June 25, 2008

7 step "Customer Driven Feasibility Study"

Few months back, I came up with an article titled "What before a Business Plan".Today, we would focus on something which is inseparable from the Business Plan called "Feasibility Study". It is true that once we have the B-Plan ready, the very next step is to get going and focus on how to achieve the optimistic figures mentioned in the B-Plan rolleyes However, few things mentioned the B-Plan is written keeping the investor's in mind but along the entire journey; Customer is and will remain the HERO. !!! This leads to a report titled "Customer-Driven Feasibility Study" [from this point referred as Customer-Driven F.S. ] and my current read The New Business Road Test by John Mullins explained that to the core of it !!!

This article is divided into three parts namely:
  1. What is Customer Driven F.S ?
  2. Thin line of difference between B-Plan and Customer Driven F.S
  3. Contents of Customer Driven F.S
What is Customer Driven Feasibility Study
During the course of any opportunity, the Market Analysis/Study phase always remains iterative.However, at one point of time, the evidence gathered through the research would help us understand whether the opportunity is REALLY an opportunity.This feasibility study is Customer Driven because , unlike most organization charts which has the founder/ CEO at the top and people serving the customer at the bottom, the feasibility study begins with the target customer, without whom there would be no business. It is an internal document that should cater to the seven requirements which are discussed later.

Difference between Business Plan and Customer Driven Feasibility Study
Though there are a number of overlaps in the B-Plan and Customer Driven F.S , there are three major areas where they tend to differ :

1. Customer Focus :
The purpose of any business it to win customers and the Feasibility Study completely caters to that requirement which is quite different from that of most B-Plans - to win an investor. If there is no likelihood for customers, there would not be any investors.

2. Fundamental Economics :
The feasibility study addresses the fundamental economics of the business, by identifying the key drivers of cash flow: revenue, required capital investment, gross margins etc. If these drivers are satisfactory, than detailed strategies like marketing, operations and financing can probably be developed to make the venture economically viable.

3. Mindset :
The purpose of the study is not to sell the venture's merit whereas a B-Plan organizes the answers delivered by the feasibility study and goes on to develop marketing, operating and financing strategies in an effort to sell the opportunity, in a focussed way, to the investors and other stakeholders.

7 step "Customer Driven Feasibility Study"

1. EXECUTIVE SUMMARY :
This briefly describes what follows [tells the reader(s) what you are going to tell them]

2. MICRO- level MARKET assessment :
  • TARGET market and it's pain identified; benefits of your solution identified, with evidence that those in this segment are willing to pay a price that works.
  • Target market segment, size and growth rate.
  • Options to grow into other segments.
3. MACRO- level MARKET assessment :
  • OVERALL market size and growth rate.
  • Macro trends analysis to assess future market growth and attractiveness.
4. MACRO - Level INDUSTRY assessment :
  • Five forces analysis : Whether or not the industry is attractive.
  • Likely changes that may happen going forward.
5. MICRO - Level INDUSTRY assessment :
  • Any proprietary elements.
  • Any superior organizational processes, capabilities or resources identified that are not easily duplicated or imitated.
  • Economic viability of business model established :
- Revenue Forecast.
- Customer acquisition & retention costs and time required to obtain a customer.
- Gross margins.
- Break even analysis.
- Operating Cash Cycle characteristics.
6. TEAM assessment :
  • Team's mission, aspirations and tendency for risk.
  • Team's ability to execute the mission.
  • Team's connectedness up, down and across the value chain.
7. SUMMARY and Conclusions :
Tell the reader(s) the key highlights of what you have told them - why this is/is not - opportunity attractive and future prospects of the opportunity.

Labels: , , , , ,

13 Comments:

At Jun 26, 2008, 12:30:00 PM , Blogger Siliconindia blogs said...

Hi Himanshu,

I am Rajesh from SiliconIndia. I am also an avid blogger for a while now and participating actively in Indian blogosphere. I read your blog posting and found them very interesting and informative. We would love to see a copy of your blogs posted here, whenever you are posting it on blogger.com. Here are some of the benefits of posting your blogs here:

We have a strong community of 500,000 Indian professionals
Best blogs of 2008 to be published in a book "SiliconIndia bLoG PrinT"
Best blog to be printed in SliconIndia & SmartTechie magazines each month
Chance to be featured on homepage everyday


We appreciate your community initiative here and in helping build a more powerful India! Also, if you have any ideas or want to volunteer to help for SiliconIndia, we would be more than excited to get your help.

Rajesh

rajesh@siliconindia.com
98867 34775

 
At Jun 27, 2008, 12:28:00 PM , Anonymous Himanshu Sheth said...

Hey,
@Rajesh: Thanks for all the encouraging comments.Would definitely link my posts in SiliconIndia as well after checking the benefits mentioned in your comment :)

Would be interested in lending my support to SI, if there is any way I can!!!

-Himanshu Sheth

 
At Feb 23, 2009, 10:33:00 PM , Anonymous Anonymous said...

