Feasibility Study
The feasibility study will examine the business model, checking expected profit potential from the intended business.
In most cases it identifies three main areas of the business:
- Market environment - is there potential for the product or service to return a profit?
- Technical and operational requirements - what equipment or human resources will the business need to have access to, at what cost, in order to return a profit?
- Financial projections - what are the expected expenses and incomes of the business, including sales and advertising projections? How long will it be until the business breaks even?