FEASIBILITY STUDY

PREPARATION AND ANALYSIS

 INTRODUCTION

FEASIBILITY STUDY - It is an evaluation and

analysis of the potential of the proposed project
which is based on extensive investigation and
research to give full comfort to the decisions
makers.

FEASIBILITY ANALYSIS It is a process by which

feasibility is measured.
CONDUCTING A FEASIBILITY STUDY

Too often, we launch new ideas without

thinking through what our market is
Preparing a feasibility study will help you
determine if there is sufficient demand for
the product or service AND can the product
or service be provided on a profitable OR
sustainable basis?
BEFORE YOU BEGIN WE SHOULD THINK
ABOUT THE FOLLOWING QUESTIONS

What defined market am I trying to reach?

What specific companies/organizations are
servicing this market?
Are they successful?
Something similar?
What is their market share?
Is the market saturated or wide open?
 QUESTIONS CONTINUED..
What is the size of the market?
Is it growing?
Is it stable, volatile, trendy?
How can you reach this market?
How are competitors currently reaching the
market?
What do customers expect from this type
of product or service?
 QUESTIONS CONTINUED..
What are the business models of
competitors?
What core competencies must the
product or service have?
What are customers willing to pay for
this service or product?
What is your competitive advantage?
 MARKET ASSESSMENT
A market assessment may be conducted to help
determine the viability of a proposed product in
the marketplace.
The assessment will help you identify
opportunities in the market or market segment
If no opportunities are found, then you dont have
to continue on with the feasibility study.
If opportunities are found, the market assessment
can give focus and direction to the big idea.
OVERVIEW OF FEASIBILITY STUDY

Description of the project

Market feasibility
Technical feasibility
Financial/Economic feasibility
Organizational/Managerial Feasibility
Results/Next Steps/Conclusion
WHY DO A FEASIBILITY STUDY ?
Gives focus to the project
Narrows alternatives
Surfaces new opportunities
Enhances the probability of success by
addressing factors early that could affect the
project
Provides quality information for decision
making
Helps in securing funding
Helps to increase investment in idea
 FOUR TEST FOR FEASIBILITY
OPERATIONAL FEASIBILITY
TECHNICAL FEASIBILITY
SCHEDULE FEASIBILITY
ECONOMIC FEASIBILITY
FINANCIAL ANALYSIS TOOLS

BREAK EVEN ANALYSIS

PAYBACK PERIOD ANALYSIS
CASH FLOW ANALYSIS
NET PRESENT VALUE
RETURN ON INVESTMENT ANALYSIS
THANK YOU