Business Feasibility Study: Definition, Aspects, Goals, and Benefits

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Business Feasibility Study: Definition, Aspects, Goals, and Benefits

Business Feasibility Study Definition Aspects Goals and Benefits

When intending to establish a business, brilliant ideas are not enough to make a successful business. There are various factors that need to be considered. Therefore business feasibility studies need to be done.

Even though it is important, but many entrepreneurs often ignore this feasibility study. As a result, some of the efforts made sometimes appear deadlocked or even roll mats.

However, what exactly is meant by a business feasibility study? How is the role in delivering a business on success?

Understanding of business feasibility studies

For some lay people or business people, business feasibility studies may sound foreign. In fact, this study plays an important role in determining the success of a business. Therefore, it is good if beginner businessmen understand the intricacies of this activity.

Business feasibility studies are an activity that is done to determine whether a business is worth running or not. This activity includes identification of problems, opportunities, determining goals, illustrating how business situations and assess the various benefits generated.

In relation to business, this study can be used to help employers take a proper decision. For a beginner, this study is very important because it can avoid business people from losses.

When going to do this study, there are five fields to be studied and analyzed. The five fields are:

  • Market description,
  • Business description,
  • Technology needed,
  • Details about the financial and structure of the business organization,
  • Conclusion How the business pioneered can advance.

Aspects of business feasibility studies

When conducting a feasibility study, there are many aspects that must be studied. Basically these aspects are flexible, so it can be added or reduced according to the needs of the company.

However, there are several basic aspects that will definitely be studied when the feasibility study analysis is carried out, among others:

1. Legal aspects or legality

One aspect that is definitely examined when the feasibility study is a legal aspect or legality. This concerns all things related to legality or legal provisions in establishing a company.

In the legal aspects, the points analyzed are location permits, company listings, NPWP, Deed of establishment of companies from Notaries, trading business licenses (SIUP), and others.

2. Economic and cultural aspects

In economic and cultural aspects, the feasibility study analyzes the impact caused by the company in the conditions around. In terms of culture, the feasibility study will analyze how companies affect customs in the surrounding area.

While in terms of the economy, the analysis was carried out, namely how the company had an impact on the level of income per capita in the area where the company was established.

3. Market aspects and marketing

Market and marketing are the basic aspects studied in feasibility studies. The analysis carried out in this aspect will answer the question whether the products produced by the company have market opportunities.

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To answer the question, there are some things that must be considered, namely market potential, the number of consumers, people’s purchasing power, segmentation, competition situations in the industry, and others.

4. Aspect of management

The feasibility study also includes management aspects as the basic aspects that must be analyzed. This aspect is closely related to the company’s operations, both development and development. Of all the aspects analyzed, the management aspect has a very wide shape.

This is because all the things related to the company’s operations are involved in the category of aspects of management, starting from resource management to the financial company.

5. Financial aspects

For some capital business is the main thing that must be owned before building a business. Therefore financial aspects become things that determine your business run smoothly or not in the future. The budgeting process is something to do if you want to do mature business planning.

To facilitate the process of budgeting and business financial planning as a whole, you can try using accounting software that has features that are in accordance with the planned business process.

The purpose of conducting a business feasibility study

As is known, the business feasibility study has a vital role in determining the success of a business. However, what exactly is the purpose of this activity?

Basically, the main purpose of a businessman to conduct a feasibility study is to measure whether a business has a chance to have a continuation or will stop at a certain time point. stop at a certain time point.

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Benefits of Business Feasibility Studies

When pioneering a business, business people who conducted a feasibility study, their business trip would be different from business people who did not conduct a feasibility study. This is because there are many benefits to be obtained by conducting a business feasibility study. Some of these benefits are:

1. Minimize the risk of loss

When running a business, there are many things that cannot be predicted. Therefore, business people need to prepare everything to anticipate all the things that happen in the future.

By analyzing feasibility studies, business people can minimize the risks that can occur in the company, whether it can be controlled and risk that cannot be controlled. As a result, if the company loses, the losses received are not big.

2. Facilitate business planning

When conducting a business feasibility analysis, business people will get all information relating to the business that will be pioneered including advantages and disadvantages of business.

From the results of the analysis, business people can easier to plan in the future. Not only that, thanks to the eligibility analysis, businesses can plan activities that can benefit the company.

3. Laid business implementation

Through business feasibility analysis, previously planned programs can be executed more easily and accurately. From the results of the analysis, later business people can assess and evaluate any program and policies that provide benefits and losses for the company.

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The impact, business implementation is easier to realize and all programs will also make a profit.

4. Easy to do supervision

There are many aspects analyzed when the feasibility study is carried out. Reports on the analysis of various aspects can be used by business people to supervise.

In addition to the supervision of the internal, a company also received supervision from external. Through the results of the analysis of feasibility studies, the authorities will easily supervise the guise of the analysis report.

5. Facilitate control

In carrying out a business, it cannot be denied if business people sometimes encounter problems and irregularities. In order for the problem it does not become bigger, business people must be able to control the problem quickly and precisely.

This can be realized if previously the businessman conducted a feasibility study. Information and reports of the results of the analysis can be used as the basis for determining which aspects of which are a problem. Then, business people can take steps to solve the problem appropriately.

Conclusion

Business feasibility studies are one of the important things done when establishing a company. By conducting this feasibility study, business people can avoid many bad possibilities that hit the company.

Not only that, the feasibility study can also increase the company’s opportunity to maintain its existence and success. So, business people should no longer hesitate to conduct a business feasibility study so that your business planning is more mature.

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