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Feasibility Studies
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A feasibility study's main goal is to assess the economic viability of the proposed business. The feasibility study needs to answer the question: "Does the idea make economic sense?" The study should provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of the cooperative's success. The outcome of the feasibility study will indicate whether or not to proceed with the proposed venture. If the results of the feasibility study are positive, then the cooperative can proceed to develop a business plan. A wellresearched and well-written feasibility study is critical when making "Go/No Go" decisions regarding entry into new businesses.

A Feasibility Study is a process which defines exactly what a project is and what strategic issues need to be considered to assess its feasibility, or likelihood of succeeding. Feasibility studies are useful both when starting a new business, and identifying a new opportunity for an existing business. Ideally, the feasibility study process involves making rational decisions about a number of enduring characteristics
of a project, including:

• What exactly is the project? Is it possible? Is it practicable? Can it be done?
• Economic feasibility, technical feasibility, schedule feasibility, and operational feasibility - are the benefits greater than the costs?
• Technical feasibility - do we 'have the technology'? If not, can we get it?
• Schedule feasibility - will the system be ready on time?
• Customer profile: Estimation of customers/revenues.
• Determination of competitive advantage.
• Operational feasibility - do we have the resources to build the system? Will the system be acceptable? Will people use it?
• Current market segments: projected growth in each market segment and a review of what is currently on the market.
• Vision/mission statement.
• Definition of proposed operations/management structure and management method.

Description of the Project
• Identification and exploration of business scenarios.
• Definition of the project and alternative scenarios and models.
• Relationship to the surrounding geographical area.

Market Feasibility (This can be based on a market assessment that you may have already completed.)
• Industry description.
• Industry competitiveness.
• Market potential.
• Sales projection.
• Access to market outlets.

Technical Feasibility
• Determine facility needs.
• Suitability of production technology.
• Availability and suitability of site.
• Raw materials.
• Other inputs.

Financial/Economic Feasibility• Estimate the total capital requirements.
• Estimate equity and credit needs.
• Budget expected costs and returns of various alternatives.

Organizational/Managerial Feasibility
• Business structure.
• Business founders.

Study Conclusions

Next Step

After the feasibility study has been completed and presented, you should carefully study and analysis the conclusions and underlying assumptions. Next, you will be faced with deciding which course of action to pursue. Potential courses of action include:

• Choosing the most viable business model, developing a business plan and proceeding with creating and operating a business.
• Identifying additional scenarios for further study.
• Deciding that a viable business opportunity is not available and moving to end the business assessment process.
• Following another course of action

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