Feasibility study is an analysis of the viability of an idea. A feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea?”. All activities of the study are directed toward helping answer this question.
Feasibility studies can be used in many ways but primarily focus on proposed business ventures. We do feasibility studies for businesses, farming projects and others to determine the viability of the proposed ideas before proceeding with the development of a business plan (how to enter the market, that is, developing competitive advantage). Determining early that a business idea will not work saves time, money and heartache later.
Why Feasibility Study is Relevant
Conducting a feasibility study is a good business practice. If you examine successful businesses, you will find that they did not go into a new business venture without first thoroughly examining all of the issues and assessing the probability of business success.
Below are other reasons to conduct a feasibility study.
- Gives focus to the project and outline alternatives.
- Narrows business alternatives
- Identifies new opportunities through the investigative process.
- Identifies reasons not to proceed.
- Enhances the probability of success by addressing and mitigating factors early on that could affect the project.
- Provides quality information for decision making.
- Provides documentation that the business venture was thoroughly investigated.
- Helps in securing funding from lending institutions and other monetary sources.
- Helps to attract equity investment.
The feasibility study is a critical step in the business assessment process. If properly conducted, it may be the best investment you ever made.
Contact us for a Feasibility Study of any idea to guarantee its success.