Feasibility Analysis | How Important It Is For Business Growth
Hello enterpreneurs,
With all joy, I humbly appear before this great community to discuss again on another topic of interest, as business enthusiasts, we look for numerous ways in which our business can improve.
Have you thought about feasibility analysis and how it can help grow your business? Stay tuned as I explain in detail what feasibility analysis is and how it can be applied.
WHAT IS FEASIBILITY ANALYSIS
Feasibility Analysis can be explained to be a comprehensive research carried out by an enterpreneur inorder to determine the viability, profitability and how Practical a business idea can be .
Feasibility Analysis is a very necessary operation that should be carried out before a business is established and before a business should be expanded.
The main concept behind the feasibility study is to help evaluate the model of a business, to check it's potential of financial profitability, marketability and more importantly, it's overall success.
We will be right to say that feasibility analysis is an overview of a business and the idea behind it's formation, to check if the business is worth be pursued.
It helps to reveal the strength and opportunity in a business and also helps to expose the threats and weaknesses of a business, hereby giving an enterpreneur the opportunity to work on it and make the business boom.
Feasibility Analysis makes it possible for the initial business plan of the enterpreneur to be fleshed up, thus giving him a wider scope of reasoning when considering what needs to be added to the business and what needs to be eliminated for the business to succeed.
For an enterpreneur to start up a new business, he needs capital and there are few places where this capital can be raised.
Most times, this capital are raised through their savings, monetary gifts from friends and philanthropist and also, through loans from banks.
That is typically the first stage of a business, where an enterpreneur searches for capital to Kick-start his business.
REASONS FOR FEASIBILITY ANALYSIS
The main reason for a feasibility analysis is to help question the idea/aim behind the business and by so doing, it help scrutinize the business and thoroughly check which factor is not been placed well, it helps ascertain which sector needs adjustment and which sector needs improvement.
The feasibility analysis helps to assess the managerial ability of the team, most especially the leader of the team.
As an entrepreneur, you need to possess the skills, the knowledge and the right attitude to run a business and how to bring out the best from your team mates and lead them to success.
You also need to be able to identify the challenges of your business and propose solutions to such challenges.
As an entrepreneur, you need to have a fast thinking ability so that when the initial business plan is not working well, you and your team can immediately decide if it's best to move to a new plan or stick to the initial plan.
And when the decision made is to move to a new plan, then a suitable feasibility analysis will help provide a broad historical profile of the plan, it's strength and weaknesses, it's application and all necessary information to guarantee a successful business.
TYPES OF FEASIBILITY ANALYSIS
There are numerous types of feasibility analysis and some of them will be explained below.
TECHNICAL FEASIBILITY ANALYSIS:
The technical feasibility analysis helps to evaluate the available technical resources and as well as the technology that can be adopted to boost the business.
Here the analyst Should be able to ascertain if the available technological resources can build the current business plan, and if not, can the business plan be updated? Can the technology be adjusted.
And if the business plan nor the technology can't be adjusted, the next consideration could be if there are other available technology that can be implemented or if there are enough employees that can manage the available technology.
And if not, can they recruits more developers, extra programmers or even specialist to handle the job.
These are the area of consideration of a technical feasibility analysis.
IMPORTANCE OF TECHNICAL FEASIBILITY ANALYSIS
It helps to analyze if the existing technology can provide a lasting solution to the challenge on ground.
It also helps to determine if there's need to update the available technology or better still replace it with a new one, just to meet the new demand.
BEHAVIORAL/OPERATIONAL FEASIBILITY ANALYSIS
The behavioral feasibility analysis helps to determine whether the workers in a business will heed to the proposed operation of the business.
And the operational feasibility analysis also helps to evaluate the available human resources which inturn determines if the proposed program will workout.
The operational feasibility analysis plays a big role in deciding if the proposed solution by the software development team will be accepted by the business.
It also helps in determining how user-friendly the proposed plan is.
It also assist to check if the organization is pleased with the proposal made by the software development team members.
IMPORTANCE OF OPERATIONAL FEASIBILITY ANALYSIS
It helps to assess how functional a system is once it has been built and installed in the business.
It also helps to ensure that the management will adopt the new modern of operation once it has been implemented.
IMPORTANCE OF BEHAVIORAL FEASIBILITY ANALYSIS
It evaluate the attitude of it's workers concerning the implementation of a new working system in the business.
It also helps to determine if the system needs that the workers be educated on its means of operation.
ECONOMIC FEASIBILITY ANALYSIS
The Economy feasibility analysis helps to evaluate if the necessary software has the potential of providing financial benefits for the business.
This analysis involves the expenses of the software development team, the expenses needed to complete a feasibility study and so on.
IMPORTANCE OF ECONOMIC FEASIBILITY ANALYSIS
One of the Importance of economic feasibility analysis is to checkmate the economic needs of a system before funding it's project.
It also helps to pick an alternative solution that helps to maximize a business returns and minimize their expenses.
It also helps to evaluate the Importance of a business system by using the cost/benefit strategy
SCHEDULING FEASIBILITY ANALYSIS
This is another Important type of feasibility approach in a business, it helps to evaluate how time cautious a team is.
For a business to be fruitful, the analysis team needs to work with time.
Through the use of scheduling feasibility analysis, a business should be able to analyze and predict the time period that will be needed to complete/finalize a business proposal.
IMPORTANCE OF SCHEDULING FEASIBILITY
It helps to ensure that the project is finished within the jurisdicted time period.
It also helps evaluate the feasibility rate of a project deadline.
ADVANTAGES OF CONDUCTING A FEASIBILITY STUDY
There are numerous advantages of conducting a feasibility study and some of them are:
- It improves the concentration of the project team
- Helps the team to discover new business strategies
- Helps to provide the useful information for decision making
- It also helps to increase the success rate of the decision made by the team as a variety of factors are analyzed.
NECESSARY STEPS INVOLVED IN CARRYING OUT FEASIBILITY ANALYSIS
- Form a project team and then select a leader of the team
- Design system Flow chart
- identity the weaknesses of the current system of operation and make set goals to work on such deficiencies.
- Identify the available alternative solutions to achieve the set goals
- Identify the feasibility of each decision e.g behavioral feasibility, technical feasibility etc
- The Effectiveness of every proposed plan should be weighed.
- The available options should be listed based on their scale of preference, and that with higher scale should be implemented.
- Prepare a system proposal that finalizes the project directive, inorder for it to be approved.
CONCLUSION
The application of feasibility analysis in a business is very important as it helps to determine what business strategy is to be applied to enhance the growth of the business
Feasibility analysis is very important in any project. Its just like an academic writing under finance and business category. Please try to relate your writing with our community suggested topic. We don't prefer only business, finance, technology content. Check the list of suggested topics from community pinned posts. Thanks.
Ok noted, thanks for the reminder @engrsayful
feasibility analysis should be well utilized by entrepreneur or business owner to build or develop a successful business
Thanks for stopping by, I appreciate 💙
You did great 👍
You calculated the probability of this post creating results in the Fintech category before sinking your time and effort in it. Great post 👍
Thank you, I hope you enjoyed it