There’s nothing like blue sky thinking. It’s where every tech business starts – with that light bulb moment, and the spark of invention.
But what’s not to say that your idea is less blue sky, and more ‘pie in the sky’? What you need to know is: will it turn a profit?
This is the question every entrepreneur faces – especially those in the tech industry. Do they have a great business idea, or just a flight of fancy?
To find out, entrepreneurs use feasibility studies to see if their business idea will take wings and fly.
A feasibility study tries to answer questions such as: who will buy the product or service? How much would they pay for it? How often would they be likely to buy it?
Feasibility studies often involve many different kinds of research.
They also look into the rate of return that’s possible from investing money in a business idea.
Ultimately, what feasibility studies come down to is finding out whether people you don’t know will spend money with you.