Feasibility Study questionnaire

Startups

To look for the proper financing requires us first to assemble a feasibility study for the business idea. To do this, we will need to have information on the following:

Financial

1. What will be the projected sales of the company for the first year? On what are these projections based? Why do you feel that these projected figures will be close to the actual sales figures?

2. The same information for year number 2.

3. The projected expenses of the company from month to month. This would include wages and salaries for workers and management; any payments on leased equipment; any rent needing to be paid for company offices, warehouse or factories; shipping charges; advertising expenses; any taxes paid for the business from month to month including the date due; and any other expenses needing to be paid monthly.

4. What is the break-even point for your business?
a. The break even point is the point at which the business covers all its operating expenses.

Assets

1. What are the assets available for this business? What is the value of these assets?
a. Land
b. Buildings
c. Equipment
d. Cash

Management

1. Who besides you will be the principle managers of the business?
a. What is their background and yours?
b. What do they bring to the company that will help it succeed?
c. What are their management responsibilities going to be?

2. A resume of these parties would be a good thing to include.

Marketing

1. Who are the principle customers the company is looking to market to?

2. How is the company going to price its products for sale?

3. What method is the company going to use to market to these customers?
a. How will these potential customers be identified by the company?
b. How will they be informed of the company's products?
c. Why are they going to buy the product from you rather than buying it from someone else or importing it in from outside the Ukraine?
d. What methods will be used to sell these potential customers the company's products?
i. A sales staff?
1. How many salesmen?
2. How much support staff will be needed to support the sales staff?
ii. Advertising?
1. Where will the company advertise and how much will it cost per month?
2. Why is the company going to be using this particular type of advertising? How will it better help customers to know about your product than other ways might?

Competition

1. Who will be the principle competitors of the company?
a. How much market share do they have?
b. Why do you think you can capture some of that market share from your competitors?
c. Why do you think customers will buy your product rather than buying the product of your competitors?

2. Does your product rely on any type of formula or process?
a. Is that formula or process protected by law? (Patent or trade secret.)
b. Do you have the right to use that formula or process?
c. What makes you think that the competition will not simply copy your formula or process and market it in competition with you? Why?

3. If the product is not protected by law, what will prevent competitors from manufacturing the same product and competing with you?
a. Any product is subject to a life cycle. Once a product is produced and sold, others will step in and try to compete. They will do that with things like a more effective advertising campaign, a lower price based on lower manufacturing costs, or better customer service for the product. If your company cannot meet these efforts, your ability to compete will be affected. At that point, the life cycle of the product has ended.
i. Will this sort of life cycle apply to your product? If not why not?
ii. Will the company be looking to improve the product in the future to meet any competition that might arise?
iii. What other methods will the company use to increase the life cycle of the product in the face of increased competition?