Organizational Feasibility Analysis 1u34i

ORGANIZATIONAL FEASIBILITY ANALYSIS Purpose: • Is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch a business. • Focuses on non-financial resources. Components: • Management Prowess (competence) • Resource Sufficiency Management Prowess – A firm should candidly evaluate the prowess, or ability, of its management team to satisfy itself that management has the requisite ion and expertise to launch the venture. – Two of the most important factors in this area are: • The ion that the solo entrepreneur or the founding team has for the business idea. • The extent to which sole entrepreneur or the founding team understands the markets in which the firm will participate. • An indication of ion is the willingness of a new venture team to complete a comprehensive feasibility analysis Resource Sufficiency – This topic pertains to an assessment of whether an entrepreneur has sufficient resources to launch the proposed venture. – To test resource sufficiency, a firm should list the 6 to 12 most critical nonfinancial resources that will be needed to move the business idea forward successfully. • If critical resources are not available in certain areas, it may be impractical to proceed with the business idea. Examples of nonfinancial resources that may be critical to the successful launch of a new business • Availability of affordable office or lab space. • Likelihood of local and state government of the business. • Quality of the labor pool available. • Proximity to key suppliers and customers. • Willingness of high quality employees to the firm. • Likelihood of establishing favorable strategic partnerships. • Proximity to similar firms for the purpose of sharing knowledge. • Possibility of obtaining intellectual property protection in key areas.

A. Management prowess B. Resource sufficiency ASSESSMENT TOOLS Management Prowess • Use the following table to candidly and objectively rate the “prowess” of the founder or group of founders who will be starting the proposed venture. Management Prowess Assessment Tool

Resource Sufficiency • The focus in this section is on nonfinancial resources. Use the following table to rate your “resource sufficiency” in each category. • The list of resources is not meant to be exhaustive. A list of the 6 to 12 most critical nonfinancial resources for your proposed business is sufficient. An explanation of the rating system used in the first portion of the table is as follows: ① Available ② Likely to be available: will probably be available and will be within my budget ③ Unlikely to be available: will probably be hard to find or gain access to, and may exceed my budget ④ Unavailable ⑤ NA: not applicable for my business

Conclusion (expand fields and report findings, in discussion form, for each area) What to Do Before the Business Plan Is Written A. Management prowess B. Resource sufficiency C. Organizational feasibility (circle the correct response) Not Feasible Unsure Feasible D. Suggestions for improving organizational feasibility