● Feasibility analysis is the process of determining whether a business idea is viable.
● It is the preliminary evaluation of a business idea, conducted for the purpose of
determining whether the idea is worth
When To Conduct a Feasibility Analysis?
● Timing of Feasibility Analysis
○ The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business.
○ The thought is to screen ideas before a lot of resources are spent on them
● Components of a Properly Conducted Feasibility Analysis
○ A properly conducted feasibility analysis includes four separate components
○ The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business.
○ The thought is to screen ideas before a lot of resources are spent on them
● Components of a Properly Conducted Feasibility Analysis
○ A properly conducted feasibility analysis includes four separate components
Financial Feasibility Analysis:
Purpose:
● Is the final component of a comprehensive feasibility analysis.
● A preliminary financial assessment is sufficient.
Components of financial feasibility analysis:
1. Total Start-Up Cash Needed 2. Financial Performance of Similar Businesses
3. Overall Financial Attractiveness of the Proposed Venture
