A feasibility study’s main goal is to assess the economic viability of the proposed business. The feasibility study needs to answer the question: “Does the idea make economic sense?” The study should provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of the cooperative’s success.
Feasibility studies are a way for companies to carry out exploratory studies which could lead to the development of new products, processes, models, experiences or services. The study could involve for instance investigating the technical feasibility of a new idea.
The outcome of the feasibility study will indicate whether or not to proceed with the proposed venture. If the results of the feasibility study are positive, then the cooperative can proceed to develop a business plan.
A feasibility study should cover three main areas:
- Market issues
- Technical and organizational requirements
- Financial overview