Whether the decision is to expand to new markets or segments, to start a new venture or to initiate a new product line, the best approach to assess and arrive at the best decision is to develop a feasibility study. The plan gives answers to questions like:

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• What are the risks? Moreover, what is the expected return?

• How good is the demand? How bad is the competition?

• What profit margins to expect for the next five years in the best approximation?

• After investing money, how much time needed to break even?

• What is the business net value in the present given all supply and demand factors?

• What is the primary layout of the new operations? Where to be located? Whom to hire?