ENTREPRENEURSHIP
The Importance of a Feasibility Study to your Business
For bigger projects that entail millions of pesos worth of investment, a full-blown feasibility study might be required more than the pre-feasibility study. As compared to a pre-feasibility study, a feasibility study is more comprehensive and detailed. It requires a more rigorous approach. A feasibility study is prepared to convince bankers and investors to put money into the business opportunity. In writing the feasibility study, the entrepreneur should take into consideration the following:
- a more in-depth study of market potential to ensure that the business proposal will reach the forecasted sales figures;
- proof that the product or service being offered has the right design, attributes, specifications, and preferred features;
- proof that the entrepreneur and his or her team have the necessary experience, skills, and capabilities to maximize the venture’s chances of success;
- legal visibility;
- more detailed costing on the different assets and more justification for the production and operating expenses; and
- more thorough analysis of the technology and its sustainability.
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