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In order to make wise investments in a marketplace experiencing enhancing levels of risk, companies are turning to feasibility studies to verify if they should offer new products, services or undertake a new business endeavour. The purpose of a feasibility study is to verify if a business opportunity is possible, practical, and viable. When faced with a business opportunity, many optimistic people tend to focus on just the positive aspects.
A feasibility study enables a realistic view at both the positive and negative aspects of the opportunity. A feasibility study is a significant tool for making the right decisions. A wrong decision often leads to business failure. For example, only 50% of start-ups are still in business after 18 months and only 20% are in business after 5 years.
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The sketch shows a common consumer product called Water Pik. This device uses a motor to drive a piston pump that produces a jet of water (diameter d = 3 mm, temperature T = 10 °C)
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