Feasibility study


A feasibility study is an analysis of how successfully a project can be completed, accounting for factors that affect it such as economic, technological, legal and scheduling factors. We use feasibility studies to determine potential positive and negative outcomes of a project before investing a considerable amount of time and money into it.

A feasibility study tests the viability of an idea, a project or even a new business. The goal of a feasibility study is to place emphasis on potential problems that could occur if a project is pursued and determine if, after all significant factors are considered, the project should be pursued. Feasibility studies also allows a business to address where and how it will operate, potential obstacles, competition and the funding needed to get the business up and running.


Importance of feasibility study


Using feasibility study we allow companies to determine and organize all of the necessary details to make a business work. A feasibility study helps identify logistical problems, and nearly all business-related problems, along with the solutions to alleviate them. Feasibility studies can also lead to the development of marketing strategies that convince investors or a bank that investing in the business is a wise choice


Areas of a Feasibility Study


Market feasibility

It describes the industry, the current and future market potential, competition, sales estimations and prospective buyers

Legal feasibility

It helps us to determines whether the proposed system conflicts with legal requirements.

Technical feasibility

It lays out details on how a good or service will be delivered, which includes transportation, business location, technology needed, materials and labor

Financial feasibility

It gives us an estimate of how much amount of funding or startup capital needed, what sources of capital can and will be used, and what kind of return can be expected on the investment

Organizational feasibility

It is a definition of the corporate and legal structure of the business; this may include information about the founders, their professional background and the skills they possess necessary

Schedule feasibility

A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period

BENEFITS OF CONDUCTING A FEASIBILITY STUDY


  •   It helps to improve project team’s focus.
  •    It helps you identify new opportunities
  •   It provides valuable information for a “go/no-go” decision
  •   It also narrows the business alternatives
  •   It identifies a valid reason to undertake the project
  •   It enhances the success rate by evaluating multiple parameters
  •   It helps to aid decision-making on the project

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