Interesting post. I have post posted along similar lines at http://bpmfundamentals.wordpress.com/2009/02/23/how-to-become-a-customer-driven-organisation/

 
At Jan 28, 2010, 1:54:00 AM , Anonymous Anonymous said...

[u][b]Xrumer[/b][/u]

[b]Xrumer SEO Professionals

As Xrumer experts, we have been using [url=http://www.xrumer-seo.com]Xrumer[/url] fitted a wish fix things being what they are and recollect how to harness the titanic power of Xrumer and turn it into a Banknotes machine.

We also provide the cheapest prices on the market. Many competitors desire expect 2x or consistent 3x and a destiny of the opportunity 5x what we pervade you. But we feel in providing gigantic accommodation at a tearful affordable rate. The entire point of purchasing Xrumer blasts is because it is a cheaper alternative to buying Xrumer. So we plan to abide by that thought in cognizant and outfit you with the cheapest rate possible.

Not solitary do we take the unexcelled prices but our turnaround occasion for your Xrumer posting is super fast. We will pull someone's leg your posting done ahead of you certain it.

We also cater you with a full log of affluent posts on manifold forums. So that you can see for yourself the power of Xrumer and how we have harnessed it to benefit your site.[/b]


[b]Search Engine Optimization

Using Xrumer you can expect to see thousands upon thousands of backlinks exchange for your site. Scads of the forums that your Site you settle upon be posted on oblige high PageRank. Having your link on these sites can deep down serve found up some crown quality recoil from links and really boost your Alexa Rating and Google PageRank rating via the roof.

This is making your put more and more popular. And with this increase in regard as familiarly as PageRank you can keep in view to see your milieu absolutely downright expensive in those Search Mechanism Results.
Transport

The amount of conveyance that can be obtained nearby harnessing the power of Xrumer is enormous. You are publishing your site to tens of thousands of forums. With our higher packages you may equivalent be publishing your site to HUNDREDS of THOUSANDS of forums. Ponder 1 collection on a popular forum last will and testament inveterately cotton on to a leave 1000 or so views, with communicate 100 of those people visiting your site. At once imagine tens of thousands of posts on in demand forums all getting 1000 views each. Your freight liking go through the roof.

These are all targeted visitors that are interested or bizarre in the matter of your site. Assume how divers sales or leads you can succeed in with this great number of targeted visitors. You are truly stumbling upon a goldmine ready to be picked and profited from.

Retain, Transport is Money.
[/b]

GET YOUR INFERIOR BLAST TODAY:


http://www.xrumer-seo.com

 
At Feb 5, 2010, 8:08:00 AM , Anonymous Anonymous said...

Keep Our Shady Prices at www.Pharmashack.com, The Famed [b][url=http://www.pharmashack.com]Online Chemist's rat on [/url][/b] To [url=http://www.pharmashack.com]Buy Viagra[/url] Online ! You Can also Presage In the chips Deals When You [url=http://www.pharmashack.com/en/item/cialis.html]Buy Cialis[/url] and When You You [url=http://www.pharmashack.com/en/item/levitra.html]Buy Levitra[/url] Online. We Also Include a Vast Generic [url=http://www.pharmashack.com/en/item/phentermine.html]Phentermine[/url] In holdings of Your Intake ! We Up Socking area brand [url=http://www.pharmashack.com/en/item/viagra.html]Viagra[/url] and Also [url=http://www.pharmashack.com/en/item/generic_viagra.html]Generic Viagra[/url] !

 
At Feb 5, 2010, 12:51:00 PM , Anonymous Anonymous said...

Predilection casinos? ruminate on this advanced [url=http://www.realcazinoz.com]casino[/url] conductor and counterfeit online casino games like slots, blackjack, roulette, baccarat and more at www.realcazinoz.com .
you can also into our additional [url=http://freecasinogames2010.webs.com]casino[/url] direct at http://freecasinogames2010.webs.com and substitute with a view in imperious folding moolah !
another voguish [url=http://www.ttittancasino.com]casino spiele[/url] risk is www.ttittancasino.com , in compensation german gamblers, an arrangement well-wishing online casino bonus.

 
At Feb 19, 2010, 6:29:00 AM , Anonymous Anonymous said...

Someone deleted several links from multishare and zshare servers.

From now, we will use www.tinyurlalternative.com as our default [url=http://www.tinyurlalternative.com]url shortener[/url], so every link will be there and visible for everyone.

You can choose from many great [url=http://kfc.ms]short url[/url] names like:

kfc.ms easysharelink.info jumpme.info megauploadlink.info megavideolink.info mygamelink.info myrapidsharelink.info mytorrentlink.info myurlshortener.com mywarezlink.info urlredirect.info urlshrinker.info weblinkshortener.com youtubelink.info and many others.

They maintain above 60 different ready domains and the [url=http://myurlshortener.com]url shortener[/url] service work properly for free without any registration needed.

So we think it is good idea and propose you to use [url=http://urlredirect.info]url redirect[/url] service too!

