Small Business Feasibility Study: What’s Included?
Learn what a feasibility study should answer, its five core sections, when a simple first check is enough, and typical prices on Hylance.
Key takeaways
- A feasibility study answers one question before you start: is this project worth your money and time? A business plan explains how you’ll run it after you decide to move forward.
- It has five core parts: market demand, technical and operational needs, startup costs and capital, financial projections and break-even point, and risks.
- Start with a low-cost initial review for startup costs and break-even. Only order a full study if the idea passes that test or a funding provider asks for it.
- On Hylance, estimating startup costs and required capital starts at about SAR 65 (about $17), break-even analysis at about SAR 55 (about $15), and a full study at about SAR 750 (about $200) at the time of writing.
A feasibility study for a small business is a report that answers one question before you spend any money: is this project worth your time and money? It covers five sections: market demand, technical and operational needs, startup costs and capital, financial projections and break-even point, and risks. For a small business, an initial study is often enough and starts on Hylance at about SAR 65 (about $17), while a full study starts at about SAR 750 (about $200) at the time of writing.
This guide is for anyone thinking about opening a café, shop, online store, or small workshop and wants to know what to ask a consultant for, and what to prepare themselves, so they do not pay for a long report that does not answer their real question.
What’s the Difference Between a Feasibility Study and a Business Plan?
A feasibility study comes first and ends with a decision: start, adjust the idea, or stop. A business plan comes after that decision and explains execution: who you will hire, how you will market the business, and what your goals are for each quarter. Many people order a business plan before they have confirmed the project can make money, and end up with a polished plan for a losing business.
If your question is “Should I start?”, ask for a feasibility study. If you have already decided and want funding or help organizing execution, ask for a business plan. In many cases, the plan is built on the same numbers from the study.
What Does a Small Business Feasibility Study Include?
A good study is not measured by page count, but by whether each section answers a clear question. These are the five sections and what you should get from each one:
| Section | Question it answers | What you get from it |
|---|---|---|
| Market demand | Who will buy, and why from you instead of a competitor? | A description of the customer, nearby competitors, and an approximate market price |
| Technical and operational side | What do you need to operate day to day? | The location, equipment, staff, suppliers, and required licenses |
| Startup costs and capital | How much do you pay before you sell your first product? | A table of one-time and monthly costs, and the capital required |
| Financial projections | When do you cover your costs, and when do you make a profit? | Sales projections in three scenarios and the break-even point |
| Risks | What could cause the project to fail? | The main risks and what you would do if each one happens |
The break-even point is the monthly sales volume where you cover all your costs with neither profit nor loss. If that number is far higher than what your location or store could realistically sell, that alone is a good enough answer before getting into any further detail.
Start With an Initial Feasibility Check Before a Full Study
Not every idea needs a full report from the beginning. An initial review tests the idea in the cheapest way possible. If it fails, you save the cost of a full study. If it works, it becomes the foundation for one. Here are the steps:
- Write your idea in two lines: what you sell, to whom, and where.
- Collect real price quotes for the biggest items: rent, equipment, and opening inventory, even if they are approximate.
- Calculate startup costs and the capital needed to cover six months of operations, with a reserve for unexpected expenses.
- Calculate the break-even point: how much you need to sell each month to cover your costs.
- Compare that number with reality: how many customers pass by your location or visit your store each day, and could that number realistically buy from you?
Order the full study if the idea passes this test and the required capital is significant for you, or if a funding provider or partner asks for it. Some funding providers also require a specific format, or that the study be prepared by an approved party, so ask about their requirements before you place the order.
What to Prepare Before Ordering a Feasibility Study
The consultant builds the study on your information, and the more accurate it is, the closer the result will be to reality. In your first message, send:
- A description of the project and the city or area where you will operate, or whether it will be online only.
- All the price quotes you have gathered, clearly marking what is confirmed and what is only an estimate.
- The amount you have available, and whether you will fund the project yourself, with a partner, or through financing.
- The nearby competitors you know about and their advertised prices.
- Your most important question stated clearly, such as: is my budget enough to launch and keep going for six months?
- The funding provider’s requirements, if the study will be submitted to them.
Common Mistakes in Feasibility Studies
- Using overly optimistic sales assumptions from month one: a new business needs time for people to know it, so ask for a conservative scenario alongside the expected one.
- Forgetting working capital, meaning the money that covers salaries and rent in months when sales are not enough.
- Copying a ready-made study for a similar project in another city; rent, prices, and customers differ.
- Looking only at the numbers and skipping the risks section, so you do not know what to do if a supplier is delayed or rent goes up.
- Ordering a study to convince yourself rather than test the idea: if the numbers come out negative, that is still a useful result that may save you a loss.
How Much Does a Feasibility Study Cost on Hylance?
The following figures are approximate, based on services published on Hylance at the time of writing, and the exact price is shown on each service page in your currency. Estimating your project’s startup costs and the capital needed for the first six months in a table costs about SAR 65 (about $17). Calculating the break-even point for your project in a table costs about SAR 55 (about $15). A 30-minute session to review your project idea before you start costs about SAR 50 (about $13). A full economic and financial feasibility study for a small or medium project costs about SAR 750 (about $200). Send your project description, price quotes, and most important question in the order chat on Hylance so the consultant can get started without repeated questions.
You pay from your Hylance wallet, and the amount stays on hold with the platform until you confirm delivery. Before delivery, you can cancel the order and the amount is returned to your wallet. After delivery, if the work does not match what you agreed on, you can open a dispute for the platform team to review. On your first order, you also get a 10% discount.
Services to Help You with Your Project Feasibility Study
Startup Cost and 6-Month Capital Estimate in a Table
- Consulting
- Recently added
- New service
Break-even Point Table for Your Project
- Consulting
- Recently added
- New service
Feasibility Study for a Small or Medium Project
- Consulting
- New service
Frequently asked questions
What’s the difference between a feasibility study and a business plan?
A feasibility study comes before the decision and answers: is the project profitable and worth starting? A business plan comes after the decision and explains how you’ll run, market, and manage it. If you’re still unsure about the idea, start with the feasibility study.
Do I need a full feasibility study for a small business?
Not always. For a small business with limited capital, an initial review is often enough: a table of startup costs, the capital needed for six months, and a break-even calculation. You order the full study if the idea passes this test, or if a funding provider or partner asks for it.
Will any feasibility study be accepted by funding providers?
Don’t assume so. Some funding providers require a specific format, or that the study be prepared by an approved party, so ask about their requirements before you order the study and share those requirements with the consultant in your first message.
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