When starting a business or project, it is important to first do a feasibility study, this offers opportunity to access the opportunities and treats to the proposed business in the environment you intend to operate. This is to find out whether your proposed business will work; how it will work and what is needed to make it work.
To continue with your proposed business, the feasibility studies should provide (positive) answers to the following questions and other similar ones;
What products or services are you going to produce?
Can you produce these products and services?
What do you need to produce these products or services?
Can you raise the capital to finance this business?
How will you carry out the day to day activities?
How will you market your products?
What are the legal requirements for the business?
What are your tax obligations?
What are the skills and knowledge required and can you get them?
What will it cost to produce the proposed product or service?
What value (payment) will you get from the products or services?
How long will it take to set up the business?
How long will it take to produce the product or service?
Is the timing right for the business?
What are the challenges you are likely to face?
Who are your competitors?
How soon will you recover the money invested into the business?
A positive feasibility study result provides some information needed to design the business plan, hence a feasibility plan should be done before a business plan and business take off.