What a startup feasibility study should test
A founder-focused framework for testing demand, economics, delivery and risk before scaling a new venture.
Published by London Business Consultancy
Feasibility is a decision, not a forecast
An early forecast can appear precise while resting on untested assumptions. A feasibility study should identify the conditions required for the venture to work and test the assumptions most capable of changing the decision.
The conclusion may be proceed, revise, run another test or stop.
Test four connected dimensions
A viable venture needs more than customer interest.
- Demand: a specific customer problem, urgency and willingness to change
- Commercial: acquisition, price, margin, repeat purchase and cash requirements
- Operational: delivery, capability, suppliers, quality and capacity
- External: regulation, licences, data, intellectual property and other specialist dependencies
Use evidence appropriate to the stage
Customer interviews, observation, prototype use, letters of intent, paid tests and operational trials provide different strengths of evidence. Select the method based on the assumption, not convenience.
State sampling limits and the difference between reported intention and observed behaviour.
Model sensitivity, not one perfect case
Test how the result changes when demand, price, acquisition cost, delivery cost, timing or working capital assumptions move. Focus attention on the variables that materially change viability.
The model should help the founder decide what to test next rather than present one confident answer.
Set the next commitment gate
Conclude with the evidence, remaining uncertainty, recommendation and the condition for the next commitment. This creates a practical link between feasibility, business planning and route to market.
Official and primary references
Sources support factual context. The commercial interpretation and decision framework are LBC’s own.