Feasibility Studies

Question 1

What is a Feasibility Study?

Answer 1

Process of assessing the potential of a new business idea.

Determines if a project has the potential to succeed before large investments of time and money.

Question 2

Importance of a Feasibility Study

Answer 2

Determines the possibility of success before developing a business plan.

Ensures decisions are based on facts, not emotions.

Encourages critical thinking about the business idea and its potential to generate profit.

Question 3

How to Do a Feasibility Study (Step 1)

Answer 3

Detailed description of the product/service to be sold.

Manufacturing or purchasing details:
Will the business manufacture the product?

Is there a patent for protection?

Supplier details: Who, where, and alternatives.

Distribution channels to reach consumers.

How the idea is unique compared to existing businesses.

Question 4

How to Do a Feasibility Study (Step 2)

Answer 4

Determine if there is a market for the idea.

Identify the target market.

Assess market potential and position.

Evaluate market growth potential.

Price sensitivity of the market.

Competitor analysis: strengths and weaknesses.

Question 5

How to Do a Feasibility Study (Step 3)

Answer 5

Determine capital requirements to start the business.

Plan for raising capital.

Ensure enough working capital for the first 6-8 months of operations.