Startup Feasibility Analysis

This presentation explores the critical process of feasibility analysis for

startups. We'll examine product viability, market potential using Mullins'
Seven Domain Model, and organizational readiness through VRIO analysis.

NA by Nabil B. Arif
What Is Feasibility
Analysis?
1 Definition 2 Purpose
The process of determining Preliminary evaluation to
whether a business idea is determine if an idea is worth
viable. pursuing.

3 Importance
Helps entrepreneurs avoid costly mistakes by testing ideas before
full investment.
Four Forms of Feasibility Analysis
Financial Feasibility
1 Economic viability assessment

Organizational Feasibility
2
Team and resource evaluation

Industry/Target Market Feasibility

3
Market opportunity analysis

Product/Service Feasibility
4
Concept testing and validation
Research Approaches
Primary Research Secondary Research
Original data collection through surveys, interviews, focus Analysis of existing data from industry reports, market studies,
groups, and prototype testing. and competitor information.

Provides specific insights directly relevant to your business More cost-effective but may not address specific questions
concept. about your concept.
Product/Service Feasibility
Concept Testing
Present your idea to potential customers to gauge interest and gather
feedback.

Questionnaire Development
Create surveys covering customer profiles, market reach,
availability, and competition.

Prototype Testing
Develop a minimum viable product to test functionality and user
experience.

Analysis
Evaluate feedback to determine overall product appeal and
viability.
Common Research Mistakes
Misunderstood Questions
Respondents interpret questions differently than intended, leading to inaccurate
data.

Recording Errors
Interviewers fail to capture responses accurately, compromising data integrity.

Memory Inaccuracy
Respondents misremember time periods or past behaviors, skewing results.

Unconscious Bias
Respondents lack conscious attitudes about topics, providing unreliable
answers.
Mullins' Seven Domains Model
Target Market Attractiveness
(Micro)
Market Attractiveness (Macro)
Specific segment size and differentiated
Overall market size, growth rates, and benefits.
PESTEL factors. 2
1 Industry Attractiveness
(Macro)
3
Entry barriers, supplier/buyer power,
substitutes, and rivalry.
5
Team Domains 4
Sustainable Advantage
Mission, execution ability, and value chain
(Micro)
connections.
USP, proprietary elements, and business
model viability.
Market Domain Analysis
Macro Level: Market Attractiveness
1 Assess current market size and short/long-term growth predictions.

Conduct PESTEL analysis to understand external factors.

Micro Level: Target Market Attractiveness

2 Identify specific market segments and their size.

Determine differentiated benefits your offering provides.

Customer Validation
3 Gather evidence that customers will buy your proposed offering.

Identify additional segments that could benefit from related offerings.

Industry Domain Analysis

Entry Barriers Supplier/Buyer Substitutes Rivalry

Assess difficulty for new Power Identify alternative solutions Analyze intensity of
competitors to enter the Evaluate bargaining power of to customer problems. competition among existing
market. suppliers and customers. players.
Team Domain Analysis
1 Mission & Risk Tolerance
Assess team commitment and passion for the business.

Evaluate alignment with venture's goals and risk profile.

2 Execution Ability
Identify critical success factors and team's ability to deliver.

Determine which activities deliver highest benefit.

3 Value Chain Connections

Evaluate relationships with investors, suppliers, customers, and
distributors.

Assess industry network and strategic partnerships.

Organizational Feasibility Analysis
Management Prowess
1
Evaluate team's passion and expertise to launch the venture

Resource Sufficiency
2
Assess critical non-financial resources needed for success

VRIO Analysis
3
Test competitive resources and capabilities

Organizational feasibility determines if your team has the necessary skills and resources to execute the business plan. This
includes evaluating management capabilities and identifying resource gaps before launch.
VRIO Framework
VALUABLE RARE INIMITABLE ORGANIZATION RESULT

NO - - - Competitive
Disadvantage

YES NO - - Competitive Parity

YES YES NO - Temporary Competitive

Advantage

YES YES YES NO Unused Competitive

Advantage

YES YES YES YES Sustainable Competitive

Advantage

The VRIO framework evaluates resources based on Value, Rarity, Imitability, and Organization. Resources meeting all criteria provide sustainable
competitive advantages.
Developing Effective
Business Models &
Industry Analysis
A comprehensive guide to business modeling and competitive analysis
based on Chapters 4 & 5 of Entrepreneurship by Barringer & Ireland.

