What Is Business Feasibility Study and Its Benefits in Starting a Business
What Is Business Feasibility Study is an activity that studies in depth about the activities or businesses that are carried out with the aim of determining the feasibility of the business to run.
Or the understanding of other business feasibility studies is research on business planning and not just analyzing business feasibility to begin.
But it is also carried out routinely to achieve optimal profit within the allotted time.
The importance of business feasibility study
When you start a new business, you need a strong business plan. And it takes a variety of strategic thoughts before the construction of your business is made.
By analyzing the market and the numbers, you can be sure that you have an accurate vision so as to minimize serious errors.
A comprehensive feasibility study not only gives you confidence but can also help determine whether the business you are running is successful or not.
This means that you have reduced business risks such as not benefiting from your business.
Business feasibility studies have a purpose:
- Reducing the risk of loss
- Facilitate planning
- Facilitate the execution of work
- Supervision is easier
- Make it easier to control
The purpose of the business feasibility study
The business feasibility study has the aim to avoid excessive investment in unprofitable activities.
Although this study also requires a fee, the cost is relatively small compared to the risk of business failure associated with not a little investment.
The feasibility study has several objectives, namely:
1. Avoid risk
the first objective of a business feasibility study is to avoid the occurrence of risks that can be controlled or cannot be controlled.
Uncertainty about future conditions makes you need to conduct a feasibility study analysis in order to reduce the risk
2. Make it easy to make plans
With the prediction of the future of the business, it can be easier for you to design a business plan.
In the planning can be in the form of capital, time of execution, place of business, a method of implementation, amount of profits and supervision.
3. Make it easier to carry out work
When planning is well organized it will certainly make it easier for us to carry out the work.
Thus the work can be done systematically and each employee has guidelines and focuses on goals.
4. Facilitate supervision
With the analysis of business, feasibility studies can also facilitate the supervision of every business process carried out.
This supervision is done so that all business processes are on track and in accordance with the plans that have been made.
5. Simplify control
When there are irregularities in the business process, then with the results of a business feasibility study, you will be easy to fix and immediately complete.
Of course, this will make the deviations that occur can be directly controlled.
Benefits of a business feasibility study
When you have made a business feasibility study in detail then you will know how to make the right decision.
Of course, this will give you peace of mind when running a business.
The biggest problem with conducting a business feasibility study is that this research requires a long time and high concentration.
This is why many business people are reluctant to conduct feasibility studies before starting their business.
Though business experts argue that building a business without a feasibility study is likely to fail.
Some of the benefits of preparing a business feasibility study to start a business include:
1. Understand opportunities
By doing research in determining the business that will be run, you can find out the business that is run can generate profits.
Of course, this will make you not be able to make time and money with no use for businesses that do not make a profit.
2. Test business concepts
Business feasibility studies can help you to test your business concept and find out how to overcome the problems that will be faced.
Of course, this will be useful for you in preparing careful planning such as unexpected costs.
3. Adding confidence
A detailed and accurate research can give you the confidence to grow your business.
This is because it has taken into account the feasibility of the business that you will run.
Of course, this will make it easier for you to realize every business development plan. In addition, a business feasibility study can also help businesses evaluate all business activities carried out.
4. Finance or capital
The business feasibility study allows you to determine how much capital is needed to start your business.
The important thing you must remember is that one of the factors of failure in business is inadequate capital.
Using a feasibility study can also help you to present your ideas to other parties who have an interest in your business.
Some parties that have an interest in your business include:
- Company management
- General public
Business feasibility studies are important when starting a business. But to do research and collect all the numbers is difficult in the initial stages.
Although the results of the business feasibility study do not fully reflect the actual business process.
But the results of this feasibility study can give you your picture in making important decisions in your business.
The importance of this business feasibility study not only ensures that you have profit potential but will also pay attention to prospective investors.
Thus the discussion about What is Business Feasibility Study and the Benefits of Starting a Business.