Feasibility study must be the first step to do before starting a business. Although, there are some business people who are not conducting feasibility study and they eventually reach success. That’s because the vast experience and the business intuition is very sharp. However, such cases are very rare. When you want to go into business with a normal economic situation, the feasibility study must be done.

One of the major factors of business failure is not conducting a feasibility study before. Not a bit of business start-ups into businesses with high spirit and ignorant of the market. They were fascinated by the idea of business, and soon moved because the instinct for business as soon as possible to realize it. Many businesses are not aware that their enthusiastic feelings often exaggerate their ideas, and they feel that the market potential is very high and the product or services would be accepted by the market smoothly.

You don’t have to do a feasibility study with a large cost and time-consuming. What is important, you have to do market research, how much potential business market that you enter, anyone competitors, how much growth the market, how to map the competition, how much actual market demand for products or services. If you’ve got the data, then calculate the feasibility study. Just count how many levels of your return on capital (ROI / Return on Investment) for a certain period, how many years of no wins and how many years you want your capital back. If the ROI on or above the average of the ROI of the same industry as you enter, then it was worth running the business.