A feasibility study way before laying down the foundation of a business, especially a small one, is a must. This is because a small business owner cannot afford to make mistakes. A small folly can cost him a fortune, setting the business in doldrums even before it sets off.
To begin with, think what you want to gain from the business. If you intend to manufacture products of a particular category, you may wish to market it efficiently, so that the business generates profits. To market the products well, you need to position them in the right market. Remember just talking to a few people in the industry would not be enough. You may have to talk to thousands of people and obtain expert advice on whether your business plans will work.
After studying, the market you will have to set prices for your different product categories carefully. You cannot price your products more than what the buying power of the public in the particular area that you have targeted. So, fix a price that the masses will be willing to pay. All these details must be a part of your feasibility report. Let us find out what a feasibility study is and how to go about it.
What is a Feasibility Study?
Feasibility study refers to the research that determines the viability of one’s business plan. It is market report comprising various details on the preferences of the consumers, consumer habits and their buying power, and the competition that the new business is likely to face in the targeted area.
Make a feasibility Report:
You can hire the services of a consultant who can make a feasibility report for you. These companies use various methods like – Internet, surveys, industrial seminars and conference, and much literature is available on the subject to create the perfect feasibility report for you. If the industry you intend to get into is well defined such as toy manufacturing, you can use ready reports conducted by the national professional organization. If not, you may also seek professional services of the consultants who can give you relevant advice on necessary business tactics after studying the market trends.
Importance of Feasibility Study:
It determines the potential of the market where a product is set to sell. A feasibility study gives a business planner insight into whether the product is required in the market, and if yes, then will the consumers afford to buy it at the price determined. This survey can prove significantly important in formulating price strategies for a company’s products or services, which is a determinant of a business’ success.
Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
Business Owners all across the country are joining “The Community of Small Business Owners" to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.