Title: Concept of Feasibility Study

Introduction:

A feasibility study is a crucial step for entrepreneurs and businesses looking to launch new
products or projects. It is a systematic assessment of the practicality and viability of a proposed business
idea, typically conducted before significant resources are invested. The primary purpose of a feasibility
study is to determine whether the business concept is feasible, sustainable, and likely to succeed in the
marketplace.

Importance of Feasibility Studies:

Feasibility studies are extremely important when contemplating the undertaking of a new
project. Agreeing to a proposed business plan is an investment for any company, so it is helpful to
examine all the factors that go into a project from pre-planning to its completion.

Below are a few reasons feasibility studies are important:

-Identifies valid reasons to advance or veto a project idea.

-Improves the focus of the project team.

-Provides useful information for the next steps after the study.

-Narrows potential business alternatives.

-Evaluates current and needed resources and technology.

-Enhances the success or failure rate of the project by assessing all variables.

-Estimates the return on investment.

Types of Feasibility Studies:

There are numerous feasibility studies a consultant can perform before a company decides on a
project, and multiple study types may be combined to cover all aspects of the project from start,
progress, completion and delivery. A few of them are:

1. Technical feasibility

Technical feasibility includes checking for accessibility to technical resources and applications within the
organization. If the resources already exist, you must then determine if the technical team can
customize the technology into new working systems for the project. Not only do you need the correct
technical resources, but the equipment also needs to be evaluated to ensure it has the proper hardware
and software for the proposed plan.

2. Economic feasibility

Economic feasibility allows the company to determine the cost and benefits analyses, which helps
provide decision-makers with a list of potential economic benefits to the organization. They need to
know the total cost, including accidental expenses, so that during the project, they may be able to
anticipate any potential unforeseen monetary challenges.
3. Operational feasibility

Operational feasibility assesses how well a proposed plan fits within the existing business environment,
and if developed, whether current purchasers will use it. Some variables that affect the outcome of this
analysis are whether management support, how buyers feel about the current system in place and if the
proposed system will benefit the organization.

4. Legal feasibility

Before beginning a project, legal feasibility checks to ensure that all parts of the proposed project
adhere to legal rules and requirements in that specific geographic area. Zoning laws, social media laws
and many others need to be examined because the law must permit all aspects of the project for an
organization to get consent to begin.

5. Schedule feasibility

The final, but very important feasibility study is that of the schedule check. It estimates how much time a
team needs to complete the project. All invested groups should recognize and agree that the project is
to be finished within an agreed-upon timeframe for the proposed plan to be successful.

How to conduct a Feasibility Studies:

The 5 Steps of conducting Feasibility Study:

1. Perform preliminary analysis

In this step, you'll start thinking about the practicality of the action and what it entails. Some
questions you'll want to answer during this stage include:

 What is the goal of this action?

 What benefits come from achieving this action?
 Are there examples of this action being completed elsewhere?
 What are some of the risks of this action?
 What will you do to ensure the success of this project?

A proper feasibility study takes time and resources. The purpose of conducting a preliminary analysis
is to determine whether a full feasibility study is worthwhile. If you determine that the action you want
to take is worth studying further, you can then proceed to conduct a fuller feasibility study.

2. Create a study outline

You can then create an outline to define each element in your feasibility study. The purpose is to
outline the central elements of your study so that you have a framework to reference going forward. To
create your outline, you should think about how you will answer the following questions during your
feasibility study:

 Do I have the organizational structure in place to take this action?

  Do I have enough money to take this step?
 Do I have the right technology necessary to complete this project?
 Can I complete this project in a reasonable amount of time?
 Will this action benefit the organization?
 Has our competition taken similar actions? If so, how did it go?
 What are the laws I need to be aware of when taking this action?

Create a comprehensive outline that focuses on each of these questions. Then detail how you will go
about answering each of them and what type of answer you'll need to determine that your action is
feasible.

3. Conduct market research

Analyzing your competition and the marketplace is a productive way to determine whether your
proposed action is feasible. If another organization has completed a similar action, you can learn not
only that your action is feasible but what steps can help you accomplish your objective.

Some common examples of ways to research the marketplace include:

 Sending out surveys

 Interviewing customers
 Interviewing experts
 Conducting focus groups
 Analyzing competition
 Studying social media trends
 Using publicly available data, such as search trends

Market research should help you answer the questions listed in the prior step in more detail. For
example, Sunshine Toys wants to launch a new children's toy. By conducting focus groups and sending
out surveys, they discover that customers have a high interest in their new proposed toy. They also
discover, by researching their competitors' websites, that their biggest competitors do not have similar
products yet, making it an open market.

4. Conduct organizational research

If you determine that there is a market for your action plan, the next step is to determine
whether your organization can accomplish it. One crucial element to examine is the financial aspect of
the desired action. During this phase, you should calculate how much you need to pay initially, what sort
of long-term investments you need to make and any other additional costs to your organization.
Consider things like supplies or materials purchases, real estate investments and personnel changes.

After that, consider whether your current team can effectively carry out the proposed action.
For instance, they may need further training or additional staff to help.
 Lastly, determine if you have the right tools. For instance, your operation may require certain
equipment or specialized technology. You should also factor in the cost of this equipment and whether
your team has the ability to effectively use it.

By the end of this stage, you should have a thorough understanding of whether you have the
necessities to complete your action. This step will also reveal what changes, if any, you need to make
before you can proceed with the action.

5. Analyze your results

After collecting all the data, you then need to analyze the results, such as whether your
organization is capable of handling the action or whether there is a market for it. Thoroughly reviewing
each part of the report and checking that you completed it correctly can ensure that your findings are
reliable, accurate and in the best interest of your project.

This is the step in which you'll decide if the action plan is feasible and what sort of risks are
involved. If the results say that your proposed action is feasible, you can now use your findings to help
you plan out your next steps, such as creating a product outline or starting the hiring process.

Case Study Example:

Reference:

Team, I. E. (2023, March 11). What is a feasibility study?. What is Feasibility Study? Definition,
Benefits, and Types.
https://www.indeed.com/career-advice/career-development/feasibility-studies

Team, I. E. (2022a, July 22). How to conduct a feasibility study in 5 steps | indeed.com. How to
conduct a feasibility study in 5 steps. https://www.indeed.com/career-advice/career-
development/how-to-do-feasibility-study