New venture feasibility analysis is an important consideration if success is achievable. The starting point is analysis of business idea and assessment of availability relevant information that will facilitate for a comprehensive execution of a new venture. The entrepreneur must also consider a self evaluation which involves the suitability of engaging in the venture and whether the relevant skills, knowledge as well as experience are inherent in the entrepreneur. Consideration of potential roadblocks that are projected in the new venture is an important component of feasibility.
Definition of the service or product is an important consideration of business start-up. This is followed by analysis of the market size as well as the market potential. This will include an analysis of other entrepreneurs who are already in that market and if the market is in a position of sustaining an extra enterprise. Assessment of how the product or service to be introduced in that market differs from what is already being offered in that market is another important consideration.
The analysis of market composition is another special consideration during new venture feasibility analysis. This involves analysis of the shapes as well as the categories of the already existing market, evaluation of the companies and brands in that market and their potential market share. The competitive advantage is analyzed by considering large companies in the potential market or industry where the business is to start, researching the profile of the company and analyzing the major competitors to that company. Demographic considerations coupled with background knowledge of the target audience are equally important in a new venture feasibility analysis. This involves analysis of the potential users of the products or services to be introduced.