Feasibility Study

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Description of Feasibility Study. Explanation.

Definition Feasibility Study. Description.

A Feasibility Study or feasibility analysis is a preliminary evaluation of an idea to determine if its worth pursuing. More precise it's a preliminary analysis of a proposed business idea, plan, project or strategy to provide an overview of the primary related issues and to determine whether it is viable strategically, financially and operationally. It may or may not also include an analysis of potential scenarios and a recommendation on the best solution to use.

It provides a lot of information necessary for a business plan. Because putting together a business plan is a significant investment of time and money, it makes sense to ensure first that there are no major roadblocks facing the business idea before that investment is made. Identifying roadblocks is the primary purpose of a feasibility study.

Concept Statement

A FS is often preceeded by a concept statement: A 1-page description of the business/idea.

• Given to people/advisors who provide feedback on the potential of the idea.
• The purpose of this feedback is:
  • Give a sense of the viability of the business idea.
  • make suggestions for how the idea can be strengthened or altered before proceeding.
• Normally prepared before conducting a full feasibility analysis.

Typical Chapters of a Feasibility Study. Areas.

Feasibility studies typically look into following areas:

• Product or Service Feasibility and Issues
  • Concept Test: gauge customer interest, desirability, purchase intentions
  • Usability Test: determine ease-of-use and users perceptions of using product
• Strategic / Market Feasibility and Issues
  • Industry Attractiveness
  • Market Timeliness
  • Identification of a Niche Market
• Organizational Feasibility and Issues
  • Management Prowess (ability, passion, expertise, experience)
  • Resource Sufficiency (focusing on the non-financial ones)
• Financial Feasibility and Issues
  • Capital Requirements
  • Financial Rate of Return
  • Overall Attractiveness of the Investment
• Optional: Technical Feasibility and Issues

They should not go in too much depth, but should contain a basic analysis only.

In general, if the idea is deemed feasable in all areas, the FS should be followed by a full business plan.

If the idea is deemed not feasable in at least one area, it should be either improved first or else dropped.

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Feasibility Studies Special Interest Group Special Interest Group

Best Practices - Feasibility Studies Premium

Expert Tips - Feasibility Studies Premium

Resources - Feasibility Studies Premium Establishing an Innovative Social Enterprise This presentation elaborates on social entrepreneurship and innovation. It includes the following sections: 1. Workshop purpose 2. Social en... Usage (application): Social Entrepreneurship, Entrepreneurial Organization   Preparing a Feasibility Study This presentation gives an introduction into the concept of idea/business feasibility studies. The presentation consists of the following sections: Usage (application): Feasibility Analysis   Analyzing Financial Feasibility Presentation about Feasibility Studies in the Financial Area. The presentation includes the following sections: 1. Financial Feasibility Analysis... Usage (application): Financial Feasibility Analysis, Project Selection, ROI, NPV, IRR   Concept Testing and Conjoint Analysis for New Products Presentation about concept testing and conjoint analysis, including the following sections: 1. Evaluating with Customers 2. CONCEPT TESTING<... Usage (application): Concept Test, Concept Statement, Conjoint Analysis, Product Design, Product Innovation   Feasibility Study for Project Development of a Public Private Partnership This presentation covers the topic of feasibility studies in developing a Public Private Partnership-project and includes the following sections: ... Usage (application): Feasibility Study, Infrastructure Development, Public Private Partnership   Writing a Business Plan for a Social Enterprise This presentation provides information about the business planning involved in entrepreneurship. It includes the following sections: 1. Tips for ... Usage (application): Social Enterprise, Innovation, Entrepreneurship, Corporate Social Responsibility     News Feasibility Studies         Videos Feasibility Studies         Presentations Feasibility Studies         More Feasibility Studies

Compare with: Cost-Benefit Analysis  |  SOSTAC  |  Business Incubator  |  Industry Attractiveness  |  Entrepreneurial Organization  |  Decision Tree  |  Opportunity Cost  |  Required Return  |  RAPID Approach  |  Marketing Mix  |  PEST Analysis  |  SWOT Analysis  |  Mind Mapping  |  Theory of Constraints  |  Total Cost of Ownership  |  Net Present Value  |  Discounted Cash Flow (DCF)  |  Free Cash Flow  |  Payback Period  |  Garbage Can Model

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This ends our Feasibility Study summary and forum.