Business Feasibility Study
A feasibility study’s main goal is to assess the economic viability of the proposed business. The feasibility study needs to answer the question: “Does the idea make economic sense?” The study should provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of the cooperative’s success. The outcome of the feasibility study will indicate whether or not to proceed with the proposed venture. If the results of the feasibility study are positive, then the cooperative can proceed to develop a business plan.
If the results show that the project is not a sound business idea, then the project should not be pursued. Although it is difficult to accept a feasibility study that shows these results, it is much better to find this out sooner rather than later, when more time and money would have been invested and lost.
A feasibility study should examine three main areas:
market issues
technical and organizational requirements
financial overview
•A feasibility study is a process in which you look at an idea to see if it is “feasible,” that is, if and how it will work.
•A comprehensive feasibility study looks at the entire structure, needs, and operations of a business.
•A limited or project feasibility study looks at one specific task, program, idea, or problem.
•A feasibility study looks at both sides, considering pros and cons, and troubleshoots potential problems.
•A feasibility study is not a business plan, but serves as a foundation for developing your business plan.
•A market feasibility study is not a marketing plan, but studies markets and market potential, and can be used to support or develop a marketing plan.
•In addition to a business plan, an investor or lending institution may require you to submit a feasibility study before considering your request for capital.
If the results of the feasibility study indicate that the proposed venture is economically viable, then the Organization can begin to develop a business plan.
Our team of consultants are available to provide you the business feasibility services.
