CHAPTER 1 - Introduction to Feasibility Study

Summary

This video by Easy Feasib introduces students to the concept of a feasibility study, with a focus on its importance for evaluating business ideas. It covers key components such as product/service viability, competitive advantage, and target market. The video explains the five critical aspects of a feasibility study: marketing, technical, financial, management, and legal. Special emphasis is placed on the financial aspect, with Easy Feasib offering professional services to assist students in this area. The video encourages viewers to subscribe for more educational content and visit their website for support in conducting comprehensive feasibility studies.

Takeaways

• 😀 Easy Feasib aims to make feasibility studies affordable and accessible to college and graduate students.
• 😀 A feasibility study assesses whether a business idea is practical and profitable, answering if it's doable and if it will generate a profit.
• 😀 The two main objectives of a feasibility study are determining if the business idea is feasible and profitable.
• 😀 If a feasibility study forecasts a net loss over time, the business idea is deemed not feasible.
• 😀 Before starting a feasibility study, identify three key elements: the product/service, competitive advantage, and target market.
• 😀 The product/service should be possible to produce, and it can be an existing product with an improvement or innovation.
• 😀 A competitive advantage sets your product/service apart from competitors, whether through unique features, pricing, or promotion.
• 😀 The target market refers to the specific group of consumers or businesses the product/service aims to serve, with clear demographics or industry characteristics.
• 😀 The feasibility study includes five key aspects: marketing, technical, financial, management, and legal.
• 😀 The marketing aspect evaluates the demand and supply for your product in the market, while the technical aspect ensures the product can be produced with available resources.
• 😀 The financial aspect projects the financial performance of the business, and Easy Feasib provides professional help in this area for students.
• 😀 The management aspect outlines the business's organizational structure and employee compensation, while the legal aspect covers necessary legal requirements, such as permits and registrations.
• 😀 The best approach for a feasibility study is to address the aspects in the following order: marketing, technical, financial, management, and legal.

Q & A

What is the main goal of Easy Feasib as introduced in the video?

Easy Feasib's main goal is to provide affordable financial feasibility study services to college and graduate students, helping them understand and conduct feasibility studies for business ideas.

How does Easy Feasib aim to support students in understanding feasibility studies?

Easy Feasib aims to support students by publishing educational videos that explain the concept of a feasibility study, its purpose, and the steps involved, making it accessible for students who may not know what a feasibility study is.

What are the two key questions that a feasibility study answers for a business?

A feasibility study answers two key questions for a business: 1) Is the business doable or possible? 2) Is the business profitable?

What happens if a feasibility study predicts a net loss for a business?

If a feasibility study predicts a net loss over time, the business idea is considered unfeasible and should be reconsidered or adjusted.

What are the three essential raw materials to establish before conducting a feasibility study?

The three essential raw materials are: 1) Product or Service, 2) Competitive Advantage, and 3) Target Market.

Why is identifying a competitive advantage important in a feasibility study?

Identifying a competitive advantage is important because it sets your product or service apart from competitors in the eyes of consumers. This can include factors like product features, pricing, or promotional strategies.

How should a target market be defined in a feasibility study?

A target market should be defined specifically, considering factors such as age, gender, location for individuals, or business-specific characteristics like industry, size, and needs for businesses.

What are the five aspects of a feasibility study discussed in the video?

The five aspects of a feasibility study are: 1) Marketing Aspect, 2) Technical Aspect, 3) Financial Aspect, 4) Management Aspect, and 5) Legal Aspect.

What is the purpose of the marketing aspect in a feasibility study?

The marketing aspect examines whether there is sufficient demand and supply for the product or service in the market. It helps determine if the business idea is viable from a market perspective.

How does the technical aspect contribute to the feasibility study?

The technical aspect assesses whether the product or service can be produced with the available resources and infrastructure, ensuring the feasibility of production and delivery.

What role does Easy Feasib play in the financial aspect of a feasibility study?

Easy Feasib, with its team of certified public accountants, provides professional assistance in the financial aspect of a feasibility study, helping students with the technicalities of projecting the financial performance of a business.

Why are the management and legal aspects considered the least important in a feasibility study?

The management and legal aspects are considered less critical because they mainly rely on the outcomes of the earlier aspects—marketing, technical, and financial. These aspects focus on organizational structure, legal requirements, and compliance, but don't directly impact the feasibility of the business idea.

In what order should a student approach the aspects of a feasibility study?

A student should approach the aspects of a feasibility study in the following chronological order: 1) Marketing Aspect, 2) Technical Aspect, 3) Financial Aspect, 4) Management Aspect, and 5) Legal Aspect.