Ravisara Karnjanolarn (Preme)

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
Organizational Laptop Sleeve
B. Name of the founder (or founders)
Ravisara Karnjanolarn and the Company
C. One paragraph summary of the business
The company product is a laptop sleeve which offers a special feature of a folder
and a detachable organizer inside the sleeve. The sleeve has an extra space inside;
so, the customers will be able to use the extra space provided to store their
belongings. This product is created mainly in purpose to facilitate the customer to
have an easier life.

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 think the idea is feasible, the number of people who think it isnt
feasible, and any additional comments that were made

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Ravisara Karnjanolarn (Preme)

* Other comments and suggestions

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?
___1___ Definitely would buy
___0___ Probably would buy
___6___ Might or might not buy
___5___ Probably would not buy
___0___ 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
The product serves as both sleeves that are protective to your laptop and also an
organizer that help you organize your belongings. And as the existing laptop sleeve
doesnt provide the organizer part for the customers, our product is a helpful
alternative that will help the customers to have an easier life.
B. Product/service demand
Based on the survey conducted, the results show that the majority of Thai people
tend to interest in the idea of laptop sleeve as the product can help the customers
organize their belongings and make their life much more easy and convenient.
C. Product/service feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving product/service feasibility.
The organizer part could offer more alternative choices for the customer to choose
whether what function they want the most. For example, it should also be a pocket
where a customer can put everything together if they prefer.

Part 2: Industry/Market Feasibility

Issues Addressed in This Part
A. Industry attractiveness

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Ravisara Karnjanolarn (Preme)

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 Fragmented
concentration concentrated nor
fragmented

6. Stage of industry life Maturity Growth phase Emergence

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

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Ravisara Karnjanolarn (Preme)

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
4. Methods for generating Unclear Somewhat clear Clear
revenue in the industry
5. Ability to create Unable to May or may not be Can create
barriers to entry for create able to create
potential 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

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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)
A. Industry attractiveness
Based on the research I have found, the laptop sleeve is considered as a product
that is not highly dependable on a cost of a material, it rather depends on the
functions given, appearance, and the branding. Moreover, research reveals that the
main target of laptop sleeves company is young people rather than old people. The
potential customers include the young people range are mainly students,
collegians, and office workers (mainly a person who need laptop every day).
B. Target market attractiveness
Regarding the laptop sleeves target market, most of our potential customers are
normally carrying their laptop every day. In comparison, the existing products we
see are not offering a function of an organizer all in one. So, the product we offer
will efficiently attract the customers interest.
C. Market timeliness
Opportunities to which the business can be extended are open. Laptop sleeves can
be developed further regarding their functions, designs, and their materials used:
the materials manufactured can be recycled from wastes also. However, another
important factor that the company should consider is that laptop sleeve is not a
need for every people; so, a small group of potential customers can lead to a lesser
opportunity in the market.
D. Industry/market feasibility (circle the correct response)
Not Feasible Unsure Feasible
E. Suggestions for improving industry/market feasibility.
The design of the product should be fashionable and trendy, suiting different
lifestyle people in the target market.

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.

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Management Prowess Assessment Tool

Low Potential Moderate Potential High Potential
1. Passion for the business Low Moderate High
idea
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)
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

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Ravisara Karnjanolarn (Preme)

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
Weak Proximity to similar firms (for the purpose of knowledge
sharing)
Strong Proximity to suppliers
Neutral Proximity to customers
Weak Proximity to a major research university (if applicable)

Conclusion (expand fields and report findings, in discussion form, for each area)
A. Management prowess
Based on the evaluation of the founder in the table above, the potential of the
founder may not be successful in leading the start-up business. However, the
founder is full of strong desires to make the company succeed; so, the
organizational feasibility, for now, is considered as moderate.
B. Resource sufficiency
There are plenty of resources that our company can use for manufacturing the
products. Our company is finding material resources that can be further developed
for a sustainable idea laptop sleeve, seeking for ideas that make our companys
laptop sleeve outstanding from other existing products.
C. Organizational feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving organizational feasibility
Expand the company branches, more approaching and direct toward the target
market areas.

