Assignment Description: A feasibility study is aboutdetermining whether there is a product or service even worth selling at any price, and at whatever cost of production.
Assignment Topic: A Mobile Car Detailing Business Providesa Car Cleaning Service to Customers at their Own Location (Home, Work, Etc).
Must Answer ALL Questions Below:
What exactly is the product or service? How will it beused?
Who are your prospective customers and users. Who is thetarget customer? Do they believe this product or service has merit? Wouldthey pay for it? How much? And, what changes, if any, would they recommend? Whatis the appropriate business model, given the type of customers anticipated?
Who and what are the suppliers, potential partners, andpossible funding sources? How will the product or service bepriced? How – or by whom – will the product or service bedeveloped and supplied? What is the cost structure likely to look like? Isthere an alternative use for the technology that the owner or inventors havenot yet thought about? What are the potential pitfalls in the technology,IP, product or design?
Create financial projections (not as detailed as a businessplan or bank loan application). Prepare some rough numbers based on whatyou estimate pricing and the cost structure to be. Research thecompetition to determine pricing levels in the industry. Can yourproduct or service match prevailing prices, and still show a profitablebusiness model? Rather than forecasting detailed overhead figures, use roughestimates of total office, personnel, and startup costs. Could that be amore profitable approach? Is the addressable market sufficiently large tosupport financial returns to outside investors (whether angels, VCs orcorporate partners)? What types of returns might be anticipated?
What is your analysis of possible funding approaches? Includea brief consideration of crowdfunding, and state whether it is appropriate forthis business model.
Propose an exit strategy for your project. You mightwant to show two alternatives. Say why you suggest this approach. Whobenefits? How? Your exit strategy discussion can be very brief; just aparagraph or two about possible buyers, major partners, IPO, or otherapproaches. What additional research and study will need to be completed aspart of the final, complete business planning process?
Conclusion: Is this project feasible, or not? A goodfeasibility study comes to an honest answer, and some of the best work showswhy the new business will never succeed. A study that convinces founders andinvestors to save their money (and time), and move on to the next idea, is puregold. Write a compelling and logical argument for why you should, orshould not, pursue this business.