How to do a Feasibility Study of a Service business?

The process of setting up a business is preceded by the decision to choose entrepreneurship as a career and identification of promising business ideas upon a careful examination of the entrepreneurial opportunities. Generation of ideas is not enough; the business ideas must stand the scrutiny from techno-economic, financial and legal perspectives. That is, after the initial screening of the ideas that do not seem promising prima facie, you should conduct an in-depth examination of the chosen three-four before settling for the one where you would like to exert your time, money and energies. You should prepare a feasibility study that will serve as the road map for effective venturing, whether you may require institutional funding (in which case it is necessary to do so) or not. Setting up of new business enterprises is a very challenging task; you are likely to encounter many problems en route. It’s advisable to be aware of these problems as to forewarn means to fore arm!

The Feasibility study of a services business starts with understanding the market and working out the financial model of the idea. For example if you are working on a health app then the key understanding would be get the business model right. For example a typical health app can have the following revenue models:

·         Regular Clinical Services that include Tele Heath AI assisted Nurse and/or doctor of medicine (MD), AI symptom checker, health Concierge service, Home Health (Nurse, Doctor, Physical Therapy, Transportation and Consultation by experts) and

·         Subscription services for wearable devices pack for live heath data tracker

Once you have identified the model then you need to map it in the forecasting template. This is an area that needs expertise to understand the mode, do the necessary research and finally map the model right. Investors ask questions based upon the business model which needs to be answered right. Once you are done with the business model, the next step would be the marketing strategy. It can be a multi-pronged strategy that can include the following:

1.      Events-There are several events that are being conducted across the target market. It is important to attend both virtual and physical events and make. The events that are worth attending are the more important ones and completely aligned to the industry in which you are operating.

2.      Interviews -Participation of management in interviews on television and Social Media Channels is important. Giving expert opinion and giving answers creates the right kind of impression for the management and the brand.

3.      Video Marketing- All the interviews and other promotional videos would be launched through TrueView in-stream ads. In-stream ads will deliver our message through digital platforms to our target audience in a classic TV-like format. The ads will run on videos served on YouTube or on a collection of sites and apps in the Google Display Network (GDN). These ads will also run on YouTube videos that are embedded on other sites or apps. Ads can also appear on Android and iOS YouTube apps, m.youtube.com (on iPad and Android), and on connected TVs.

The organization structure is an important element of a company. Therefore the feasibility study should define a clear organization structure keeping in mind that should not be too loaded and not putting too much load on any specific role. It should help in the smooth operations of the organization.

The next stage of the analysis in a feasibility study is the risk analysis. Some of the key risks that we encounter nowadays with a service business relates to data braches and licenses. Data breaches are becoming common in the services industry. We need to become clear with our responsibilities under data protection laws related to user data. We need to provide the highest levels of data security for the digital data on our servers. Management has to ensure that the operations are properly licensed for all the jurisdictions where the company operates.

While outlining a feasibility study, you should start with describing about your business and services. Then indicate the market you are targeting and the stage of development your company is in. If you get stuck at a particular part of the plan, leave it for a while and get back to it later and finish it. You cannot make a perfect first draft. So just get some thoughts down to start the process. You can always come back and change it or polish it up later. Finally, a feasibility study should contain clear supporting evidence for its recommendations. The strength of the recommendations can be weighed against the study ability to demonstrate the continuity that exists between the research analysis and the proposed business model.

If you want to do a feasibility studies for your business connect with us at info@intelligentq.co.in.