For many entrepreneurs, coming up with an idea for a new business concept or approach is easy. The question is if this idea has the potential for a successful and profitable business. A feasibility analysis is the process of determining if the idea is a viable foundation for creating a successful business. If the idea passes, the entrepreneur’s next step is to build a solid business plan for capitalizing on the idea. If the idea fails, the entrepreneur drops it and moves on to the next opportunity. A feasibility analysis offers efficiency and the opportunity to increase the chances for success before the entrepreneur invests resources.

Conducting a feasibility study reduces the likelihood that entrepreneurs will pursue fruitless business ventures. The feasibility analysis asks the question: “Should we proceed with this business idea?” This paper will discuss the process of developing and implementing a successful business plan and how to build a solid business plan to capitalize on the idea. The potential value of a feasibility study and the potential “costs” of conducting a feasibility study will also be discusses? Challenges facing new business owners will be outlined and useful tips for avoiding pitfalls in new business will be outlined.