What Is The Importance Of Feasibility Study?

Feasibility Study is basically a study that is done to judge the viability of a new business venture. It is actually a preliminary analysis of a project that lets the people know that whether to proceed with a project or not.

A Feasibility study is very important for a business. It makes an analysis of all the aspects of a business. The external factors influencing it and also the internal factors. It also analyzes all the costs associated with the project and how the material would be sourced. On the other hand, it will also make an estimate of how much sales are to be expected and what profits would the project make.

If the results of the feasibility study are favorable, it is logical to proceed with it. Whereas on the other hand, if the results are not favorable, no businessman will take a risk on it.

A feasibility study examines whether a product will be successfully developed and brought onto the market.

-used to gather broad data for members of management to make decision.
-address the correct problem.
-screening out projects which is inconsistent with business's objectives,technically and economically.