What Is Feasibility Analysis Essay

1565 Words Jul 19th, 2012 7 Pages
What Is Feasibility Analysis?
•Feasibility Analysis
–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…
–In addition to evaluating an industry’s growth potential, a new venture will want to know more about the industry it plans to enter.
–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.

Organizational Feasibility
–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:
•Management prowess.
•Resource sufficiency.
Management Prowess
–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

Related Documents