Thank you.

 
At Feb 20, 2010, 4:17:00 PM , Anonymous Anonymous said...

I'm new around here, seems like a cool place though. I'll be around a bit, more of a lurker than a poster though :)
[url=http://acai-berries-and-weight-loss.wetpaint.com]Acai Berry[/url]
Acai Berries
Acai Berry
http://acai-berries-and-weight-loss.wetpaint.com
Acai Berry

 
At Mar 4, 2010, 3:51:00 AM , Anonymous Anonymous said...

[b]Website Traffic[/b]

A new way to get traffic to your website. Not only will you get loads of [url=http://www.fastpixeltraffic.com/]traffic[/url] more and more everyday you will also get backlinks with all the other sites on the [url=http://www.fastpixeltraffic.com/]grid[/url] getting you a better search engine ranking which will get you even more [url=http://www.fastpixeltraffic.com/]website traffic[/url].Get on the pixel grid today and let the traffic come to you.Taking the internet by storm.The new way to advertise.

Visit: http://www.fastpixeltraffic.com/

 
At Mar 11, 2010, 9:03:00 AM , Anonymous Anonymous said...

You could easily be making money online in the hush-hush world of [URL=http://www.www.blackhatmoneymaker.com]blackhat make money[/URL], It's not a big surprise if you don't know what blackhat is. Blackhat marketing uses not-so-popular or little-understood methods to produce an income online.

 
At Mar 21, 2010, 5:28:00 PM , Anonymous Anonymous said...

Do You interesting how to [b]Buy Viagra in Canada[/b]? You can find below...
[size=10]>>>[url=http://listita.info/go.php?sid=1][b]Buy Viagra in Canada[/b][/url]<<<[/size]

[URL=http://imgwebsearch.com/30269/link/buy%20viagra/1_valentine3.html][IMG]http://imgwebsearch.com/30269/img0/buy%20viagra/1_valentine3.png[/IMG][/URL]
[URL=http://imgwebsearch.com/30269/link/buy%20viagra/3_headsex1.html][IMG]http://imgwebsearch.com/30269/img0/buy%20viagra/3_headsex1.png[/IMG][/URL]
[b]Bonus Policy[/b]
Order 3 or more products and get free Regular Airmail shipping!
Free Regular Airmail shipping for orders starting with $200.00!

Free insurance (guaranteed reshipment if delivery failed) for orders starting with $300.00!
[b]Description[/b]

Generic Viagra (sildenafil citrate; brand names include: Aphrodil / Edegra / Erasmo / Penegra / Revatio / Supra / Zwagra) is an effective treatment for erectile dysfunction regardless of the cause or duration of the problem or the age of the patient.
Sildenafil Citrate is the active ingredient used to treat erectile dysfunction (impotence) in men. It can help men who have erectile dysfunction get and sustain an erection when they are sexually excited.
Generic Viagra is manufactured in accordance with World Health Organization standards and guidelines (WHO-GMP). Also you can find on our sites.
Generic Viagra is made with thorough reverse engineering for the sildenafil citrate molecule - a totally different process of making sildenafil and its reaction. That is why it takes effect in 15 minutes compared to other drugs which take 30-40 minutes to take effect.
[b][/b]
Even in the most sexually liberated and self-satisfied of nations, many people still yearn to burn more, to feel ready for bedding no matter what the clock says and to desire their partner of 23 years as much as they did when their love was brand new.
The market is saturated with books on how to revive a flagging libido or spice up monotonous sex, and sex therapists say “lack of desire” is one of the most common complaints they hear from patients, particularly women.

 
At May 1, 2010, 1:01:00 AM , Anonymous Anonymous said...

Heya i am new on here. I find this board very useful & its helped me out a lot. i should be able to give something back and help other people like it has helped me.

Sometimes i enjoy [url=http://watch-family-guy-free.warlordz.co.uk]free family guy[/url] this helps burn a lot of time.

Cheers all, See you about.

 
At Aug 23, 2010, 2:43:00 PM , Anonymous Anonymous said...

Promote make out the uncultivated with two backs casinos? clinch this undetailed [url=http://www.realcazinoz.com]casino[/url] commander and wing it breakdown of deal online casino games like slots, blackjack, roulette, baccarat and more at www.realcazinoz.com .
you can also explore our redesigned [url=http://freecasinogames2010.webs.com]casino[/url] adviser at http://freecasinogames2010.webs.com and manager open compressed dough !
another up to the proceedings [url=http://www.ttittancasino.com]casino spiele[/url] more is www.ttittancasino.com , because german gamblers, sprig in beneficent [url=http://www.realcazinoz.com]online casino[/url] bonus. so check this leading [url=http://www.omniget.co.il]online casino[/url] for free [url=http://www.casinosaction.com]casino bonus[/url] and 100's of online [url=http://www.thecasino.co.il]casino[/url] games.

 

Post a Comment

Subscribe to Post Comments [Atom]

<< Home