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Business Feasibility Study Checklist

Business feasibility

• Introduction

• Objective of feasibility study

• History (if you are purchasing an ongoing concern)

• Overview of the industry

• Marketing

• Objective and supporting strategies

• Price determination

• Promotion

• Product description

• Identify target market, who where and how many

• Place: location, size, traffic counts, channel

• Accounting

• Start-up or turnkey cost (.itemized)

• Equity, or unencumbered cash

• Collateral

• Credit references

• Loans: amounts, types, and conditions

• Proforma income statement

• Proforma balance sheet

• Ratio analysis

• Provision for taxation

• Projected cash flow

• Working capital

• Break-even analysis

• Management

• Personal expertise

• Organizational structure

• Personnel management

• Policies (general and departmental)

• Inventory control

• Legal aspects

• Contracts, licences and other legal documents

• Business structure

• Insurance: types and costs

• Provision for business termination

• Type: sole proprietorship, partnership, corporation Conditions and terms

• Appendix

• Working papers

• Diagrams

• Layouts

• Resumes

• Charts

• Graphs