Tuesday, March 2, 2010

Is It Feasible???

Every entrepreneur is familiar with a business plan. It has become as common term as a “must have” for successful new business ventures. However, for new start-ups in the telecommunications industry, a feasibility study is just as important. As the name implies, a feasibility study is an analysis of the viability of an idea. The feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea?” I would like to demonstrate how a feasibility study answers that question and just makes good business sense before composing a business plan.

Feasibility Study vs. Business Plan
According to Don Hofstrand and Mary Holz-Clause, Co-Directors of Ag Marketing Resource Center at Iowa State University, "A feasibility study is not a business plan. The feasibility study provides an investigating function. It addresses the question of “Is this a viable business venture?” The business plan provides a planning function. The business plan outlines the actions needed to take the proposal from “idea” to “reality.”

Some common elements of a feasibility study for a telecommunications business are:
• Identification of Regulatory Issues,
• Cultural Differences (i.e. workplace restrictions, geographic differences and local customs)
• Technology Requirements (i.e. bandwidth, hardware and software)
• Competitive Landscapes
• Market Assessments

Conducting a feasibility study is a good business practice for assessing if one should proceed with the business before wasting valuable time and money. If you examine successful businesses, you will find that they did not go into a new business venture without first thoroughly examining all of the issues and assessing the probability of business success.

Below are other reasons to conduct a feasibility study:
• Gives focus to the project and outline alternatives.
• Narrows business alternatives
• Identifies new opportunities through the investigative process.
• Identifies reasons not to proceed.
• Enhances the probability of success by addressing and mitigating factors early on that could affect the project.
• Provides quality information for decision making.
• Provides documentation that the business venture was thoroughly investigated.
• Helps in securing funding from lending institutions and other monetary sources.
• Helps to attract equity investment.

The feasibility study is a critical step in the initial business assessment process. If properly conducted, it may be the best investment you ever made. If you are considering a feasibility study for a new market for telecommunication services, please contact me toll free at 877-593-2085 or email: info@nashawnbranch.com for a consultation.

Keep Achieving,

NaShawn Branch
Telecommunications Management Consultant
Address: 392 Dacus Drive
Munford TN, 38058
Toll Free: 877-593-2085 x701
Cell: (901) 215-7640
Email: info@nashawnbranch.com
www.nashawnbranch.com
www.nashawnbranch.blogspot.com (blog)
http://www.linkedin.com/in/nashawnbranch (LinkedIn)

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