Feasibility analysis is the process of determining whether a business idea is viable. It involves evaluating the potential of a business idea early on to decide whether it's worth pursuing.
It's best to conduct a feasibility analysis early in the process of considering a new business idea to screen ideas before investing significant resources.
A comprehensive feasibility analysis includes four key components:
Assess the overall appeal of the product or service.
Evaluates the basic appeal and potential flaws of the product or service concept.
Assesses demand through face-to-face interactions, online tools, and research methods.
Evaluates the attractiveness of the industry and target market.
Considers factors like industry growth, market demand, and competitiveness.