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1、ConsiderationsinDeterminingtheFeasibilityofaNewEnterprise(PartII)RodneyB.HolcombOklahomaStateUniversityFood&AgriculturalProductsCenterPrimaryObjectivesofFeasibilityPreviewIdentifykeyplanningstepsforfeasibilityassessmentDeterminetherequiredresourcesforanenterpriseSettingstop/gopoi
2、ntsAssistanceprogramsforhelpingfundfeasibilitystudiesPre-FeasibilityQuestionsWhataremy/ourgoals/objectives?Betterpriceformy/ourcommodity?Addvaluetomy/ourcommodity?Businessdevelopmentinmy/ourcommunity?HowmuchcanI/weputintothisventureandstillkeepfoodonthetable?Sweatequity,start-upc
3、osts,andeventuallyinvestmentAVentureShould...Bedeemedworthy/unworthyoneconomicmerits.Betakenunderconsiderationasabusinesscompletelyseparatefromthefarm/ranch.Notbepursuedjustbecauseofpoliticalpressure.Befundedbyatleast50%ownersequity.Now,WhatToDo?Severalfactorstobeconsideredfordet
4、erminingacourseofaction.Assessmentofallpossibleprocessingpossibilitiesforacommodity.Catalogueallneededresourcesforprocessing.Marketresearchforallprocessingpossibilities.Growth,trends,advertising/promotion.Competition,marketshare,acquisitions/mergersMarketPotentialforOutputsUniver
5、seofMarketableProductRetail,foodservice,exports,fundraisersDeterminantsofMarketQualityWhatcharacteristicsaredeemedmostdesirablebycustomersandhowcanyouprovidethem?WholesaleProductValueDon’tfocusonretailprices.GeographicMarketPotentialPotentialLocalBuyersPotentialRegionalBuyersInte
6、rnationalMarketsBuildinexpenses/stepsforexportingproducts.GovernmentProgramsPotentialforlargevolumes,lowmargins.Marketgeneration(e.g.ethanol)MarketCompetitionExistingBusinessesWheretheyare,wheretheydistributeproducts,whatbrandstheymanufacture,etc.Businessesthathaveceasedoperation
7、sWhydidtheyceaseoperations?Aretheirfacilities/equipmentforsale?Import/ExportMarketCompanies,countries,barriers.MarketOpportunitiesBest-FitOpportunitiesBrandvs.co-packing,retailvs.foodserviceStrategiesforMarketApproach4P’sofmarketingBarrierstoMarketEntryRegulatorybarriersIndustryc
8、oncentrationCo-productbarriersRawProduct
