A feasibility study is used to determine the likelihood of a venture succeeding. In the management aspect of the study, those conducting it identify the management team of the venture and judge whether or not they have the skills to run the business effectively.
In addition to assessing management, feasibility studies compile data and analyses on a variety of other business components including product development, competitors, marketing strategies, cost structure and potential pitfalls. The more thorough the study, the better entrepreneurs and investors can accurately asses the potential profitability of the business and what components of the business plan need revisions.
