As the name implies, a feasibility test is an analysis of the viability of an idea. The feasibility test focuses on helping answer the essential question of “should we proceed with the proposed project idea?” All activities of the test are directed toward helping answer this question.
Once again, A business feasibility test can be defined as a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes and assessing the range of costs and benefits associated with several alternatives for solving a problem.
Why it is so important?
It is estimated that only one in fifty business ideas are actually commercially viable. Therefore a business feasibility test is an effective way to safeguard against wastage of further investment or resources. If a project is seen to be feasible from the result of the test, the next logical step is to proceed with the full business plan. The research and information uncovered in the feasibility study(test) will support the business planning stage and reduce the research time.
Feasibility test can be used in many ways but primarily focus on proposed business ventures. Entrepreneurs and others with a business idea should conduct a feasibility test to determine the viability of their idea before proceeding with the development of a business. Determining early that a business idea will not work saves time, money and heartache later.