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.
Evaluating Your Chance of Success- CCH Business Owner's Toolkit - Here's a look at the prime considerations for determining if your business idea has a chance to succeed.
- Feasibility Assessment for New Ag Ventures – A Framework – Agriculture, Food and Rural Development, Alberta, Canada.
- Marketing: Will it Sell? – Agriculture, Food and Rural Development, Alberta, Canada – A series of factsheets designed to help you evaluate the feasibility of a new agricultural or rural-based business.
- Financial Feasibility: Can you Afford to Do It? – A series of factsheets designed to help you evaluate the feasibility of a new agricultural or rural-based business.
- Identifying Alternatives – What are the Possibilities? – Agriculture, Food and Rural Development, Alberta, Canada -- You will rank six specific enterprise ideas. You can then pick one of the enterprise ideas to use in performing the marketing, production, profitability and financial feasibility evaluations.
- Decision Making: Will you Start a New Enterprise? – Agriculture, Food and Rural Development, Alberta, Canada -- The enterprise looks feasible, but how do you decide whether to proceed? This factsheet outlines a decision-making framework to help you focus on your decision.
- Financial Feasibility: Can you Afford to Do It? – Agriculture, Food and Rural Development -- A series of factsheets designed to help you evaluate the feasibility of a new agricultural or rural-based business.
Links checked July 2014.