7 EASY STEPS TO CONDUCT A FEASIBILITY STUDY FOR YOUR BUSINESS IN NIGERIA 

Starting a business is just like forming an idea in your head and making it a reality. Of course, that idea cannot fully become a reality and have the capacity to grow without a concrete plan. The surest way to ensure the proper execution of this plan is to carry out a feasibility study.

Then again, a lot of businesses have plans, even those of your competitors. What then sets your business up for future success is conducting a feasibility study of your proposed business in the relevant industry. 

Join this ride to know how to conduct feasibility study and why it is important in every business venture. 

What is a Feasibility Study? 

Just like every other idea, a business idea is one that the visionary desires to become a reality. But before birthing this idea, one must first test the waters. This is what a feasibility study is for.

A feasibility study is a tool used to assess the chances of a business or a project succeeding with regard to the current state of things in reality that are likely to have an impact on the business or project. 

It involves carrying out a thorough analysis of the potential market, the competitors, the expected obstacles and the financial resources required for a business. 

What are The Different Types  of Feasibility Study?

There are different types of analyses a person should conduct before starting a business. They are:

1. Technical Feasibility: 

This is an analysis of the technical resources such as the required staff, technological capacity and logistic requirements that are required or already available for the business. 

2. Economic Feasibility: 

This is the assessment of the financial viability of the business. This includes the cost of funding the business and the expected profits or benefits. A comparison of both gives the business owner an overview of the economic capacity of the business. 

3. Market Feasibility: 

This is an analysis of the overall competency of a business, its capacity to succeed in the midst of competition and the current stance of the market into which the business will be launched. This gives the business owner an insight on what to expect in running the business and how to navigate competition in the industry. 

4. Legal Feasibility: 

This is an analysis of the legal system and existing laws regulating such business to ensure that no aspect of the business conflicts with any existing law or regulations. 

5. Schedule Feasibility: 

This is an analysis of the timeframe required for the entire formation and the starting of the business. This is the major factor that determines the actual execution of the business plan and whether or not it will succeed. 

Why You Need a Feasibility Study 

Carrying out a feasibility study of your business idea before the actual formation of the business gives it a head start and a good foundation for future success. Here are the benefits of a feasibility study in your business: 

1. It furnishes you with sufficient reasons to carry out your business idea.

2. It gives you a sense of direction in the execution of your business plan and the actual formation of the business. 

3. It gives an overview of the entire resources required to start your proposed business. 

4. It gives an insight of the different variables of the business and its success or failure estimate. 

5. It gives an insight on the expected return on investment and profits.

6 It aids in setting out the steps and mode of the actual execution of the business plan and the formation of the business.

How to Conduct a Feasibility Study For Your Business in Nigeria

To conduct a feasibility study of your business plan and idea, follow these simple steps:

1. Carry out a preliminary analysis to determine whether the proposed business is worth doing.

2. Determine the scope of your proposed business: the goals, associated costs, aims and objectives, values, tasks, schedule, etc.

3. carry out a thorough market analysis, making sure to identify the demographic features, competitors, the envisaged impact your product or service will have on the market and other determining factors such as pricing and customer profile.

4. Prepare an overview of all the resources required for the business, including human and financial resources, equipment and facilities, and also the expected profits and return on investment.

5. Draw out the organizational and operational structure of the expected day-to-day activities of the business.

6. Re-analyse the entire report, taking time to identify and address possible drawbacks or obstacles to the business.

7. Make your final decision on whether or not to go ahead with the business plan

Conclusion

Carrying out a feasibility study of your proposed business helps to position it for success in the industry. By carrying out a thorough analysis of what is involved in your proposed business and the potential obstacles the business is likely to face, you give it a head-start before fully launching into business.

Bearing these in mind, the importance of conducting a feasibility study before your start any business cannot be over-emphasised. It is important that you do it the right way, because any mistake can have a massive effect on your business.

This is why you need the assistance of a business consultant to guide you through the process, to avoid errors and simplify the entire process for you. At In-Charge Solutions Limited, we assist individuals by guiding them through the process of setting up a business, and also offer solutions to diverse business needs. Contact us today, we will be glad to be part of your business formation journey.