Feasibility Analysis
Many entrepreneurs have not thoroughly considered whether the business they are proposing is commercially feasible in the marketplace—some experts call this a feasibility analysis. Marvelous ideas are born each day, but many are simply not commercially viable. One of the benefits of initially creating your strategies and writing your own plan is discovering exactly what business you are in and how it will deliver both emotional satisfaction and financial reward to you. The feasibility analysis is a relatively brief version of the financial model that you will eventually develop to create economic scenarios. It indicates the broad operating parameters—product volume, prices, margins, operating expenses, and resources—under which you will achieve your financial goals. Your team will examine and interpret the analysis to determine the feasibility of operating within those guidelines.
