What Is Feasibility Analysis Essay
–The process of determining whether a business idea is viable.
–It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing.
–Feasibility analysis takes the guesswork (to a certain degree) out of a business launch, and provides an entrepreneur with a more secure notion that a business idea is feasible or viable.
When To Conduct a Feasibility Analysis
•Timing of Feasibility Analysis
–The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business.
–The thought is to screen ideas before a lot of resources are spent on them.
•Components of a Properly Conducted …show more content…
–This can be accomplished through both primary and secondary research, as explained in the next slide
Identification of a Niche Market
–A niche market is a place within a larger market segment that represents a narrower group of customers with similar interests.
–For a new firm, selling to a niche market makes sense for at least two reasons.
•It allows a firm to establish itself within an industry without competing against major competitors head on.
•A niche strategy allows a firm to focus on serving a specialized market very well instead of trying to be everything to everybody in a broad market, which is nearly impossible for a new entrant.
–Is concerned with determining whether the business itself has sufficient skills and resources to bring a particular product or service idea to market successfully.
–There are two primary issues to consider in this area:
–A firm should candidly evaluate the prowess, or ability, of its management team to satisfy itself that management has the requisite passion and expertise to launch