Feasibility Study for a Coffee shop
– Feasibility Study
In 1,750 words undertake a feasibility study to explore the potential viability of a business idea or social enterprise and present your findings. You are only allowed to go above or below this word count by 10% otherwise marks may be deducted. Marks will be awarded as follows:
• Introduction to the business idea (10%)
• Establishing the feasibility of your idea (10%)
• Market research and competitor analysis – is there a demand for your product/service? (20%)
• Financing an enterprise – how much do you need and where will finance come from? (10%)
• Operational issues – getting your product/service to market (10%)
• Pricing strategy – engaging with the market (10%)
• Summary and Recommendations (10%)
• Use of resources and research (10%)
• Structure, style, language and presentation of work (10%)
My idea is a coffee shop
*Consider the risks may I will have it.
*Price your product or service:
Knowing the difference between cost, price and value can increase profitability:
• the cost of your product or service is the amount you spend to produce it
• the price is your financial reward for providing the product or service
• the value is what your customer believes the product or service is worth to them
For example, the cost for a plumber to fix a burst pipe at a customer’s home may be £5 for travel, materials costing £2.50 and an hour’s labour at £10. However, the value of the service to the customer – who may have water leaking all over their house – is far greater than the £17.50 cost, so the plumber may decide to charge a total of £50.
Pricing should be in line with the value of the benefits that your business provides for its customers, while also bearing in mind the prices your competitors charge.
*Areas Covered by the Task
• How can we reduce costs?
• How can we avoid costs?
• How can we increase revenue?
• Location (near to the any university)