In our last blog, we wrote about the importance of feasibility studies. They can be critical in deciding whether your business idea is viable or not.
One aspect of a feasibility study that comes up is the various options it often exposes if the original subject loses luster. When a study is commissioned and a consulting firm such as Brand Irons is engaged, the business owner or entrepreneur has a fairly clear concept of what they want to accomplish. They may have a business location and other variables in mind for establishing their operations. While those may represent the ideal, the business owner needs to be receptive to what the study’s findings reveal, however.
The study may, and often does, uncover that while the concept may be a good one, the short- and long-term economic viability is less than desirable.
In the course of a study, however, new and often better options arise from the research. More economical and durable equipment options may be discovered, for example. A more reasonably priced piece of property a block away on the other side of the street may actually be more advantageous for consumer accessibility, and be more affordable. An entirely different, yet potentially more profitable, market segment may be identified. The study may also reveal that an entirely different product line may be the better way to proceed. These are completely unforeseen developments that are revealed in the course of a feasibility study.
That’s why we encourage business owners to keep an open mind and embrace the potential that another option may crop up and be better in the long run. They should avoid locking in on one, and only one, option. Different vendors and investors or financial partners may also be discovered when the entrepreneur is amenable to suggestions.
The purpose of the feasibility study is not to tell the person with the idea whether to go forward with their business concept or not. It is intended to provide the decision maker with reliable information on which to base their choice. That information, when thoroughly digested and evaluated, forms the knowledge base that gives justification for whatever decision is made.
The beauty of this process is that it reduces the risk of throwing boatloads of money at a project that fizzles before it turns a profit. Yes, there is a cost to conducting the study, but if you can save hundreds of thousands of dollars by sending a few thousand instead, it is worth the effort. And, if the decision is made to move forward, it’s money well spent.