So, you are
considering building or buying an airline?
country of the world, there is nothing that we know
of that is so over-regulated and complex as an
operating airline. What is the first thing you will
need? For most of our clients it’s an initial
requirement for delivering a well written
professional business plan to potential lessors and
Feasibility Studies &
Be sure you
know what you want and what to expect when pursuing
a new venture. A lot of time, resources and hard
money can be saved in knowing what to do, what not
to do and the order in which to do it. A good rule
of thumb is to never commission a business plan
until a feasibility study has been written.
study is normally less than 40% of the cost of a
formal business plan and although a feasibility
study will not be anywhere close to the in-depth
“nuts and bolts” view of a business plan, it will do
exactly what the name implies. It will show if a
project is feasible before other steps are taken or
indeed paid for.
The differences between a
feasibility study and
a business plan.
study is designed to discover if a business or
project is “feasible” or not: (In short, does the
business or project warrant further investment of
time, money and further study or is it a
non-starter?) A feasibility study is a relatively
inexpensive way to safeguard against the wastage of
If a project is
seen to be feasible from the results of the study,
the next logical step is to commission a full
investment made in the feasibility study itself then
be wasted? No, because the research and information
uncovered in the study will be of good use in the
business planning stage and will reduce research
time and therefore the cost of the business plan.
A business plan
is designed to “plan” in advance how a business or
project will be started, implemented and managed:
(In short, a working “blue print” for the entire
operation of the business or project). Business
plans are commissioned for one of three reasons:
Reorganization, investment / funding or a management
blueprint for new operation.
plans to fail, he only fails to plan!
studies demonstrate to a prospective project owner
or investor that a given concept is financially
viable and whether further study and / or a business
plan is warranted. For a feasibility study, basic
data is obtained from the client through a series of
queries, questions and meetings, wherein the client
provides some of the research and other data and
facts need to be gained from a variety of sources.
feasibility study contains, among other items, notes
on financial projections, a general description of
the business, general details describing how the
company / project will be formed, managed and
marketed, statements concerning the competition and
a cash-flow projections based on estimates and
industry averages. Further notes can be included as
to general details of the project and revelations
found during the research stage. The study will
normally be completed quickly and in a very general
format compared to that of a business plan. A
feasibility study should answer five questions.
1. Will it work or not?
2. Is it profitable or
3. What will it basically
cost to fund or start?
4. Is it worth doing?
5. Is it worth
commissioning a business plan?