Objectives
Feasibility
Analysis
What?
How?
Why?
When?
What is Feasibility Analysis (FA)?
… is the process of determining whether a business idea
is viable (capable of working successfully)
… preliminary evaluation of a business idea, conducted
for the purpose of determining whether the idea is worth
pursuing
Why conduct Feasibility Analysis (FA)?
To screen ideas before a lot of resources are spent on
them
Allows ample opportunity for the idea to be revised
When to conduct Feasibility Analysis (FA)?
… early in thinking through the prospects for a new
business
Types of Feasibility Analysis (FA)?
Feasibility Analysis
Product/ Service
Desirability Demand
Industry/ Target Market
Industry
Attractiveness
Target Market
Attractiveness
Product/ Service Feasibility Analysis
… assessment of the overall
appeal of the product or service
being proposed
… be sure that the product or
service is what prospective
customers want
Avoiding “shiok sendiri product/
services”
• Does it make sense?
• Is it reasonable?
• Is it something consumers will get
excited about?
• Does it take advantage of an
environmental trend, solve a
problem(s), or take advantage of a
gap in the marketplace?
• Is this the right time to introduce the
product or service to the market?
Product/Service Desirability
1.
Ask the
questions to
determine the
basic appeal of
the product or
service
… a one page description of a business,
that is distributed to people who are asked
to provide feedback(s) on the potential of
the business idea.
• Product/ Service – features, sketches
• Target Market – consumers, businesses
• Benefits – how it adds value or solve
problem
• Position – relative to competitor(s)
• Management Team
Product/Service Desirability
2.
Develop a
Concept
Statement
Example:
New Venture
Fitness Drinkʼs
Concept
Statement
Show the concept statement to at least 10
experts
Conduct a short survey:
• List 3 things you like about the product/
service idea described in this statement?
• Provide 3 suggestions for making the idea
better?
• Do you think the idea is feasible?
• Provide any additional comments or
suggestions you think might be helpful?
Product/Service Desirability
3.
Administer a
Concept Test
Determine if there is demand for the
product/ service
One of the most effective things an
entrepreneur can do to identify
demand is to hit the streets and talk
to potential customers
Product/Service Demand
… an instrument that is used to gauge
customer interest in a product or service.
Consists of a concept statement or a
similar description of a product with a
short survey attached to 20 – 30
potential customers.
Where?
Contact trade associations
Attend industry trade shows
Product/Service Demand
Buying
Intentions
Survey
Product/ Service Demand: Buying Intention Survey
Industry/ Target Market Feasibility Analysis
… assessment of the overall
appeal of the industry and the target
market for the proposed business.
• Industry: a group of firms
producing a similar product or
service.
• Target market: the limited portion
of the industry it plans to go after.
Industry
Target
Market
Attractive
Attractive Industry
Target Market (Startup)
Total Available
Market
(TAM)
Serviceable
Available
Market (SAM)
Serviceable
Obtainable
Market
(SOM)
Target Market
How big is the industry?
How many can I reach with my sales
channel?
Who will be the most likely buyers?
Total Available Market (TAM): Halal Industry
USD9.71 Trillion (2025)
Serviceable Available Target Market
Market (SAM)
How to Conduct Feasibility Analysis (FA)?
Feasibility Analysis
Primary Research Secondary Research
Data from industry experts, feedback from
prospective customers, focus groups and surveys
Data from industry studies, census bureau data,
analyst forecast, library & Internet research
First Screen: template for primary research Internet Resource Table: template for
secondary research