Feasibility is a term that describes the possibility of something being accomplished. For business owners, a feasibility analysis is a tool to determine how likely a new idea (product, services, etc.) can be easily executed and accepted by the marketplace.
How do you know if your business idea is feasible?
To start, think about the personal, financial, and market factors that affect the business. First, list out your personal strengths and weaknesses. Does this idea complement your strengths and experiences? What are your weaknesses and how do you address these limitations? You should also consider the stress and time commitment associated with starting and operating a new business.
Second, list out the costs for starting this business. Do you have capital to invest in this new venture? Are you in a position to borrow a commercial loan from a bank? You should also forecast potential revenue and expenses for operating this venture. Be realistic in these forecasts and increase the expense budget. Unexpected costs are a normal part of running a business.
Third, research the competition. Are there other successful businesses that offer a similar product? What makes your business different from these competitors? Reflect on the type of value your idea brings to customers. Some customers seek lower prices, others seek an individualized experience. Understanding your value proposition can help you target your ideal customer group.
Are there resources to help me with my business idea?
Yes! The Arkansas Business Navigator project provides free resources to help you transform your idea into action. Visit our Meet the Team page to find an Arkansas Business Navigator consultant that fits your business needs and sign up for 1:1 counseling.
Viabilidad_de_tu_idea_de_negocio.pdf
The Arkansas Business Navigator is a program of the Arkansas Small Business and Technology Development Center hosted by UA Little Rock and is funded in part through a grant from the US Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.
