What Is a Feasibility Study?
Below are a few reasons feasibility studies are important:
A feasibility study is simply an assessment of the practicality of a proposed business acquisition, project plan or method. This is done by analyzing financial, marketability, technical, economic, legal, operational and time feasibility factors. A feasibility study is designed to answer whether or not a proposed project or idea should go forward by determining whether the project or plan is practical and doable. A feasibility study can identify the strengths and weaknesses of the proposed plan.
Feasibility studies are extremely important when contemplating the undertaking of a new project. Agreeing to a proposed business plan is an investment for any company, so it is helpful to examine all the factors that go into a project from pre-planning to its completion.
- Identifies valid reasons to advance or veto a project idea
- Improves the focus of the project team
- Provides useful information for next steps at the conclusion of the study
- Narrows potential business alternatives
- Enhances the success or failure rate of the project by assessing all variables
Types of Feasibility Study
- Technical Feasibility: Consists in determining if your organization has the technical resources and expertise to meet the project requirements.
- Economic Feasibility: You’ll need to do an assessment of the economic factors of your project to determine its financial viability. You can use a cost-benefit analysis to compare its financial costs against its projected benefits.
- Legal Feasibility: Your project must meet legal requirements. That includes laws and regulations that apply to all activities and deliverables in your project scope.
- Operational Feasibility: Operational feasibility refers to how well your project matches your organization’s capacity planning, resources, strategic goals and business objectives.
- Time Feasibility: Estimate the time that will take to execute the project and set deadlines. Then think how your project timeline fits with your current operations, such as your demand planning, production schedule, among many other things.
7 Steps To Do a Feasibility Study
1. Conduct a Preliminary Analysis
2. Prepare a Projected Income Statement
3. Conduct a Market Survey, or Perform Market Research
4. Plan Business Organization and Operations
5. Prepare an Opening Day Balance Sheet
6. Review and Analyze All Data
7. Make a Go/No-Go Decision
Part (SAMPLE) of FMC engagement on Deep Dive Analysis on The WORLD COMPETITIVENESS REPORT
1 – Deep Dive Analysis on The Sustainable Development Goals 2010 – 2020 https://docs.google.com/presentation/d/1r53YuJVTrbA-xJ5mnfgniCfWs-GevMXk/edit?usp=sharing&ouid=115931594529772431349&rtpof=true&sd=true
2- Deep Dive Analysis on The Investment Incentives 2010 – 2020 https://docs.google.com/presentation/d/1v0ScjMN2mmSWMNNsCkvk1fALHDkSjwF7/edit?usp=sharing&ouid=115931594529772431349&rtpof=true&sd=true
Does your company conduct detail feasibility studies on new undertaking?
At FMC, we assist clients by providing solutions to perform strategic feasibility studies to assist better decision-making process.
Reach us at firstname.lastname@example.org