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Feasibility Analysis

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 (i.e., 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 this topic, see the links listed below of articles posted on related Web sites.

  • Evaluating the Potential of Value-Added Agriculture Ideas – University of Tennessee Cooperative Extension – A series of worksheets to assess feasibility.
  • Is Your Agribusiness Project Feasible – University of Georgia Extension – It is important to conduct a feasibility study any time an agribusiness considers a major change in its business.
  • Business Feasibility - Iowa Small Business Development Centers - The purpose of this workbook is to help you think about your business idea and perform an initial business feasibility analysis. (Seven-part series).
    • Part 1: Overview - Provides a glance at the potential usefulness of this workbook.
    • Part 2: Personal Factors - Identifies a three-step process to help you assess whether your business idea will allow you to meet your personal objectives and whether you have the necessary skills needed in such an endeavor.
    • Part 3: Market - Assists you in determining whether a market exists for your business idea.
    • Part 4: Management - Helps identify management requirements that are needed to successfully implement your business idea.
    • Part 5: Money - Aids in identifying potential start-up costs as well as developing an operating budget.
    • Part 6: Money/Worksheets - Lists many key financial worksheets need to carry out those objectives listed in Part 5. Also gives instructions on how to complete the worksheets. 
    • Part 7: Making the Decision - Market, Management and Money Scoresheets to help you determine whether your business idea will work.

Links checked July 2014.

 

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