Friday, September 20, 2013

Importance of a Feasibility Study

Almost everyone would like to have their own business at one point in time for different personal reasons. Almost everyone has an idea of what kind of business they would like to have. It is however a common truth that not all ideas are guaranteed to succeed in the field of business. Going into business means risk. Nobody would like to start a business and see it go down the drain because their idea didn't work. When planning to start a business you would want to be on the safe side. You want to make sure that your business idea would work and will turn in a profit. That's the mean reason you wanted to start a business anyway, to earn.

Over the years I've seen a number of friends venture into business. Some of them succeeded, the others however didn't fair so well and had to give up their venture due to a number of reasons. Some of them found out that there was no viable market for what they had to offer, others didn't realize that the market was already heavily saturated until it was too late and they were unable to compete with other similar businesses, there were those who ran out of financial capital because they had no idea how much it would cause to start their business, and there were those who were unable to cope with the challenges of having to own and run a business. All of those who failed had one thing in common; they did not conduct a feasibility study.

You have an idea and you believe that you can make a business out of it, that's fine. But before you decide to go ahead with your plan, conduct a feasibility study first. A feasibility study is a research than an individual conducts to make sure that his idea would work. It's your first line of defense against project failure. A feasibility study is a research that you would like to conduct first before going into the actual project development. It is conducted during the planning stage. If done correctly, a good feasibility study could tell you if there is a viable market for your product. It would tell you if that market has growth potential or if that market is already heavily saturated. Your feasibility study could indicate how much risk is involved if you were to push through with your plans. It could also indicate whether the risk is within acceptable levels or too much. A good feasibility study could also indicate if your proposed budget for the project is enough for what you need or not. Pretty much, your feasibility study will indicate whether your project will succeed or not; allowing you the chance to realign your plans in order to be sure that it will have better chances of succeeding.

If you have plans to get into business at any point in your life, before you do anything else make sure that you conduct an in-depth feasibility study before you commit; especially if your plan involves a substantial amount for capitalization. This way you'll know what you're getting yourself into. You wouldn't want to see your money go down the drain for nothing.

Neoko Cortwell is a freelance writer and web designer. If you want to start your own creative journey to becoming a freelance designer yourself, see these video tutorials.
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