Every company, before it can define its mission and purpose, needs to create a feasibility plan. It is the starting point for launching a business.
A feasibility plan should be understood as the document that lays out the entire business project, from the initial idea through to the steps you will take to make it real.
It also works as a calling card for presenting the project formally and in writing to banks, administrators, potential investors and others. In short, it is a complete study that tells you whether your venture is economically and commercially possible or not.
How to write a business feasibility plan
Having a feasibility plan helps you find a path for developing the project, with realistic and sustainable business growth.
It can be used internally as well as externally, helping you secure funding from investors and financial institutions.
To put together a feasibility plan, you need to take into account a series of aspects that are essential if you want a successful result.
Executive summary
This is a document that summarizes the feasibility plan, highlighting its most important points. It also forms part of the business plan.
One advantage of this section is that it gives you a general overview of the plan for internal use or for presenting to third parties. It is usually written last, once the other sections of the document have been completed.
Project presentation
This is one of the most important parts of the plan, since you need to pay special attention to how clearly the technical and financial terms are expressed so that your investors can understand every detail.
The methodology of your feasibility plan, along with knowing how to convey the business opportunities to your investors, is the main goal of this section. You need to show how you will overcome the obstacles that may come up and how you will finance them.
A good presentation, following these guidelines, increases your chances of securing funding for your business.
Market research
This is the study carried out before the business opens. One of the areas to pay close attention to is the type of business, because having this clearly defined will reveal the specific market your company will serve.
Depending on the case, you will also study what competitors offer, foot traffic in the area where the business will be located, the sales approach and other aspects.
Sales and marketing strategy
Once the market research shows that your business is viable, you need to identify the most effective strategies you will use to reach your business goals.
Since you are new to the market, you have to invest in the best strategies to convince consumers to buy from you instead of the competition. In other words, this means investing in marketing to reach your target audience and boost your first sales.
Staffing and production capacity
It is important to define the number of employees the company needs, as well as the level of education and specialization required for each role.
You should also determine the technical resources the company needs to operate at its best and maintain stable production.
Economic and financial feasibility plan
At this point you need to specify the financial resources the company has available, as well as determine the volume of sales you will make each month.
You should also look at what can be improved over time and evaluate the possibility of applying for a loan to get the company’s activity started.
SWOT analysis
Finally, you need to use a SWOT analysis to understand the strengths, weaknesses, opportunities and threats of your business, so you can anticipate any setbacks that may arise and focus your resources on solving them.
Knowing these four aspects well will also help you gain an edge over your competitors and make the adjustments needed to move forward with confidence as you develop your business and avoid mistakes down the road.
