Feasibility

Feasibility Surveys

When You Don’t Need Feasibility Findings

Some common reasons that you might want to bypass this type of exploration:

• Founders or entrepreneurs know the new venture is feasible based on their own experience or on a similar business model that is currently successful.
• You’re still confident in the results from your most recent study and don’t think there have been enough changes to warrant a new one.
• The costs in both money and time prohibit completing a full feasibility analysis.
• When you know everything is in perfect order, there are no safety violations, there is nothing that is worn out or disrepair, there are no environmental issues, and nothing can come back and bite you in the butt and cost you any money in the short term or near-term. And before any of this happens you expect to remodel the entire building.

Key Components of a Feasibility Study

A feasibility study can cover a wide variety of issues that might have an impact on your new venture, but most fall into one or more of these categories.

• Technical: Do you have permit or environmental issues that would affect you’re your building or structure?
• Economic: are there immediate or near-term future: safety, structural, mechanical or aesthetic repairs that must be done once property has been purchased, if so how will it affect your cash flow or operations?
• Legal: are there any zoning, environmental, lead-based paint, asbestos or other issues that may restrict the use of this property to include traffic moratoriums, noise restrictions, signage limitations, or types of venues they can be held in this location.
• Operations: Are there any increased operations cost due to lack of fire controls that require a fire marshal present for events, additional police officers for crowd control due to restricted traffic flows.
• Scheduling: are there any specific times of the year that prevent you from having any given events (other than weather conditions).
• Marketability, an extremely broad category that could include:
  • Competitors
  • Level of demand
  • Unoccupied niches
  • Target markets, including specific demographics and purchasing habits
  • Physical vs. online marketing
• 3 Additional requests to a feasibility report: remaining life cycle of equipment and/or generalize cost of repairs to be made, and a duration of time that these repairs could potentially take.

How to Get Your Feasibility Data

The quickest and easiest way to get a reasonable feasibility study is to hire a consultant. Hanscomb Means

While this is not complicated beyond belief you will get a much better job done much quicker by a construction professional with past experience doing feasibility Reports.

What may seem like an expensive option generally provides information that more than pays for itself.

If you choose to move forward without data you risk losing the negotiating edge on the purchase of the property which impact, conceivably, could have been far greater than the initial capital investment of the survey.