AN EVALUATION OF FEASIBILITY STUDY AND ITS EFFECTS ON THE SUCCESS OF NEW BUSINESSES

AN EVALUATION OF FEASIBILITY STUDY AND ITS EFFECTS ON THE SUCCESS OF NEW BUSINESSES

EXCERPT FROM THE STUDY

1. A feasibility study when properly executed has a significant impact on the success of a new business.
2. The notable significance of feasibility study to new businesses as identified from the study includes: It is an excellent instrument for the prediction of the likelihood of success or failure of a new business venture; It can also be adopted in the case of incorporation of new products or ideas into the business mix; It includes all the actions that are needed to be taken to determine whether a business idea is likely to succeed; It provides results for key decisions that may be, moving forward with the idea, refining it or leaving it altogether; It is a stepwise process that helps weigh the pros and cons of each step prior to getting into the actual process; It aids in the preparation of logistical or tactical plan of how your business will produce, store, deliver & track its products or services and It helps in the determination of  the legal structure of the business.
3. There is a significant relationship between feasibility study and the success of a new business.
4.  Feasibility study ensures a business is on track through: helping the firm in attaining a broad picture as well as a detailed analysis of the profitability of its future business; ensuring that all determinations are made prior to jumping into the business and learning about the shortcomings later; enhancing the success rate of the business through evaluating numerous parameters; serving as an excellent source of information to the future investors of the business; enabling the business to focus on both short and long term goals.
5. Among the numerous reasons most business owners don’t carryout feasibility study includes: Because they don’t have a clear understanding of feasibility study; Because of the expenditure involved in carrying out feasibility study; Because they don’t have the knowledge on how feasibility is carried out; Because they don’t see the need to carryout feasibility study on their business; Because they only want to run the business for a short time and Because they don’t want to expose their business idea to the public.

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