Feasibility Study In Business Analysis:
Feasibility study is one of the Enterprise Analysis. It is a analysis of the viability (possibility) of an idea. It is focuses on helping the answers the essential questions of “Should we proceed with proposed business project idea?”. It can be used many ways but mainly focused on proposed business venture.
It is usually conducted after producers have discussed series of scenarios and ideas. It helps to frame and flesh out specific business scenarios so they can be studied in-depth. It is a exploratory journey and takes several paths before reach destination.
Feasibility Study Versus Business Plan :
A Feasibility Study is not a Business Plan. It provides investigating function. It addresses the question of “Is this viable business venture?”. The Business Plan provides a planning function. The BP outlines the actions needed to take the proposal form “idea” to “reality”.
“The Feasibility Study is conducted before the Business Plan.”
Reasons Not to Do It:
- We know the feasible. An existing business is already doing it.
- Why do another feasibility study, when one was done just a few years ago.
- Feasibility studies are just waste of time.
The reasons given above should not dissuade you from conducting a meaningful and accurate feasibility study. Once decisions have been made about proceeding with a proposed business, they are often very difficult to change. You may need to live with these decisions for a long time.
Reasons to Do It:
- Gives focus to the project and outline alternatives.
- Narrows business alternatives
- Identifies the new opportunities through investigate process
- Identifies reasons not to proceed.
- Provides quality information for decision making.
It is a critical step in the business assessment process. If properly conducted , it may be the best investment never made before.
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