Hospitality

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Proof of Business Concept Purpose and structure of outline feasibility Learning Outcome At the end of this learning resource, students will recognise the purpose of the outline feasibility in proving the business concept and begin to consider the likely structure and content of their own study. The outline feasibility study Purpose of the Study When starting a new venture you will almost certainly need to prepare a Business Plan. However there is little point in investing days and days of effort in preparing a full plan, without first clarifying your thinking. Undertaking some initial feasibility activities will help you assess whether the idea has sufficient potential to warrant the investment of your further…show more content…
Identify both direct and indirect competition. Perhaps including a short description of key features and weaknesses compared to your new venture. Their current level of business. What barriers to entry exist and how will these be overcome in your case? Target Market Describe the target customer segments, try and quantify their numbers and characteristics. How will they benefit? Why should they buy and when? Why do they want it as opposed to you thinking they need it? How will the venture communicate with them? Business Model and key Operational Features B2B or direct to consumer? What products and services will be supplied? How will they be designed, produced and delivered to the market? How will revenue be generated? What is the basis of the production or service provision system? What are any key premise requirements re location, style and condition and size? What are the key equipment needs? Who are the key suppliers? Are they willing to supply? At what cost and what are their terms of trade? Key quality determinants? Regulatory and Environmental Issues What are the key permissions that will be required to start trading? What will the key ongoing regulatory constraints be? Financial Projections Produce a simplified P& L. Base revenue projections on specific unit purchase assumptions e.g. value of contract for services, price of dishes on menu, price of
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