Feasibility Plan
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Your Candle Company name is “Joy scent”, you are going to give feasibility plan of your business you are about to start up
You should give a proper details of your feasibility plan like expense and income statement
Location Analysis
1. Explain the general area where your business will be located, describing the surrounding population of potential customers (provide numbers).
2. Describe any other factors in your choice of location, such as your proximity to transportation, suppliers, or relevant services.
Site Analysis
3. Describe the site of your business, including any relevant details such as parking, neighboring firms, visibility, and traffic (provide numbers).
4. Explain why this choice of a site is appropriate for what you are selling and appropriate for the customer groups to whom you are selling.
Site Expenses
5. If you are leasing your business premises, outline the major provisions of the lease including all rental and maintenance fees and renewal terms.
Or
If your business is home-based, calculate what percentage of the home (square footage) will be used exclusively for business purposes. Explain the ownership or leasing arrangements of the home.
Market Potential
6. Clearly define the market potential you will be estimating. In other words, you will be calculating the annual expenditures of which group of potential customers on what product or service?
7. List all the relevant data you have gathered, indicating the sources. (If the information is extensive, attach the list of sources as an appendix.)
8. Clearly explain any calculations or logic involved in estimating the market potential, and indicate the dollar value of your estimate.
Competition
9. Name, locate, and briefly describe any direct competitors to your business. Provide an estimate of the sales of each, explaining your sources of information.
10. Name, locate, and briefly describe any indirect competition.
11. Describe any advantages you will have over the competition.
Sales Forecast
12. Make as many sales forecast estimates as you can, using different methods. Rank the different estimates to show the range of sales you might expect.
13. From the information above, choose or calculate a single conservative estimate of sales that you will use for planning your business. Explain your choice.
Protecting the Business
14. Briefly describe any business insurance you will carry, explaining the coverage, the premiums, and the payment schedule.
15. Explain any techniques you will use for protection against theft or other dangers to which the business could be subject (e.g., security systems or operating policies).
16. Describe any intellectual property of the business and how it will be protected.
Sample Solution
My candle business, Joy Scent, will be based in the city of Phoenix, Arizona. In 2019, Phoenix was ranked as the fifth largest city in the United States with a population of 1.7 million people and is projected to continue growing over 3% each year. This densely populated metropolitan area provides an ideal location for my business due to its large potential customer base and vibrant culture that promotes shopping local businesses.
In addition, the local economy is robust with a 2020 gross domestic product of $248 billion and a growth rate above 2%. This healthy economic foundation further validates why opening up a business in this region makes good sense financially. Furthermore, Phoenix has developed infrastructure surrounding transportation networks within the city limits making it easy for my customers to access my shop no matter where they are coming from or what mode of transport they use.
Lastly, I plan on partnering with multiple suppliers located around Arizona so I can have access to quality materials at competitive prices without having to travel too far away from home -this means that I can focus more time into managing my shop instead spending hours on end running errands trying to get supplies . All these factors combined confirm that setting up Joy Scent’s headquarters here in Phoenix is an excellent choice for our startup operations.