NA by Nabil B. Arif
What is a Business Model?
Creates Value Delivers Value
Defines how a company Establishes efficient systems to
develops products or services get solutions to customers
that solve customer problems. effectively.

Captures Value
Determines how the company generates revenue and builds customer
loyalty.

Think of it as your startup's operating system. It evolves through testing and

market feedback. [Link]
Why Business Models Matter
Strategy Business Model

Sets direction and vision. Operationalizes strategy.

Determines market positioning. Translates vision into activities.

Focuses on long-term goals. Creates revenue-generating systems.

Many startups fail due to ineffective business models rather than poor strategy.
Standard vs. Disruptive Models
Standard Models Disruptive Models

Franchises Tech platforms

Retail chains Gig economy

Service firms Decentralized applications

Proven, scalable Unpredictable but powerful

Disruption typically stems from serving overlooked market segments or offering dramatically lower prices.
Barringer/Ireland Template Overview
Core Strategy Resources
Mission statement and differentiation approach that Key assets and core competencies that power the
guides all decisions. business.

Financials Operations
Revenue models and cost structures that ensure Value chain and delivery methods that create customer
profitability. satisfaction.

HKT Consultant
The barringer/ireland business Model template 3 HKT Consult&
Although not everyone agrees precisely on the components of a
business model, many agree that a successful business model has a&
Core Strategy 3 Mission &
Differentiation
The "Why"
Articulate purpose that inspires stakeholders.

Talent Attraction
Compelling missions draw top performers.

Market Positioning
Clear differentiation cuts through crowded markets.

Competitive Edge
Unique positioning creates defensible advantages.
Resources 3 Core Competencies

Sustainability
Long-term competitive advantage

Proprietary Technology
Unique technical solutions

Design Excellence
Superior user experience

Customer Intimacy
Deep market understanding

What can your startup do better than anyone else, sustainably?

Resources 3 Key Assets

Intellectual Property Brand Equity

Patents, trademarks, copyrights Name recognition and reputation

Strategic Relationships
Human Capital
Partnerships and distribution
Team expertise and capabilities
channels

Control over unique resources increases market power and defensibility.

Financials 3 Revenue Models

Recurring Revenue
Subscriptions, SaaS, memberships

Transactional Revenue
Retail, consulting, one-time sales

Platform Revenue
Commissions, listing fees, marketplaces

Monetization approaches vary significantly by industry and business model type. [Link]
v=6dKIOSe2A2o
Financials 3 Cost Structure

30% 40%
Fixed Costs Variable Costs
Rent, salaries, insurance Materials, commissions, usage-based fees

18% 12%
Scaling Costs Customer Acquisition
Infrastructure, technology, expansion Marketing, sales, onboarding

Understanding cost structure is essential for runway planning and fundraising strategy.
Operations 3 Channels & Partnerships
Production
Manufacturing or service creation

Partnerships
Strategic alliances for scale and integration

Distribution
Physical or digital delivery systems

Customer
End-user experience and support

Consider the tradeoffs between partnership leverage and ownership control in your operations.
Business Model Canvas
9 Building Blocks

Comprehensive framework covering all aspects of your

business

Visual Hypothesis 09:42

Sketch out assumptions for testing and refinement YouTube

The Business Model Canvas - 9 Steps to Cre&
The Business Model Canvas - 9 Steps to Creating a
Investor Communication Successful Business Model - Startup Tips The&

Structured format for pitching your business model

Ideal for early-stage iteration and investor discussions. Shows how all elements connect.
What Is Industry Analysis?

Market Scanning Structure Analysis

Identify trends and patterns Understand industry organization

Profitability Factors
Competitive Assessment
Determine drivers of financial
Map rival positions and strategies
success

Link your internal strategy to external market conditions for optimal fit.
Porter's Five Forces Framework
Industry Rivalry
Competition among existing firms impacts pricing power and market share.

Threat of New Entrants

Barriers to entry determine how easily new competitors can emerge.

Threat of Substitutes
Alternative solutions can limit growth potential and price flexibility.

Buyer Power
Strong customers can demand better terms and lower margins.

Supplier Power
Powerful suppliers can capture more value and squeeze your profits.

