Feasibility analysis is a preliminary evaluation of a business idea to determine if it is worth pursuing. It is also an assessment of a potential business rather than strictly a product or service idea. As known in Figure 3.1, the most effective businesses emerge from a process that includes (1) recognizing a business idea, (2) testing the feasibility of the idea (3) writing a business plan, and (4) launching the business. If a business idea falls short on one or more of the four components of feasibility analysis, it should be dropped or rethought.
Definition