Did you know that preparing a feasibility study is an important step in business development?
Feasibility studies are prepared to help entrepreneurs understand the alternatives for a business enterprise. Feasibility studies can identify the type and quality of product(s) or service(s) to be marketed, help outline the general business model (ie. how the business makes money), provide information about the technical processes, size, location, kind of inputs, etc., specify the time horizon from the time the project is initiated until it is up and running at capacity, and identify limitations or constraints of the market and the economic returns of the business.
The success of a feasibility study is based on the careful identification and assessment of all of the important issues for business success. Depending on the business project, additional items may also be important. Accordingly, the basic premise of a feasibility study is to determine the potential for success of a proposed business venture. A feasibility study is just the beginning stage for a successful enterprise project, but additional scenarios must be carefully studied and analyzed for its conclusions and underlying assumptions. If feasible, the most viable business model must be explored and a business plan developed for creating and operating a business.