Introduction to Entrepreneur

Feasibility Analysis

·       Feasibility analysis is the process of determining whether a business idea is viable.

·       It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing.

When To Conduct a Feasibility Analysis

•        Timing of Feasibility Analysis

The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business.

The thought is to screen ideas before a lot of resources are spent on them

•        Components of a Properly Conducted Feasibility Analysis

A properly conducted feasibility analysis includes four separate components, as discussed in the following slides

Forms of Feasibility Analysis

·       Product/Service Feasibility : Is an assessment of the overall appeal of the product or service being proposed.

·       Industry/Target Feasibility : Is an assessment of the overall appeal of the industry and the target market for the proposed business.

·       Organizational Feasibility : Is conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch a business.

·       Financial Feasibility : Is the final component of a comprehensive feasibility analysis