Question

2, (a) Before a venture, entrepreneurs must engage in feasibility study(s). What are the three questions that a feasibility analysis will answer? (b) Discuss the fundamental activities involved in creating a business model.

Answer 1

2(a) the three questions which a feasibility study must answer is:

1. Technical: - The feasibility study must answer regarding the technical requirements of the venture that would be needed, if gone ahead with the plan.
2. Economic: Feasibility should also answer the economic considerations of the plan, ROI, payback years etc.
3. Operations: Feasibility study should also answer the operation challenges and considerations which will have to be taken into account, for example territorial regulations for carrying out business in the territory etc.

2(b) the fundamental activities in creating a business plan are:

1. Value proposition: The problems your business is going to solve should be defined properly. Should give out the proper signal to the customers regarding the product/service you are selling to the customer brings to the fore.
2. Customer: Who are your customers? Customer segment should be appropriately and carefully designed.
3. Channels: What are you sales channel? Will your target and potential customer get accustomed to buying from the chosen channel?