What is a FEASIBILITY REPORT?

A feasibility report is a document that assesses the viability of a project or idea. It

examines the technical, financial, legal, and market aspects to determine
whether the project is worth pursuing.

Here's a breakdown of what a feasibility report typically includes:

 Executive Summary: Briefly outlines the project and its key findings.

 Project Description: Provides a detailed explanation of the project, its goals,

and objectives.

 Technical Feasibility: Evaluates the technical aspects of the project,

including available technology, resources, and expertise.

 Financial Feasibility: Analyzes the project's financial viability, including

costs, revenue projections, and return on investment.

 Legal Feasibility: Examines potential legal implications, permits, regulations,

and compliance requirements.

 Market Feasibility: Assesses the market demand, competition, and target

audience for the project.

 Conclusion: Summarizes the key findings and recommendations, including

whether the project is feasible and what steps should be taken next.

Feasibility reports are used in various contexts, such as:

 Business Ventures: To evaluate the viability of a new product, service, or

business expansion.

 Technology Projects: To assess the feasibility of implementing a new

technology or system.

 Government Initiatives: To determine the feasibility of a new policy or

program.
By conducting a thorough feasibility analysis, you can make informed decisions
about whether to proceed with a project and mitigate potential risks.

Feasibility reports are created for a wide range of projects, from small business
ventures to large-scale government initiatives. Here are some real-world
examples of feasibility reports that illustrate their diverse applications:

1. Opening a New Restaurant: A restaurant owner wants to open a new location

in a popular area with high foot traffic. They conduct a feasibility study to
determine if the venture is economically viable. The report analyzes factors like
customer estimates, average bill amounts, rent, operating expenses, equipment
costs, staffing expenses, and cost of goods sold. The study calculates the break-
even point, which determines the minimum number of customers needed to
cover monthly expenses. If the estimated customer count exceeds the break-even
point, the project is considered economically feasible. [3]

2. Implementing a New Solar Electricity Product: A company wants to invest in a

new portable solar electricity product. The feasibility study analyzes the project's
financial viability by calculating the net present value (NPV) of the investment.
This involves estimating future cash inflows and outflows, considering factors like
initial investment, government subsidies, operating costs, sales volume, and
depreciation. A positive NPV indicates that the project is economically feasible
and worth pursuing. [3]

3. Expanding a Hospital: A hospital wants to expand its building to accommodate

more patients and services. The feasibility study examines the potential impact of
the expansion on revenue, staff, patients, and the local community. It considers
the cost of labor and materials, potential disruption to operations, and public
opinion regarding the project. The study also assesses the legal implications of the
expansion, ensuring compliance with relevant regulations. [5]

4. Developing a Mobile Application: A company plans to develop a mobile

application that will cost $250,000 to create. The feasibility study evaluates the
technical aspects, including the availability of technology and the required skills. It
also assesses the financial feasibility by analyzing the expected revenue and profit
margins. If the development cost is justifiable based on the projected revenue and
profit, the project is considered technically and financially feasible. [3]

5. Expanding a School: A school wants to expand its campus to accommodate

more students. The feasibility study examines the potential impact of the
expansion on revenue, staff, students, and the local community. It considers the
cost of labor and materials, potential disruption to operations, and public opinion
regarding the project. The study also assesses the legal implications of the
expansion, ensuring compliance with relevant regulations. [5]

These examples demonstrate how feasibility reports are used to assess the
viability of various projects, considering factors like financial viability, technical
feasibility, legal compliance, and market demand. By conducting a thorough
feasibility analysis, businesses, organizations, and individuals can make informed
decisions about whether to proceed with a project and mitigate potential risks.

A feasibility report is a crucial document that helps assess the viability of a

project or idea. It's a comprehensive analysis that considers various aspects to
determine whether the project is worth pursuing. Here's a detailed format on how
to create a compelling feasibility report:

I. Title Page

 Project Title: Clearly and concisely state the project's name.

 Author(s): Include the names and titles of the individuals responsible for
the report.

 Date: Specify the date the report was completed.

 Company/Organization: If applicable, mention the name of the company or

organization involved.

