Financial Feasibility Analysis Case Study
Group members:
Nalin Jain
Devashish Joshi
Kunal Pardhi
Kartik Agarwal
Kaushik Chauhan
Isshita Kalia
A start up is a venture, which is driven by innovation. It is different from a conventional
business in the aspect that its aim is to not only generate income but also do something for
the masses.
Sarah is a potential entrepreneur who wishes to open Fashion Forward, a new fashion
boutique that provides trendy women’s garments. The following is a financial feasibility
analysis for two cases, A and B, which tells how profitable her venture can be.
How profitable is this venture?
Sarah has all the skills and the unique ideas that are required for designing clothes
but she lacks behind in the execution part as she does have a wide idea about the
financial feasibility of her business idea. It is of utmost importance to generate profits
in a venture and even after all of the creative ideas and hard work, if a venture
cannot churn out profits then, for sure something is going wrong either in the
execution part or in the assumption part. The first time when Sarah analysed the
whole situation and made the assumptions, she came to know that she had
overestimated the whole scenario and thus, she had to make modifications in it.
Talking about the profits, it seems that the venture is not particularly profitable at first
because of Sarah’s week marketing skills and financial management. However, if she
can get help from one of her knowns who already had an experience in marketing
then, may be her profit margins could increase with respect to the previous situation.
However, in the end, Sarah’s venture seems to have a decent profit margin.
Do you feel comfortable with Sarah’s assumptions? If not, which assumptions
would you change?
