How to analyze business feasibility study

Assets based on an economic perspective are defined as anything that has economic value
that can be owned either by individuals, companies, or the government that can be valued
financially. Assets owned by individuals such as houses, land, vehicles and so on. land is an asset
that can be optimized by using it to become a place of business so that it can generate profits for
its owner. But, before the land is used as a place of business needs to be analyzed in advance
whether the land is feasible or not to be a place of business. The process of analysis is called
business feasibility study. A Business Feasibility Study can be defined as a controlled process for
identifying problems and opportunities, determining objectives, describing situations, defining
successful outcomes and assessing the range of costs and benefits associated with several
alternatives for solving a problem. Things that need to be analyzed in business feasibility include
legal aspects, SWOT analysis, RTRW regulations, market analysis, and financial analysis.
First, a land must be ensured to have a clear legality seen from the documents it has, clear
ownership, and in accordance with applicable laws and regulations (laws, government regulations,
ministerial decrees, regional regulations). Second, SWOT analysis to find out the weaknesses and
strengths owned by the land as well as any threats and opportunities that might be faced in the
future. Third, RTRW regulations. It must be known specifically the designation of these locations
so that it can be easy to analyze the types of businesses that will be conducted. For example, land
in a trading area might be used as a place of business in the trade sector such as malls, markets,
etc. Next, we must ensure that the business to be run is needed by the market. This analysis is
called market analysis, which is analyzing the demand and supply for the business to be run.
Finally, it is a financial analysis to know that the business to be run can provide benefits.
After all aspects are said to be feasible, then the business can be run. This can minimize
failure when a person or company wants to invest in vacant land. These five steps can help
investors to determine what type of business will be created and analyze the possibilities that will
occur in the future.