A Feasibility study should always be performed before starting any project as it assists with go or no go of the project. The main objective of the feasibility study itself is to save the management from taking wrong decisions & avoid further losses in business.
A feasibility study typically is made up of business description, market feasibility, technical feasibility, financial feasibility, organizational feasibility and conclusions. It includes comprehensive info on the company structure, products or services, market, logistics of how to provide these products or services, and the necessary resources to perform a small business efficiently or even to execute a choice efficiently.
Thus, conducting a feasibility study is a crucial 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.
Regardless of project size, scope and type, there are numerous key steps to writing this important document. The next list has an outline of the key sections to be included in report content:
Executive Summary – an outline of the problem/opportunity highlighted in the research, the goal of the report, and the importance of the research for the market
Background – a more in depth description of the feasibility study, who it 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 breakdown of any alternative proposals or options and their features compared to the main proposal of the study
Cost-Benefit Evaluation – a rigorous analysis method that has been implemented to examine and evaluate the key proposal for cost-benefit effectiveness and to demonstrate the tech feasibility, economic practicality, social desirability, and eco soundness of the proposal.
Conclusion – a summary of the work done and your conclusions relating to your analysis
Recommendations – some recommendations practices and follow-up actions based in your conclusions.
It is worthwhile to pay attention to the listed below pitfall when having a feasibility study to attain an optimum result.
Avoid Overestimation or underestimation of market size,
Not understanding the consumer needs and trends,
Ignoring competition,
Too slow/hurry in conducting a feasibility study,
Erroneous financial calculations,
Wrong team.
The feasibility is more info conducted properly as a periscope for the business. It is an excellent business practice to examine this document at intervals and keep this document as current as business conditions continue changing. In such circumstances, this document becomes extremely useful since 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 move ahead and adjust their positioning.