A Feasibility Study

A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it?

Before we begin writing our business plan we need to identify how, where, and to whom we intend to sell a service or product. We also need to assess our competition and figure out how much money we need to start our business and keep it running until it is established.

Feasibility studies address things like where and how the business will operate. They provide in-depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plan.

The information we gather and present in our feasibility study will help us to list in detail all the things we need to make the business work, identify logistical and other business-related problems and solutions, develop marketing strategies to convince a bank or investor that our business is considering as an investment and serve as a solid foundation for developing our business plan.

Even if you have a great business idea you still have to find a cost-effective way to market and sell your products and services. This is especially important for store-front retail businesses where location could make or break your business.

The Components of a Feasibility Study are:

• Description of the Business.

The product or services to be offered and how they will be delivered.

• Market Feasibility: Includes a description of the industry, current market, anticipated future market potential, competition, sales projections, potential buyers, etc.

All feasibility studies should look at how things work, if they will work, and identify potential problems. Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses.

Feasibility studies assess something and consider both pros and cons. They analyze potential business scenarios. A Marketing Plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations that are intended to be implemented.

We should think of market feasibility studies as a logistical study and a marketing plan as a specific, planned course of action to take.

Things to include in a market feasibility study include are description of the industry, current market analysis, competition, anticipated future market potential, potential buyers and sources of revenues, sales projections.

• The Technical Feasibility Study assesses the details of how you will deliver a product or service (i.e., materials, labor, transportation, where your business will be located, technology needed, etc.). We have to think of the