Feasibility Study

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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.

Forum New Topic Forum about Feasibility Studies. Risk Factors in Developing Countires What are the specific risk factors involved in introducing a product in any developing country? (...) 7   2 comments 🔥 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 comments 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 comments 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   Typical Issues to Include in a Feasibility Study It should include dealing with potential entry of competitors. (...) 2   2 comments 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 comments Start a new forum topic about Feasibility Studies. More info. Share your opinion, knowledge and experience or ask a question (sign up for free first)

Information Sources Sign up Various sources of information regarding 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 This presentation elaborates on social entrepreneurship and innovation. It includes the following sections: 1. Workshop (...) Preparing a Feasibility Study Feasibility Analysis This presentation gives an introduction into the concept of idea/business FS. The presentation consists (...) Analyzing Financial Feasibility Financial Feasibility Analysis, Project Selection, ROI, NPV, IRR Presentation about FS in the Financial Area. The presentation includes the following sections: 1. Fina (...) Concept Testing and Conjoint Analysis for New Products Concept Test, Concept Statement, Conjoint Analysis, Product Design, Product Innovation Presentation about concept testing and conjoint analysis, including the following sections: 1. Evaluating with Customer (...) Feasibility Study for Project Development of a Public Private Partnership Feasibility Study, Infrastructure Development, Public Private Partnership This presentation covers the topic of FS in developing a Public Private Partnership-project and include (...) Writing a Business Plan for a Social Enterprise Social Enterprise, Innovation, Entrepreneurship, Corporate Social Responsibility This presentation provides information about the business planning involved in entrepreneurship. It includes the followi (...)

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