Navigate Lesson #2:
- Part 1 - What is a Market Study & How to Describe Your Industry
- Part 2 - Market Analysis and Research; Identifying Your Business Competition
- Part 3 - Competition in the Industry & How to Calculate Sales Projections
- Part 4 - Identifying Potential Customers, Clients, and Contract Sources
What is a Market Feasibility Study and How Does a Market Feasibility Study Differ From a Marketing Plan?
All feasibility studies should look at how things work, if they will work, and identify potential problems. Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses.
Feasibility studies are assement tools - not just reports to try and sell your business to investors. They should consider both pros and cons and analyze a variety of potential business scenarios.
A Marketing Plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations, that are intended to be implemented.
Think of market feasibility studies as a logistical study and a marketing plan as a specific, planned course of action to take.
What Should be Included in a Market Feasibility Study?
Things to Include in a market feasibility study include:
- Description of the Industry
- Current Market Analysis
- Anticipated Future Market Potential
- Potential Buyers and Sources of Revenues
- Sales Projections
How to Write an Industry Description
Give a brief one- to two-paragraph description of the industry your business is categorized as according to the U.S. Department of Labor. Determining your industry is important for receiving government contracts, attracting investors, and for receiving grants (if you form as a nonprofit).
Example: The industrial first aid kit industry is a lucrative, fast-growing field, with contract awards as high as $14 million dollars in 2006. Fictitious Business Example (FBE) is being established for the purpose of producing, and providing, quality industrial first aid kits to the United States Government, privately-held and publicly-held companies to improve worker's safety on the job.
FCE's services are classified under the U.S. Department of Labor Standard Industrial Classification (SIC) as SIC Code 5047 and classified as the industry titled, "Medical, Dental, and Hospital Equipment and Supplies."
Tip: To find your company's Standard Industrial Classification (SIC) go to the U.S. Department of Labor, OSHA web page located at http://www.osha.gov/pls/imis/sicsearch.html
Feasibility Study Course Navigation
- Complete Feasibility Study Course Syllabus
- Feasibility Study Course Lesson 1 - What is a Feasibility Study?
- Feasibility Study Course Lesson 2 - How to Write a Market Feasibility Study
- Feasibility Study Course Lesson 3 - How to Write a Technical Feasibility Study
- Feasibility Study Course Lesson 4 - How to Write a Financial Feasibility Study
- Feasibility Study Course Lesson 5 - Organizational Structure Feasibility Study
- Feasibility Study Course Lesson 6 - How to Write Feasibility Study Conclusions
- Feasibility Study Course Lesson 7 - Presenting a Completed Feasibility Study