Feasibility Studies- Is it a concrete type of market research for new ventures?
This form of market research forecasts whether or not a new business endeavor will succeed or fail. There is a myriad of aspects that determine the viability of a new company, from existing competitors to financial choices to technological and manufacturing constraints.
We’re talking about a brand-new business venture here. Many businesses believe that working with a feasibility studies company and investing a small amount of money now will save them money in the long run.
An idea or potential concept can be evaluated using both primary and secondary market research.
Feasibility Studies are normally considered in the following scenarios:
● New product development
● New service launches
● New business concepts
● New business locations or an expansion to a new market
What is the right time to conduct a feasibility study?
No matter how certain you are in your product or idea, it’s always a good idea to do a thorough investigation into its real-world viability before committing any resources. Prior to starting production and/or launching a new product, all new enterprises should complete a feasibility study.
Hard data from these kinds of reports can help companies and products figure out where they want to go in the future. Feasibility studies can help resolve internal disagreements regarding the best course of action for your company’s marketing, development, or expansion.
What are the key components of a feasibility study?
When do you not need a feasibility study?
Entrepreneurs may decide to skip a feasibility study in order to cut costs and effort, or even just to get their product to market sooner.
This strategy can pay off if a company is the first to enter a new market, but it can also backfire if it faces unexpected difficulties. This type of investigation can be avoided for a variety of reasons, including:
● Based on personal experiences or on a similar business strategy that has been successful, founders or visionaries know that the new endeavor is viable.
● In your opinion, there haven’t been enough improvements to warrant a fresh study since your last one.
● A complete feasibility study is not possible due to the high time and financial requirements involved.
What are the advantages of conducting a feasibility study?
1. In order to make better business judgments before spending too much time and money on a new product, service, or site location, a feasibility study can provide predictive analytics.
2. Business owners may rest easy knowing this, and it makes a terrific case study for investors.
3. Additionally, a feasibility study can assist in encouraging the success of a new idea, such as:
● Is there a specific audience in mind?
● How likely is this product or service to be purchased by them?
● What are the primary means by which they become aware?
● Where do you see your rivals?
It’s best to use data-driven decisions when presenting a new concept or location to the market. When it comes to making decisions, you can’t just go with what you think would work.
What are the disadvantages of conducting a feasibility study?
1. It is more expensive to do feasibility studies. It takes a lot of time to complete each step of this process, which includes secondary research, competitive analysis, and pricing analysis.
2. The cost of a project rises in direct proportion to the amount of time it takes to manage it. Consequently, start-ups don’t have the funds to implement this strategy.
How feasible are feasibility studies?
Full-blown feasibility studies might be intimidating, but they can serve a variety of purposes in a developing organization once you’ve put in the time and effort to plan, gather data from, analyze, and report on the findings of the study.
You can use this information in a variety of ways, from a presentation to venture capitalists to a professional business plan. A well-done feasibility study is not only doable, but it may even be pleasurable.
