3. Financial Feasibility Analysis

Financial feasibility analysis assesses whether a project or business idea is financially viable. It involves evaluating costs, potential revenues, and profits to determine if the initiative can be successful and sustainable. Key components include estimating startup costs, identifying sources of funding, and analyzing cash flow projections. By comparing the expected financial performance against required investments, stakeholders can make informed decisions about whether to proceed or adjust their plans, ensuring that resources are used effectively and minimizing financial risks.