[Link]
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Using the Five Forces Tool

Rivalry

New Entrants

Substitutes

Buyer Power

Supplier Power

0 3 6 9
Airlines SaaS

Which of these forces threatens your business idea most? Industry forces directly influence pricing power and defensibility.
Studying Industry Trends

PESTEL Analysis Trend Identification Model Adaptation

Political, Economic, Social, Recognizing patterns early creates Successful companies continuously
Technological, Environmental, and competitive advantage and allows evolve their business models in
Legal factors shape industry evolution. proactive adaptation. response to industry trends.
Competitor Analysis Basics

1 Identify Competitors
Map both direct and indirect companies solving similar customer
problems.

2 Analyze Their Models

Understand their approach to value creation, delivery, and capture.

3 Assess Strengths/Weaknesses
Determine where they excel and where they fall short.

4 Identify Opportunities
Find gaps their models don't address that your solution can fill.

Knowing your competition helps refine your own differentiation strategy.

Competitive Mapping
Perceptual maps help identify market whitespace and avoid
overcrowded areas. Choose dimensions that reveal meaningful
competitive differences.

YouTube

Competitive Analysis Framework&

Learn with Udacity and Google in our
FREE App Marketing course and check&

02:33
Strategy Alignment
Feasibility Viability
Can we execute this model with Will this model generate
our resources and capabilities? sustainable profits?

Does our team have the right Is the customer lifetime value
skills and experience? greater than acquisition cost?

Market Alignment
Does our model address industry forces effectively?

Are we positioned to withstand competitive pressures?

Your business model must align with both internal capabilities and external
market dynamics.
Q&A / Discussion
Industry Forces Analysis Business Model Refinement

Which industry forces most impact your business idea? Which block of your business model is still unclear?

How can you adapt your model to address these forces? What assumptions need testing in your current model?

What trends might change these forces in the next 3-5 How might you pivot if initial tests don't validate your
years? approach?

Take 10 minutes to discuss these questions in small groups, then we'll share insights.
Key Takeaways

Model Beyond Continuous External

Strategy Evolution Awareness
Business models Successful models adapt Industry forces shape
operationalize strategy to changing market your competitive
into everyday activities conditions and customer landscape and influence
and revenue generation. needs. model viability.

Strategic
Alignment
Your model must align
internal capabilities with
external market
opportunities.
Next Steps
Draft Your Canvas
Complete all nine blocks of the Business Model Canvas for your
venture.

Analyze Industry
Apply Porter's Five Forces to your specific market segment.

Map Competition
Create a perceptual map positioning your venture against key
competitors.

Test Assumptions
Identify and prioritize the critical assumptions to validate first.
Building a Powerful Marketing Plan & Business
Roadmap
Welcome to our comprehensive guide on entrepreneurial marketing and structured business planning. This presentation
explores essential frameworks and strategies for new ventures.

NA by Nabil B. Arif
Marketing Philosophies for New Ventures
Product-Oriented Market-Oriented Lean Marketing
Focuses on product excellence rather Driven by customer feedback and Embraces rapid experimentation and
than customer needs. solving pain points. low-cost campaigns.

Prioritizes features and innovation Adapts offerings based on market Iterates quickly based on real-world
over market testing. research and testing. customer feedback.
The 4Ps of Marketing Mix
Promotion
Low-cost tactics like digital content and social media

Place
Physical and digital distribution channels

Price
Strategies including skimming, penetration, and value-based

Product
Features, design, and the problem it solves
STP: Segmentation, Targeting, Positioning
Segmentation
Divide markets by demographics, behaviors, geography, or psychographics.

Creates distinct customer groups with similar needs.

Targeting
Evaluate segment size, growth potential, and fit with capabilities.

Select segments with highest potential for business success.

Positioning
Craft unique, relevant brand position in customers' minds.

Differentiate from competitors in meaningful ways.

Branding Elements for
Startups
Visual Identity Brand Voice
Logo and color scheme Tone and messaging style
Typography and imagery Communication principles
Consistency across Storytelling approach
platforms

Emotional Connection
Customer promise
Values alignment
Brand experience
Strategic Pricing Methods
Penetration Pricing
Set low initial prices to gain market share quickly.

Skimming Pricing
Start with premium prices, gradually lower over time.

Value-Based Pricing
Price according to perceived customer value.

Psychological Pricing
Leverage price points that trigger favorable customer responses.
The Ansoff Matrix
Existing Products New Products

Existing Markets Market Penetration Product Development

New Markets Market Development Diversification

The Ansoff Matrix helps startups visualize growth opportunities based on products and markets. Each quadrant represents
different risk levels and resource requirements.
Growth Strategy Selection

Market Penetration Market Development

Sell more to existing customers in Enter new geographic or
current markets. demographic markets.

