A Feasibility study should often be performed prior to starting any project because it assists with go or no go of the project. The key objective of the feasibility study itself is to save lots of the management from taking wrong decisions & avoid further losses in business.
A feasibility study typically consists of a business description, market feasibility, technical feasibility, financial feasibility, organizational feasibility and conclusions. It contains comprehensive information on the business structure, products or services, market, logistics of how to supply the products or services, and the required resources to operate a business efficiently or to execute a determination efficiently.
Thus, conducting a feasibility study is an essential task, where parameters like target market, consumer behaviour, their needs and preferences, existing and potential market trends, potential competitors, challenges and threats, legal compliances, financial aspects, etc. are studied.
No matter project size, scope and type, there are many key steps to writing such an important document. The following list offers an outline of the main element sections to be contained in report content:
Executive Summary – an explanation of the problem/opportunity highlighted in the study, the objective of the report, and the significance of the study for your target audience
Background – a more descriptive description of the feasibility study, who it absolutely was carried out, and if it was implemented elsewhere
Analysis – an examination and evaluation method employed in conducting your feasibility study
Alternatives and Options – an overview of any alternative proposals or options and their features in comparison to the key proposal of the research
Cost-Benefit Evaluation – a rigorous analysis method which was implemented to examine and evaluate the key proposal Feasibility Report for cost-benefit effectiveness and to show the tech feasibility, economic practicality, social desirability, and eco soundness of the proposal.
Conclusion – a summary of the work done and your conclusions regarding your analysis
Recommendations – some recommendations practices and follow-up actions based in your conclusions.
It is worthwhile to take note of the listed below pitfall when having a feasibility study to accomplish an optimum result.
Avoid Overestimation or underestimation of market size,
Not understanding the customer needs and trends,
Ignoring competition,
Too slow/hurry in conducting a feasibility study,
Erroneous financial calculations,
Wrong team.
The feasibility is conducted properly as a periscope for the business. It is a good business practice to examine this document at intervals and keep this document as current as business conditions carry on changing. In such circumstances, this document becomes extremely useful as it lets businesses know where in fact the deviations occurred and what were their reasons and causes.
This assessment is extremely vital for businesses to maneuver ahead and adjust their positioning.