Feasibility Report

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A business feasibility study (also called a feasibility report or feasibility analysis) is a useful place to start when considering purchasing a business or when contemplating starting a business. Whether a non-profit organisation, or commercial enterprise, feasibility studies are an excellent way of making sure that you have a comprehensive understanding of the business environment and a realistic expectation of your business’ potential.

Define ‘feasible’?

A definition of feasible will help us understand the purpose and task of undertaking a feasibility study. Feasible means ‘doable’, ‘achievable’, ‘realizable’, ‘accomplishable’.

What is a feasibility study?

The purpose of a feasibility study is to make an assessment about the overall potential of a business concept or project. So a feasibility study is a researched and written report on whether a business idea in its current form is achievable. In particular, a business feasibility study is used to assess the economic viability of your business concept before you start spending serious money and time.

In other words, a feasibility study is a process to examine the potential of the business to be profitable in your specific market .

What is the importance of a feasibility study?

A business feasibility analysis provides a risk-free opportunity to observe the way in which different variables impact on the potential profitability of the business. There are no right or wrong answers when evaluating the commercial and technical feasibility of a business. In the end, a feasibility study simply provides reasonable evidence that a business or project will succeed or fail.

Although to undertake a business feasibility analysis yourself may seem a daunting task, it can be a cost-effective first step. A comprehensive business or project feasibility study may be all that is needed to convince an angel investor or venture capitalist to invest the money and time to develop a full business plan.

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