderate Potential High Potential
4. Methods for generating Unclear Somewhat clear Clear
revenue in the industry
5. Ability to create barriers Unable to May or may not be Can create
to entry for potential create able to create
competitors
6. Degree to which Satisfied Neither satisfied or Unsatisfied
customers feel satisfied by dissatisfied
the current offerings in the
target market
7. Potential to employ low Low Moderate High
cost guerrilla and/or buzz
marketing techniques to
promote the firms product
or services
8. Excitement surrounding Low Medium High
new product/service
offerings in the target
market

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 are Customers are in a Customers are
customers not in a buying moderate buying in an aggressive
mood mood buying mood
2. Momentum of the market Stable to losing Slowly gaining Rapidly gaining
momentum momentum momentum
3. Need for a new firm in the Low Moderate High
market with your offerings
or geographic location
4. Extent to which business Low Medium High
and environmental trends
are moving in favor of the
target market
5. Recent or planned Large firms Rumors that large No larger firms
entrance of large firms entering the firms may be entered the
into the market market entering the market market or are
rumored to be
entering the
market
Conclusion (expand fields and report findings, in discussion form, for each area)

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A. Industry attractiveness
Overall, it can be seen that my company is not attractive as much because we have
a lot of competitors also our product is not have a lot of difference from another
brand. Its very hard for us to drive our company to compete with another
company. We should find the way that can make our capsule be more different and
unique to beat another brand.
B. Target market attractiveness
I think our product have more attractiveness than another brand. Most of Thai
people, before they want to buy something they will focus about the design of the
product and also from the advertisement especially if in the advertisement has the
famous celebrity or actor, it can get more attention to the customer. Even our
product is not different from another competitors but our product is good looking
which is designed by the famous product designer also we choose the famous actor
to be our brand ambassador.
C. Market timeliness
Even this is not the right time for moving our business but according to my
research from Thai Marketing website, they predict that in the future the kind of
company which is produce the nutrient capsule or lose weight pills, the profit will
be increase significantly in about 1 to 2 years from now. With this reason, we are
confident that our company will get a lot of profit in the future because our
product is the combination of nutrient capsule and lose weight pill. Nowadays, as
we can see from the social network, people are interesting in fitness and like to
take care their shape or body so they will find some product to help their body be
fit and healthy.
D. Industry/market feasibility (circle the correct response
Not Feasible Unsure Feasible
E. Suggestions for improving industry/market feasibility.
To improving our product, we should add up the ingredient to our capsule or
change the form of our product from capsule to be jelly to make more difference
and get more attention from the customer. We also make a promotion because it is
also the important thing to get an attention from the customer.

Part 3: Organizational Feasibility

Issues Addressed in This Part
A. Management prowess
B. Resource sufficiency

Assessment Tools
Management Prowess
Use the following table to 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 Low Moderate High
idea

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2. Relevant industry None Moderate Extensive
experience
3. Prior entrepreneurial None Moderate Extensive
experience
4. Depth of professional Weak Moderate Strong
and social networks
5. Creativity among Low Moderate High
management team
members
6. Experience and expertise None Moderate High
in cash flow
management
7. College graduate No college Some college Graduated or
education education but not are currently
currently in college 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 2 3 4 5 Office space
1 2 3 4 5 Lab space, manufacturing space, or space to launch a
service business
1 2 3 4 5 Contract manufacturers or outsource providers
1 2 3 4 5 Key management employees (now and in the future)
1 2 3 4 5 Key support personnel (now and in the future)

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 1 2 3 4 5 Key equipment needed to operate the business
(computers, machinery, delivery vehicles)
1 2 3 4 5 Ability to obtain intellectual property protection on key
aspects of the business
1 2 3 4 5 Support of local and state government if applicable for
business launch
1 2 3 4 5 Ability to form favorable business partnerships
Ratings: Strong, Neutral,
or Weak
Neutral Proximity to similar firms (for the purpose of knowledge
sharing)
Strong Proximity to suppliers
Strong Proximity to customers
Strong Proximity to a major research university (if applicable)

