Business Feasibility Studies - Market, Finance & Capital Financing...

Rainmaker Marketing Corporation has prepared hundreds of business feasibility studies for a variety of commercial income-producing property development project types.  Our firm has more than 20 years experience in the preparation of business feasibility studies including: market feasibility studies, financial feasibility studies and capital finance feasibility studies (click here and download a sample of our work).  As the sample demonstrates, the work is rather intense and the reporting is on an in-depth basis with an eye towards the capital finance underwriting process being firmly affixed.

Rainmaker Marketing Corporation is primarily focused on the commercial real estate development industries.  We provide market feasibility studies, financial feasibility studies, capital funding plan proposals, business plans (both public information releases and business plans of operations), property due diligence services (acquisitions of existing commercial real estate projects that have completed development) and related development management assistance to help you execute and prosecute your opportunity.  The steps in the execution of a given study are always the same:

1. Determine the demographic profile of the most likely end-user.

2. Complete an analysis for the purposes of determining whether or not excess demand for the given product or service exists within the geographical primary marketing area of the emergent firm.

3. Complete a competitive compendium of existing, planned and proposed businesses that will directly or indirectly impact the demand for the given product or service, provide a price point for the new product (or service) and provide a basis for determining the period of time necessary for the emergent firm to fully address and penetrate the market to its fullest expected rate and range.

4. Generate a final demand analysis that reconciles the impact of competing products/services with the findings of net new demand for the product/service so as to reach a final new supply capacity conclusion (net buildable demand for commercial real estate projects).

5. Generate a final revenue forecast for the most likely period of entry into the market based upon the expected market penetration rate and price points the market is expected to support.

6. Generate a pro forma income statement based upon the market revenue forecast and the findings of the market study regarding the operating costs and capacities of competing businesses in the market in order to determine the expected-case EBITDA income stream the project can realistically sustain.

7. Using the EBITDA income stream of the project as a guide, develop a project budget that includes a sensitivity-tested mix of debt and equity funding requirements (with a limitation on debt being dictated by the EBITDA stream).

8. Using the income statement and the project sources & uses of funds statement, build the balance sheet and cash flows statement.

9. Create the final presentation with all charts, graphs, technical presentation materials, notes and assumptions included to fulfill the financial feasibility requirement.