Ultimate Guide To Feasibility Study Criteria. Once you have developed a business idea. Then you need to conduct what known as FEASIBILITY STUDY CRITERIA. See feasibility studies are nothing but a study wherein you see the product’s viability. So if you must define a feasibility study.

What does this mean?

Do not get bothered about such a massive definition in simple terms and see if the business idea is viable enough to be taken further or not. If I am using my resources for this business idea or this project. how much money will I earn? Because as I told you, resources are less like I gave you an example of ten products if you have ten products in mind which you can develop?

You cannot spend money on all the ten resources because you want to be having limited funds or limited money. So, you need to find out the best one on which you can invest your money or other resources.

Feasibility Study Criteria Help You In:? How

  • You are identifying which one is the best out of the ten ideas or ten products you have now.
  • How does a feasibility study Criteria help in listing in detail the things required to make the business work first thing?
  • It helps you in identifying logistical and other business-related problems and solutions.
  • It helps you develop the marketing strategy to convince a bank or an investor to consider the business and invest in it.

Or given to us, it serves as a solid formulation for developing their business plan. It helps in finding out ways which are cost-effective to do a business.  So, remember feasibility study helps you in seeing whether the project manager is viable or not. You can go to an investor and convince him through this study that your project will generate returns.

As such, you can develop the marketing strategies accordingly. You can understand the requirements for the business in terms of logistics, and you will always also be able to see the problems in solutions that can arise in business.

The requirements of the business

So the first thing in a feasibility study is you will see the business requirements as such in terms of finance and other resources. Then you will see the logistical and other business-related problems you need to find out a solution you need to find out cost-effectively. It also helps you in finding cost-effective ways to run a business.

What Are the Types Of FEASIBILITY STUDY CRITERIA?

  1. The first one is market visibility; what do I do with that? You will study the anticipated future market to anticipate a future market.
  2. You will study that market and see what the potential of my product is out there.
  3. What kind of competition you’ll face in that market when I launch my product.
  4. What are the projections in terms of sales, and who would be my potential buyer?

Study The Market.

So basically, you are studying the income tax market as such, let’s say you want to sell a typical pen with a market in terms of students.

  • It is a cost-effective pen.
  • Which you have come out with a very low-priced pen.

So, when you are doing a market Feasibility Study Criteria, you will see who your consumers would be.

  • As such, potential buyers, as I told you, will try to see if these potential buyers turn out to be customers; what would be the sales projection.
  • Now, you will try to see in the market who are the people who are going to compete with you, management consultant, who are the other sellers of similar kinds of products.
  • You will see what the potential is in terms of giving you profits.
  • The next is your technical feasibility.

See, sometimes we come out with a product or a service where we need to find out how we need to deliver that product or service. Is it technically feasible to produce that product profitably and then sell it in the market or not?

Then comes your financial consultant here; you study how much capital you will require to develop the business idea into a product. Or so, what would be the sources of funds?

Should you go to an investor? or should I go to the bank? If yes, if Go to the bank, what would be the cost of funds if I’m going to the investor? How much you will have to pay him in terms of dividends.

Organizational feasibility here would define the legal and the corporate structure of the business you need to.

As we had learned in Business Studies, you need to see what kind of business you define. Whether a sole proprietorship would be good enough or you need to open a company depends on your idea and what product you are planning to develop.

You will have to do organizational feasibility, which will help you determine your business’s legal and corporate structure.

Features Of FEASIBILITY STUDY CRITERIA

Now, let us see some features of the Economic feasibility study. It is a process to see if the idea is feasible.

If yes, it is how it is going to work now. A comprehensive feasibility study will look at the entire structure needs and the operations of a business. As such limited or project feasibility studies look at one specific task program idea or problem, they look at both sides when it comes to the feasibility study.

They consider the inventory advantages or disadvantages. As such, they troubleshoot potential problems. See if you come evaluating an idea and if you see a problem, then a feasibility study will help you how the pro? How can be solved?

So, a potential problem solver can be done, or the problem can be solved using feasibility studies. This is not a business plan; this only serves as a foundation for developing a business plan when I’m talking about marketing or market feasibility study Criteria.

Remember, it is not a marketing plan, but you will just study which markets can be entered? What is the potential out there? How can it be used to support or develop or marketing? I will define it as a controlled process for identifying the problems and the opportunities, determining the objectives, describing the situations, defining successful outcomes, assessing the range of cost and benefit associated with several alternatives for solving a problem.

In addition to a business plan, an investor or a lending institution like a bank or a financial institution requires the submission of a feasibility plan. Before considering the request for capital because they want to see how the entrepreneur has worked out in terms of their feasibility study ideas to improve your business. PROTAX company provides more service for you like financial consulting, tax consulting and administrative service.