Week 6 Assignment: Feasibility Analysis Introduction ✓ Solved

Week 6 Assignment Feasibility Analysisintroductiona Feasibility Ana

A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceived, needs to be modified, refocused, or changed dramatically. (Or perhaps even scrapped altogether.)

With this assignment, you will be addressing the fundamental question: Does this business have profit potential?

Refer to the same business you described in the first assignment, Creating a Small Business, and write a 3-page paper in which you:

1. Conduct a feasibility analysis by researching and analyzing each of the following topics and indicate how your business occupies that specific space:
   • Industry and market feasibility
   • Product or service feasibility
   • Financial feasibility
   • Entrepreneurial readiness
2. Explain whether the business idea needs to be modified, changed significantly, or abandoned based on your feasibility analysis. (Note: If you abandon the business idea, then you will need to select and analyze a new business that has profit potential.)
3. Include at least two references outside the textbook. For help with research, writing, and citation, access the Strayer Library or review the Bachelor of Business Administration Library Guide. Use Strayer Writing Standards.

Sample Paper For Above instruction

Introduction

Assessing the feasibility of a new business idea is a critical step in entrepreneurial planning. It involves examining various factors that determine whether the business can succeed and generate profit. This paper conducts a comprehensive feasibility analysis of my proposed small business, a local artisan coffee shop named "Brew Haven." The analysis explores industry and market feasibility, product and service viability, financial prospects, and entrepreneurial readiness, ultimately evaluating whether the business idea should proceed, be modified, or abandoned.

Industry and Market Feasibility

The coffee industry has experienced consistent growth over the last decade, driven by increased consumer demand for specialty beverages and a culture of socialization centered around coffee shops (Statista, 2023). The market for artisan coffee in my target location, a suburban area with a population of approximately 50,000, presents promising opportunities due to rising consumer preferences for high-quality, locally sourced products. Local competitors include chain coffee outlets like Starbucks, Dunkin’, as well as independent cafes. However, Brew Haven aims to differentiate through its emphasis on organic beans, sustainable practices, and a cozy ambiance. Market research indicates a gap for a community-oriented coffee shop that fosters a sense of belonging, which aligns with emerging consumer trends toward supporting local businesses (Smith & Johnson, 2022). Therefore, industry and market feasibility appear positive, with ample demand and opportunities for differentiation.

Product and Service Feasibility

The core product—artisan coffee—has high consumer appeal, especially among younger demographics seeking premium experiences. Additional offerings such as gourmet pastries and specialty teas complement the beverage menu and enhance customer retention. The product sourcing strategy involves partnering with local organic coffee bean growers, which supports the brand narrative of sustainability and community support. Based on supplier research and menu planning, the products are feasible to launch with manageable costs and supply chain reliability. Moreover, the shop’s design includes a comfortable lounge area, Wi-Fi access, and live music nights, providing a unique customer experience that aligns with market preferences (Coffee Industry Report, 2023). Overall, product and service feasibility is strong, with clear demand and manageable operational considerations.

Financial Feasibility

Financial viability is analyzed through projected startup costs, operating expenses, and revenue forecasts. Estimated initial investment covers leasehold improvements, equipment, initial inventory, licensing, and marketing, totaling approximately $150,000. Monthly operating expenses, including staff salaries, utilities, ingredients, and marketing, are estimated at $12,000. Revenue projections based on seating capacity, average spend per customer, and hours of operation suggest monthly sales of around $25,000, leading to a break-even point within six months. Profit margins are expected to be approximately 15%, consistent with industry standards (Restaurant Financial Outcomes Report, 2022). Sensitivity analyses indicate that even with a 10% decrease in customer volume, profitability can be maintained through cost control measures. Thus, financial analysis indicates that Brew Haven is a feasible business venture.

Entrepreneurial Readiness

The entrepreneurial readiness assessment shows that I possess the necessary skills and resources to launch and manage the shop. I have previous experience in hospitality management and a network of local suppliers and community contacts. Additionally, I am committed to sustainable practices, which aligns with the business concept. Challenges such as competition and initial marketing are acknowledged, but strategic planning, including a grand opening event and social media campaigns, can mitigate these risks. Based on personal entrepreneurial capacity and community support, the readiness for this venture appears strong. If I lacked experience or resources, the feasibility might be compromised, but current assessments affirm preparedness.

Conclusion

The comprehensive feasibility analysis suggests that Brew Haven has significant profit potential within the local artisan coffee market. The industry trends, consumer demand, unique product offerings, solid financial projections, and personal entrepreneurial skills support proceeding with the venture. However, ongoing monitoring and adaptive management are essential to sustain profitability. If market conditions or internal capabilities change unfavorably, modifications or a reevaluation of the business model may be necessary.

References

• Smith, J., & Johnson, L. (2022). Consumer Trends in Specialty Coffee Markets. Journal of Business & Marketing, 15(4), 112-130.
• Statista. (2023). Coffee Market Size & Trends Worldwide. https://www.statista.com/topics/2430/coffee/
• Restaurant Financial Outcomes Report. (2022). Industry Profitability Benchmarks. National Restaurant Association.
• Coffee Industry Report. (2023). Trends and Consumer Preferences. Coffee Council Publications.