Project Format:

Use the American Psychological Association's Publication Manual (7th ed) format (margins, font size, citations, etc). 
 

Here is your Feasibility Study Countdown: It is easier to complete each section at a time and not try to complete the whole assignment at one time.

	Week 3; Submit your proposed business idea to Dr. Hammersley  . Assignment 1 Business Type due! (Monday, February 5th)
	Week 3; Complete Section 1 ;
	Week 5; Complete Section 2 ; Assignment 2 Business Demand due! Only the demand calculation is to be turned in! ( Monday, Febrauary 19th)
	Week 5; Complete Section 3 ; ;
	Week 6; Complete Section 4  ;
	Week 7; Complete Section 5 ;
	Week 8; Complete Sections 6 & 7 . Assignment 3 Feasibility Study due! (Monday, March 4th)

 Feasibility Study Assignment

Grading Basis: The Feasibility Study (Assignments 3) is worth a total of 50 points.

So the total Feasibility Study possible points are 100. This assignment is worth 50 percent of your final grade. See Syllabus Grading Basis.

Example: 100 (possible total assignment points) / 74 points (several wrong answers) for (Feasibility Study assignment ) = 74 (assignment grade) x .5 = 37 total grade points out of a possible 50.

Section 1: Business Image = 2 points each x 6 items = 12 points

Section 2: Marketing = 3 points each x 6 items = 18 points

Section 3: Advertising Plan = 5 points each x 3 items = 15 points

Section 4: Business Expenses = 5 points each x 2 items = 10 points

Section 5: Overhead Table (10 points) & Annual Revenue (5 points) & O&M Budget (10 points) = 25 points

Section 6: Per Unit Cost & Capital Budget = 5 points each x 2 items = 10 points

Section 7: Summary & References = 5 points each x 2 items = 10 points

Note: Errors in Formatting, Punctuation, Grammar, Spelling, In-text Citations and Quotations, and References = 1 point each

 Feasibility Study Assignment (50 points): Due: Monday, March 4th.

Please review the Feasibility Study assignment videos in the PRM 383 CANVAS site. If you cannot view the video, contact the Student Technology Center at (928) 523-9294 or (888) 520-7215

• Name of your city;
• Total Population (most recent year), Median Income, Educational attainment levels - 25 years and over- for high school graduate; bachelor's degree; graduate/professional degree, Age and Sex Total Population, and Total Race and Ethnicity).

b. Identify and list other competitive services (Google Search) in your market area. In a bullet list include:

• The name of every competitor, their pricing and their advantages over your business?

d. Identify the local ordinances, zoning regulations and type of trading area affecting your business. NOTE: The answer to this question is “your business will be located in a business or commercially zoned area.” Unless you are operating an aquatic facility or have food preparation at your business then you would have to address local health codes.

e. Identify your building needs (NOTE: you are required to have an office, but you may NOT use a home office):

	What is the square footage needed for office, dock, equipment warehouse etc., (estimate)
	How many parking spaces are needed, (estimate)
	What is the availability and proximity of public transportation,
	What is the labor supply (labor supply is the unemployment rate),
	What entity provides fire and police protection.

f. Identify if you will build your own, rent, or buy and existing building and why.

Section 3. Advertising Plan (4 points each)

a. Identify, from the text, your pricing strategy(ies), and why you selected them? See text pages 156-159.

	Specific type of media such as newspaper, radio, tv, web site, rack cards, magazines, etc.).
	Include the cost of each type of media used.
	You HAVE to include the cost for a web site. You DO NOT develop one.

Section 4. Business Expenses (5 points each)

a. Create a Start-up Expense table (use the table format, and DO NOT include this as an Excel file) of your start-up costs (fixtures; specific equipment; specific inventory; office supplies; remodeling; utility deposits; legal fees; and license/permit fees. Be sure to include the Total Start-up amount $_____.

1. The name of the financial institution
2. Terms of your bank loan (number of years to repay);
3. Total amount borrowed (this is 80% of your total start-up costs);
4. Interest rate;
5. Monthly payment (This is also a line item in your Overhead and O&M budgets); and
6. You must cite your source for the financial institution in this section AND in the References

NOTE: You can also check for information at Small Business Administration

Section 5. Overhead Table & O&M Budget (3.3 points each)

To calculate your pro forma (projected) revenue, take your "demand" number from assignment 1, then determine your average price for your service and multiply that by the demand.

Example: 24,000 jeep tour customers (demand from item 2c) x  (your jeep tour company offers 1 hour tour - $55/person and 3 hour - $85/person so to get the average $55 + $85=$140/2=$70) so 24,000 x $70=$1,680,000 total revenue. Then it is up to you how to divide it up in to the 12 months revenue for the two revenue line items (1 hour tour and 3 hour tour) but the total revenue should still show $1,680,000.

c. Create a 12 month Operations & Maintenance (O&M) Budget. Estimate your business's first twelve months income and expenses . Using the sample O&M budget format. The expenses are the same line items in the Overhead table. (See item 5a).

Sample 12 Month O&M Budget - You MUST use this O&M Budget format.

Section 6. Per Unit Cost & Capital Budget (5 points each)

a. Determine the "Per Unit Cost," show all calculations, from the 12 month O&M budget, use the Total Expenses amount / divided by your total demand (See item 2c). 

b. Prepare a separate capital budget (Capital items are planned to enhance or expand the business and are usually one time purchases of expensive (over $1,000) and long lasting 3+ years (i.e.: computer, vehicle(s), buildings, etc.). Start-up items are NOT capital items. Start-up items and capital items DO NOT appear in the O&M budget. You MUST use the Capital Budget format.

Note: You must include at least four capital line items and use the sample Capital Budget format.

Sample Capital budget

Submit Section 5 b & 6 b, as separate tabs, in one Excel file with 5b (12 month O&M budget) on the first Excel tab and 6 b ( Capital budget) on the second Excel tab.
 

Section 7. Summary & References (4 points each)

	Not viable - and WHY?
	May be viable if ...... (what changes in your feasibility study could make this business viable) - and WHY
	Yes it is viable - and WHY?

b. List of ALL references and citations in the correct APA format (APA Manual Guidelines, 7th edition). References are listed alphabetically.

Do not use any online citation/reference program. They will not have the correct APA format.

 Grading/Comment Key - this "key" identifies information errors in your Feasibility Study assignment by number and provides additional information. It is a good idea to review the Comment Key before submitting your assignment.

Submit this project in a MSWord file and an Excel file to the course facilitator. The document file should ONLY be a Microsoft Word (.doc; .docx; or .rtf) file, and attached to an email. The Running 12 Month O&M budget on the first tab and the Capital budget on the second tab, MUST be submitted as a single Excel file attached to the same email as the MSWord file.

charles.hammersley@nau.edu

DO NOT SUBMIT THE TEXT ASSIGNMENT IN GOOGLE DOCS OR A .PDF FILE, IT WILL NOT BE ACCEPTED, BECAUSE I CANNOT INCLUDE COMMENTS FOR YOU IN THIS FORMAT!

 

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