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Feasibility studies

Feasibility studies

Uncertainty is a constant that businesses of every size face daily. Getting customers in the door, encouraging them to spend, and ultimately generating a profit are basic objectives that can at times seem difficult to achieve. Changing, adapting and incorporating new products and ideas into your business mix are ways to remove some of the uncertainties you face, but without proper forethought and planning, those steps themselves can be highly uncertain. Enter the feasibility study: a chance to ask and get answers to questions that help you to assess potential, and to predict the likelihood of success or failure.
  • Feasibility studies are important because they force you consider the big picture first and then think in a top-down fashion.
  • In this way, one or two general starter questions lead to a host of additional, more detailed questions that become increasingly narrower in focus as you get closer to reaching an ultimate answer. For example, asking whether anyone will buy your new-and-improved product and whether it will generate a profit creates additional questions that force you to consider customer need and possible competition, and to identify risks that you may face. You must also describe your product and its benefits, define your target market, and calculate cost along with break-even and profit points..
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