Diversification Product Development

Enter new markets with entirely new Create new offerings for existing
products. customers.
Business Plan Purpose &
Value
Strategic Funding Tool Team
Roadmap Helps secure Alignment
Provides investment from Ensures all
direction and various funding stakeholders
clarifies business sources. understand the
objectives. vision and path.

Feasibility
Test
Validates
business
concept before
significant
resource
investment.
Business Plan Writing Guidelines
Be concise and clear
Keep content focused and easy to understand

Use evidence and research

Support all claims with credible data

Structure for decision-makers

Organize information for investors and stakeholders

Maintain realism
Avoid exaggeration in projections and claims
Essential Business Plan Components
Executive Summary
Concise overview of the entire business concept
and plan.
Company Description
Vision, mission, goals, and core values.

Market Analysis
Industry research, target market, and competitive
landscape.
Marketing Plan
Strategy for attracting and retaining customers.

Operations Plan
Daily processes, facilities, and equipment needs.

Management Team
Key roles, expertise, and organizational structure.

Financial Plan
Projections, funding requirements, and return
expectations.
Financial Projections

Comprehensive financial projections demonstrate viability to investors. Include income statements, cash flow forecasts,
balance sheets, and break-even analysis.
Marketing Plan
Implementation
Set Measurable Goals
Define clear marketing objectives tied to business outcomes.

Establish KPIs to track progress and measure success.

Create Action Timeline

Develop detailed implementation schedule with deadlines.

Assign responsibility for each marketing activity.

Allocate Resources
Determine budget requirements for each marketing
initiative.

Identify needed skills and technology tools.

Measure & Optimize

Implement tracking systems to monitor performance.

Regularly review results and adjust strategies

accordingly.
Key Takeaways

4Ps
Marketing Framework
Product, Price, Place, Promotion guide marketing strategy development.

STP
Strategic Focus
Segment, Target, Position to identify and reach ideal customers.

7+
Business Plan Sections
Comprehensive plans include Executive Summary through Financial Projections.

3
Growth Approaches
Choose from product-oriented, market-oriented, or lean marketing philosophies.
Building Your Business:
From Strategy to Successful
Launch
This comprehensive guide will equip entrepreneurs and business students
with essential tools for business planning, marketing strategy, and venture
growth.

NA by Nabil B. Arif
Crafting a Powerful
Marketing Plan
Define Marketing Strategy
Establish clear positioning and differentiation in the market.

Structure the 4 Ps
Balance product, price, promotion, and place for optimal
results.

Develop Sales Tactics

Create effective sales cycles and conversion strategies.

Apply Ansoff Matrix

Choose between market penetration, product development,
market development, or diversification.
Market Segmentation & Targeting

Demographic Geographic
Segment by age, gender, income, Segment by country, region,
education, and occupation. urban/rural, and climate.

Behavioral Psychographic
Segment by purchase patterns, brand Segment by lifestyle, values, attitudes,
loyalty, and benefits sought. and interests.
TAM, SAM & SOM Analysis
SOM
Serviceable Obtainable Market you can realistically capture

SAM
Serviceable Available Market targeted by your products

TAM
Total Addressable Market or overall revenue opportunity

Use top-down, bottom-up, or value-theory approaches for accurate calculations. Crucial for fundraising and strategic alignment.
Writing the Business Plan
Executive Summary
Concise overview of your entire business concept

Company Description
Mission, vision, values, and unique selling proposition

Market Analysis
Industry trends, competitive landscape, and target customers

Business Economics
Revenue model, pricing strategy, and cost structure
Business Plan Outline: The
Second Half
Marketing Plan
Detailed strategies for attracting and retaining customers. Include
competitive analysis, positioning, and promotional tactics.

Design & Development

Product or service development roadmap. Outlines milestones,
technical specifications, and R&D considerations.

Operations & Management

Daily business functions and organizational structure. Details facilities,
equipment, and leadership responsibilities.

Financial Projections
Forecasted financial statements and ratio analysis. Includes
assumptions, break-even analysis, and funding requirements.
Forecasting Sales
Past Trends Analysis
Examine historical sales data to identify patterns and seasonality.

Capacity Assessment
Calculate maximum output capabilities to set realistic upper limits.

Market Demand Evaluation

Analyze industry reports and customer surveys for market potential.

Regression Analysis
Apply statistical methods to predict future sales based on variables.
Forecasting COGS & Expenses
Percent-of-Sales Method Constant Ratio Forecasting Break-even Analysis
Express expenses as percentage of Maintain fixed proportions between Determine sales volume needed to
projected sales. Useful for variable financial variables. Assumes stable cost cover all costs. Essential for pricing and
costs that scale with revenue. structure over time. production decisions.

