The feasibility test is an excellent tool for entrepreneurs and start-ups in the pre-seed stages to test the idea or product. The most common cause of failure for a startup (product) is lack of product-market fit. You may have a smart team and a great product, but it’s all irrelevant if the market does not exist, or there are better solutions in the market. Another problem that the feasibility test should identify is a problem in the profitability of the economic unit.
The feasibility test is an integral part of the business plan and constitutes a research base for the planning phase. In some cases, the test allows the entrepreneur to understand the problems in the product or idea and to avoid unnecessary expenses if there is no commercial feasibility for the project. In addition, the test makes it possible to make necessary adjustments at the MVP level in order to maximize the chances of success.
At the strategic level, understanding the market and its needs will enable the entrepreneur to adapt the product to the target audience. Examining the competition will enable deep understanding of the existing solutions and defining a competitive advantage.
At the financial level, the feasibility test will enable the company to understand how much money it can make per customer and its ROI (Return of Investment).
With Targo’s feasibility test, the entrepreneur or company can make the right decisions about product development, test the idea at its basic level, and decide whether or not to continue to development stage.