Feasibility studies require a lot of hard work, and the market analysis research is the most difficult part of the process. If the study indicates that the PPP business idea is feasible, the next step is the development of a plan or a business plan. The business plan continues the analysis that the organization has begun at a deeper and more complex level, building on the foundation created by the feasibility study.
The following are some of the important reasons why a feasibility study is done:2
(i) gives focus to the project,
(ii) narrows alternatives,
(iii) surfaces new opportunities,
(iv) enhances the probability of success by addressing factors early that could affect the project,
(v) provides quality information for decision making,
(vi) helps in securing funding, and
(vii) helps to increase investment in idea.
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2 Adopted from a presentation of A. Davis, Market Analysis and Feasibility Studies, University of Kentucky.