It is imperative to show your idea is feasible to attract investor and fund the project. No matter what is your offering whether a product or service, you need to convince other people to finance your ideas.
I provide some feasibility mistakes which serve as guidelines to your feasibility study.
- Doing feasibility study without doing research. It is a wasting of time and money without preliminary research on validity of the idea. It is necessary to conduct initial research or pre-feasibility study before the start on of a full feasibility study.
- Incorrect data interpretation. Sometimes, the writer overestimates the market size as well as the opportunity for the new venture. For example, you will observe that the product has a large market place, but not realized the strengths of competitors and their customer’s loyalty.
- Incorrect cost estimation. Make sure to detailed the cost to avoid over-estimation or under estimation. Also, cost estimates should be studied carefully.
- Overlook indirect competitors. Make sure to investigate all products and services that deal to customers’ need.
- Surveys dependence. Don’t over rely to survey because people tend to answer “yes” for new product but when it comes to purchasing, they say “no”.
- Without expert Assistance. It is important to get expert views regarding the product, idea or services.