Feasibility Study

Knowledge Center





Summary, forum, best practices, expert tips and information sources.

 

What is a Feasibility Study? Meaning.

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.


Feasibility Studies Special Interest Group


Special Interest Group (71 members)

Forum about Feasibility Studies  

The most recent topics about: Feasibility Studies.


🔥 NEW Involving a Manager from the Client Company in a Feasibility Study
Many a times, an immature manager of a company is trying to push his thoughts to management on a particular project. But (...)
5
7 reactions
 
Evaluation of a Feasibility Study
How can we evaluate the accuracy of a feasibility study or even a business plan that has been prepared by another compan (...)
3
5 reactions
 
Front End Loading (FEL) or Front-End Engineering Design (FEED)
Front End Loading (FEL) is a pre-project planning process typical for processing industries such as upstream, petrochemi (...)
2
0 reactions
 
I Need Help on Business Ideas
Is there any business idea that you can help me with? I want to start a business but I don't know where to start, financ (...)
1
2 reactions
 
Best Practices about Feasibility Studies

Here you will find the most valuable ideas and practical suggestions.


🥇 Risk Factors in Developing Countires
What are the specific risk factors involved in introducing a product in any developing country? (...)
7
2 reactions

 
🥈 Typical Issues to Include in a Feasibility Study
It should include dealing with potential entry of competitors. (...)
2
2 reactions

 
Expert Tips about Feasibility Studies

Here you will find professional advices by experts.


Information Sources about Feasibility Studies

Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Establishing an Innovative Social Enterprise

Social Entrepreneurship, Entrepreneurial Organization (...)
 
 
 
 

Preparing a Feasibility Study

Feasibility Analysis (...)
 
 
 
 

Analyzing Financial Feasibility

Financial Feasibility Analysis, Project Selection, ROI, NPV, IRR (...)
 
 
 
 

Concept Testing and Conjoint Analysis for New Products

Concept Test, Concept Statement, Conjoint Analysis, Product Design, Product Innovation (...)
 
 
 
 

Feasibility Study for Project Development of a Public Private Partnership

Feasibility Study, Infrastructure Development, Public Private Partnership (...)
 
 
 
 

Writing a Business Plan for a Social Enterprise

Social Enterprise, Innovation, Entrepreneurship, Corporate Social Responsibility (...)
 
 
 
 

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

Special Interest Group Leader

Are you an expert in Feasibility Studies? Sign up for free

Link to this knowledge center

Copy this code to your web site:

 
 

Return to Management Hub: Decision-making & Valuation  |  Finance & Investing  |  Knowledge & Intangibles  |  Marketing  |  Program & Project Management  |  Strategy


More on Management  |  Return to Management Dictionary  | 

 

This ends our Feasibility Study summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.6 - Last updated: 26-9-2020. All names of their owners.