5 Reasons Why You Must Carry Out Feasibility Analysis

Definition: Feasibility analysis is a comprehensive research study required by the entrepreneur or his agent to determine the practicability, profitability and viability of the business idea.

Before jumping into a start up business, expanding an existing one or even acquiring an existing one, it is very necessary to analyze the feasibility of that business. For whatever purpose, the main task of feasibility analysis is to express the model of the business and its marketability; check its prospect for financial profitability and success; and convey the managing group’s capability to implement and accomplish the business objectives.

Feasibility analysis is all about questioning your concept, ascertaining which components are in place to make it realistic to easily execute and recognizing the biggest obstacles you are likely to face.

Feasibility analysis mainly assists the entrepreneur to:

  1. Appraise the business marketplace for the new business idea.


  1. Assess if the managing team have the personality generally known with successful business persons. It is advisable to have self assessment first. One must have that personality suited, skilled and knowledgeable to run a business and lead a group to success.



  1. Identify the challenges of startups and how one can overcome those challenges.


  1. Consider the financial feasibility of the business facing its expected sales incomes, fixed and variable costs as well as break-even calculations.



  1. Decide to continue with the business plan due to is viability and other attractions or not. Sometime it takes asking oneself if it is no longer as originally envisaged or need to be amended, redirected or altered immensely.

In this wise, an ingenious suitable feasibility analysis will supply the historical setting of the business, describe the products and services, the account/financial profile/data, information on its operations as well as management, marketing research and strategy, including legal necessities. In actual fact, for such a serious research, all strata of the business are subjected to feasibility analysis depending on the type.



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