The feasibility study analyzes the viability of a proposed business idea. [1] It determines whether the idea has potential for success by evaluating its market feasibility, technical feasibility, and financial feasibility. [2] The feasibility study helps decide whether to pursue the business idea or alternative options. [3] It provides critical information for making the "go/no go" decision about implementing the proposed business.

1. FESABILITY.
PRESENTED BY:
MAHAVEER

2. What is a Feasibility Study
• Is this a good business idea?
Helps answer the question of whether to go
forward with the business idea.
• The process of determining whether an
entrepreneur’s idea is a viable foundation for
creating a successful business

3. Feasibility Analysis
• Preliminary
evaluation of idea to
determining if it‟s
worth pursuing
• To determine how
Feasibility attractive an industry
is overall as a „home
Analysis for a new business
• To identify possible
niches a small
business can occupy
profitably

4. When To Conduct a Feasibility
Analysis
• Timing of Feasibility Analysis
– After concept statement evaluation
– After opportunity recognition, before business plan
– Before a lot of resources are invested
• Components of Full Feasibility Analysis
• Market Feasibility
• Technical Feasibility
• Organizational/Managerial Feasibility

5. USES OF FESABILITY.
Generate Remain
A feasible Meet the
adequate Withstand viable in
business goals of the
cash flow risks, the long-
will: founders
and profits, term

6. Evaluate Alternatives
The feasibility study helps to “frame” and “flesh-
out” specific business scenarios so they can be
studied in-depth.

7. Pre-Feasibility Study
May help sort our alternatives and determine if a full-blown feasibility
study is warranted

8. Market Assessment
• A market assessment may be conducted
first to identify market opportunities. If no
opportunities exist, there may be no reason
to proceed further.

9. YES/NO
Study Results.
Outline in depth the various business scenarios examined
and the implications, strengths and weaknesses of each.
Go/No Go Decision.
The feasibility study will be a major information source in
making this critical decision.

10. Reasons Not to do a Study
The
Lets hire a
Just a way company
We did a general
We already for selling us
study a manager
know it is consultants the
couple of and have
feasible. to make equipment
years ago. him do the
money. says it is
study.
feasible.

11. Reasons to Do a Study
Gives focus to the project.
Narrows the business alternatives.
Identifies new opportunities.
Identifies reasons not to proceed.
Provides valuable information for “go/no
go” decision.
Increases probability of business success
by identifying weaknesses early.

12. CONTD..
Provides
documentation that
the idea was
thoroughly
investigated.
Helps attract
funding from
lenders, grant
providers, etc.
Helps attract equity
investment

13. Feasibility Study Outline
Market
Feasibility
Industry
Sales
descriptio
projection
n.
Access to Industry
market competiti
outlets. veness.
Market
potential

14. TECHNICAL FEASIBILITY.
Suitability
Determine Availability
Technical of Raw Other
facility and suitable
Feasibility production materials. inputs.
needs. of site.
technology.

15. FINANCIAL FEASIBILITY.
Estimate
Financial/Ec equity and
onomic credit
Feasibility needs.
Estimate Budget
the total expected
capital costs and
requiremen returns.
ts.

16. Feasibility Study
Study Results
• Identify and describe various business
scenarios.
• Compare and contrast scenarios.
• Outline criteria for decision making.

17. When to Do & How to Use
• When to do a Study?
• Who will do the Analysis?
• How will you Monitor the Study Progress?
• How to Accept or Reject the Study?
• How to Use the Results?