Feasibility Study Checklist: 40 Points to Check Before You Invest

Feasibility Study Checklist: 40 Points to Check Before You Invest

Use this free checklist before you start a business, open a new outlet or take a bank loan. If you cannot answer a point with evidence, that is a gap to research first.

A. Market (10 points)

  1. Who exactly is the customer?
  2. How many such customers are in your catchment area?
  3. How often do they buy, and how much per purchase?
  4. Who are the 5 nearest competitors, and what do they charge?
  5. What gap or unmet need do you fill?
  6. What do customers say when asked (survey of at least 100)?
  7. Is demand growing, flat or falling?
  8. Is demand seasonal?
  9. Which channels will you sell through?
  10. What is your price, and why?

B. Location and operations (8 points)

  1. Footfall or traffic at the location
  2. Rent, deposit and lease terms
  3. Parking, access, visibility
  4. Local licences and approvals needed
  5. Supplier availability and lead time
  6. Staff availability and wage levels
  7. Power, water and other utilities
  8. Expansion space

C. Money (10 points)

  1. Total project cost (land, building, machinery, deposits, working capital)
  2. Your own contribution
  3. Loan required and eligible schemes (Mudra, PMEGP, CGTMSE, UYEGP)
  4. Monthly fixed costs
  5. Variable cost per unit
  6. Break-even sales per month
  7. Months to break even
  8. Profit in a good, normal and bad year
  9. Cash needed to survive the first 6 months
  10. Loan repayment capacity (DSCR)

D. Legal and compliance (6 points)

  1. Business structure (proprietor, partnership, LLP, company)
  2. Udyam registration
  3. GST registration, if applicable
  4. Trade, food, pollution or other licences for your sector
  5. Trademark of your brand name
  6. Insurance

E. Risk and decision (6 points)

  1. Top 5 risks and how you reduce each
  2. Dependence on one customer or supplier
  3. Technology or regulation changes
  4. Competitor response when you launch
  5. Exit option if it fails
  6. Go, no-go or change-the-plan decision, with reasons

Get it done properly

A bank or investor will want evidence, not guesses. ARS Market Research Services, Chennai, prepares feasibility studies and Detailed Project Reports for bank loans, with primary market data from your location. Our guide Government Schemes, Loans and Subsidies for MSMEs explains the schemes. Contact admin@arsmrs.in or WhatsApp +91 97899 76662.