Chapter 5: Product Development
E-ACTIVITY: A FEASIBILITY STUDY (p. 168)
Activity: Determine the Feasibility of Your Business Idea
The high failure rate of new businesses and new products indicates that
extensive study is necessary before undertaking a new business venture.
A feasibility study is critical in determining whether a new business
or a new product developed by an existing business will be successful.
In this activity, you will complete a feasibility study checklist to
see if a business opportunity you suggest would be likely to succeed.
Think of a business opportunity that you believe
exists in your community. Discuss various opportunities with a partner.
Select an opportunity that you are personally interested in, and write
it down on a sheet of paper.
Visit the Canada
Business Service Centres
and read the "Summary" and
"Preliminary Analysis" sections at this Web site. Why do
many new business opportunities or new ideas attempted by established
Print out a copy of the "Feasibility Checklist
for Starting a Small Business" from the Canada Business Service
Centres' Web site. Work slowly and carefully to complete each section
of the checklist. Review your responses and reflect on the advantages
and disadvantages of going ahead with your venture. Note any skills
or information that you would need to acquire before starting the
After completing the feasibility study checklist
and reflecting on your responses, write a summary paragraph explaining
why feasibility studies are important, whether you feel you would
want to undertake your proposed business venture, and whether you
think your business idea would be successful.