A feasibility study is a process to test whether your idea will work or not. So, a business feasibility study is a process to help you find out whether your business idea is viable or not.
Here are some simple steps to guide you in conducting your own feasibility study:
PERSONAL ANALYSIS
You must start a feasibility study by examining yourself. Are you viable as an entrepreneur? You need to know your personal characteristics, skills, attitude, and financial condition.
Basically, you have to answer the following:
What are your qualifications in line with your business?
Can you hire and can you work with other people who are more qualified than you?
Do you have the expertise to make your business successful?
Are you a people person?
What are your management skills? (Selling, record-keeping, costing)
Do you know what it takes to own and run your own business?
What is your behavior when things don’t go as planned? How do you handle failures and challenges?
Do you have sufficient funds to run the business? Or how do you plan to fund your business?
CONDUCT MARKET FEASIBILITY STUDY
Learn about the Market- after a deep analysis about the entrepreneur within yourself, you must now get to know the marketability of your business idea. You must know how you can fit your idea into the current market.
Gather Data from Other Business Researches- in this way you will be able to have detailed information of the current demands regarding the product or service that your business is going to sell or render.
Make your own survey- one great way to learn is to ask specific questions to your potential customers and audience.
Analyze the scope of your competitor in the market.
Based on your survey, identify your potential share of the market
ORGANIZATIONAL AND TECHNICAL FEASIBILITY STUDY
Determine a place where you can start your business. Analyze whether you need a partner or you can start the business by yourself and hire employees later on.
Determine the materials you need to start running your business. To avoid financial loss, you need to carefully determine the basic materials that you will need. Other sophisticated and more expensive materials can be bought once you have established a name in the market.
Research about the cost of materials. You also need to identify if there is a wholesaler who can give you the needed materials for a lower price.
FINANCIAL FEASIBILITY STUDY
Outline your start-up cost. Estimate your operating cost and your profit and how long do you plan to achieve it. You have to organize your findings, and compile all the information that you have gathered.
Now that you have completed your business feasibility study, your findings should help you come up with a business decision that can have a huge impact on your life and success as well.
