How Important is a Feasibility Study?
Extremely important, a feasibility study focuses on answering the essential question in regards to proceeding with a proposed project. All aspects of the study are directed toward helping answer this question.
Feasibility studies can be used in many industries such as hotels, hospitality, convention planning, agricultural and restaurants to name a few. There is a good chance if you have a business venture, you will want to analyze the scenarios that will ensure your time and money is invested into a successful business. Business owners should conduct a feasibility study to determine the sustainability of their idea before continuing with the development of the business idea.
A feasibility study is only one step in the business development assessment. It will help evaluate several factors involved in the development of the proposed business. Aspects such as potential site assessment, population demographics, demand, competition, strengths and weaknesses will be assessed. Your feasibility study will also contain general income and expense projections, working capital requirements, financial requirements, construction costs and budgets, equipment and FF&E costs. If your feasibility study signals a favorable business idea with your proposed project, you then want to start developing your business plan. Having a general outline of your financial projections that are instituted in your feasibility study will allow you to accurately derive complex financial projections that will be contained in your business plan.
And most banks, financial institutions and investors require a feasibility study to be completed. This ensures the lender/investor that you have done your due diligence and a separate third party has seen the project as a viable business idea.
The feasibility study is a critical step in the business assessment process. Truman Mox can perform feasibility studies for numerous industries. Our experience and expertise will make sure the study is performed timely and accurately and contain all the necessary information you need to make your assessment on moving forward.July 20, 2012 12:00 am