Feasibility study is an analysis of how successfully a project can be completed and the factors that affect it such as economic, technical, legal, financial and other factors. The feasibility study concludes that the project would be able to be implemented to success as it was carefully planned. In other words it is an assessment of the practicality of a proposed plan or method. The goal of a feasibility study is to pace emphasis on potential problems that could occur if a project is pursued and determine it if all significant factors are considered the project should be pursued.
Feasibility study is a process that will determine any possible problems that might occur between the acceptances of the product with the consumer and how profitable the business venture might be. Feasibility study allows all the companies to determine and organize all of the necessary details to make a business work.
Components of feasibility study:
There are several components of feasibility study such as…
Description is a layout of a business, the products or services to be offered and how they will be delivered.
Market feasibility describes what the company’s market strength is and what is its future position, competition and the buyers and sales estimations.
Technical feasibility describes whether the company has necessary expertise or technical (software/hardware) ability to complete the project.
Financial feasibility is a projection of the amount of funding or startup capital needed what resources of capital can and will be used and what kind of return can be expected on the investment.
This includes information about the founders of the organization their professional background and the skills they possess.
So finally feasibility study’s main objective is to know the strengths and weaknesses of an existing business or proposed project and the opportunities and threats present in the environment, the resources needed to carry out the project and come out with success.