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Management prowess
In our business, we have such a good management team they are all graduated
from university and also have a lot of experience in 2 sides about making the
business and experiment the pills. Our founder believe that teamwork is the most
important thing that make the successful company, we will always make sure that
in every department of our company they are work as a team and have
responsibility. Before we choose employees to attend the company, we will make
sure that they are really passion about it and they are faithful to the company.
B. Resource sufficiency
We are confident that our company is ready for making the money because we
have already provide the equipment and they are all new and good qualities to
provide the best product for the customer. The amount of the resources are
sufficient to making the product and we bought them for the low price because our
company have an alliance that also doing the drug company.
C. Organizational feasibility (circle the correct response)
Not Feasible Unsure Feasible

D. Suggestions for improving organizational feasibility

It is a good thing if we provide an evaluation form to the worker every 2 months
so they can evaluate their own ability and also other worker so we can know that
how were going to improve our management. Also we will have a meeting to

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 exchange each others opinion from every department to develop our company and
to make sure that we go to the same direction.

Part 4: Financial Feasibility

Issues Addressed in This Part
A. Total startup cash needed
B. Financial performance of similar businesses
C. Overall financial attractiveness of the proposed venture

Assessment Tools
Total Start-Up Cash Needed
The startup costs (which include capital investments and operating expenses) should
include all the costs necessary for the business to make its first sale. New firms
typically need money for a host of purposes, including the hiring of personnel, office
or manufacturing space, equipment, training, research and development, marketing,
and the initial product rollout.

At the feasibility analysis stage, it is not necessary for the number to be exact.
However, the number should be fairly accurate to give an entrepreneur an idea of the
dollar amount that will be needed to launch the firm. After the approximate dollar
amount is known, the entrepreneur should determine specifically where the money
will come from to cover the startup costs.

The total startup cash needed can be estimate using the following table.

Total Startup Cash Needed (to Make First Sale)

Capital Investments Amount

Property 800,000 Baht

Furniture and fixtures 47,000 Baht

Computer equipment 55,000 Baht

Other equipment 180,000 Baht

Vehicles 800,000 Baht

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Operating Expenses Amount

Legal, accounting, and professional services 4,500 Baht

Advertising and promotions 250,000 Baht

Deposits for utilities 50,000 Baht

Licenses and permits 15,000 Baht

Prepaid insurance 35,000 Baht

Lease payments -

Salary and wages 550,000 Baht

Payroll taxes 20,000 Baht

Travel -

Signs 10,000 Baht

Tools and supplies 600,000 Baht

Starting inventory 350,000 Baht

Cash (working capital) 300,000 Baht

Other expense 1 -

Other expense 2 -

Total Startup Cash Needed = 4,066,500 Baht

Comparison of the Financial Performance of Proposed Venture to Similar Firms

Use the following tables to compare the proposed new venture to similar firms in
regard to annual sales (Year 1 and Year 2) and profitability (Year 1 and Year 2).

Comparison of the Financial Performance of Proposed Venture to Similar Firms

Assessment Tool

Annual Sales

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Estimate of Proposed Ventures Explanation of How the Estimate

Annual SalesYear 1 Was Computed

We predict that we can sell 50 packs

per day, each packs cost 540 Baht per
one. 70 x 540 = 32,400 Baht per day.
In one year will cost 32,400 x 365 =
11,826,000 Baht.

