Introduction
The feasibility analysis is a process where an individual confirms a particular strategy, design, or plan to ensure that it is on course to achieve the desired outcomes. Therefore, a feasibility analysis can be used to validate decisions, assumptions, constraints, and approaches surrounding a business case (Kassean et al., 2015). It is primarily regarded as a study aimed at measuring the likelihood and ability to successfully carry out a project by taking into consideration all the relevant factors. A successful feasibility analysis takes into account a wide array of elements including the technological, economic, and legal factors among others. In a nutshell, conducting a feasibility study helps to determine the long-term viability of a business project and its likelihood of meeting its objectives. With a keen interest in the travel agency business model described before, the focus will be on conducting a feasibility analysis.
Financial Feasibility
Financial feasibility remains one of the significant analyses required in managing a new project. Lenders stress on financial feasibility as this ensures that a plan lives up to a particular level of performance expectation. It also provides a business with a rationale to estimate its profitability. For the travel agency to become successful, it must take into consideration factors such as the start-up capital, source of capital, and the returns on investment. A travel agency that will compete favorably with the market giants will require strong start-up capital. Some of the aspects that must be taken into consideration include travel vehicles, tour guides, and a garage. For five cars, the project will require approximately $100,000. The tour guides and the garage will be under recurrent expenditure with an expense of $2000. The initial start-up funds will be borrowed from a financial institution such as a bank with favorable terms of repayment. I will also lobby for investors in the tourism industry who will be willing to get their returns once the business has taken shape.
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Industry and Market Feasibility
The market or industry feasibility tests the overall appeal that a particular product or service has on a specific market. Some of the issues that could be considered in this section include the industry attractiveness, market timeliness, and the identification of a given niche market (Onyesom & Okolocha, 2014). Therefore, one of the strategies that I would use to test the industry and market feasibility would be performing primary research. As an entrepreneur, I will have to assess the attractiveness of the new market that I wish to venture into. Therefore, I will approach key stakeholders in the tourism sector and potential customers visiting the major tourist destinations in towns and cities such as New York, Florida, Las Vegas, and Colorado. Secondly, I will conduct secondary research where I will need to probe the information that has already been collected regarding the travel agency business. Some of the essential factors that I will assess include government statistics, industry-related publications, and the website of competitors such as Trek America, Trafalgar Tours, and Intrepid Travel among others. Firms such as the Forester Research will also provide me with an outlook of the industry and how it operates. From this research, it remains vital to note that the travel agency business is one of the most marketable and has a continuous and ready market.
Product or Service Feasibility
The product or service feasibility primarily aims at finding out the desirability of the product among the potential clients. It also requires gaining evidence that the product has a much-needed demand (Kassean et al., 2015). It will also require me to conduct both primary and secondary research to determine how well the tourists across various destinations in the country need travel agency services. In doing the primary market research, I will have to prepare surveys and questionnaires with the prospective customers asking them to outline their desirability of the new service. I will also want to find out how they feel about the existing services they are acquiring from the existing service providers. Therefore, this will provide me with a scope of the desirability and demand and supply dynamics of the service. Secondary research on journals and publications will provide me with the much-requires scope of operations including how well different tourist destinations are covered with the travel agency services (Onyesom & Okolocha, 2014). Across the spectrum, it remains evident that the travel agency business is required with high demand. With the influx of tourists locally and from other countries, the current services provided by the competitors are not enough. More importantly, the consumers are reportedly yearning for services that better satisfy their needs by enhancing reliability, variety, and timelessness.
Entrepreneurial Readiness
In assessing my entrepreneurial readiness, I will begin by going through my plan and strategic thinking. Strategic thinking will analyze all the factors that I will need to consider to edge my competitors (Barringer, 2015). Some of the aspects include the provision of timely and reliable rides at an affordable cost. I will also have to build alliances with stakeholders and investors in the travel agency business in order to leverage my competitive advantage. Finally, I will evaluate my commitment and leadership abilities to ensure that they are steadfast and ready for the new challenges.
Evaluation
From the feasibility test, the business plan will need to be slightly modified with a keen interest in its financial viability. From the feasibility test, the market is ready, and the industry is accommodative. However, the start-up cost is costly and would need a massive borrowing that might land the business in massive debts at its inception. Therefore, the plan will be created in such a way that it will have a relatively smaller beginning expansion expected to begin once the business has already started making substantial profits.
References
Barringer, B. R. (2015). Entrepreneurship: Successfully launching new ventures. Pearson Education India.
Kassean, H., Vanevenhoven, J., Liguori, E., & Winkel, D. E. (2015). Entrepreneurship education: a need for reflection, real-world experience and action. International Journal of Entrepreneurial Behavior & Research, 21(5), 690-708.
Onyesom, M., & Okolocha, C. C. (2014). Critical feasibility study skills required for effective entrepreneurial development: Implications for Business Education Programmes. International Journal of Business and Social Science, 5(10), 211-218.
