1. Margaret Horne, MBA, AVA
Gannon University Small Business
Development Center

2. What is a Feasibility Study
 An analysis of the viability of an idea
through a disciplined and documented
process.
 Helps answer “Should we proceed with
the proposed project idea? Is it a viable
business venture?”

3. Why do a feasibility study
 Analyzes all issues and assesses probability of success
 Gives focus to the project
 Identifies reasons NOT to proceed
 Identifies factors that could affect the project
 Provides quality information for decision making
 To secure funding

4. What Defines Feasibility
 A feasible venture
 will identify market demand/need/existence
 will remain viable in the long-term
 will meet the goals of the stakeholders

5. Levels of Feasibility Assessment
 Three levels
 Market Feasibility
 “Who will use it? What is the market size?”
 Operational Feasibility
 “Who will manage? What structure is needed for
long-term viability?”
 Economic Feasibility
 “Can it be self-sustaining in a reasonable amount of
time? Will it generate adequate cash flow?”

6. Elements of a Feasibility Study
 Executive Summary
 Project Description
 Premise
 Target Market Demographics
 Methodology
 Surveys, focus groups, research
 Conclusion - Findings and Recommendations

7. Premise
 Desire/Goal of Study
 Establish a shared use kitchen
 Establish a multi-use kitchen incubator
 Establish a dairy product processing kitchen

8. TARGET MARKET DEMOGRAPHICS

9. Suppliers/Distributors/End Users
 Food producers
 Food distributors
 Restaurants
 Grocery stores
 Specialty food stores
 Caterers

10. Methodology
PRIMARY
DATA
Focus
Interviews Surveys
Groups
SECONDARY
DATA
Industry & Industry Government
Trade Association Agency
Publications Statistics Reports

12. Findings & Recommendations
 Does the data and research support the project?
 What issues need to be addressed before launch?

14. What is a Business Plan?
 Summarizes the plan of action
 Provides operational guidelines
 Outlines the actions needed to take the project from
idea to reality
 Provides a road map for strategic planning

15. Why Write a Plan?
 Create a Blueprint for Action
 Focus Management Team
 Obtain Financing
 Attract Investment
 Attract Key Stakeholders

16. Management/Operational Plan
 Suggested Requirements
 Governance
 Non-profit
 Separate entity?
 Board of Directors/Advisory Board
 General Operations
 Director/Manager
 Board responsibilities
 Organizational Structure

17. RFV BOARD OF
DIRECTORS
MUNNELL RUN
FARM
Marketing Policy/Personnel Business Penn Soil Client Advisory
Committee Committee Consultant RC&D Rep Committee
RFV Director
RFV Kitchen
Manager
RFV Clients

18.  Building/Land/Equipment
 Rent/Build/Purchase
 Multi-use/Dairy
 Services Provided
 Incubator
 Shared Use Kitchen

19.  Pricing
 Per hour, equipment used, seasonal
 Market based if incubator
 Scheduling
 Director/manager responsibility
 Staffing
 Facility Design
 Equipment Needs Assessment
 Layout of Kitchen

21.  Marketing
 Target markets
 Tenants
 Non-tenant users
 Suppliers/Distributors/End Users
 Economic Development Agencies
 Legislators
 Community at large
 Intake Process/Tenant
Management/Graduation/Non-tenant
Management

22.  Startup Costs
 Capital expenditures
 Wages/salaries
 Infrastructure development or improvements
 Advertising and Promotion
 Legal Fees
 Municipal & State Development taxes
 Financial Projections
 Fixed costs
 Variable based on best/worst case scenario
 Self-sustaining in reasonable period of time
 Funding

24. Margaret Horne, MBA, AVA
Gannon University Small Business
Development Center