A feasibility study is an analytical tool used to assess the chances of survival of a business idea in the real world. Checking the viability of your business requires a lot of groundwork.

You have to consider those that were in the market before you. What are their sales like? What could they do differently? How much did it take to set up the business and how much are you willing to invest?

Asking all the right questions on your project is what makes you determine if it is still worth pursuing.

In a 2020 study, researchers assessed the feasibility of a text message-based intervention for young people living with HIV who face challenges in engaging with HIV care. They employed both quantitative and qualitative methods.

Results showed that the majority of participants demonstrated medium (41.7%) or high (21.7%) levels of engagement. Most participants later reported that the intervention added value to their lives.

Now this is one scenario. This is the story of many businesses (not just healthcare). Educated guesses are the new gold standard.

Types of Feasibility Studies

Each type of feasibility study focuses on a different aspect of your project or business venture. We talk about all the ones that will serve you as a business owner:

Market Feasibility Study

This study helps you analyze the potential demand and market dynamics for your proposed product. The study helps you niche down to your specific market.

Market feasibility study is the most popular of all the types present. If you don’t clarify when speaking of feasibility studies, one would automatically assume this is the one you are talking about. Why? Because it addresses what all business owners like to focus on: market size, consumer preferences, and competitive landscape.

Technical Feasibility Study

This study addresses the technical aspects of your proposed project. Think about your technology requirements, production processes, and feasibility of implementation.

Technical feasibility study is a reminder to gauge the resources you can afford, the technology available to you, and your expertise using these resources

Financial Feasibility Study

This study addresses the financial aspects of your business. It gives you a detailed image of your projected costs, revenues, return on investment, and funding requirements.

The study draws information from cost-benefit analysis, cash flow projections, and financial modeling.

Operational Feasibility Study

This study evaluates the organizational capabilities of your business. What would it cost to run your day-to-day operations? What can be put in place to ease your workflow? How many hands would you need on deck everyday?

Operational feasibility study helps you “marry” existing operations with new ones to avoid disruption.

Legal Feasibility Study

As is indicative of the name, this study evaluated the legal and regulatory aspects of your project. What makes up this aspect of your business? Compliance requirements, permits, licenses, and intellectual property rights.

You can get it right on all fronts: operation, finance, market, technical, and environmental – but once you are not okay on the legal front, your business can be dismissed by a competitor.

Environmental Feasibility Study

This study lets you know how much damage you’re causing to your environment by operating in your niche. We are big on environmental sustainability now. Preserving the ecosystems and public health is a necessity.

If your business is going to cause a form of environmental hazard, it’s important to put in place mitigation measures to curb adverse effects on the environment.

Key Components of a Market Feasibility Study

Conducting a Market Feasibility Study for a new product requires careful planning, thorough research, and systematic analysis. Here’s a step-by-step guide on how you conduct a market feasibility study effectively:

1. Outline the objectives of your study. Are you trying to identify your target market? Assess the demand  for your product? Or understand what your customers want? Identify what works for you.
2. Define the scope of your study. Include the geographical area, target demographic, and timeframe for analysis.
3. Collect data that concerns your objectives.  Make use of both primary and secondary sources.
4.  Check out your competition. How good are they? What is the market share? What are their weaknesses that you can capitalize on?
5. Understand the regulatory requirements for your industry. Ensure compliance with relevant laws and regulations governing your industry.
6. Evaluate the financial feasibility of the new product by estimating costs. These include project potential revenues, profitability, return on investment, and break-even analysis.

Why You Need to Outsource Feasibility Studies to Professional Services

There’s little surprise that new businesses fail. Over 70% of them to be precise. Every business owner is making educated and well-researched guesses to avoid hiccups. Dabbling in the dark is just setting yourself up for failure (especially in UAE).

Professional feasibility study services in UAE allow you to leverage experts for the best results.

Outsourcing feasibility studies is:

1. Cost-effective. Professional services have access to resources, tools, and databases that are not available to you. Outsourcing eliminates overhead costs associated with hiring and training employees for temporary projects.
2. Time-sensitive. Professional feasibility study services like Researchers.me have streamlined processes to conduct thorough assessments in record time. Experts help you save time and resources that would otherwise be spent on extensive research.
3. Unbiased Analysis. When you conduct your research yourself, there’s a high tendency that you’d not want to admit some hard truths to yourself. You’d ignore some realities of your business which might end up hurting you at a later date. External feasibility study services provide an objective and impartial perspective for you.
4. Risk Mitigation. Professional feasibility study services are well-equipped to identify and mitigate risks. Their experience in conducting similar studies for various clients allows them to anticipate challenges.
5. Comprehensive Reporting. Professional feasibility study services deliver thorough research findings tailored to your specific needs. The clarity and depth of these reports enable you to make informed decisions confidently.

Conclusion

It takes more than just your idea to make your brand a winner. You have to work hard and in the right direction.

At Reseachers.me, we help you craft this direction and equip you with the tools to be the best.

Reach out to us today!