A feasibility analysis is an important tool to help you assess the viability of starting a new value-added business, or re-organizing or expanding an existing business. It provides important information needed to make the critical decision of whether to go forward with a business venture.
The analysis often takes the form of a formal study conducted by someone outside of the business (ie. consultant). However, it is critical that the business venture founders are involved in the study and question its assumptions and conclusions.
To help you understand feasibility analysis and how it should be used, read What is a Feasibility Study and When to Do and How to Use a Feasibility Study. Another piece to help you in the process of Assessing the Feasibility of Business Propositions is provided to help you determine the viability of business ventures. To help conduct a feasibility study, you may want to use our Feasibility Study Outline. Also, here is a Feasibility Template to help you consider the factors to evaluate that affect the bottom line.
For more information on feasibility analysis see the box at the right.