The All Important Feasibility Study
The one and only reason for a feasibility study to be done on a business venture is to see just if money can be made with the deliverable under consideration. To do this in a constructive manner many different components need to be analyzed.
To begin with a feasibility study the project team must be working with an approved business venture that has the financial backing of the organization they are working for. Depending on the deliverable, size, color and presentation to the public may vary from region to region. These variables must be known before the study begins.
Once the variables of the deliverable are known, the feasibility study can begin. The first step is to know where the deliverable is in demand. This will help to pinpoint the main target audience. This group will be the focal point for a large number of questions. This will include will they purchase the deliverable, how often and for how much.
Once those things are known the feasibility study can then move onto the alternative target audience. Just like with anything in life, placing all of your eggs in one basket is just asking for failure. For this reason there should be at least one if not two alternative target audiences explored so their responses to the same set of questions of the target audience can be collected.
Included in the data being collocated should be a few questions on variables to the deliverable itself that are more than just a variation in color, size and how it is presented. The price is also an important variable. There have been instances where a 10% price reduction makes the deliverable more popular and worth a purchase increase to 20% or more of the target audience. This angle should also be explored.
Once all of the data is collected from the feasibility study it has to be analyzed. This is done by the project team to see just what the real results are on the profitability and demand for this new deliverable. Then the final report then submitted to the stake holders for their determination is the business venture should proceed with a good prospect of profitability for their organization.