2. FEASABILITY ANALYSIS -”THE PROCESS OF DETERMINING WHETHER AN ENTREPRENEUR’S IDEA IS A VIABLE FOUNDATION FOR CREATING A SUCCESSFUL BUSINESS.” -ANSWERS THE QUESTION: “SHOULD WE PROCEED WITH THIS BUSINESS IDEA?” -THE EASY PART OF A LAUNCING A BUSINESS IS COMING UP WITH AN IDEA FOR A NEW BUSINESS CONCEPT OR APPROACH. -THE HARD PART OF LAUNCHING A BUSINESS IS TRANSFORMING THE IDEA INTO A VIABLE BUSINESS. -A FEASABILITY ANALYSIS IS CONDUCTED PRIOR TO COMMITTING THE NECESSARY RESOURCES REQUIRED TO BUILDING A BUSINESS PLAN. -CONSISTS OF 3 INTERRELATED COMPONENTS: 1) INDUSTRY & MARKET FEASIBILITY ANALYSIS 2) PRODUCT OR SERVICE FEASIBILITY ANALYSIS 3) FINANCIAL FEASIBILITY ANALYSIS

4. STEP 1: ASSESSING INDUSTRY ATTRACTIVENESS

5. FIVE FORCES MODEL -”A MODEL THAT RECOGNIZES THE POWER OF 5 FORCES ON AN INDUSTRY.” -A USEFUL TOOL FOR ANALYZING AN INDUSTRY’S ATTRACTIVENESS .

11. STEP 2: IDENTIFYING POTENTIAL NICHES

14. PRIMARY VS SECONDARY RESEARCH PRIMARY RESEARCH: -INFORMATION THAT AN ENTREPRENEUR COLLECTS FIRST-HAND & ANALYZES. SECONDARY RESEARCH: -INFORMATION THAT HAS ALREADY BEEN COMPILED & IS AVAILABLE FOR USE, OFTEN AT A VERY REASONABLE COST OR SOMETIMES EVEN FREE.

15. PRIMARY RESEARCH TECHNIQUES

16. CUSTOMER SURVEYS & QUESTIONNAIRES

17. FOCUS GROUPS

19. PROTOTYPE -”AN ORIGINAL, FUNCTIONAL MODEL OF A NEW PRODUCT THAT ENTREPRENEURS CAN PUT INTO THE HANDS OF POTENTIAL CUSTOMERS SO THEY CAN SEE IT, TEST IT, & USE IT.”

20. IN-HOME TRIAL -”A RESEARCH TECHNIQUE THAT INVOLVES SENDING RESEARCHERS INTO CUSTOMERS’ HOMES TO OBSERVE THEM AS THEY USE THE COMPANY PRODUCT OR SERVICE.”

21. FINANCIAL FEASIBILITY ANALYSIS -”INVOLVES ASSESSING THE FINANCIAL FEASIBILITY OF A PROPOSED BUSINESS VENTURE.” -3 MAJOR ELEMENTS: 1) CAPITAL REQUIREMENTS: -MONEY NEEDED TO START UP A BUSINESS VENTURE. 2) ESTIMATED EARNINGS: -A FORECAST OF THE EARNING POTENTIAL OF THE PROPOSED BUSINESS. 3) RETURN ON INVESTMENT: -DETERMINES THE RATE OF RETURN ON THE CAPITAL INVESTED.