Recommend Length
A superior feasibility plan is on that is clear and concise. Length is determined by the plan’s expected use. Lengthy plans only confuse, overwhelm and discourage the reader. There is no gain from a lengthy well-prepared plan if the readers won’t read it. The authors recommend that a feasibility plan not exceed 15 pages (not including appendices), except for unusual circumstances. The feasibility plan is the framework that the entrepreneur uses to decide whether to pursue the concept and to develop a business plan.
When formatting your feasibility plan, using
subtitles for each major section of the plan is highly recommended. Subtitles
clearly divide the information in each section into similar categories, which
makes reading the plan easier and more eyes appealing.
Topic Outline
A suggested topical outline for a feasibility
plan consists of the following:
• Executive Summary
• Product/Service
• The Market
• Price and Profitability
• Plan for Further Action
Executive
Summary
This section should be written like a letter
and addressed to the reader(s) of the plan. This section is a brief overview of
the key points appearing in each section of the plan. Many times this is the
only section a potential investor, lender, future employee or strategic partner
will read, so it is of great importance. The length of the letter should be no
more than one-and-a-half to two pages long. Although this section is first in
the order of the feasibility plan, it is the last section to be written. As you
develop the feasibility plan, you will uncover additional information that will
alter your original business concept. (This section does not contain subtitles
and is the only section that doesn’t follow the subtitle format.)
Executive
Summary Questions:
1. What business is your venture in?
(Example: A retail menswear store, wholesale plumbing supplies or manufacturer
of women’s sportswear.)
2. What is the current stage of development
for the venture? (Start-up, initial operations, concept stage.)
3. What is unique about the product/service
and what proprietary rights does the business have?
4. What is the market like in terms of the
industry, the customer, customer needs, product benefits and market penetration
plan? (Give reader an overview of the market section.)
5. How much money does the venture need for
start-up cost? (Highlight how much money is needed to get into this business
and how will it be spent.)
6. What kind of financing will the company
need (debt or equity)?