Feasibility Study: Will Your Business Idea Pay Off?
A feasibility study tests an idea on paper before you spend money on it. It checks whether the market is there, whether the plan can be run and whether the numbers work. We prepare the market, financial and compliance sections and pull them into one report for you, your bank or your investor.
What it is
A feasibility study is a structured report that answers one question: should this project go ahead? It looks at demand, cost, technology, legal approvals and cash flow. It ends with a clear call: go, go with changes, or stop.
It is different from a business plan, which describes how you will run the business once you decide to go. It is also different from a detailed project report, which banks ask for when you apply for a loan. The study asks the question. Those documents come after the answer.
Who it applies to
First-time founders
Say you want to open a small plastic-moulding unit near Faridabad and put in your savings. You want to know first whether it can earn enough.
Existing businesses expanding
A manufacturer adding a second plant, or a distributor entering a new state, should test the move before committing capital.
Anyone raising money
Lenders and investors take a proposal more seriously when it comes with a study that shows the assumptions behind the numbers.
Why it matters
Fail cheaply, on paper
Finding a weak market or a bad location in a report costs a few thousand rupees. Finding it after the lease is signed costs far more.
Ask lenders for the right amount
Once you know the total project cost and working capital, you ask for a number, not a guess.
Fix your assumptions early
The study fixes your key assumptions, such as price, volume and cost. You can compare real results against them later.
Documents required
About the idea
- One-page description of the product or service
- Target customers and location
- Any quotes from suppliers or builders
About you
- PAN and identity proof of promoters
- Past experience or CVs
- Existing business financials, if you are expanding
About the money
- Own funds you can commit
- Expected loan amount, if any
- Any grant or subsidy you plan to claim
How it works
Define the project and the question
We agree on what you want to build, where and at what scale, and the decision the report must support.
Test the market
We estimate demand, pricing and competition, using your inputs and published sources, and flag the risks we find.
Estimate the cost and cash flow
We build the project cost, the working capital need and a multi-year projection, then run profit, payback and DSCR tests.
Check approvals and compliance
We list the registrations, licences and filings the project needs, and where a technical expert must sign off, we say so.
Deliver a go or no-go report
You get the full report with a plain summary on the first page. We walk you through it and revise it once you give feedback.
Feasibility study, business plan or project report?
People mix these up, so here is the difference in one table.
| Document | Main question | Best used for |
|---|---|---|
| Feasibility study | Should we do this at all? | Deciding before you commit money |
| Business plan | How will we run it? | Investors, partners and your own roadmap |
| Project report | Can the bank lend against it? | Loan applications and subsidy files |
If you are already sure of the idea and need a loan, you may skip straight to a business plan or a project report. If you are still unsure, the study comes first.
Timelines
Brief and inputs
First we settle the scope with you and gather your inputs. The clearer your inputs, the shorter everything that follows.
Research and modelling
Most of the time goes into market research and the financial model. A simple single-product project takes less time than a multi-unit one.
Report and discussion
We deliver the draft, walk you through it and revise it. We will give you a date once we know the scope, because it depends on how complex the project is.
What happens if you skip it
Capital stuck in the wrong project
Equipment, a lease or stock bought on a hopeful guess is hard to reverse. Resale rarely recovers what you paid.
Loan trouble later
RBI’s guidelines let banks assess working capital for small units on at least 20% of projected turnover, up to ₹5 crore of limit. A project without a tested turnover figure struggles to support the request.
Missed approvals
Here is the catch: a licence you did not know about can stall opening day. A study lists the approvals before you start.
Frequently asked questions
What is a feasibility study in simple words?
It is a report that tells you whether a business idea is worth pursuing before you invest in it. It covers market demand, costs, funding, legal approvals and expected profit. It ends with a clear recommendation. You use it to decide first, then to plan. We write it in plain language so a banker, a partner and you can all follow it.
How is a feasibility study different from a project report?
A feasibility study asks whether to proceed. A project report assumes you will proceed and shows a lender how the project will run and repay. The study usually comes first, and parts of it feed the project report. We prepare both, so the numbers match across documents. That saves you from re-doing the work when you apply for a loan.
Does a bank need a feasibility study for a loan?
Not always. For smaller loans, banks usually ask for a project report or a business plan. Under RBI guidelines, collateral is not required for loans up to ₹10 lakh to micro and small units, and CGTMSE cover goes up to ₹10 crore. A study still helps you decide the amount to request. We tell you which document your bank will want.
What does a financial feasibility test include?
It includes the total project cost, the means of finance, a multi-year profit and cash-flow projection, payback period and the debt service coverage ratio. DSCR is the cash available for debt service divided by interest plus principal due. A ratio below 1 means the project cannot meet its debt payments. We run these tests and show you what changes the result.
Can you also do the technical feasibility?
We cover the market, financial and compliance parts. Where a project needs engineering, site, architectural or environmental work, a qualified professional in that field prepares it, and we fold their findings into the report. We tell you at the start which parts need an outside expert, so there are no surprises on cost or time.
How long does it take to prepare?
It depends on the size of the project and how quickly you share your inputs. A single-product unit is simpler than a multi-location venture. We fix the timeline once we see the scope, and we keep you informed if anything shifts. Having supplier quotes and location details ready is the easiest way to speed things up.
What if the study says the project is not viable?
Then the report has done its job, and cheaply. You can drop the idea, or we show which assumption breaks the plan, such as price, volume or location, and test changes to it. Many promoters find a smaller or phased version works. Either way, you decide on facts.
Do I need a registered business before the study?
No. You can do a study as an individual with only an idea. We can also map the right structure for the project, such as a private limited company, an LLP or a proprietorship, and the registrations it will need, including Udyam registration, which is free. You register only when you decide to go ahead.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Ready to begin?
Share your idea in a few lines. We will tell you what the study should cover and what we need from you.