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    What Is A Feasibility Study

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    gaurav_john
    A feasibility study determines whether a business idea is viable and worth pursuing. It evaluates the business concept across market, technical, financial, economic, and organizational factors. The study identifies strengths and weaknesses of potential business scenarios to inform a "go/no go" decision on pursuing the venture. Conducting a feasibility study increases the chances of business success by addressing risks and opportunities early in the planning process.

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    What Is A Feasibility Study

    Uploaded by

    gaurav_john
    90 views19 pages
    A feasibility study determines whether a business idea is viable and worth pursuing. It evaluates the business concept across market, technical, financial, economic, and organizational factors. The study identifies strengths and weaknesses of potential business scenarios to inform a "go/no go" decision on pursuing the venture. Conducting a feasibility study increases the chances of business success by addressing risks and opportunities early in the planning process.

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    Feasibility Study

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    A feasibility study determines whether a business idea is viable and worth pursuing. It evaluates the business concept across market, technical, financial, economic, and organizational factors. The study identifies strengths and weaknesses of potential business scenarios to inform a "go/no go" decision on pursuing the venture. Conducting a feasibility study increases the chances of business success by addressing risks and opportunities early in the planning process.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    90 views19 pages

    What Is A Feasibility Study

    Uploaded by

    gaurav_john
    A feasibility study determines whether a business idea is viable and worth pursuing. It evaluates the business concept across market, technical, financial, economic, and organizational factors. The study identifies strengths and weaknesses of potential business scenarios to inform a "go/no go" decision on pursuing the venture. Conducting a feasibility study increases the chances of business success by addressing risks and opportunities early in the planning process.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 19

    What is a Feasibility Study

    Is this a good business idea?

    Helps answer the question of


    whether to go forward with the
    business idea.

    MANAGING Tough Times


    What is a Feasibility Study

    A feasibility study is valuable for:


    Starting a new business
    Expansion of an existing business
    Adding an enterprise to an existing
    business
    Purchasing an existing business

    MANAGING Tough Times


    What is a Feasibility Study

    A feasible business will:


    Generate adequate cash flow and profits,
    Withstand risks,
    Remain viable in the long-term
    Meet the goals of the founders

    MANAGING Tough Times


    What is a Feasibility Study

    Evaluate Alternatives

    The feasibility study helps to frame and


    flesh-out specific business scenarios
    so they can be studied in-depth.

    MANAGING Tough Times


    What is a Feasibility Study

    Pre-Feasibility Study

    May help sort our alternatives and


    determine if a full-blown feasibility study
    is warranted.

    MANAGING Tough Times


    What is a Feasibility Study

    Market Assessment

    A market assessment may be conducted


    first to identify market opportunities. If
    no opportunities exist, there may be no
    reason to proceed further.

    MANAGING Tough Times


    What is a Feasibility Study

    Study Results

    Outline in depth the various business


    scenarios examined and the
    implications, strengths and weaknesses
    of each.

    MANAGING Tough Times


    What is a Feasibility Study

    Go/No Go Decision

    The feasibility study will be a major


    information source in making this critical
    decision.

    MANAGING Tough Times


    Reasons Not to do a Study
    We already know it is feasible.
    We did a study a couple of years ago.
    Just a way for consultants to make money.
    The company selling us the equipment says it
    is feasible.
    Lets hire a general manager and have him do
    the study.
    Waste of time we need to buy the site and
    begin construction.

    MANAGING Tough Times


    Reasons to Do a Study
    Gives focus to the project.
    Narrows the business alternatives.
    Identifies new opportunities.
    Identifies reasons not to proceed.
    Provides valuable information for go/no go
    decision.
    Increases probability of business success by
    identifying weaknesses early.

    MANAGING Tough Times


    Reasons to Do a Study
    Provides documentation that the idea was
    thoroughly investigated.
    Helps attract funding from lenders, grant
    providers, etc.
    Helps attract equity investment

    MANAGING Tough Times


    Not the Business Plan
    Feasibility study conducted before
    decision to proceed (go/no go).
    Business plan prepared after decision
    to proceed (go/no go).
    Feasibility study provides investigative
    function.
    Business plan provides planning
    function.
    MANAGING Tough Times
    Feasibility Study Outline
    1) Description of the Process:
    Identification and exploration of
    business scenarios.
    Define the project and alternative
    scenarios.
    Relationship to the surrounding
    geographical area.

    MANAGING Tough Times


    Feasibility Study Outline
    2) Market Feasibility
    Industry description.
    Industry competitiveness.
    Market potential
    Access to market outlets.
    Sales projection

    MANAGING Tough Times


    Feasibility Study Outline
    3) Technical Feasibility
    Determine facility needs.
    Suitability of production technology.
    Availability and suitable of site.
    Raw materials.
    Other inputs.

    MANAGING Tough Times


    Feasibility Study Outline
    4) Financial/Economic Feasibility
    Estimate the total capital requirements.
    Estimate equity and credit needs.
    Budget expected costs and returns.

    MANAGING Tough Times


    Feasibility Study Outline
    5) Organizational/Managerial
    Feasibility
    Business Structure
    Business Founders

    MANAGING Tough Times


    Feasibility Study Outline
    Study Results
    Identify and describe various business
    scenarios.
    Compare and contrast scenarios.
    Outline criteria for decision making.

    MANAGING Tough Times


    When to Do & How to Use
    When to do a Study?
    Who will do the Analysis?
    How will you Monitor the Study Progress?
    How to Accept or Reject the Study?
    How to Use the Results?

    MANAGING Tough Times

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