What is a feasibility study?

A feasibility study is primarily an analysis that assesses the viability of a business idea, project, or concept. It involves evaluating various factors to determine whether the proposed initiative is practical and achievable. This includes examining market conditions, technical feasibility, financial aspects, legal requirements, and potential risks associated with the idea. By conducting a feasibility study, entrepreneurs and business leaders can make informed decisions about whether to proceed with their plans or seek alternatives.

This assessment is crucial, especially for new ventures, as it helps minimize investment risks and ensures that resources are allocated effectively. The outcome of a feasibility study informs stakeholders about the likelihood of success and provides guidance on the next steps, whether that entails moving forward, adjusting the idea, or shelving it altogether.