Feasibility Study

 

TASK:

Conduct a feasibility study and business plan analysis for developing a highway rest area at Kanaka Bar.

CHALLENGE: 

Since Kanaka Bar secured some lands on Highway-1 in 2016, Kanaka Bar committed to setting up a “Must Stop Rest Stop.”  The community needed to understand the market, operational and financial requirements to set up the rest stop in a way aligned with the community’s values and vision of self-sufficiency, sustainability, and vibrancy.

SOLUTION:

Our solution aimed at providing the Council with a comprehensive understanding of the viability and potential of their proposed restaurant- Must Stop Rest Stop.

To achieve this, we undertook a thorough feasibility study and business plan analysis that covered various aspects of the project. Such aspects included:

  • Regional demographics

  • Key consumer groups

  • Economic trends

  • Similar businesses and facilities,

  • Performing an operational analysis.

The operational analysis sought to offer recommendations on essential resource requirements for the project, communication, and engagement strategies. It also aimed to provide a comprehensive promotion plan to push the Must Stop Rest Stop brand to target consumers. This would ensure that the Rest Stop was equipped with the necessary resources, coupled with a well-defined approach to not only attracting but also retaining customers.

In addition to the operational analysis, we also conducted a detailed financial analysis of the project. This covered an evaluation of start-up costs, operating revenues, and expenses, and the projection of financial benefits. Furthermore, we assessed the intangible and non-economic benefits of the Rest Stop, such as its potential to create jobs and drive economic growth in the region.

Lastly, as ZN Advisory, we evaluated the risks associated with the project. This came with recommendations for its mitigation strategies to eliminate or minimize these risks. The analysis offered the Council a complete picture of the viability and potential of Must Stop Rest Stop, enabling them to make informed decisions on whether to proceed with the project.