It is the very first step to be done with a business idea.
Through the feasibility studies, the business idea is studied in detail. The study will lead to a decision about the viability of the business idea. So the feasibility studies can be described as the analysis of the viability of an idea through disciplined and documented process.
A report of feasibility studies discusses the strength and weakness of the business idea and the opportunities and threats waiting in its market.
Predominantly the feasibility checked in the following 5 areas:- Technical, Economic, Legal, Operational and Schedule. Used to say the acronym TELOS. As the names imply, TELOS goes through various parts of the business.
A feasibility study report will be included,
- Executive summary
- Business description
- Environment analysis
- Market segment study
- Methodology reports – surveys, focus group, research
- Conclusion – findings and recommendation
At the end of each feasibility report, the following questions are to be answered.
- Should we proceed with proposed project idea?
- Is this a viable business venture?