5 FEASIBILITY STUDIES FOR EVERY SMALL BUSINESS

For the survival and growth of every business, it is essential that the entrepreneur running the business consider the feasibility of the plan on different parameters that impact its operational capacity. Every enterprise must constantly analyze the impact various factors can have on the business.

5 Feasibility Studies For Every Small Business

Here are 5 feasibility studies for every small business.

• Legal feasibility analysis

  The business must be legally feasible and comply with the laws governing the economy. It must fulfil legal requirements such as approved property regulations, licensing, taxing, audits, labor laws, etc. A business must always fulfil its legal obligations and should try to avoid getting involved in legal suits. 

  
  

• Technical feasibility analysis

  A business must be technically feasible to run progressively in its environment. It must evaluate the technical resources required to operate effectively and efficiently. A business should perform technical feasibility analyses time and again to keep itself updated by using the best and latest technology. 

  
  

• Operational feasibility analysis

  Operational feasibility explores the business's ability to implement its operational strategies successfully. It evaluates process effectiveness, resource utilization, staff performance, and the business's capacity to perform ongoing operations.

  
  

• Economical feasibility analysis

  Economic analysis focuses on costs, which businesses categorize as fixed or variable. A business must always perform its operations to maximize profits and minimize costs. To study a business's economic analysis, it must perform cost-benefit analysis, break-even analysis, capital analysis, and more.  

  
  

• Financial feasibility analysis

  Funds are the backbone of every business and every project. A business must always analyze whether it has the funds to run it, whether it is worth running the operations in a particular manner, how and where you can arrange for the funds, what the viable options are to raise funds, etc. A financial feasibility study is all about financing the project. 

  
  

Since every business functions in a highly volatile business environment, it is imperative for every enterprise to keep analyzing this environment on various fronts. Feasibility studies for various factors give businesses a competitive edge over their competitors, as they allow them to think strategically and then formulate the course of action.