What is feasibility?

The definition of viability in business terms refers to the possibility that a project or business can progress, guaranteeing its long-term profitabilityeconomic.

In a simple way, the concept of viability can be considered as the option that a project can be carried out, with a certain continuity over time. To do this, the resources you need, those you have, and the ability to obtain them must be taken into account. In the event that you have enough means to execute the business idea, you could say that the project is viable.

Regardless of the idea to be developed, it will be necessary to carry out an exhaustive study of the different conditions and factors that participate in the process before it is put into operation to guarantee its viability.

How to determine the feasibility of a project

To determine the viability of a business you must analyze the essential elements that make up any investment project. They refer to the product, the market, the resources to develop it, the study of supply and demand, the administrative structure and the needs for financing, which we concentrate on the following points.

  • The service or product: you have to bring something new to the market, find out if the proposed idea manages to improve what already exists and define the target audience. In this way you will have more facilities to know if the initiative has a chance to succeed.
  • Financial structure: you must include in your feasibility study a forecast of the benefits and costes over a minimum of three years, in addition to financial needs.
  • Market analysis: any market analysis will revolve around the supply, demand, price and sale of the item or service in question. To know the potential of the business, carry out surveys on the public you are targeting and thus you will take the pulse of that market you are targeting. This study must collect prices, competitor profile, sales channels, Suppliers and a historical data of the sector to analyze its journey.

In business there is also the term viability plan, which is a written document that is carried out to achieve planning, evaluation and management of the different particularities of the business, from the moment there is an idea to the start-up of the company.

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