Estimate of Year 1 Sales ___11,826,000 Baht__

Summary: How proposed annual sales, on

average, compares to similar firms (circle one)

Similar firms get approximately 40,000,000 Baht

Below Average Average Above Average

Estimate of Year 2 Sales ____27,594,000______

Summary: How proposed annual sales, on

average, compares to similar firms (circle one)

Below Average Average Above Average

Net Income

Estimate of Proposed Ventures Explanation of How the Estimate

Net IncomeYear 1 was Computed

Estimate of Year 1 Net Income __4,088,000B._ Cost to make 1 pack of capsule: 380
Baht
Summary: How proposed net income, on
average, compares to similar firms (circle one) Profit per 1 pack: 540 450 = 160
Baht
Same company get around 15,000,000 Baht

Below Average Average Above Average

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Estimate of Year 2 Net Income _8,176,000 B.__

Summary: How proposed net income, on

average, compares to similar firms (circle one)

Below Average Average Above Average

Overall Financial Attractiveness of the Proposed Venture

The following factors are important in regard to the overall financial attractiveness of
the proposed business.

Assess the strength of each factor in the following table.

Overall Financial Attractiveness of Proposed Venture Assessment Tool

Low Potential Moderate Potential High Potential
1. Steady and rapid growth in Unlikely Moderately likely Highly likely
sales during the first one to
three years in a clearly
defined target market
2. High percentage of Low Moderate Strong
recurring income
meaning that once you win
a client, the client will
provide recurring sources
of revenue
3. Ability to forecast income Weak Moderate Strong
and expenses with a
reasonable degree of
certainty
4. Likelihood that internally Unlikely Moderately likely Highly likely
generated funds will be
available within two years
to finance growth
5. Availability of exit Unlikely to be May be available Likely to be
opportunity for investor if unavailable available
applicable

Conclusion (report finding for each area)

A. Total startup cash needed
4,066,500 Baht
B. Financial performance of similar businesses
According to our prediction, it can be seen that we are able to increase the income by
using advertisement and promotion. As you can see that in one year later after we
first sell our product, the income rise sharply more than a half, so our financial

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 performance are recovered quiet well so we think that in the future we can beat our
competitor easily.
C. Financial feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving financial feasibility
Even we sure that we can beat our competitor but we should always be aware of
another company because it always have a new face company every time. Also be
prepare about some economic crisis that can affect our company.

Overall Feasibility: Summary and Conclusion

Overall Feasibility of the Suggestions for Improving
Business Idea Based on the Feasibility
Each Part
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

In conclusion, Nutrient Capsule is the product which is the combination between

nutrient capsule that help to maintain the health and weight lose pills. The founder and
workers put a lot of effort to this product even it is not a new kind of thing we choose
advertisement and promotion to make the customer feel excited about our brand.
Nowadays, people like to take care their health and control their weight so we think that
this is the right time for our company to provide this kind of product.

According to the survey, most of the people decided to choose probably would not
buy and about 25% choose probably would buy so it seem like our product is not that
attractive. Its very hard for us to drive our company because we have a lot of
competitors. Most of Thai people, before they want to buy something they will focus
about the design of the product and also from the advertisement especially if in the
advertisement has the famous celebrity or actor. Because of this, we can fight against
another brand by using this trick. In the present, as we can see from the social network,
people are interesting in fitness and like to take care their shape or body so they will find

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some product to help their body be fit and healthy so we know for sure that in the future
the circulation of our company will rise rapidly.

In our business, we have such a good management team they are all graduated from
university, have a lot of experience and work as a great team so we are confident that the
management of the company will work efficiency. In our company, we always make sure
that he amount of the resources are sufficient to making the product. The total startup
cash of the company is 4,066,500 Baht which is quiet high because we try to provide the
good quality product by use the good quality machine. In our opinion, in the future we
can beat our competitor easily because we predict the amount of the net income and
annual sales, the result come out that we are nearly to compete another company. The
important thing is we should always aware about the future because we dont know what
the economic is going to be, it always fluctuated.

Reference Page

http://marketeer.co.th/archives/86244
http://www.siamturakij.com/main/news_content.php?nt=3&nid=114
http://www.coachtawatchai.org/2013/06/blog-post_28.html
http://www.hiso.or.th/hiso/picture/reportHealth/ThaiHealth2014/thai2014_11.pdf

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