WHAT IS A FEASIBILITY STUDY?

A feasibility study is an analysis that takes all of a project’s relevant factors

into account- including economic, technical, legal, and scheduling considerations- to
ascertain the likehood of completing the project successfully. Project managers use
feasibility studies to discern the pros and cons of undertaking a project before they
invest a lot of time and money into it.

Feasibility studies also can provide a company’s management with crucial

information that could prevent the company from entering blindly into risky
businesses.

FEASIBILITY STUDY is a preliminary analysis conducted to determine the

possibility of a project to be done within the time frame. The result of this analysis
dictates whether to continue the project or not.

Achieving successful conduct of feasibility studies need not to be expensive.

However, the most important aspects of this document must all be taken into
account to make sure that the problem are properly addressed.

The tips serve as guide to every communicator who formulates a feasibility analysis:

● Determine the features required of a product and the consumers demand of the
product.
● Identify the competitors or who are the produces the same products.
● Determine the cost of staff, services, materials, packaging, and ingredients.
● Estimate the total cost of producing the project.
● Compute the difference between the estimated income from sales and the cost of
production.

WHAT ARE THE TYPES OF FEASIBILITY STUDY?

There are many different types of feasibility study;

● Technical Feasibility
● Schedule Feasibility
● Economic Feasibility
● Cultural Feasibility
● Legal/Ethical Feasibility
● Resource Feasibility
● Operational Feasibility
● Marketing Feasibility
● Real Estate Feasibility
● comprehensive Feasibility
A GOOD FEASIBILITY STUDY SHOULD PROVIDE:

● A historical background of the project or business.

● Accounting statements.
● Details of all operations and management.
● A detailed description of what it is.
● Financial data.
● Tax implications and obligations.
● Legal requirements.
● Marketing research data and policies

(now let's proceed how to write feasibility study)

HOW TO WRITE A FEASIBILITY STUDY
(there are 9 steps how to write a feasibility study)

1. EXECUTIVE SUMMARY. It provides an overview of the content of the study. it

provides an excellent summary of all the details in the document.

2. DESCRIPTION OF PRODUCTS AND SERVICES. It provides the description of the

services that are considered past of the feasibility analysis. It encapsulates the most
important aspects of products or services considered by an organization and their
benefits to the customers.

3. TECHNOLOGY CONSIDERATIONS. This explains the considerations the organization

makes with regards to technology. Since new technology could be developed by the
organization or through service provider at a cost, it must be weighed to determine
the path to take forward. This technology can manage to monitor a business
functions.

4. PRODUCT/SERVICE MARKET. This part describes the market place the organization
is considering, how the products are to be distributed, and why customers will
choose to buy the products. Remember the fact that marketplaces is where things
change constantly, so it is a plus factor if their roles are fully understood.

5. MARKETING STRATEGY. This part talks about the way how the organization will
market it’s product or service. It includes the type of market the organization will use
and who will be targeted. Marketing strategy must be excellent to ensure the good
return of investment.

6. ORGANIZATION AND STAFFTING. This contains the important details that may
require the organization to change its process and practices. This will give a hint to
the team if there is a need to add staff or to just keep what is existing.

7. SCHEDULE. This part discusses the framework for implementation of the service
considered by the organization. This does not mean to include the detailed schedule
but the milestones and time frames as basis for completion only.
8. FINANCIAL PROJECTIONS. This section provides the ways on how financial
projection is illustrated including the cost-benefit calculations and balanced sheets.
This also presents the basis of the assumption of financial projection.

9. FINDINGS AND RECOMENDATIONS. This provides a space where to summarize the

findings and explains why some actions are not recommended. This also discusses
the negative and positive points of initiatives considered by he organization. This
must be presented in a brief manner and must reflect the success of the idea after
being studied.
For a better output, a writer must be able to include all parts of a feasibility study
mentioned above to avoid confusion and overwhelming questions. Moreover, spend
more time preparing and researching on the subject because this stage is as much
important as the writing itself.

FEASIBILITY STUDY- EXAMPLE

A hospital, for example, aiming to expand, add an extension to the building, may
perform a feasibility study. The study will determine whether the project should go
ahead. The people carrying out the study will take into account labor and material
costs.

THE IMPORTANCE OF FEASIBILITY STUDIES

Feasibility studies are important to business development. They can allow can a
business to address where and how it will operate; Identify potential obstacles that
may impede its operations, and recognize the amount of funding it will need to get
the business up and running. Feasibility studies also can lead to marketing strategies
that could help convince investors or banks that investing in a particular project or
business is a wise choice.

The goal of a feasibility study is to thoroughly understand all aspects of a

project, concept, or plan; become aware of any potential problems that could occur
while implementing the project; and determine if, after considering all significant
factors, the projects is viable-that is, worth undertaking.

OBJECTIVE
The overall objective of the feasibility study is to determine how successful your
proposed action will be. For example, you might study whether a new product
innovation will work as anticipated and generate the projected revenue or
anticipated cost savings.

PURPOSE

The purpose behind a project feasibility study is to know the different variables
involved with your business venture and how it will be accepted on the open market
along with who will be the target audience.

*Feasibility study is similar to a business plan, but the meaning

is not the same.
*Feasibility study is filled with calculations, analysis and
estimated projections while a business plan is made up of
mostly tactics and strategies to be implemented in other to
grow the business.
*Feasibility analysis tells you whether something will work. A
business plan tells you how it will work.