What is Feasibility study ?
The study that helps one to understand the viability or feasibility of the successful completion of the project and it involves considering various factors which are either in economical, technological, Legal, Operational in nature.
The Ultimate motto of the Feasibility study is to identify and address all the potential problems that may arise while pursuing the project and to conclude if the project is still a good idea.
When Feasibility study is conducted ?
Feasibility study is conducted after the Business case in life cycle of the project.
Why Feasibility study is conducted ?
Feasibility study helps to pro-actively have solutions to all the business related problem to may arise during project initiation, development, execution
How Feasibility study is conducted ?
• Perform preliminary analysis
• Develop a projected income statement
• Perform a market research
• Plan business organization and operations
• Prepare an opening day balance sheet
• Review and analyze all data
• Conclude if starting a project is still a good idea.
Benefits of Conducting a Feasibility Study?
• Provides valuable information for a “go/no-go” decision
• Improves project teams’ focus
• Helps to discover new opportunities
• Identifies a valid reason to undertake the project
• improves the success rate with multiple parameters evaluation
Few Areas of Project Feasibility :
Economic Feasibility – this study involves a cost/ benefits analysis of the project and helps companies determine the viability, cost, and benefits associated with a project before financial resources are allocated. It also increases project credibility and helps decision makers identify the economic benefits to the companies that the proposed idea/project provides.
Technical Feasibility -The study scrutinizes the technical resources available to the organization and helps organizations understand whether the required number of technical resources are available and if the resources are talented enough to convert the ideas into working systems. Technical feasibility also involves of the study or of assessment of software, hardware, and other technological requirements of the proposed idea/system.
Organizational feasibility- This involves the study of people involved in the organisation like the founders and their education, personal, professional background and if they potential enough to keep the organisation operational.
Legal Feasibility – this study checks for the legitimacy of every aspect of the proposed project and identifies if any part conflicts with legal requirements like social media laws, data protection acts, zoning laws. Let’s say an company wants to build a new office at a location and if legal feasibility helps determines that the location isn’t zoned for that type of business, it helps company save significant effort and time and capital.
Scheduling Feasibility -This study involves estimation of project completion time. this assessment is crucial for the success of the project
Financial feasibility – This study involves estimation of capital needed to invest in the project and identification of potential sources, return on investment value and estimation of time for return on investment.
Operational Feasibility – this study involves analysis of how best the company’s needs, that are identified during the requirements analysis phase of system development, were met if the project is completed.
Market feasibility – This involves the study of industry, the current and future market potential, study of competitors, estimation of possible sales and prospective buyers.
Best Practices for a Feasibility Study
• Use templates/tools/surveys, or any data and technology that gives you leverage
• Make sure your data is accurate by doing thorough research and asking questions whenever needed.
• Take feedback from stake holders
• Be consistent with market research to have latest data collection.