BUSINESS FEASIBILITY EVALUATION
A feasibility study is necessary to evaluate or analyze the potential impact of a proposed business project. A feasibility study has to take precedence before any technical development and project implementation.
Business feasibility evaluation is to determine whether the proposed plan envisaged is feasible, i.e. if it will work or not, and if it is worth doing economically. The evaluation of the entire operation must be assessed. A feasibility study must assess or evaluate the strengths and weaknesses of the company, its position in the market place, and the financial viability. The evaluation must contain information on the company’s main competitors, prime customers, and other relevant facts about the industry. This kind of over-view provides the project owners with a clearer view of the company’s current position and opportunities, information on consumer needs and how best to meet these needs; thus, the feasibility study can lead to fresh and newer ideas for changes in the strategy.
Secondly, the feasibility study must focus on the plan of action and provide all the relevant data on the estimated costs involved and the benefits. If the project is feasible and desirable, the feasibility study may prove to be invaluable for implementation. It helps in developing the right strategies to go ahead with the project, and ideas can be converted into measurable goals. Goals then get broken into a number of steps or tasks for easy implementation.
There are five common factors that have to be evaluated before setting up the business. These are: (TELOS)
Further evaluation is also to be done with: - Market and real estate feasibility, Resources feasibility, and Cultural feasibility.
A feasibility study helps one to decide if the business idea should be implemented. A good and well written feasibility study makes it easier to develop the business plan into a reality and success. A feasibility study involves gathering, analyzing and evaluating information with one important question “should I get into this business”. The answer involves again a prima facie assessment of self and project considerations. The feasibility study prepares one for `what could go wrong`, and what all needs to `go right` for a business to get started and grow successfully.