If you’re thinking about starting or expanding a business, it may be premature to start developing a complete business plan. A feasibility analysis helps you to determine if the venture is worth pursuing in the first place, before committing significant resources to business plan development.
Working closely with you, we conduct an objective, preliminary analysis of your business concept. If it appears your idea has merit, we’ll tell you. If not, we’ll tell you as well and recommend what needs to get fixed, if possible.
When You Should Do a Feasibility Analysis
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
Conducting a feasibility study involves taking an objective look at the business concept. Based on the results you can then make the informed go/no-go decision about what to do next.
If the venture has little chance of becoming successful, you will have saved time, money, and aggravation.
What Does The Feasibility Analysis Include?
The study covers what’s important to determine the viability of the business concept, such as:
- Business goals
- Products and services
- Market demand
- Sales and Marketing
- Break-Even analysis
- Sales forecasts
- Organizational 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 concept 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 not-so-great idea that’s executed by an experienced “been there, done that” management team can still become successful.
That said, the analysis gives you more insight into whether to move forward. It’s better than launching a business initiative without any idea of your chances of success.
- Quick, objective analysis of the business venture
- Save time, money, and aggravation
- Make an informed go/no-go decision
- Provides input for business planning
To learn more about carrying out a feasibility study of your business venture, please contact us.