A feasibility study is testing the viability of a business idea. When an entrepreneur decides to start a new venture & unsure of the outcome, at that time checking for the commercial viability of the project or observing the probable customers, seeing the credibility of the suppliers & the market to operate within is called a feasibility study.
The feasibility study helps an entrepreneur in the following ways:
It tells about the probable customers – if they are ready or not to buy the product.
It finds out if there are strong rivals or not.
Due to this study, a future entrepreneur gets to know about the nature & experience of suppliers.
This study helps to find out whether an idea looks or feels promising only at the conceptualization stage or actually has got the merit to pursue.
A feasibility study shows the market trend while the- would be entrepreneur surveys the market & talks with various parties of a business.
It saves money of the investor or the entrepreneur when the result of the study shows that the business idea is not worth taking up.
It enhances the knowledge of the entrepreneurs as he or she goes through a process of surveying & gathering data regarding business environment.
It fetches alternative ideas as the survey takes place in the market & people get ideas while talking to various parties like customers, suppliers, media, etc.
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