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A feasibility study is an analysis of the viability
of an idea, any new project, or program. The study focuses
on helping answer the essential question “should we
proceed with the proposed project idea?” All activities
of the study focus towards obtaining the answer to this question.
Feasibility studies are primarily used to focus on proposed
business ventures. Determining early-on whether a business
idea will work or not, saves time, money and heartache later.
You will want to determine whether adequate cash-flow and
profits will be generated, what risks could be encountered,
the viability of the venture and if it can meet the founding
goals. The venture can be a new start-up, purchase of an existing
business, an expansion of current business operations or a
new enterprise for your existing business.
A feasibility study is not a business plan. The feasibility
study provides an investigating function. It addresses the
question “Is this a viable business venture?”
The business plan provides a planning function and outlines
the actions needed to take the proposal from “idea”
to “reality.”
Reasons to do a Feasibility Study
Conducting a feasibility study is good business practice.
It is a required process by provincial regulators.
- Gives focus to the project and outlines alternatives
- Narrows business alternatives
- Surfaces new opportunities through investigation
- Identifies reasons not to proceed
- Enhances the probability of success by addressing and
mitigating factors early on that could affect the project
- Provides quality information for decision making
- Helps to increase investment
- Provides documentation that the business venture was
thoroughly investigated
- Helps in securing funding sources
When to do the study?
You need to be far enough along in the deliberation process
of your business idea to make the best use of a feasibility
study. Have a clearly defined framework. Conduct a sufficient
initial investigation to determine viability potential. Our
consultants can assist your committee members to conduct an
early investigation pr pre-feasibility analysis by doing a
marketing study to determine if the business idea has market
viability. If it doesn’t have market viability you have
saved time and money by not commissioning a comprehensive
feasibility study. If the idea has market viability you can
move forward to the feasibility analysis and use the market
analysis in the feasibility study.
MarketSolutions Consulting is experienced in this service
and have conducted new credit union studies. Please contact
us for more information.
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