What is the primary purpose of a business feasibility study?

The primary purpose of a business feasibility study is to assess the viability of a proposed business idea. This involves analyzing various aspects of the business concept, including market conditions, financial requirements, operational considerations, and technical aspects. By conducting a feasibility study, an entrepreneur can determine whether the idea is practical and likely to succeed before investing significant time and resources.

A comprehensive feasibility study helps identify potential challenges and opportunities, ensuring that the business idea is grounded in reality. This helps in making informed decisions on whether to proceed with the project, modify it, or abandon it altogether based on the findings. The emphasis is on the overall practicality and potential for success of the proposed business rather than just focusing on securing funding, evaluating marketing strategies, or analyzing competitors in isolation.