Feasibility study and its importance

[btaliat]

Business should not be started without carrying out some processes. These processes will determine whether one should invest the business or not. The process is called feasibility study.



Feasibility study is an analysis of all the areas of a business venture to determine its viability, profitability and future performance.


A feasibility report is the formal result of a feasibility study, and can be seen as the result of an analysis of a business venture to determine its viability, profitability and future performance.

Feasibility can be performed by the following
The entrepreneur if he's skilled enough.
An individual or an institutional business consultant.
A chartered accountant.


Feasibility study has the following importance
It helps the entrepreneurs
To understand the variables and mechanism of the proposed business.
Understand and assess the profitability of the proposed business
Decide whether to invest in the business or not.
Have a solid foundation for writing a business plan.
Have an idea of the marketing, production, personnel and other strategies for a profitable business.

 

[Alexandoy]

My course in college is business with management as my major. We did a feasibility study of an importation business that we would also handle the delivery. Now that business is called logistics. The feasibility study that we came up was simple but I think we couldn't do it because of the big capital involved. The cost of the trucks and the garage is already mind-boggling to college students like us.