Simple to calculate and explain Preserves financial relationships Identifies minimum viable sales
Based on historical relationships Quick to implement Guides operational planning
Pro Forma Income
Statement
Revenue Year 1: $250,000 Year 2: $375,000

COGS $100,000 (40%) $150,000 (40%)

Gross Profit $150,000 (60%) $225,000 (60%)

Operating Expenses $112,500 (45%) $150,000 (40%)

Net Profit $37,500 (15%) $75,000 (20%)

Pro forma statements project future performance. They help identify

potential issues before they occur. Always document key assumptions for
transparency.
Ratio Analysis for Financial Health

Profitability Liquidity
ROA, ROE, Profit Margin. Measures Current & Quick Ratios. Assesses
ability to generate earnings. ability to meet short-term obligations.

Efficiency
Stability
Asset Turnover & Inventory Turnover.
Debt-to-Equity & Debt Ratio. Evaluates
Measures resource utilization
financial structure and risk.
effectiveness.
Funding the Venture

Personal Funding Debt Financing Equity Financing

Self-financing through savings, personal Bank loans, credit lines, and bonds. Angel investors, venture capital, and
assets, or family loans. Maintains control Preserves ownership but requires regular crowdfunding. Provides capital without
but limits growth potential. repayments regardless of performance. debt burden but dilutes ownership.
Forming a Venture Team

78% 3.6×
Team Impact Success Rate
Of investors cite team quality as the Higher success rate for startups
top factor in funding decisions. with complementary founding
teams.

90%
Advisory Value
Of successful startups utilize formal
boards of advisors.

Build a balanced team with complementary skills. Include founders, core

team members, advisors, and professional consultants. Strategic team
composition significantly impacts venture success.
Importance of Intellectual Property

Protect your innovations through patents, trademarks, copyrights, and trade secrets. IP assets often represent 80% of a modern
company's value. They provide competitive advantages and create barriers to entry.
Conducting an IP Audit
Identify Assets
Catalog all potential IP across R&D, marketing, and operations.

Assess Value
Determine commercial worth and strategic importance of each
asset.

Evaluate Protection
Review current safeguards and identify protection gaps.

Implement Strategy
Create comprehensive protection plan with prioritized actions.
Building Legal & Ethical Foundations

Ethical Culture Legal Structure Regulatory Permits & Licensing Corporate

Compliance Governance

Establish ethical principles before legal structures. Choose business entity based on liability, taxation, and growth plans. Maintain
compliance with industry-specific regulations and local requirements.
Gantt Chart for Planning
Define Milestones
Identify key achievements that mark significant progress. Set realistic
deadlines with clear deliverables for each milestone.

Schedule Activities
Break down milestones into specific tasks. Assign resources and
determine time requirements for each activity.

Map Dependencies
Identify relationships between tasks. Determine which activities
must complete before others can begin.

Track Progress
Monitor actual vs. planned completion. Update the chart
regularly and adjust schedules as needed.
Internal & External Growth
Strategies
Internal Growth
Develop new products and enter adjacent markets. Form strategic
alliances to leverage complementary strengths.

External Growth
Pursue mergers and acquisitions. Expand through franchising and
licensing arrangements.

International Expansion
Enter foreign markets through exports, joint ventures, or foreign
direct investment.
Start-up Growth in Bangladesh
Local Challenges Ecosystem Enablers Sectoral Trends
Infrastructure limitations Startup Bangladesh initiative Fintech and e-commerce
Regulatory complexities Emerging incubator networks dominance

Funding access constraints Growing angel investor Healthcare innovation

community acceleration
EdTech and AgriTech
expansion
From Idea to Impact:
Integration &
Implementation
Concept Development
Refine idea and validate market need.

Strategic Planning
Create comprehensive business and marketing plans.

Operational Execution
Build team, secure funding, and establish processes.

Growth & Scaling

Expand offerings, enter new markets, and increase impact.
Additional Resources
HBR Articles Video Resources Interactive Tools
"Why the Lean Start-Up Changes HBR IdeaCast: Entrepreneurship HBR Financial Forecasting
Everything" Series Templates
"How to Write a Great Business Harvard i-lab Startup Secrets Business Plan Assessment Tool
Plan" Business Model Canvas Tutorials Market Sizing Calculator
"The Five Stages of Small Business
Growth"