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Why do Businesses Need to Conduct a Feasibility Study? Other Services

16 Dec 2019| Posted by James | In Other Services

Businesses have to study new ideas or projects before taking into the next level for the success of the business. It is essential to check the viability of the idea in terms of problems and opportunities, situations, objectives, outcomes, costs, and benefits of business, and several other alternatives related to solving the problems. Here comes the importance of a feasibility study. The question here is why should we conduct a business feasibility study? The answer is simple, just to test the viability of the business idea.

Business feasibility study

In the present scenario, business feasibility can be defined as and the systematic and controlled process performed to identify problems and opportunities, describing situations, defining successful outcomes, determining objectives, assessing the cost and benefits related to different methods or alternatives to solving a problem. The process helps the business to identify the problem and to come out with the best answers for three important questions, including:

  • Is the idea really going to work?
  • Is it practical to move forward with the idea?
  • Does the idea sound better from the operational and economic view?

Importance of feasibility study

Feasibility studies are one of the important aspects of business development. The study analyses the idea or the project in terms of all of the relevant factors, including technical, legal, economic, and scheduling considerations. The important goal of this study is to check all of the potentials to complete the project successfully within the deadline.

A better investment of time and effort

Every project is so important for the company. They need to invest the time and resources at the right time at the right quantity to assure maximum efficiency for the project at the same time of maintaining the quality. The feasibility study helps the project managers to access the pros and cons of the project in detail and to take measures to minimize the cons before investing the time and resources of the company in the project.

5 important areas of the feasibility study

As said above, the feasibility study checks all of the areas of the project. It considers all of the factors right from the legal sides to operational benefits. The 5 important areas of feasibility study include Technical Feasibility, Economic Feasibility, Legal Feasibility, Operational Feasibility, and Scheduling Feasibility.

The concept of the service of product

The study starts with the concept of the service or the product. The idea should be developed into a concept. The idea should be written and presented in a detailed and clear way so that it is easy to understand. The study calculates the value, primary features, and uniqueness of the product or services considering future growth and opportunities.

The potential market

Then the experts conduct a business feasibility study to find the potential market for the concept. This includes who are the targeted audiences in the market, is there a need for the product or services in the market, expected percentage of market share for the product or services, etc. Surveys are used as a part of this study to identify these factors.

Risk assessment

Once the study finds that there is a decent percentage of market share for the product, then it discusses the risks involved in dealing with the implementation of the project. Risk assessment considers all of the legal factors related to project implementation and develop an effective structure to handle the present and future problems.

Budget analyzing

This is one of the important areas of the business feasibility study. The study looks for all of the direct and indirect expenses related to the project. The study looks for the potential of the company to cover all of the costs and the expected benefits from the project. The study also discusses the need for hiring new employees, start-up and setup costs, capital cost, and need for financing for the project. This helps the company to get clear information on cost vs. profit.

Technology requirements

Technology plays a good role in the successful completion of all of the projects. Feasibility study checks for the technical level needed for the project, the technology needed to manufacture and deliver the product or to implement the project, the responsible persons to oversee the development of the project, etc.

These areas of business feasibility study help the businesses to know whether the new project is a profitable business idea or not. Once the business is satisfied with feasibility study reports, then comes the stage of business plan development to initiate the project.

Benefits of a business feasibility study

These are several benefits of a feasibility study. Some of the important benefits include improves the focus of team members, provides important and detailed information about the project, identification of new opportunities, narrow down the business alternatives, find solid reasons to undertaking a particular project, determines the success rate of the project, helps in decision making, find exact reasons for not moving forwarding with the project and more.

Who should conduct a feasibility study?

Now you are well aware of the importance and benefits of conducting a business pre-feasibility study before finalizing the decision on a new project. The next question is who the right persons are to conduct a feasibility study. An unprofessional agency or expert can't deliver the best results from the study. You should hire a professional expert who is experienced in making use of the RFP, the latest tenders, and government contracts for a feasibility study.

There are reputed firms in the country to provide the latest information on all of the contracts and tenders along with the experienced professionals to handle business feasibility study.

The right company to select from

Tendersnontime is one of the trusted companies in the country to select for business feasibility studies. The company holds a rich experience of more than 50 years in cumulative business and various operations. The online portal of the company is the best source for online tenders, turnkey projects, GPN, bidding, online auctions, and more.

Tendersontime provides a team of experienced experts who have helped several companies and organizations to check the viability of the project to make the right decisions based on the facts. The company provides a feasibility study example to helps the businesses to check for accuracy before making the final decision.

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