The Importance Of a Business Feasibility Study!
It is estimated that only one in fifty business ideas are actually commercially viable. Therefore a Business Feasibility Study is an effective way to safeguard against wastage of further investment or resources (Gofton 1997; Bickerdyke et al. 2000). If a project is seen to be feasible from the results of the study, the next logical step is to proceed with the full Business Plan. The research and information uncovered in the Feasibility Study will support the business planning stage and reduce the research time. Hence, the cost of the Business Plan will also be reduced. A thorough viability analysis provides an abundance of information that is also necessary for the Business Plan. For example, a good market analysis is necessary in order to determine the business concept's feasibility. This information provides the basis for the market section of the Business Plan (Bangs 2000; Hoagland & Williamson 2000; Truitt 2002; Thompson 2003b).
Finally, a Feasibility Study should contain clear supporting evidence for its recommendations. The strength of the recommendations can be weighed against the study ability to demonstrate the continuity that exists between the research analysis and the proposed business model. Recommendations will be reliant on a mix of numerical data with qualitative, experience-based documentation. A Business Feasibility Study is heavily dependent on the market research and analysis. A Feasibility Study provides the stake holders with varying degrees of evidence that a Business Concept will in fact be viable (Hoagland & Williamson 2000; Thompson 2003c; Thompson 2003a; Wickham 2004).
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