One out of fifty businesses is commercially viable so it is essential to conduct a feasibility study to avoid wastage of investment and resources. Business decision making is based on the feasibility study. The primary aim of feasibility study is if the project will continue or not. In business, feasibility study will determine if the business proposal works on the long time basis or endure financial risk that may come. Also, it helps to identify potential cash flow. Some business fails to success because they do not begin with a feasibility study.
Finally, business feasibility study will assess by the potential investors and stakeholders. They have to analyze every aspect of business feasibility including marketing aspect, production aspect, management aspect, and financial aspect. If the result of the study is favorable, it is reasonable to continue with it. On the other hand, if the result is not reasonable, no investor or businessman will take a risk on it.
The last but not the least, your feasibility study should provide supporting evidence for its recommendation. Decision-making process is also based on cost benefit analysis of the actual business or project viability. If the business feasibility study is viable, the full business plan is created.