How to Create a Feasibility Business Plan. A feasibility business plan is a study conducted prior to initiating a business plan. Whether you're an established business launching a new product or an individual with a new idea, a feasibility plan is that part of a business plan that will help you and your investors determine if your idea will thrive.
Write a cover letter to potential investors outlining your product or idea. Show how you have researched and come to a conclusion that your product or idea is viable.
Sum up your analysis in an executive summary outlining the main points of your research. Provide information on your product, potential buyers and why you believe your venture is ideal.
Describe your product or idea in detail. List your potential customers and explain their views about your product or idea. Explain how customers will use the product.
Lay out the infrastructure. Indicate where you intend to house the business and if you intend to rent or buy. Describe the technology you will use.
Include information about the competition and their share of the market. Indicate their strengths and weaknesses and critical risks factors to your venture.
Show financial projections for at least 3 years. Estimate your rate of return.
Conclude with supporting statements why this idea or product is feasible. Credit the resources used to support your feasibility business plan.
Tip
You should write the executive summary last. Though you present it first, it highlights the findings of the entire report and is easier to write after you've completed the rest of your report.
