A feasibility study is an assessment of the practicality of a proposed plan or project. A feasibility study analyzes the viability of a project to determine whether the project or venture is likely to succeed by considering all of a project's relevant factors—including economic, technical, legal, and scheduling considerations. The study is also designed to identify potential issues and problems that could arise from pursuing the project.
What is a Feasibility Study?
Benefits of Feasibility Study
With the help of the feasibility study, one will know all the details of the projects and can, after that, organize them properly. The feasibility study conducted helps the parties involved in identifying various problems associated with the project like the logistic problem, labor supply, etc., which will be useful in getting the solutions for the problem. It at the same time also helps in developing the different strategies for the business like financial strategies, marketing strategies, etc. Thus it helps the organization in making an informed decision.
Tools for Conducting a Feasibility Study Suggested Best Practices
Although each project can have unique goals and needs, below are some best practices for conducting a feasibility study:
Conduct a preliminary analysis, which involves getting feedback about the new concept from the appropriate stakeholders; consider other business scenarios and ideas
Prepare a projected income statement, which includes revenue, operating costs, and profit
Analyze and ask questions about the data obtained in the early phase of the study to make sure that it's solid
Prepare an opening day balance sheet
Conduct a market survey or market research to identify the market demand and opportunity for pursuing the project or business
Identify obstacles and any potential vulnerabilities, as well as how to deal with them
Write an organizational, operational, or business plan, including identifying the amount of labor needed, at what cost, and for how long
Make an initial "go" or "no-go" decision about moving ahead with the plan
Once the initial due diligence has been completed, listed below are several of the components that are typically found in a feasibility study:
Executive summary: Formulate a narrative describing details of the project, product, service, plan, or business.
Technological considerations: Ask what it will take. Do you have it? If not, can you get it? What will it cost?
Existing marketplace: Examine the local and broader markets for the product, service, plan, or business.
Marketing strategy: Describe it in detail.
Required staffing (including an organizational chart): What are the human capital needs for this project?
Schedule and timeline: Include significant interim markers for the project's completion date.
Findings and recommendations: Break down into subsets of technology, marketing, organization, and financials.
Our services for feasibility study:
Help you create a narrative that explains the project, product, service, plan, workforce, or business in-depth
Provide advice and review production or manufacturing plant as well as supply sources
Offer consult on marketing strategy and financial plan
Evaluate the product, service, strategy, or business's local and domestic markets
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