The primary purpose of a feasibility study is to answer which of the following questions:

A feasibility study examines the practicability of a proposal, business venture or idea. The principal function of this is to determine if the project will continue or not. In business, feasibility studies work in a number of reasons.

The feasibility report will look at how a certain proposal can work in a long-term basis or endure financial risks that may come. It is also helpful in recognizing potential cash flow. Another important purpose is that it helps planners focus on the project and narrow down the possibilities. Accordingly, a feasibility study can provide reasons not to pursue the said project or proposal. When it comes to the operational aspect, the analysis determines whether the plan has the necessary resources for it to be practicable. Truman Mox will also help you figure out whether or not the people will support the subsequent product or service. Additionally, you can have knowledge on the trends because a feasibility study looks at the present-day market and studies the anticipated growth of your target business sector.

Feasibility studies are prevalent in all business industries. Whether Hotel, Hospitality, Restaurant, Real Estate, Medical, Office or Industrial. Getting a head start on a Feasibility study from Truman Mox will ensure you save time and money on the project.

We have been providing accurate and precise feasibility studies for numerous industries. Find out more on how we can assist you obtain the necessary study to ensure your project starts off on the right foot.

Uncertainty is a constant that businesses of every size face daily. Getting customers in the door, encouraging them to spend, and ultimately generating a profit are basic objectives that can at times seem difficult to achieve. Changing, adapting and incorporating new products and ideas into your business mix are ways to remove some of the uncertainties you face, but without proper forethought and planning, those steps themselves can be highly uncertain. Enter the feasibility study: a chance to ask and get answers to questions that help you to assess potential, and to predict the likelihood of success or failure.

The importance of a feasibility study has been debated within many companies for years. What has come out of the debate is there are those that think they know what the public wants and those that actually check to make sure their assumption is true.

By conducting a proper feasibility study, the target audience can be clearly identified along with their purchasing power. This process will determine the economic prowlness of a proposal by a business. This is an important part of a business case that should be done after a business idea is created but before it is technically developed and long before the production of any product is started.

In essence, a feasibility study is to determine the viability of a business venture in a specific area or sector of business. This is the process that will identify any possible problems that might occur between the acceptance of the product with the consumer and how profitable the business venture might be.

Just because a business has a great and needed product for a region, does not necessarily make it a good business opportunity. Not all ideas that make sense are great business opportunities. Like selling water in a desert, since there is a shortage of water, it sounds like a great idea. But since there is very little water present, there is not a population that sustains a living there and sales would not exceed the cost of importing the water to the arid region, this is not a good and viable business venture.

What can be learned from a feasibility study can better help a business and a project manager deciding if the business venture will be profitable. In the study, the logistics of the business should be determined. If there is a problem, can it be overcome in a cost effective manner?

The right marketing strategy can also be uncovered with a feasibility study. Determining how to properly reach the tragic audience is a vital step in creating a viable business in any region. The location of the business and how accessible to the target audience will also be a factor. A late night pizza delivery business would not perform well if based out of a mall that closes at 9 pm.

Finding out if your product or service is wanted, if the consumer is capable and willing to spend on it and will they have access to it when they want is can all be determined with a feasibility study. If a business skips this step in the development of their product, they very well could be throwing their investment dollars away.

Definition

The term “feasible” describes an action or event that is likely, probably or possible to happen or achieve. A feasibility study is the total of the actions you take and the questions you ask to determine whether an idea, thought or plan is likely to succeed. An effective study can guide you on whether you should move forward with your idea, refine it, or scrap it altogether and go back to the drawing board.

Specific

Feasibility studies are focused and specific. They start with a single question -- asking whether the idea, event or action is a viable solution -- and force you to focus solely on that question to the exclusion of everything else, drilling down to explore possible outcomes. A feasibility study is not the same as a business plan. A feasibility study is an investigative tool that might cause you to discount an idea, whereas a business plan is call to action. You can, in fact, use a feasibility study as a predecessor to creating a business plan.

The Big Picture

Feasibility studies are important because they force you consider the big picture first and then think in a top-down fashion. In this way, one or two general starter questions lead to a host of additional, more detailed questions that become increasingly narrower in focus as you get closer to reaching an ultimate answer. For example, asking whether anyone will buy your new-and-improved product and whether it will generate a profit creates additional questions that force you to consider customer need and possible competition, and to identify risks that you may face. You must also describe your product and its benefits, define your target market, and calculate cost along with break-even and profit points.

Alternative Solutions

Feasibility studies offer you the chance to “get it right” before committing time, money and business resources to an idea that may not work in the way you originally planned, causing you to invest even more to correct flaws, remove limitations, and then simply try again. Feasibility studies may also open your eyes to new possibilities, opportunities and solutions you might never have otherwise considered. There are no right or wrong answers to the questions you ask, but an answer you don’t necessarily want or expect can create new profit potential.

Which of the following is the main purpose of the feasibility study quizlet?

What is the ultimate question of feasibility study is trying to answer?

What is the importance of a feasibility study?

What is the purpose of a feasibility study for starting a new venture?