Feasibility Study of a New Business Idea

March 19, 2026

✅ Feasibility Study of a New Business Idea

🔍 What is Feasibility Study? (In Simple Words)

👉 It means checking whether your business idea will work or fail before starting it.

✔ Helps avoid loss
✔ Saves time & money
✔ Gives clear direction

🎯 Key Takeaways (VERY IMPORTANT)

✔ Not every idea is profitable → test before investing
✔ Focus on customer need first, not product
✔ Check market demand + competition
✔ Calculate cost vs profit (financial viability)
✔ Understand your strength vs competitors (SWOT)
✔ Small testing (pilot) is better than big risk
✔ Helps in better decision making (Go / No Go)

📊 Steps to Follow (Easy 5-Step Method)

1️⃣ Idea Analysis (Basic Check)

👉 Ask:

What is the idea?
Who will buy it?
What problem does it solve?

✔ Example: Food delivery for hostel students

2️⃣ Product / Service Feasibility

👉 Check:

Is the product useful?
Is there demand?
Can you create it easily?

✔ Simple rule:
👉 “Will people pay for this?”

3️⃣ Market & Competition Analysis

👉 Study:

Target customers
Competitors
Market trends

🔹 SWOT Analysis:

Strength
Weakness
Opportunity
Threat

4️⃣ Financial Feasibility

👉 Calculate:

Total investment
Cost of production
Expected revenue
Profit or loss

✔ Ask:
👉 “Will I earn money or lose money?”

5️⃣ Final Decision (Go / No Go)

👉 Based on all analysis:

✅ Start business (if feasible)
❌ Drop or improve idea (if not feasible)

🔵 Bonus Concept (For Extra Marks)

Three Circle Analysis:

👉 Compare:

Company (your capability)
Customers (needs)
Competitors (market players)

✔ Best idea lies where all 3 overlap

🧠 One-Line Summary (Exam Ready)

👉 Feasibility study is the process of evaluating the practicality, profitability, and sustainability of a business idea before starting it.

🎯 Quick Revision Trick (Remember: “IPMFF”)

I → Idea
P → Product
M → Market
F → Finance
F → Final decision

Rajesh Sabbani