Criteria for Selecting a Viable Business Idea

Have a business idea but no capital? None other than the solution is to find investors. But how can investors believe and want to give their capital to us? Here it is necessary to make a feasibility study.

The main objective of a feasibility study is to assess the economic viability of the proposed activity. A feasibility study needs to answer the question: "Does the idea have economic benefits?" This research will provide an in-depth analysis of business opportunities, including looking at all possible obstacles that can block the path of business success. The results of the feasibility study will show whether or not the business we offer to investors will continue. If the results of the feasibility study are positive, the collaboration can then proceed and start developing a business plan.

If the results show that the project does not sound like a business idea, then the project should not be continued. While it is difficult to accept a feasibility study that demonstrates these results, it is much better to discover this earlier than later, when a lot of time and money will be invested and will eventually be lost.

This feasibility study is important because it forces the entrepreneur (or aspiring entrepreneur) to put his ideas on paper and to judge whether the ideas are realistic or not. It also forces the entrepreneur to start formally evaluating the next steps.

To make it easier, entrepreneurs usually hire a consultant to conduct a feasibility study. Since the consultant is independent from the collaboration, he or she is in a better position to provide an objective analysis of the proposed business. Consultants must have a sound understanding of the industry and the new generation of business cooperation models. He must have first-hand work experience. To get an estimate of the cost of a feasibility study, prepare an outline of the work to be done. Contact several consultants and provide a copy of the design to show the estimates they provide. When the time comes to hire a consultant, prepare a formal request for proposal outlining the required information and send it to several consultants.

We may be tempted to choose the consultant with the lowest cost offer or a personal acquaintance of a friend, but it must be remembered that quality is the most important factor when choosing a consultant. Ensure that an independent consultant can provide an assessment of the business opportunity.

A feasibility study should be tested in the following three broad areas:

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