importance of feasibility study for new business
Before the start of any business or project, it is imperative to conduct feasibility study to evaluate viability and future success of business or project. This analysis helps in decision making process by identifying risk areas and important aspect which may not have been previously considered. This is the first step before initiating any work on a business plan. Feasibility studies are important as these help in identifying important issues before the start of project or business especially regarding product or services to be offered, target market, competition, technology, and technical aspects, required financial and human resources.
The ultimate purpose of any feasibility study is to determine if the business/project/idea under consideration will be profitable or not. For this it should be first established if it is technically feasible and then financial aspects are considered. It involves enormous amount of data collection and analysis. A complete business feasibility plan can have various component each covering technical, operational, financial, marketing, human resource. etc. However, below are the important steps performed for any feasibility studies:
- Preliminary analysis.
- Selection of option.
- Target market analysis including demand and competition research.
- Financial analysis mainly start-up cost, projected operating cost and revenues.
- Assessment of risks.
- Compilation of data and report.
Business feasibility study report plays an important part for the development of business plan at the next stage.
feasibility study plan
Our experts at VA have extensive experience in assisting our clients with feasibility studies for different businesses. Hospital, steel mills, coffee shops, restaurants, supermarkets are the important factor where we have done feasibility studies. If you are planning to make investment in a new business, it would be important to first carry out the feasibility study to ensure profitability of business. Enable GingerCannot connect to Ginger Check your internet connection
or reload the browserDisable in this text fieldEditEdit in GingerEdit in Ginger