II. Table of Contents

  List of Sections: Include a detailed list of all sections and subsections in the
report, along with their corresponding page numbers. This provides readers
with a quick overview of the report's structure.

III. Executive Summary

 Purpose: Briefly outline the purpose of the report and the project it
analyzes.

 Key Findings: Summarize the main conclusions and recommendations of

the report.

 Project Description: Provide a concise overview of the project, its goals,

and objectives.

 Feasibility Assessment: Briefly state whether the project is considered

feasible or not, and highlight the key factors that support this conclusion.

IV. Project Description

 Background: Provide a comprehensive overview of the project's history,

including its origin, rationale, and any relevant background information.

 Goals and Objectives: Clearly define the project's specific goals and
objectives. These should be measurable and achievable.

 Scope and Timeline: Outline the project's scope, including the key activities
and deliverables. Also, specify the estimated project timeline.

V. Market Feasibility

 Target Market: Identify and describe the target market for the project,
including their demographics, needs, and preferences.

 Market Demand: Analyze the existing market demand for the project's
product or service, considering factors like market size, growth potential,
and competition.
  Market Trends: Discuss relevant market trends that could impact the
project's success, such as technological advancements, consumer behavior
changes, or regulatory changes.

 Competitive Analysis: Analyze the competitive landscape, identifying key

competitors, their strengths and weaknesses, and their market share.

VI. Technical Feasibility

 Technology Assessment: Evaluate the availability and suitability of the

required technology for the project.

 Resource Availability: Assess the availability of essential resources, such as

skilled labor, raw materials, and equipment.

 Infrastructure Requirements: Determine the infrastructure requirements

for the project, including any necessary upgrades or modifications.

 Operational Considerations: Analyze potential operational challenges and

how they can be addressed, such as production processes, logistics, and
quality control.

VII. Financial Feasibility

 Cost Analysis: Develop a detailed cost analysis, including both initial

investment costs and ongoing operating expenses.

 Revenue Projections: Estimate potential revenue streams and project

future sales based on market research and industry data.

 Profitability Analysis: Analyze the project's profitability, considering factors

like profit margins, break-even point, and return on investment (ROI).

 Funding Sources: Explore potential funding sources, including loans, grants,

equity investments, or other financing options.

VIII. Legal Feasibility

  Regulatory Compliance: Assess the project's compliance with relevant laws,
regulations, and permits.

 Legal Risks: Identify potential legal risks and develop strategies to mitigate
them.

 Intellectual Property: Consider any intellectual property issues, such as

patents, trademarks, or copyrights.

 Contractual Agreements: Analyze potential contractual agreements, such

as supplier contracts, customer agreements, or employment contracts.

IX. Organizational Feasibility

 Management Team: Evaluate the experience, expertise, and capabilities of

the management team responsible for the project.

 Organizational Structure: Assess the organizational structure and its ability

to support the project's success.

 Human Resources: Analyze the availability of skilled personnel and the

project's impact on human resources.

 Operational Processes: Evaluate the existing operational processes and

their suitability for the project.

X. Conclusion

 Summary of Findings: Summarize the key findings from each section of the
report.

 Recommendations: Provide clear and actionable recommendations based

on the feasibility analysis.

 Next Steps: Outline the next steps for the project, including potential
actions to be taken based on the recommendations.

XI. Appendix
  Supporting Documentation: Include any supporting documentation, such
as market research data, financial statements, technical specifications, or
legal documents.

 References: List all sources of information used in the report, using a

consistent citation format.

Key Tips for Writing a Feasibility Report:

 Clear and Concise Language: Use clear and concise language that is easy to
understand for a general audience.

 Data-Driven Analysis: Support your conclusions with relevant data,

research, and industry insights.

 Objective and Unbiased: Maintain an objective and unbiased tone,

presenting both the strengths and weaknesses of the project.

 Visual Aids: Use charts, graphs, and tables to present complex information
in a visually appealing and easy-to-understand manner.

 Proofread and Edit: Carefully proofread and edit the report to ensure
accuracy, clarity, and professionalism.

By following this format and incorporating these tips, you can create a
comprehensive and compelling feasibility report that effectively assesses the
viability of your project and helps you make informed decisions.