Feasibility study is an analysis of the viability of an idea/Project. The feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea.

A feasibility study will help you establish whether the business will generate adequate cash-flow and profits, withstand the risks it will encounter, remain viable in the long-term and meet the goals of the founders. The venture can be either a start-up business, the purchase of an existing business, an expansion of current business operations or a new enterprise for an existing business.

The go/no-go decision is one of the most critical in business development.  It is the point of no return.  Once you have definitely decided to pursue a business scenario, there is usually no turning back. The feasibility study will be a major information source in making this decision.

Why you should do feasibility study

• Gives focus to the project and outline alternatives.
• Narrows business alternatives
• Identifies new opportunities through the investigative process.
• Identifies reasons not to proceed.
• Enhances the probability of success by addressing and mitigating factors early on that could affect the project.
• Provides quality information for decision making.
• Provides documentation that the business venture was thoroughly investigated.
• Helps in securing funding from lending institutions and other monetary sources.
• Helps to attract equity investment.

The feasibility study is a critical step in the business assessment process. If properly conducted, it may be the best investment you ever made.