If you’re thinking about starting or expanding a business, it may be too early to develop a complete business plan.
At this early stage, a feasibility study helps to determine if your business idea is worth pursuing in the first place, before committing significant resources.
Working closely with you, we conduct an objective analysis of your business concept. If it looks like the greatest thing since sliced bread, we’ll tell you. If it’s not, we’ll tell you as well and recommend what needs to get fixed.
When You Should Do a Feasibility Study
If you have an idea for a new business, determine its viability before committing time, effort and money to full-scale business planning.
Developing a new product requires significant company resources. Make sure there is sufficient demand for the new product and that you can sell at a profit, before starting product development.
Going after a new market is a considerable challenge, financially and in terms of management effort. You want to be certain there is sufficient demand for your products to make the undertaking profitable.
Expanding the business cannot be done on a whim. Is it going to be worth it? Will you be able to get an ROI?
Merger or acquisition
M&A initiatives are some of the most challenging an organization can undertake. The risks are high. A feasibility study gives you an early signal about whether that M&A opportunity is worthwhile.
Make the Go/No-Go Decision
A feasibility study requires you to take an objective, quantitative look at the business concept. Based on the results you can then make an informed go/no-go decision about what to do next.
If the business idea has little chance of becoming successful, you will have saved time, money, and aggravation.
What Does The Feasibility Analysis Include?
The study covers those important facets necessary to evaluate the viability of the business concept, such as:
- Business goals and objectives
- Products and services
- Market demand
- Sales and Marketing
- Sales forecasts
- Organization structure
A feasibility study is a high-level analysis. It is not a 100% accurate predictor of the venture’s chances of success.
Even the best business idea can still fail due to poor management, weak execution, lack of funding, unforeseen events, and of course, just plain bad luck. On the flip side, a perhaps not-so-great idea that’s executed by an experienced “been there, done that” management team can still become successful.
That said, though, a feasibility study gives you more information to decide if and how to move forward. It’s better than launching a new initiative without any idea of your chances of success.
Feasibility Study Report
At the end of the feasibility study you’ll receive a report highlighting the strengths and weaknesses of the business concept and recommendations. Armed with the results you can then decide what to do next.
To learn more about carrying out a feasibility study of your business idea, please contact us.