Understanding Market Opportunities
A new product feasibility study is a market research methodology that aims to guide the next steps for marketing, sales, and product development. Sirius Consultancy International enables business and marketing excellence by using proven toolsets. Applying decades of knowledge gained from our experience in business, technology and application aspects, we assist clients to assess potential market opportunities for new and existing products.
You have a business idea and want to know if it is feasible. A feasibility study will provide you with the discipline and insight to reassure yourself that your idea is worthwhile pursuing. The feasibility study evaluates the project’s potential for success.
Components of a feasibility study
There are usually three components to the feasibility study.
1. Market Analysis
2. Technical Analysis
3. Financial Assessment
The market analysis should be conducted first because it is critical to the success of the business to understand the environment in which you will compete. There must be adequate demand for your product or service. If not, your business idea may not be feasible and there is o need to go any further. Market analysis results in compiling information about the market potential. Its basic components include:
• Estimate of market size
• Projected market share
• Analysis of the competition
In addition to the market analysis, the financial assessment is a critical component of a feasibility study. Without the “financials” it will be impossible to determine how feasible the business idea is. Included in the financial assessment is revenue and income projections for the first year along with start-up costs to determine how much funding your business will need. Key components of the financial assessment include:
• Capital Requirements
• Start-up Costs
• Revenue Projections
• Gross Profit Margins (GPM)
• Net Income