WEEK 2 (chapter 3) Flashcards
(36 cards)
What is feasibility analysis?
The process of determining whether a business idea is viable — i.e., whether it’s worth pursuing or should be dropped or revised.
What is primary research in the context of feasibility analysis?
Research you collect yourself — e.g., interviews, surveys, observations.
What is secondary research in feasibility analysis?
Existing data from other sources — e.g., reports, industry articles, databases.
What MENTAL SHIFT is important when starting feasibility analysis?
You must stop thinking of your idea as just a product or service, and start thinking of it as a full business.
What are the four main areas of feasibility analysis?
- Product/service feasibility
- Industry/target market feasibility
- Organizational feasibility
- Financial feasibility
What is the purpose of feasibility analysis?
To test and refine a business idea based on real feedback — NOT to confirm assumptions blindly.
What does product/service feasibility analysis test?
Whether people want what you’re offering and if the product/service is desirable.
What is the first key question in product/service feasibility?
“Do people want this?” — i.e., product/service desirability.
What tool is used to test product/service desirability?
A CONCEPT TEST using a concept statement shown to at least 25 knowledgeable individuals in your target market.
What should a concept statement include?
Product description
Target market
Product benefits
Position vs. competitors
Team info (optional)
What happens if you skip the concept test?
You rely on gut feeling instead of evidence, increasing the risk of failure.
What is the goal of a concept test?
To check for product/market fit — whether the product’s benefits match the target customers’ needs.
What are three ways to test product/service demand?
- Talk to potential customers face-to-face
- Use online tools (surveys, Q&As, Google Ads)
- Do library/internet/gumshoe research
What does product/service demand analysis test?
Whether there is actual demand for the product.
How can a landing page be used in demand testing?
By offering a test action (e.g., “Click to get 10% off”) to measure actual interest.
What is confirmation bias and why is it dangerous in feasibility testing?
It’s the tendency to seek evidence that supports your idea. It’s dangerous because it blinds you to flaws or lack of demand.
How can you reduce confirmation bias when testing demand?
Ask open-ended questions and actively seek disconfirming evidence.
What does industry/target market feasibility analysis assess?
The overall appeal of the industry and the target market in which the business will operate.
What are key features of an attractive industry?
Young
Growing (not shrinking)
Early in lifecycle
Fragmented (many small competitors)
Not too crowded
Not reliant on low-cost raw materials
Why is selling “must-have” products better than “nice-to-have” ones?
Because customers are more likely to prioritize and purchase must-have products, even in tougher conditions.
What defines an attractive target market?
Big enough to support the business
Small enough to avoid direct competition with large firms
What does organizational feasibility analysis assess?
Whether the business has the team and non-financial resources needed to launch successfully.
Do most start-ups target the entire industry?
No — they usually serve a specific niche within the broader industry.
What is “management prowess”?
The strength and capability of the founding team — including their skills, market understanding, and ability to attract talent.
