WHY YOU NEED TO DO FEASIBILITY STUDY OF NEW BUSINESS OR PRODUCT? | PROJECT FEASIBILITY REPORT IN INDIA
Feasibility Confirms Project Validity
A feasibility study categorically and independently answers the question “do I have a valid business or product idea?” Based on both primary and secondary research, the outcome of a feasibility study ultimately decides whether the idea progresses further into the NPD process, is killed or delayed pending further research. The reason for completing a feasibility study before the business plan commences is to ensure the agreement is reached on the idea’s validity before further resources are committed to the project.
What are the essentials elements of a thorough feasibility study?
The following three areas must be covered while studying the feasibility of any product or business.
· Market Size and Potential
· Detailed Competitor Review
· Customer Research and Needs Assessment
· Route(s) to Market
· Prototype Development
· Legal Assessment (e.g. patents)
· Technical Feasibility
· Product Roadmap
· Manufacturing Requirements
· Operational Costs
· Sales Resources
The ultimate end goal a feasibility study is to answer the following questions:
1. Does an opportunity exist to profitably bring your new product to market?
2. What are the commercial, technology and operations issues which need to be addressed in the commercialization of your idea?
3. Is your product idea suitable to progress to the next stage of the NPD process or is additional research or development needed first?
Need another reason to complete a feasibility study?
Here are a few!
· Increase the likelihood of success by identifying, addressing and mitigating issues early in the NPD process that could affect project realization;
· Timely and accurate information improves decision making;
· Provides a project focus;
· Narrows product idea alternatives to those with the highest potential;
· Identifies new, previously unknown opportunities;
· Provides rationale to proceed /not to proceed;
· Provides written proof that the business idea was fully investigated;
· Aids in generating funding from lending institutions and other monetary sources;
· Helps to attract equity investment.
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