How Feasibility Report Can Help an Entrepreneur

A feasibility study is just what it sounds like: a systematic study to understand whether or not a specific project, venture, or approach is feasible. The ultimate outcome of any feasibility report is a go / no go decision. You either move forward or you don’t.

• The keys to a successful feasibility analysis include:

1. The study must be based in reality — not pure speculation or abstract theory. This usually requires primary and secondary market research, to understand whether or not customers will buy, or if investors will invest.
2. The project, venture or approach must be sufficiently well defined that specific hypotheses can be tested. Without detailed product or service characteristics, nothing can really be determined to any degree of confidence.

• FAQs in Feasibility Study.

Here are a few examples of the types of questions Entrepreneurs should ask:

 

1. Has anyone attempted anything like this before?

If so, what problems did they encounter? Did they ultimately succeed? If so, what kind of positive return on

investment did they realize?

 

1. What are the decision factors?

What are the factors that will enter into the final decision as to whether the project, venture or approach is feasible and should move forward? Typical factors involve financing, staff resources, material resources, market demand, the competitive landscape, time and space constraints, etc.

 

1. Are there benchmarks or hurdles that need to be surpassed?

What business requirements are absolutely necessary for a successful solution? Are there unavoidable market risks or environmental risks? How can they be best mitigated?

 

1. What data is available internally and externally?

What is the quality and reliability of this data?

 

1. Why Conduct a Feasibility Study?

Feasibility Study graphic Works on Paper, But Not in Reality The most common reason would be to limit one’s losses. For example, suppose a company is considering developing and launching an expensive new product. The research and development expenditures could easily cost millions of dollars, and the launch would cost even more.