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Feasibility Study

Feasibility means whether some idea will work or not i.e., how feasible or practical the proposed business project is? Feasibility study analysis various aspects of the proposed business plan including technical, financial, commercial and socio-economic. Before preparing a derailed project report, it is advisable to develop a feasibility report. All the key factors that contribute to entrepreneurial success should be considered for the product or service that is identified. The report that emerges is the feasibility report. It will serve as a sound basis preparing the project Report. The major heads of the feasibility report are:

(i)    What is the business idea?
(ii)    What is the profile of target consumer?
(iii)    What will be the cost of one unit?
(iv)    What will be the selling price per unit?
(v)    What will be the need for promotion/advertising?
(vi)    How will the product/service beat the competition?
(vii)    What permits/licenses will be needed?
(viii)    What are the estimated start up costs?
(ix)    What would be the legal structure of the enterprise?
(x)    What are the likely sources of finance?

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