What is Feasibility Study? 7 Steps for Conducting Feasibility Study

Before you dedicate ample time, resources, and energy to any new project, you may want to know – whether this project can succeed. Even if the project is successful, will the result justify the cost and effort you took to achieve them? The fate of the project will be ultimately determined via a feasibility study.

A business feasibility study is an excellent way to discover and evaluate risks and opportunities and resources further applied to complete the project. This post will cover everything about the feasibility study and help you make better-informed decisions.

What is a feasibility study?

feasibility study is carried out to evaluate the practicality of a proposed project and assess how likely the project will succeed. It is largely prepared for executives who decide whether to give a green signal to the project based on feasibility analysis. This can help determine project goals and relevant factors, conduct market research, and detail resources and budget for successful project execution.

7 Feasibility Study Steps

  1. Preliminary Analysis

Preliminary analysis determines whether the feasibility study is justified. This will unveil potential roadblocks that would render feasibility analysis unnecessary. This can be intensive, and time-consuming but it is all worth the effort.

  • Define the Scope

It is important to have clarity on the project’s scope. This involves defining project goals, tasks, costs, deliverables, phases, and deadlines. It identifies internal stakeholders, external clients, and consumers.

  • Market Research

Before starting a project, you must know the competitive landscape of your market niche. The market research gives you relevant insight into the current market scenario and helps identify factors like geographical influence, market value, and demographics.

  • Financial Assessment

A feasibility study is used to divide and analyse financial costs and risks associated with the project. Costs may include equipment, human resources, hardware, software, material, facilities, and third-party services.

  • Roadblocks and Other Alternatives

Potential issues and circumstances could lead to project delays or even failure. Most feasibility studies include the assessment of downfalls, alternative solutions, and other related factors.

  • Re-Assessment

You should look for a reassessment of the entire feasibility study by a manager or someone experienced in your organisation. Having a clear set of eyes on the analysis will ensure you won’t miss any elements or misjudge project impacts.

  • Go or No-Go Decision

After everything is done, the feasibility study comes down to one decision – Is the project approved to step ahead or not?

After thorough market research, performing due diligence, and gathering critical information, it’s time to carry out a feasibility study. The core elements of this analysis generally include an executive summary, technological needs, marketplace assessment, marketing strategy, resources, project timeline, and recommendations.

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