Question
Why are feasibility studies more important?

Answer

Features of feasibility studies:
  • A feasibility study is a process in which an idea is studied to see if it is "feasible," that is, if and how it will work.
  • A comprehensive feasibility study looks at the entire structure, needs, and operations of a business.
  • A limited or project feasibility study looks at one specific task, program, idea, or problem.
  • A feasibility study looks at both sides, considering advantages and disadvantages, and troubleshoots potential problems.
  • A feasibility study is not a business plan, but serves as a foundation for developing a business plan.
  • A market feasibility study is not a marketing plan, but studies markets and market potential, and can be used to support or develop a marketing plan.
  • In addition to a business plan, an investor or lending institution may require the submission of a feasibility study before considering the request for capital.

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