1. Define Your Value Proposition
Before anything else, clearly state:
- What problem are you solving?
- Who is your target audience?
- Why will they choose you over competitors?
A strong value proposition answers all three with clarity and confidence.
2. Understand the Market Size & Demand
Research and validate:
- Total addressable market (TAM)
- Current demand trends
- Growth projections
Use industry reports, keyword search data, and competitor analysis to ensure the opportunity is worth pursuing.
3. Analyze the Competition
Identify both direct and indirect competitors. Compare:
- Pricing models
- Unique selling points (USPs)
- Marketing channels
- Customer feedback and reviews
This will help you position your venture uniquely in the market.
4. Estimate Startup & Operational Costs
Include:
- Initial setup costs (licenses, equipment, branding, website)
- Monthly fixed costs (rent, salaries, subscriptions)
- Variable costs (materials, marketing spend)
Be realistic and add a buffer for unexpected expenses.
5. Project Revenue & ROI
Estimate:
- Break-even point (when revenue covers costs)
- ROI over 1–3 years
- Pricing strategy aligned with your market segment
Use conservative assumptions to avoid overestimating profitability.
6. Evaluate Legal & Regulatory Requirements
Check:
- Licensing and permits
- Intellectual property rights
- Industry-specific compliance rules
Ignoring this can lead to costly legal issues later.
7. Test with a Minimum Viable Product (MVP)
Instead of launching fully, create a simplified version of your product or service to test:
- Market interest
- Customer feedback
- Willingness to pay
Iterate based on real-world data.
8. Assess Resource Availability
Do you have—or can you access—the necessary:
- Skills and expertise
- Equipment and technology
- Supplier and distribution channels
Your resources will directly impact execution speed and quality.
9. Identify Potential Risks
List and prepare for:
- Market shifts
- Supply chain disruptions
- Cash flow issues
- Competitor reactions
Have contingency plans ready.
10. Decide & Commit
After gathering data, decide whether to:
- Proceed with launch
- Adjust the concept
- Delay until conditions improve
- Drop the idea entirely
Remember: not every idea should be pursued, and that’s a smart business move.
Summary Table — Feasibility Checklist
| Step | Key Question | Action |
|---|---|---|
| 1. Value Proposition | What’s unique? | Write it down clearly |
| 2. Market Demand | Is there enough interest? | Research data |
| 3. Competition | Who else is doing it? | Analyze competitors |
| 4. Costs | Can we afford it? | Budget realistically |
| 5. Revenue & ROI | Will it be profitable? | Make projections |
| 6. Legal | Are we compliant? | Check requirements |
| 7. MVP | Will people buy it? | Test small scale |
| 8. Resources | Do we have the tools? | Evaluate assets |
| 9. Risks | What could go wrong? | Prepare responses |
| 10. Decision | Launch or stop? | Commit or pivot |