Perhaps the most crucial problems you will face after expressing an interest in starting a new business or capitalizing on an apparent opportunity in your existing business will be determining the feasibility of your idea. Getting into the right business at the right time is simple advice, but advice that is extremely difficult to implement. The high failure rate of new businesses and products indicates that very few ideas result in successful business ventures, even when introduced by well-established firms. Too many entrepreneurs strike out on a business venture so convinced of its merits that they fail to thoroughly evaluate its potentials.
A feasibility study involves gathering, analyzing and evaluating information with the purpose of answering the question: Should I go into this business? Answering this question involves first a preliminary assessment of both personal and project considerations.