Business Feasibility Study
A 5-aspect framework for assessing whether a new business is viable before funds are committed.
Five Aspects
- Market: size, segments, competitors, willingness-to-pay — primary validation (survey/pilot), not opinion.
- Technical: production capacity, supply chain, workforce, technology — whether it can be executed.
- Financial: initial investment, cash flow projections, payback, NPV/IRR (see capital-budgeting) — figures consistent across scenarios.
- Legal: business permits (OSS), KBLI, certifications, taxation (NIB, NPWP, PPh final UMKM) — check the legal-id & tax-payroll-id plugins.
- Risk: top 5 risks + mitigations; ±10% sensitivity test on price and volume.
Rules
- All financial figures come from a single shared model (no floating numbers).
- Payback & NPV are computed with explicit assumptions (discount rate = simple WACC).
- Permits & compliance are not "later" items — they enter upfront costs & timeline.
Scope & Safety
- Use for: go/no-go decisions, investor/bank presentations, prioritizing between business ideas.
- Do not use for: a guarantee of results — feasibility is an estimate, not a contract; include a disclaimer.
- Market data must be sourced (surveys, BPS, associations); do not fabricate figures.
- Legal feasibility requires an up-to-date check against OSS — verify at actual execution time.
Worked Example
Input: coffee shop — investment 250 million (renovation 120 million, equipment 80 million, working capital 50 million); projected annual net profit ~72 million.
Output: Payback = 250 ÷ 72 ≈ 3.5 years; at a 12% discount rate check NPV (capital-budgeting); market aspect: catchment ±5,000 workers, 3 competitors — validated with 100 respondents; legal: NIB + KBLI 56301; risk #1 location — mitigation: 3+2 year lease. Conclusion: feasible provided average volume is achieved.
1---2name: business-feasibility3description: Structure Indonesian SME feasibility assessments across market, technical, financial, legal, and risk aspects with consistent financial figures.4---56# Business Feasibility Study78A 5-aspect framework for assessing whether a new business is viable before funds are committed.910## Five Aspects111. **Market**: size, segments, competitors, willingness-to-pay — primary validation (survey/pilot), not opinion.122. **Technical**: production capacity, supply chain, workforce, technology — whether it can be executed.133. **Financial**: initial investment, cash flow projections, payback, NPV/IRR (see capital-budgeting) — figures consistent across scenarios.144. **Legal**: business permits (OSS), KBLI, certifications, taxation (NIB, NPWP, PPh final UMKM) — check the legal-id & tax-payroll-id plugins.155. **Risk**: top 5 risks + mitigations; ±10% sensitivity test on price and volume.1617## Rules18* All financial figures come from a single shared model (no floating numbers).19* Payback & NPV are computed with explicit assumptions (discount rate = simple WACC).20* Permits & compliance are not "later" items — they enter upfront costs & timeline.2122## Scope & Safety23* **Use for**: go/no-go decisions, investor/bank presentations, prioritizing between business ideas.24* **Do not use for**: a guarantee of results — feasibility is an estimate, not a contract; include a disclaimer.25* Market data must be sourced (surveys, BPS, associations); do not fabricate figures.26* Legal feasibility requires an up-to-date check against OSS — verify at actual execution time.2728## Worked Example29Input: coffee shop — investment 250 million (renovation 120 million, equipment 80 million, working capital 50 million); projected annual net profit ~72 million.30Output: Payback = 250 ÷ 72 ≈ **3.5 years**; at a 12% discount rate check NPV (capital-budgeting); market aspect: catchment ±5,000 workers, 3 competitors — validated with 100 respondents; legal: NIB + KBLI 56301; risk #1 location — mitigation: 3+2 year lease. Conclusion: feasible provided average volume is achieved.
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