Processes

A feasibility study is an analysis of the viability of an idea. The feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea?” All activities of the study are directed toward helping answer this question. How does such a study help frame the venture opportunity and assess risks? Feasibility studies can be used in many ways but primarily focus on proposed business ventures. For example, farmers and others with a business idea could conduct a feasibility study to determine the viability of their idea before proceeding with the development of a business. In my opinion, if most potential entrepreneurs were to do this it would save time, money and heartache later.

• A feasible business venture is one where the business will generate adequate cash-flow and profits, withstand the risks it will encounter, remain viable in the long-term and meet the goals of the founders. The venture can be either a start-up business, the purchase of an existing business, an expansion of current business operations or a new enterprise for an existing business Sometimes a Feasibility Study is used to give the entrepreneur guidance on how to proceed with the study and what to include. 

• A feasibility study is only one step in the business development process it takes a lot of researching and hard work to start a successful business. Should a feasibility study be used as part a greater venture capitalization plan? Yes and no, it also helps in knowing your strengths and weaknesses before starting with the project so that you can capitalize on your strengths and improve on your mistakes. If you are planning to borrow from banks or money lending agencies, a feasibility study of your proposed venture helps you in convincing them as they get the impression that you have a solid plan of action and you have read the conditions very well.

• The conclusions of the feasibility study should outline in depth the various...