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Feasibility studies
With more than 1 in 5 working-age Africans starting a new business and more than three-quarters of the youth planning to start one, Africa boasts the world’s highest rate of entrepreneurship. However, Africa also has an alarmingly high startup failure rate with 70-80% of all startups failing within the first five years. While there are many reasons behind these failures, the failure to plan is a notable factor behind the demise of most businesses.
While most business founders in Africa make plans and strategies, they do not take into consideration salient factors, especially, the peculiarities of the markets they operate. They identify problems and come up with solutions, most often by iterating ideas from similar businesses. They rarely take into consideration if their solution will have the envisioned success with their target market or if the market will welcome the given solution.
Here is where a feasibility study comes in. A feasibility study involves evaluating your new business idea in detail to determine if it will be viable. It offers you insights and data that help you determine whether your business idea is practical and achievable. A feasibility study examines all potential opportunities and risks to determine whether it’s worth investing your time and financial resources.
If you are planning to launch a new business or product/ service on the market, our specialist market researchers in Kampala will offer you a comprehensive feasibility study that will help you distinguish real economic opportunities from investments that could fail.
What is a feasibility study?
A feasibility study is a detailed assessment that determines the likelihood of a business’s success. It is simply an analysis of the practicality of a proposed business/ project. It analyzes technical, economic, legal, operational, and time feasibility factors. It aims at quantitatively uncovering a business’s potential through assessing its strengths and weaknesses, opportunities and threats as well as availability of resources required to successfully launch.
A feasibility study examines the potential of the market, the customers, the competitive landscape, the costs and potential benefits of starting the business, as well as the potential risks and rewards involved. It is essential before investing in any business as it clearly defines all the expected costs and forecast benefits, helping you to determine whether your business idea is practical and achievable
Why do I need a feasibility study
Why do I need a feasibility study?
A feasibility study will not only help your organization understand its potential market, it will help you discover even newer and better opportunities that can be leveraged to establish a successful business.
It will save your organization from wasting time, energy and financial resources by venturing into a business that is not practical or viable.
By understanding that a business idea is impractical, the organization can proceed to use the insights and data to explore a concept that is more practical and workable.
This is because a feasibility study will point you to market gaps/ untapped markets as well as newer ways to implement your business idea. For instance, during the market analysis stage, our market research specialists in Kampala will shine a light on current market trends which will point you to effective promotional and advertising activities.
Since potential investors, partners, and lenders often require a feasibility study to assess the business’s credibility and potential return on investment, having a feasibility study at hand gives an organization an advantage. Irrespective of your industry or market, our market researchers in Africa will offer you objective and detailed insights into the viability of your business idea or project, allowing you to reset your path earlier on.
Market Feasibility Study
A market feasibility study is conducted to assess if there is demand for a given product or service in a given market or industry. A market feasibility study will help organizations understand their potential customers, competitive landscape, market trends, opportunities and threats.
Is your organization seeking to launch a new product/ service? Our market research company in Uganda will conduct a market feasibility study and help you understand the market opportunity size, growth potential, customer behavior, as well as the potential demand for your product/ service and its supply.
Our feasibility study experts will use primary research (surveys, interviews) and secondary research (existing reports, data) to help you understand your ideal customers, market, and competitors and how to gain a competitive advantage. It will help you determine whether there is room for a new entrant in the market.
Financial Feasibility Study
The financial feasibility study helps an organization to determine whether a given business/ project is financially viable and sustainable in the long run. It involves estimating costs, projecting revenue, and conducting financial analyses.
Technical Feasibility Study
Technical feasibility studies evaluate whether the project can successfully be developed and implemented from a technical standpoint. This assessment focuses on the project's design, technical requirements, and resource availability. It examines the suitability of available technology and the availability of essential resources. It also identifies potential technical risks, challenges, and obstacles that may arise during project development.
Operational Feasibility Study
Operational feasibility studies assess whether the project can be effectively implemented within the organization's existing operational framework. This study considers processes, resource planning, scalability, and operational risks. It examines how the project integrates with current processes and workflows, identifies potential bottlenecks/ risks, and optimizes operations.
It also determines the human, physical, and technological resources required for successful project execution and also identifies resource gaps.
Operational feasibility also assesses the project's ability to adapt and expand to meet changing demands and growth opportunities, including capacity planning and growth strategies. It also identifies potential operational challenges and develops strategies to mitigate them, to ensure smooth project/ business idea implementation.
Each of these feasibility studies serves a specific purpose in examining the different facets of your project/ business idea, collectively providing a comprehensive assessment of its viability and potential for success. Looking to launch a new business or product? Our professional market researchers in Uganda will make sure that your organization gets a feasibility study based on sound data.
Conclusion
While conducting a feasibility study may be considered time-consuming and expensive, failure to conduct it can prove more expensive mostly because of the potential to make poor decisions or totally invest in a failing venture. It is thus essential to conduct a feasibility study when planning on launching a new business, acquiring a business or even launching a new product/ service on the market.
All in all, a feasibility study is a critical step in an organization’s project's journey as it helps examine the viability and potential risks. This in tandem helps to build a business with a solid foundation for informed decision-making. Remember, ‘failure to plan is planning to fail.’ So let our professional market researchers in Africa offer you expert-led market intelligence that will guide your planning for growth. From health and wellness to beauty, real estate, housing and construction, agriculture, and manufacturing, our experts will help you gain relevant insights, evidence, and market intelligence on the state of your market, your competitors, and more importantly, your customers.