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Components of Feasibility Study

Depending on your type of business there are usually three important components of a feasibility study:

Financial Analysis

In addition to the market analysis, the financial assessment is a critical component of the feasibility study. Without the “financials” it will be impossible to determine how feasible the business idea is. Included in the financial assessment is revenue and income projections for the first year along with start-up costs to determine how much funding your business will need. Key components of the financial assessment include:

  • Capital Requirements
  • Start-up Costs
  • Revenue Projections
  • Gross Profit Margins (GPM)
  • Net Income
Market Analysis

The market analysis should be conducted first because it is critical to the success of the business to understand the environment in which you will compete. There must be adequate demand for your product or service. If not, your business idea may not be feasible and there is no need to go any further. The basic components of Marketing analysis include:

  • Estimate of market size
  • Projected market share
  • Analysis of the competition
Technical Analysis (not needed for all businesses)

Please contact our Experts for a free evaluation if you require a Technical Analysis or not.