- October 15, 2020
- Posted by: Waqas Siddiqui
- Category: Others
Importance of Conducting a Feasibility Study
A feasibility study is conducted in order to examine if the proposed business idea or venture can be applied practically in a highly volatile and unpredictable market. With almost all the industries seeing a radical change due to the COVID-19, the need to conduct a feasibility study before setting up a business has increased. It provides a head start for the business and streamlines it, saving time and money. The key function of a feasibility study is to assess and evaluate whether it is financially feasible to invest in a business / venture etc.
There are several reasons why a feasibility study is conducted.
Conducting a feasibility study helps in determining if the proposed business / venture can sustain itself for a long term and endure different kinds of risks (economic, financial, market etc.) that may incur. It can help identify the changing consumer requirements in a post-pandemic situation and provide insights on the additional services to be provided to satisfy the consumer needs. Feasibility study also helps in identifying business opportunities and/or potential threats that can hence enable business owners, investors and companies make informed decisions.
A feasibility study (market research) is usually conducted when business owners, investors and companies intend to establish or expand new business / venture in either an existing or new market.
There are several key components of a Feasibility Study which are often combined with a Business and Financial Plan.
- Business / Venture Overview
- Economic Overview (Assess socio-economic conditions and GDP growth rate etc)
- Market Overview (Assess industry size, trends, growth and potential)
- Impact of COVID-19 on the Industry
- Post COVID-19 Situation
- Competition Overview (Evaluates major competitors, market share and positioning)
- Consumer Overview (Assess needs and demands of consumers)
- Business Model Overview (Location / Licensing / SWOT / PORTER Analysis)
- Operations Overview (Management Structure / Controls / Production / Supply Chain)
- Marketing Overview (Market Segmentation / Target Audience Profiling / Marketing Plan)
- Investment Overview (Cost & Revenue Projections / Profitability / Return on Investment)
- Opportunities & Risks
Research Konnection is a market research company in Dubai that assists local and international companies to setup or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Developments. Feel free to reach out to us on email@example.com