If you are the organizational head of the company or own a business, you would have surely come across a feasibility template before starting a new project. A feasibility study can be thought of as an analysis of the potential of the proposed venture which helps in determining whether it will be profitable and whether you should proceed with it. For example, if your company specializes in product A and you are thinking about launching a product B to increase your sales, you would definitely like to do a bit of research about the feasibility of launching the product. You would like to know your target audience, their behavior patterns and what would be the factors they consider before putting their money on a product. This is where a feasibility study helps you. It gives you the complete know how about the background of the proposed venture so that you have done your homework before entering new territories.
Benefits of a Feasibility Study
Some of the benefits of a feasibility study are:
* It helps you in knowing all the factors that can affect your planned venture.
* It also helps in knowing your strengths and weaknesses before starting with the project so that you can capitalize on your strengths and improve on your mistakes.
* If you are planning to borrow from banks or money lending agencies, a feasibility study of your proposed venture helps you in convincing them as they get the impression that you have a solid plan of action and you have read the conditions very well.
* A feasibility study also helps you to understand the competition in a better way.
Feasibility Study Example
For example, you plan to launch a fast food joint in a locality and while doing a feasibility study, you come to know that the residents of the locality are diet conscious and averse to food containing high fats. You also learn that the most successful restaurant in the locality has marketed itself as a company that is concerned about the health of the people. A feasibility study will tell you whether going ahead with your plans of launching a fast food outlet would be feasible or not. It can give you the data regarding the break-up of the population of the area, about the young population of that area, who have to always depend on outside food, or people who don't mind devouring on a burger once in a while. Once you have taken a look at all these factors, you can make a calculation about the money you will be investing and the profits that you are expecting.
Benefits of a Feasibility Study
Some of the benefits of a feasibility study are:
* It helps you in knowing all the factors that can affect your planned venture.
* It also helps in knowing your strengths and weaknesses before starting with the project so that you can capitalize on your strengths and improve on your mistakes.
* If you are planning to borrow from banks or money lending agencies, a feasibility study of your proposed venture helps you in convincing them as they get the impression that you have a solid plan of action and you have read the conditions very well.
* A feasibility study also helps you to understand the competition in a better way.
Feasibility Study Example
For example, you plan to launch a fast food joint in a locality and while doing a feasibility study, you come to know that the residents of the locality are diet conscious and averse to food containing high fats. You also learn that the most successful restaurant in the locality has marketed itself as a company that is concerned about the health of the people. A feasibility study will tell you whether going ahead with your plans of launching a fast food outlet would be feasible or not. It can give you the data regarding the break-up of the population of the area, about the young population of that area, who have to always depend on outside food, or people who don't mind devouring on a burger once in a while. Once you have taken a look at all these factors, you can make a calculation about the money you will be investing and the profits that you are expecting.
No comments:
Post a Comment