Are you planning to start a new product line or service? No matter how great your idea is, success will only come if you can turn it into a reality. One of the best ways to ensure this is to conduct a feasibility study.
Feasibility studies are investigations into the main elements involved in launching a new project or business. The study is designed to identify strong points and weak points to determine if it's a good investment. What are the five main elements that will be researched to boost success? Here is a short guide.
1. Legal Feasibility.
This analysis looks at legal obstacles to turning your idea into a venture. It may examine things like copyright issues, city zoning laws for a physical location, contract problems, and branding obstacles.
2. Technical Feasibility.
Is it even possible to get your idea off the ground? Can you turn a "back of the envelope" drawing into a working prototype and then into a viable product? Or does the location you wish to lease have the technological components to support your operation? Anyone producing or relying on new or unproven software or hardware needs to know if their plan can even be done.
3. Scheduling Feasibility.
Can you complete your project when you need it? Understanding the realistic timeline may be easy in some situations, such as leasing a building to begin production when you wish. But if you're creating a product for a fixed event (such as the Olympics or the launch of a new company), you must know if you can reasonably expect to make that deadline.
4. Economic Feasibility.
Just because you can take a product to fruition doesn't mean that you can afford to. What if translating your prototype into reality will cost so much time and money that you won't ever turn a profit? On the other hand, what if you could estimate how long it will take to recover your investment and make a plan to work within that goal? Economic feasibility is one of the most important elements, particularly to any future investors.
5. Operational Feasibility.
Finally, you will want to know how your proposal will fulfill its goals and benefit the business. If your new product line can be made but isn't expected to boost sales by much, it may not achieve much for the business.
Clearly, the importance of each part of the feasibility study will vary based on your business needs. To learn more about the process of doing such analyses and how to tailor them to your particular venture, start by consulting with a feasibility study service today.