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

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Ravisara Karnjanolarn (Preme)

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 estimated using the following table.

Total Startup Cash Needed (to Make First Sale)

Capital Investments Amount

Property 1,000,000

Furniture and fixtures 200,000

Computer equipment 250,000

Other equipment 100,000

Vehicles 200,000

Operating Expenses Amount

Legal, accounting, and professional services 2,000,000

Advertising and promotions 800,000

Deposits for utilities 10,000

Licenses and permits -

Prepaid insurance 200,000

Lease payments -

Salary and wages 400,000

Payroll taxes -

Travel 10,000

Signs 5,000

Tools and supplies 1,000,000

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Ravisara Karnjanolarn (Preme)

Starting inventory 30,000

Cash (working capital) 5,000,000

Other expense 1

Other expense 2

Total Startup Cash Needed = 11,205,000

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

Estimate of Proposed Ventures Explanation of How the Estimate

Annual SalesYear 1 Was Computed
Estimate of Year 1 Sales ___252,000 Baht___ 35 Laptop sleeves per month

Summary: How proposed annual sales, on 35*12 = 420 sleeves per year
average, compares to similar firms (circle one)
420*600 = 252,000 Baht
Below Average Average Above Average
Estimate of Year 2 Sales ___216,000 Baht___ 30 Laptop sleeves per month

Summary: How proposed annual sales, on 30*12 = 360 sleeves per year
average, compares to similar firms (circle one)
360*600 = 216,000 Baht
Below Average Average Above Average

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Ravisara Karnjanolarn (Preme)

Net Income

Estimate of Proposed Ventures Explanation of How the Estimate

Net IncomeYear 1 was Computed
Estimate of Year 1 Net Income: 84,000 Baht Cost of a laptop sleeve: 400 Baht

Summary: How proposed net income, on Sales price: 600 Baht

average, compares to similar firms (circle one)
600 400 = 200 Baht per piece
Below Average Average Above Average
420*200 = 84,000 Baht
Estimate of Year 2 Net Income: 72,000 Baht Cost of a laptop sleeve: 400 Baht

Summary: How proposed net income, on Sales price: 600 Baht

average, compares to similar firms (circle one)
600 400 = 200 Baht per piece
Below Average Average Above Average
360*200 = 72,000 Baht

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 incomemeaning
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

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Ravisara Karnjanolarn (Preme)

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
A total cash needed for starting a company is approximately 12,000,000. High
startup cost needed mainly comes from cash, tools and supplies, property, and
professional services. Cash, tools and supplies, and property are the basis in
starting up a company while professional services are essential for a new company
as we have no experiences in operating work in these fields before.
B. Financial performance of similar businesses
Regarding similar business in manufacturing the laptop sleeves, the companies in
nowadays market tend to put money in designing the product and advertising their
brand. Nonetheless, it depends on each company goals in launching the products:
some laptop sleeves are designed uniquely to attract young users while some
companies are focusing on the functionalities of the product more that its
appearance.
C. Financial feasibility (circle the correct response)
Not Feasible Unsure Feasible
D. Suggestions for improving financial feasibility
For a sustainable money management of the company, a company must look
outstanding in order to attract the investors.

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 Based on the buying

Organizational Feasibility
Unsure intentions survey, people
Feasible tend to interest in our
product. However, we need
to ensure these potential
customers of ours about
our products selling point
to make customers sure
about buying the product.
Not feasible
Unsure
Feasible

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Financial Feasibility Not feasible There is a chance that the

Unsure cost of the production will
Feasible exceed than what we
expected. So, we should
have a stored up account in
case of an emergency.

Overall Assessment Not feasible There are still some risks

Unsure that the company should
Feasible fill those gaps out.

Conclusionbriefly summarize your justification for your overall assessment.

Overall, the company is likely to succeed if everything goes as what we predicted
and expected. However, there are some risks that can destroy those opportunities. In term
of maintaining the company on track, we need to be confident about the number of sales
per month that cant be any less that average and we should emphasize on our products
functionalities to show the differences between our products and others. Especially, our
company needs to expand the product in the market to compete with a strong brand that
has high brand loyalty.

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