A Feasibility Study is basically a study that is done to judge the viability of a new business venture. It is actually a preliminary analysis of a project that lets the people know that whether to proceed with a project or not.
A Feasibility study is very important for a business. It makes an analysis of all the aspects of a business. The external factors influencing it and also the internal factors. It also analyzes all the costs associated with the project and how the material would be sourced. On the other hand, it will also make an estimate of how much sales are to be expected and what profits would the project make.
If the results of the feasibility study are favorable, it is logical to proceed with it. Whereas on the other hand, if the results are not favorable, no businessman will take a risk on it.
IBS as a rule normally conduct a feasibility study before commencement with a Business plan. It however happens from time to time that entrepreneurs or business owners want to expand or try something new. This is where a feasibility study is conducted to determine whether the new venture has the potential to succeed or not.
Apart from the result of the study, IBS will give advice on alternative ventures that could be successful should the result of the study be negative.