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Guest post by: Justin Timory Become an Author

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A business feasibility study is an important primer for any entrepreneurial venture as it gives entrepreneurs insight to how well they can pull things off. As aspiring entrepreneurs, we must all be familiar with this form of research as it will become an integral part of our business lives. Feasibility studies have long been applied in order to prepare for a particular endeavor. And despite the advancements in technology we experience, nothing still beats the genius behind being able to see the future (or at least, the first few years of it).

A business feasibility study stands as the evaluation of a business proposal done to verify how difficult it will be to pursue a particular activity. It attempts to measure the complexity of the task in terms of financial and time expenditure as well as give a good estimate of the other resources that needed in order to implement the plans. Basically, what it aims at is to present a good analysis of the project in mind and its impact to society.

There are five common forms of feasibility studies. These are as follows:

1. Technology and system feasibility

This part of the study focuses on assessing if the system requirements of a certain business endeavor are possible – from input to processes, output, fields, programs and procedures. Researchers use different means to quantify if the business can handle the demand as well as see through the completion of the project using particular hardware, software, personnel and expertise.

2. Economic feasibility

This is the commonly applied feasibility analysis for business – whether pertaining to the actual establishment or just the pursuit of a new system. It is also known as the cost/benefit analysis and is directed at estimating the development and operational costs of the task at hand. It tries to compare the costs and the advantages/savings that are expected from the endeavor and determines whether the benefits outweigh the expenditures.

3. Legal Feasibility

This kind of feasibility study is aimed at finding out whether any aspect of the business plan goes against the judicial system or has legal requirements that need to be met. For example, aside from the permits, there are certain set safety standards regarding opening a new sports facility or amusement park. And all these need to be complied with in order to be fully operational.

4. Operational feasibility

Researchers and aspiring entrepreneurs should perform this type of study if they want to know how well a certain business endeavor addresses problems and meets the expected results determined from an early development phase analysis conducted.

5. Schedule feasibility

This kind of business feasibility study simply tries to foresee how long it will take for a project to be completed. It also tries to see whether or not changes can be made on the completion period if certain interventions were applied. Time is measured as it determines how reasonable a certain task is.

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