What is the difference between feasibility study and market survey

The insights gathered from market research provide you with a comprehensive report breaking down all of the pros and cons to your concept and lays the groundwork for a successful launch. In fact, many of our clients using feasibility studies for two common reasons: 1 to eliminate risk and help formulate strategy and 2 obtain third-party data to speak to the potential success of the concept. The first reason we already touched on, but the second is often required to receive loans or funding from a financial institution.

These institutions often require a third-party report with objective data to speak to the potential success of the venture. Without this report, a new business can often struggle to obtain a loan or funding. Among the market research options available to you on the qualitative shelf, we argue you won't find a better value than a series of IDIs. The cost is reasonable, the turn-around time can be quick, and the quality of data is outstanding.

In terms of a feasibility study, you'll want to focus your IDIs on your stakeholder audiences. These audiences may include economic development contacts, developers, and other experts in the market who are knowledgeable about the space.

Doing the math, even with 8 IDIs you'll receive over 4 hours of feedback to analyze for your feasibility study. They'll likely provide some expertise and advice on what can further improve the viability of your new product or service.

These are qualitative in-nature so they are meant to be exploratory. However, the feedback can guide the next steps of the feasibility study and provide relevant strategic advice.

Another benefit of conducting stakeholder IDIs is acquiring ownership from this audience. In order for your venture to be successful, you'll likely need the support from this same audience you are interviewing. What better way to get buy-in than to get their advice and use it to guide decision-making? We're all about aligning interests and strategy.

Ownership and alignment are key, particularly with new concepts. IDIs ensure you receive feedback and input from key stakeholders and lets them know their voice was heard as part of the development.

When you are launching a new product or service, it makes sense to understand who you are selling to? Surprisingly, the U. Census Bureau website offers free data on nearly every level of geography you can possibly imagine: county, census tract, etc.

This source was included in our article about free market research resources for start-ups and small businesses. How many of these people fit your target market profile? Find out by using demographic analysis as part of your feasibility study. When conducting demographic analysis it's important to cater your analysis to your target market.

This will help you understand the supply of available audience who may use your product or service. It will also help you identify pockets and geographies to market to. For example, if your new location caters to high-income households, you may be able to spotlight the 2 or 3 ZIP Codes in your market which offer the highest population of high-income households. These findings can be integrated into future marketing reach-outs.

Demographic analysis might also include a special look into visitors and convention bureau's traveler information e. You'll at least want to cover the basic demographics in your analysis regardless of your product or service which is set to launch.

These basics include:. The demographic analysis is truly dependent on the type of product or service you are offering. Some demographics may be relevant while others are not applicable. Work with your feasibility study firm to determine the right list to review. Since most feasibility studies are new products or services being marketed to existing markets, you'll likely have a competitor in your market area. Using a competitive assessment as part of your feasibility study will give you more insight and help your organization understand how much or how little of an impact they'll have on your project.

The basic competitive assessment is heavily weighted to online research. The assessment scours the internet for marketing examples, pricing, PR, and other forms of information which can be used to inform the feasibility work. Although the business plan is one of the most well-known documents, the feasibility study may be just as important. Before the entrepreneur can seek funding, he or she must demonstrate that the idea is truly a good one.

In order to create a feasibility study, entrepreneurs need to define dimensions of business viability including: market viability, technical viability, business model viability, management model viability, economic and financial model viability, and exit strategy viability.

A feasibility study is not the same thing as a business plan. Take the time to do it right, and feasibility studies will become not just feasible, but maybe even enjoyable.

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