Feasibility Study Template: free Word download

What's inside

1. 1. Executive summary

   Write it last, and keep it to one page.

   • The idea in two sentences, and who it is for
   • How much money it needs, and where that money comes from
   • The expected break-even point and payback period
   • Your recommendation: go ahead, go ahead with conditions, or stop

2. 2. Project description

   What you are starting, and where it stands today.

   • The product or service, and the problem it solves
   • Where it operates and how customers reach it: a shop, online, delivery
   • The owners, the legal form and the current stage
   • What makes it different from what people use today

3. 3. Market study

   Who will buy, and why from you.

   • Your target customer, described specifically
   • An estimate of the market's size, with a source for every number
   • Competitors: who they are, what they charge and where they fall short
   • Evidence of demand: interviews, pre-orders, a waiting list
   • How you will reach customers, and what that costs

4. 4. Technical and operational study

   How the business will actually run, day to day.

   • Premises, equipment and suppliers
   • Staff: roles, numbers and costs
   • The daily process, from order to delivery
   • The licences and permits you need; confirm each one with the authority that issues it

5. 5. Financial study

   The numbers, each one labelled honestly.

   • Start-up costs
   • Monthly fixed costs, and the cost of each sale
   • A sales forecast in three scenarios: cautious, expected and optimistic
   • The break-even point and the payback period
   • Cash flow for the first 12 months
   • A label on every figure: a quote, a source or an estimate

   Work out your break-even point and payback period with the free calculator

6. 6. Legal and regulatory

   What you must register, and what you must comply with.

   • Business registration and legal form
   • Municipal and sector licences
   • Tax registration, if your revenue requires it
   • Key contracts: the lease, suppliers and partners

7. 7. Risks

   What could go wrong, and what you would do about it.

   • The main risks: market, operational, financial and regulatory
   • How likely each one is, and how much it would hurt
   • What you will do to reduce each one

8. 8. Conclusion and recommendation

   A clear decision.

   • Whether the project is feasible, and on what conditions
   • The assumptions everything else depends on
   • The next three steps, and who takes each one

The Word file also has ready tables for start-up costs, monthly costs, a three-scenario sales forecast, competitors and risks.