Feasibility Analysis of Your Business Idea

After selecting business idea suitable to your passion and relevant to your skills, you need to recognize the opportunities for it.

But mere finding business ideas and recognizing opportunities are not enough. You need to find whether your business idea is viable or not. It means that you can physically test its application that whether it is feasibility possible or not. Whether it is worthwhile or not? Whether investing your time and money can give business stability and growth or it will fail at the end? To know this fact, we do Feasibility Analysis or Feasibility Study of the business.

Basically, you are going to test your business idea whether it will gain success or will fail and whether you can start and run the business for long period of time with stability.

There are many aspects of Feasibility Analysis but following are the main parts or sections of it and we discuss these parts one by one.

1. Product or Services Analysis

We test that whether the product or service has desirability and demand in the market or not. Whether the goods or services being processed.

Marketing Research is made to analyze the demand of the product or service among customers. Product and Service Analysis helps in innovation and developing new products and services.

2. Market Analysis

A market is a place where goods and services are bought and sold. Entrepreneur needs to know about Market Size, Market Segmentation, Quantities Demanded and Supplied, Customers Behavior, Cost Structure, Competition among Entrepreneurs, etc.

Entrepreneurs try to target specific market segmentation relevant to their business. For Example, IT and Tech Entrepreneurs should target those sections of market where there is much demand for computer solutions.

3. Technical Analysis

This analysis is made to test whether that the required facilities and latest equipment and technologies are available for providing products and services at reasonable cost in the target market.

Resources like Machinery, Equipment and, different techniques and methods and other other technologies should be utilized, if available, for providing quality products at the right time.

4. Organizational Analysis

As an organization is a group of people work together for the purpose of common goals, so the all the persons should be competent, qualified and experienced persons. If any new candidates are hired then, proper training should be given to them in order to maintain quality of service.

The organization should have sufficient resources to meet the demand of customers. They must use latest technology to provide quality of products to customers at minimum cost.

Entrepreneurs must have good market knowledge and awareness to carry on and compete with the market groups. It is very important to know that how to adopt good marketing strategy to carry on the business successfully is the key to the success.

5. Financial Analysis

In this section, Financial Analysis of Financial Statements like Start-up Cash, Financial Performance and Financial Position are made to test whether the business can go to meet the financial objectives of the business or not and it is capable to get good returns on investments made by the owners of the business.

6. Economics Analysis

We test whether there are possibilities that products or services provided by the entrepreneurs to the customers at reasonable cost and the benefits associated with the selling of products and services or not. Economics of Scale of is very important in order to get economic benefits associated with the cost of productions.

So, these are the important sections of Feasibility Analysis of the Business Idea. These sections must be taken into account before starting a successful business.