All About Feasibility Study and Why You Should Conduct One? Other Services

You have invested a large amount of money and efforts and still, the business didn't go as planned. Did this ever happen to you? Or worse you get stuck in the middle of a successful project and now you need a loan or some more funds to support this project? Or if you want to expand your brand or if you are looking to launch a new product? You have the investment done by the stakeholders but you still find yourself stuck in the middle of this project with no money left. You need more funds to finish. You cannot dismiss the project as it has already taken much money and effort. If you had checked the feasibility of the project than you would not have found yourself in such a situation.

What is the feasibility study?

Feasibility study meaning is stated as a practical analysis of a project that is proposed. Based on all the aspects required for the project, a study is done. Though majorly, feasibility analyses the cost of the project and the value it should provide. If the proposed project provides greater value than its cost, it is feasible. If the value provided is not greater than the cost of the project then it is not feasible. Market research is done to check the demand or acceptance of the project. If it is acceptable in the market, then it is feasible. Many companies have invested a large sum of money for their product but still could not generate profits because the product didn't fit the market.

Types of feasibility :

✔️Technical feasibility

It analyses whether for a given situation, the company has a technical team or it does not have.

✔️ Legal feasibility

It analyses the project with the legal regulations stated by your country. Example: you cannot sell cannabis if it is banned in your country.

✔️Time feasibility

It takes into account how much time the project will take for completion. If it gets completed when people can take advantage of it, then it is feasible. If it will take more time and the need or demand shall vanish for the product then it's of no use.

✔️ Financial feasibility

It takes into account all the investments that are to be done for the project.

Why the feasibility study is important?

●The importance of a feasibility study can be seen as follows.

●Feasibility study predicts if your project is going to work or not.

It analyses your idea or product and predicts it working as per the market trend. If you wish to sell a landline telephone in this era of smartphones then the market analysis will reject your product as it does not have any demand or scope of growth. But if you wish to manufacture a smartphone then it will be beneficial.

●It helps in listing out your motto.

After the product or idea is feasible, you now need to know your aim. According to the analysis of the feasibility study, your aim is devised.

●It helps in devising a plan.

Considering your aim and product, you need to form a plan. Feasibility study suggests you plan that should work out for your project.

●It helps in putting the plan into action.

Just having a product and a plan won't work. You should efficiently put your plan into action. The feasibility study helps you in putting your plan into action at a time when it will yield better results.

●It helps you in getting the target audience

Feasibility study gives you the demand of your product according to the area. If you target your product with the right audience, your product will be a hit. You cannot advertise a school supply amongst an audience of senior citizens. Getting the right audience is the key to achieve profits.

Mistakes to avoid in the feasibility study.

●Waiting for the right time

The important step is to decide when to organize a feasibility study. Though for some instances, it is absolutely necessary to conduct a feasibility study as soon as possible. For example, when you wish to invest in a market or product. Opening a new store also requires feasibility study beforehand. Or if you are willing to expand your business in another country, then you should get a feasibility study done at the earliest.

●Doing on your own

Many people think the analysis, research, and prediction of the feasibility of the product is no big deal and can be done by themselves. Here they magically reduce problems, don't consider beyond their imagination. As a result, the product fails. So doing a feasibility study on your own won't get you the desired outcome.

●Too quickly

A good feasibility study ensures a detailed analysis of all the aspects of your product along with the company. If things are done in a rush, then there will be errors on results. The feasibility study should be done within an appreciated time without rushing on things.

●Analysis at the right time

Many times, the analysis is provided after delay and the company has already invested a major amount of money. And now if the study shows the product is not feasible, then the company will incur heavy losses. An ideal feasibility study analyses a feasible product in time and if it's not feasible, it should suggest options to make it feasible.

●Bias mistakes

Never hire someone who just knows to say yes to your ideas. Criticism can predict the real value of your product.

So the next time you hire someone for a feasibility study of your brand or product, make sure to analyze their organization, price, and the value they offer.