Why it is important to test the viability of your business idea

Why it is important to test the viability of your business idea

Business feasibility analysis is a process used to determine if a business idea is viable.

Most businesses that saw light of day and enjoyed basking in the economic sun are those that followed the process of:

  • Recognizing a business idea,
  • Testing the feasibility of the idea,
  • Writing a business plan and
  • Launching the business.

When an idea falls short (especially during Step 2 of analysis), the idea should be dropped or rethought.

Many entrepreneurs make the mistake of identifying a business idea and then jumping directly to writing a business plan and launching. This results in the launch of half-baked ideas which often results in business failure and a waste of money and time invested on an idea that is not viable.

Testing your business idea before launch helps you:

  • be clear on the business model of your idea and understand whether that idea is profitable or not. This reduces the risk of launching a product/service that people don’t want, and running a business constantly at a loss.

Testing your idea separates “good ideas” from “business cases”.

Make the right decision, do not rush to launch. Test your business idea.

Our Consulting Division

Can help you in testing your idea.

Contact us on 081 874 5321 (also available on WhatsApp) kgadi@km-cds.co.za

byKgadi Mmanakana

I am a researcher, thought leader and consultant on New and Emerging Markets, Business Model Innovation, Turnaround and Corporate Strategy. I embraces and integrate the 4th Industrial Revolution in my work. My belief is that there's some truth to every business idea, one shouldn't be quick to throw it away.

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