Feasibility Study Sample for Small Business
Do you know how to write a feasibility study for a small business?
Businesses are established to meet demands without which they would not exist. The success of any business depends on the strength of its feasibility studies, hence our focus; how to write a feasibility report format.
But what is a feasibility report? It is simply a document carefully prepared that examines the viability of a business venture.
This document is prepared through the assessment of opportunities or problems faced by a business to chart a course of action that will fully take advantage of opportunities, and also solve any problems.
Feasibility report writing is carried out by experts in the field following a guiding principle that can be replicated across any field of business endeavor.
The process takes into account all the challenges faced by the business and draws several lines of possible actions intended at solving these problems.
GUIDE: COMPARING BUSINESS PLAN, FEASIBILITY STUDY AND BUSINESS PROPOSAL
Therefore, having an excellent knowledge of how to write a feasibility analysis is necessary.
Proper planning and assessment is a must for any business to succeed. In this post, I will be sharing with you a simple format on how to write a good feasibility report with a sample showing the major headings to be discussed when developing your feasibility report format for a new business.
No matter the level of your experience in that investment opportunity, a feasibility report should be prepare when starting a new business or aiming to expand an existing one.
The format of a feasibility report is prepared by the prospective business owner, although the service of writing a business plan can also be contracted to consultancy firms who would charge a fee for providing such service.
The core reason for learning how to make a feasibility study for business is to determine whether the investment would be viable or not so it is based on the outcome of the business plan that the investor will decide to accept or reject the project.
The entrepreneur will assess the capital requirement as will determine whether he has the financial capacity to launch such business and sustain it.
With this guide, you will understand how to prepare a financial project feasibility study template.
Purpose of A Feasibility Study
There are numerous advantages to developing a feasibility report. I will talk about a few reasons why you should learn how to make a feasibility study for a business.
A well-prepared sample project feasibility report will:
– assist in securing financial assistance such as loans from banks.
– aid decision making in the investment
– help investors make expansion and plan easily
– provide a platform for performance assessment in business
How to Prepare a Feasibility Report Example for Small Business
Here is how to write a feasibility study report write steps with suitable examples:
In writing a business feasibility report, the executive summary should come first. This should contain basic information that should include a summary of the information relating to the business that is to be considered.
In other words, it should capture the problems as well as opportunities under review. Also, any information needing the approval or disapproval of experts should be included. This is in addition to any problems or challenges that require additional analysis.
The Statement of the Problem (Opportunity)
This is after the problem must have been identified. This should be followed by carefully stating the problem.
However, the focus is not only on the problem as available opportunities are earlier identified should be included in the statement of the problem. This is a great way of writing a feasibility report with little or no difficulty.
This allows for a detailed analysis of these problems and opportunities to take advantage of the available opportunities while proffering solutions to the raised problems.
The Requirements of the Business
Here, insights from previous knowledge and research are drawn upon to give perspective to the problems and opportunities raised.
Also, policies and laws inhibiting the growth of the business are taken into account. To produce a good feasibility report, every possible detail should be included for analysis.
Every requirement of the business, both present and absent are carefully analyzed to develop an all-encompassing growth strategy that will guide the business to profitability and sustainable growth.
To achieve the best results, using a detailed approach that streamlines the entire process is important.
Work is reduced considerably, as experts can carefully examine the problems and opportunities presented by the business while developing the best response to them.
Analyzing Available Options
When writing a feasibility report, this part is very crucial and should be taken with all the seriousness it requires.
Every information gathered from the previous sections is fully analyzed here through a session of brainstorming to come up with improved products and services that will meet clients’ expectations and needs.
Also, It eliminates every unwanted structure found within the business that works against the progress of the business.
When writing a feasibility report, close attention is paid to this section. All the options are brought forward including the very good to the not-too-good. These are selected according to the impacts (helpful) on the business. The unwanted ones are discarded.
A good feasibility report includes a marketing plan. Under the marketing plan, all the strategies used should undergo scrutiny which is aimed at ensuring that those strategies with the least impact are fine-tuned or improved upon while those not making any meaningful impact are discarded.
Thus, all the marketing strategies being used should be included in the marketing plan.
Recommendation of Findings
After making carrying out a detailed analysis of the entire framework of the business, the entire process of the feasibility report boils down to proffering solutions to problems raised.
When writing this section, it is recommended that the solutions to the problems raised should be such that the needs of the clients are taken into consideration, while using cost-effective measures that do not reduce the profit margin of the business.
Writing a Conclusion
After the entire process of writing a feasibility report for a restaurant or any other business, a recommendation (which should contain the aim of the entire process) should be given providing the best way the problems faced by the business should be tackled. In the same vein, there should be a detailed process that explains how to take advantage of the opportunities presented by the business venture.
The conclusion should contain a summary of the entire feasibility report, as anyone reading this section should be able to have a general idea of what the report is all about.
EXAMPLES OF FEASIBILITY STUDY TEMPLATES FOR SMALL BUSINESSES
To learn how to write a formal feasibility study on the proposed business, here are the key items to consider: The nature of the investment, Management and organization, team, Economic and financial planning, and analysis, small business marketing plans and strategies.
- COFFEE SHOP
- TRAVEL AGENCY
- MANUFACTURING BUSINESS
In conclusion, when writing a good feasibility report, you should do well to cover these nine core areas:
2. Business Description of the business
3. Market Evaluation
4. Management And Production Team
5. Technical Requirements And Production Plan
6. Marketing Plans And Strategies
7. Evaluation of Risk And Challenges Evaluation
8. Financial Analysis And Economic Plans
9. Overall Assessment And Conclusion
This article has sought to guide how to write a feasibility report. Following the procedure provided here will certainly result in a well written out feasibility report.
A good feasibility report has the capacity of turning around the fortunes of business and redirecting it towards the path of profitability and growth.