Many surveys have indicated that 95 - 97 per cent of businesses fail. Present companies struggle with launching new products. Policymakers have come up with disastrous laws in the past. And entrepreneurs are known to fail more often than succeed.
Feasibility studies can help us avoid such failures, bottlenecks, and inappropriate decisions. It allows project managers, policymakers, product owners, and entrepreneurs to discern the pros and cons of undertaking a project before investing a significant amount of time and capital into it.
Feasibility studies also help individuals and companies with the new business/idea/product development by determining how it will operate, the potential obstacles it might come across, the market competition and the market analysis in terms of demand and supply. Furthermore, it also helps idea owners understand the amount and source of financing needed to grow the idea or the new product.
The importance of a feasibility study for an idea or project depends on an individual's or organization's desire to "get it right" before committing resources, time, or budget to the proposed idea. A feasibility study might also uncover new ideas that could completely change the scope of work being undertaken. It's better to make these determinations in advance rather than to jump in and learn that the idea or project won't work. Conducting a feasibility check is always beneficial to the project as it gives you and other stakeholders a clear picture of the proposed project.
In short, Feasibility studies are critical when contemplating undertaking a new project, idea or venture. Agreeing to a proposed business plan is an investment, so it is helpful to examine all the factors that go into a project, from pre-planning to its completion.
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