A feasibility analysis, or feasibility report, evaluates and documents whether or not you are actually able to make something you want to make. Basically, you need to prove to yourself and potential investors or other stakeholders, that you can really do it.
It is common for feasibility reports to have sections for organizational feasibility, market feasibility (desirability), technical feasibility, and financial feasibility (viability).
Read Conducting a Feasibility Analysis from the Entrepreneurship textbook
Read Developing Startup Financial Statements and Projections from the Entrepreneurship textbook
Read How To Write Feasibility Studies (With Tips and Examples)
Watch Crash Course Business Entrepreneurship:
How to Sell Anything (11:03)
Revenue Streams (10:47)
You can get useful demographics & social statistics information from Wolfram Alpha
You can get trend information from Google Trends
You can get useful industry information from IBIS World
Basic Physical Product Example (custom charcuterie boards)
This organizational feasibility report evaluates the practicality of ____________. It examines the management prowess and resource sufficiency for this endeavor.
Expertise and Skills:
Describe your passion for creating what you aim to create. If you are not passionate about the idea, pivot!
List the skills necessary to create what you aim to create (like industry expertise, educational background, and professional experience) and describe how you possess them (Bird-in-Hand). Be honest!
If you don't possess the necessary expertise and skills, identify who else is on your team, what their role is, and describe how they possess them (Crazy Quilt).
Identify what you will need to use to make what you want to make (like work space, labor, equipment) and assure that you have it (think Lucas Hall maker space, incubator, etc.).
If some of the things you will need to use will need to be replenished, describe how you will get more.
Put it all together and make your final case that it is feasible related to the organization.
This market feasibility report assesses the potential market for ____________ and whether there is a demand for this venture. It explores the target audience, competition, and potential market size.
Consumer Segment:
The primary target audience for (product name) is (customer segment).
Market Needs:
Use "customer jobs" from value proposition canvas.
Preferences:
Use the findings of your research, like survey results.
Existing Players:
Who else could be "hired" to do the "jobs". You can get useful industry information from IBIS World.
Competitive Advantage:
Why people would hire your product instead.
Market Size:
Size of customer segment based on research, like from Wolfram Alpha. If you have it, include information about market growth.
Marketing and Outreach:
How you're going to get the word out. See Digital Marketing and consider other opportunities.
Put it all together and make your final case that it is feasible related to desirability.
Honestly answer the question: "Is it possible to make the product with the available technology and resources?"
The content of this section could vary greatly depending on the product.
Equipment:
(include computer hardware)
Materials:
(what materials are needed to create your product or service)
(include computer software)
(consider transportation and shipping)
Manufacturing Process:
(the equipment works with the materials and can make the product)
Personnel:
(make the case that you have the time and ability to do it or have someone who can)
Equipment and Facilities:
(where you will make your product and what are the relevant facilities at the location)
(where you will sell your product, how it will get there, how it will get to buyers)
Materials / Supplies:
(prove that the required materials you identified earlier are available and you have access to them, in detail)
(make the case that you have the technical ability to do it or have someone who can)
Put it all together and make your final case that it is technically feasible.
This financial feasibility report evaluates the practicality of ____________. It examines the economic viability for this endeavor.
Startup Costs:
(List what you need to buy to get started with the cost and a link)
Total Startup Costs = $
Operating Expenses / Fixed Costs (Monthly):
(List what ongoing expenses you will have regardless of how many units you produce with the cost and a link)
Total Operating Expenses (per month) = $
Variable / Per Unit Costs
(List what expenses you will have for each unit you produce with the cost and a link)
Total Cost Per Unit: $
Selling price per unit: $
Contribution Margin
Selling price minus the variable cost per unit:
Breakeven Sales Volume
Monthly
Units that would need to be sold per month to breakeven on monthly expenses (total operating expenses / contribution margin) :
Total
Total additional units that would need to be sold to cover startup expenses (total startup costs / contribution margin):
Project how many units you will actually sell per month and provide evidence to justify your projection. Put it all together and make your final case that it is financially feasible / viable / sustainable.
You can use generative AI, like ChatGPT, to help you by asking you relevant questions, as long as you research answers and cite the service you use. Generative AI will not be able to write a meaningful feasibility report for you without knowing a lot about you.
Have another browser tab open to Google search for explanations of questions and to research answers.
Good prompts would be the following:
"You are going to interview me to perform an organizational feasibility analysis for a new entrepreneurial venture related to ___________________. Ask questions related to management prowess and resource sufficiency. Questions should be related to my passion for the business idea along with industry expertise, educational background, professional experience, non-financial resources, such as availability of office space quality of the labor pool, willingness of high-quality employees to join the company, and likelihood of forming favorable strategic partnerships. You will ask one question at a time and wait for my responses. Begin."
"Write the organizational feasibility section for a feasibility study, with a target audience of potential investors who need to be convinced that the idea can and should be developed, based on those responses, in first person point of view."
"Play the part of a critical potential investor. You are trying to determine the market feasibility of my new entrepreneurial venture. Ask me a series of questions related to defining competitors and quantifying target customers and/or users in the market within my chosen industry. Ask how I have analyzed the overall interest in the product or service and what evidence I have."