Feasibility Study vs. Market Research — What’s the Difference?
Feasibility Study vs. Market Research — What’s the Difference?
When entrepreneurs start exploring a new business idea, one of the first questions they face is: “Will it work?”
Two tools often used to answer that question are market research and a feasibility study. Although they are closely related, each serves a distinct purpose in the business-planning process.
Understanding the difference between the two can save you time, money, and effort — and help you make smarter, more confident business decisions.
What Is Market Research?
Market research focuses on understanding the external environment — the market in which your business will operate. It answers questions like:
Who are your target customers?
What do they want or need?
Who are your competitors?
How large is the potential market?
What trends or risks are emerging?
A strong market research report typically includes:
Demographic and psychographic profiles of your audience
Competitive landscape analysis, showing direct and indirect competitors
Pricing and demand data, often supported by surveys or industry reports
Trends and forecasts, such as consumer behavior or technological changes
In short, market research helps you validate that there is demand for your product or service — and that your business idea is aligned with real-world opportunities.
What Is a Feasibility Study?
A feasibility study goes one step further. It determines whether your business concept can actually be executed successfully, given your specific resources, constraints, and goals.
Rather than just analyzing the market, a feasibility study looks at your ability to deliver. It answers questions like:
Can this business be profitable based on projected costs and revenues?
What are the legal, technical, and operational requirements?
What capital investment is needed, and how soon could it be recovered?
Are there potential barriers — such as regulations, supply limitations, or staffing challenges?
A well-developed feasibility study usually includes:
Detailed financial modelling (start-up costs, cash-flow projections, ROI)
Operational and technical assessments (site, equipment, and staffing needs)
Legal and regulatory review
Risk analysis with mitigation strategies
In essence, a feasibility study determines whether the idea is viable, not just desirable.
Key Differences at a Glance
AspectMarket ResearchFeasibility StudyPurposeUnderstand the market and demandDetermine if the business idea can succeedFocusCustomers, competitors, and trendsFinancial, operational, and technical viabilityQuestions Answered“Is there a market for this?”“Can we make this work?”OutputMarket insights and opportunity validationGo/no-go recommendation with financial projectionsWhen to ConductEarly in the planning phaseAfter initial idea validation or before investor pitch
How They Work Together
Market research is often the first step — it tells you whether there’s an opportunity worth pursuing.
A feasibility study comes next, testing whether your business can realistically seize that opportunity.
For example, market research might show growing demand for organic pet food in Ontario. But the feasibility study would reveal whether your company can produce and distribute it profitably — considering raw material costs, storage facilities, licensing, and return on investment.
Together, they form the foundation of a strong business plan and increase your credibility when seeking financing or investor support.
When You Need Both
If you are:
Launching a new business or product line
Expanding into a new region or market
Seeking funding or investor support
Evaluating the profitability of a large project
…you’ll need both market research and a feasibility study. One identifies the opportunity; the other proves it’s achievable.
Final Thoughts
At Maple Metrics Consulting, we specialize in helping entrepreneurs and organizations make confident, evidence-based decisions. Our team combines in-depth market analysis with financial and operational expertise to ensure your idea is not only appealing — but truly feasible.
Ready to test your business idea?
Request a consultation today and let’s turn your concept into a credible, investor-ready plan.