Starting a new business has its own thrill and excitement. It is one of the most defining moments in someone’s career. After all, you are finally putting all your ideas, dreams, and aspirations into reality.
Meanwhile, as metaphorical as it might sound, it is not devoid of challenges and risks. In fact the larger the risk, the bigger the reward. One has to understand India is a vast but also diverse and complex market and one has to navigate carefully to build successful, scalable, and sustainable businesses in the longer run.
One of the steps that are critical in building truly successful businesses is to outline a detailed & comprehensive roadmap. A perfect roadmap is a link between strategy and execution. To make it happen one should conduct detailed feasibility research as it can refurbish all the needed information, insights, and data to succeed.
There are many practical benefits of conducting a feasibility study, just before you take off.
Make the Go or No-Go Decisions: A feasibility report can actually tell you whether you should commit your capital and time to a business or not. It can give a lot of actionable and practical insights into the possible future of a business plan. Though a feasibility analysis can’t guarantee the success of a venture, it can still give valuable information to make the right decision.
Analyze the Market: An insightful feasibility report can be very helpful to the promoters to learn about the market. Market research is the cornerstone to good feasibility as it can render a lot of inputs on customer behavior, industry size, projected growth and demand, and much more.
Gain Deeper Insights about Competition: A well-prepared detailed feasibility report can give plenty of valuable information on the competition, both direct as well as indirect. It can tell about competitive strategy, market shares, pricing, product range, and much more, thereby helping learn about the market. Likewise, it can tell a lot about distributors, wholesalers, retailers, and much more.
Understand the legal requirements: Before starting a business venture, a promoter or investor should carefully learn about the legal policies and regulatory stipulations. Not knowing them can backfire in the future and create massive roadblocks. A feasibility report has a specific section on legal policies and hence can refurbish the promoter with all the needed legal and policy requirements.
Prepare the Projected Cashflow and Income Statements: A feasibility analysis covers crucial financial information including the projected cashflow statement, revenue, market share, ROIs, profitability, etc. This will help the promoter not only get a ringside view of the business but also to scrutinize potential risks. It will help them in better business planning and resource management.
A feasibility study is not just another strategic add-on but a comprehensive analysis that can offer plenty of data and information about the numerous crucial aspect of the business including but not limited to market analysis, competition, distribution & retail structure, demand, legal framework, production & machinery, cashflow, and much more. It will enable the promoter to look at the business from various angles, assess the risk and rewards, and devise the winning mantra. It is very important in the present time and business owners should understand the same.