How to do a Feasibility Study

The primary purpose of a feasibility study is to:

• Secure funding for your startup.

• Develop a detailed marketing plan.

• Identify potential roadblocks and assess the viability of your idea.

• Choose a catchy company name.

In the preliminary analysis stage, you'd primarily focus on:

• Projecting your first year's revenue.

• Designing your company logo.

• Recruiting your dream team.

• Defining the core concept and outlining the project scope.

When crafting your projected income statement, you should consider:

• Anticipated costs (fixed and variable) and projected revenue streams.

• Your gut feeling about the market.

• Competitor's pricing strategies only.

• How much funding you ideally want to raise.

Market research, a crucial part of the feasibility study, helps you understand:

• Legal requirements for starting a business.

• The target market, competitor landscape, and industry trends.

• The best office furniture for your employees.

• The most effective social media platforms for marketing.

While planning your business organization and operations, you'll determine:

• The company culture and employee benefits.

• The brand colors and typography.

• The design of your company website.

• The legal structure (sole proprietorship, LLC, etc.) and operational processes.

An opening day balance sheet provides a snapshot of your startup's:

• Long-term financial goals.

• Initial financial position (assets, liabilities, and equity).

• Projected cash flow for the next five years.

• Marketing budget for the first quarter.

After analyzing all the data, the feasibility study should:

• a)  Provide a clear recommendation - "Go" or "No-Go" on the project.

• b) Guarantee the success of your startup.

• c)  Outline the specific marketing channels to use.

• d)  Lock in a location for your office space.

A well-conducted feasibility study can help you:

• Come up with a creative company slogan.

• Choose the perfect office furniture.

• Identify potential risks and develop mitigation strategies.

• Pick a catchy domain name for your website.

Feasibility studies are only necessary for large, complex businesses.

• True

• False

A well-crafted feasibility study is a dynamic document that can be revisited and adapted throughout the life cycle of your business.

• True

• False