writing a business plan and feasibility study

10 Feasibility study and business plan differences you should know

by Naiyer Jawaid | Nov 8, 2021 | Development , Real Estate | 5 comments

Feasibility study and business plan differences are subtle. In this post we will discuss 10 differences will help you to evaluate and differentiate between a feasibility study and a business plan.

Do you know what is a feasibility report? Do you know what is a business plan? Can you easily differentiate between a feasibility report and a business plan?

It’s easy! Just read out through the article and it will all be easy.

Let’s start by learning about a feasibility report:

A feasibility study is a formal document that assist in the identification and investigation of a proposed project. We can identify the project's weaknesses and strengths with the support of a feasibility study report, which saves us time and energy. We can determine whether the suggested idea will be lucrative and practicable in the future.

Before investing in a project, it is critical to determine if the project will be beneficial in the long run. The organization also needs to know how much the project will cost. Overall, a feasibility analysis indicates whether the firm should invest or continue with the project.

writing a business plan and feasibility study

You should also like to read When to do feasibility study?

Now let us learn about business plan:

A business plan is a formal document that contains the goals/ objective of the business, the time in which the goal will be completed and the strategies that can be adopted to reach the specific goal.

A business plan is a necessary document for every new firm to have in place before it can begin operations. Writing a credible business plan is typically a requirement for banks and venture capital companies before contemplating granting funding to new enterprises.

It is not a smart idea to operate without a business strategy. In fact, very few businesses can survive for long without one. There are many more advantages to developing and keeping to a strong business plan, such as the ability to think through ideas without investing too much money and, eventually, losing money. Business plans are used by start-ups to get off the ground and attract outside investors.

A feasibility study is used to assess if a business or a concept is viable. After the business opportunity has been identified, the business strategy is produced. “A feasibility study is carried out with the goal of determining the workability and profitability of a company venture. A feasibility study is conducted before any money is committed in a new business endeavour to see whether it is worth the time, effort, and resources.

Similarities between a Feasibility study and a business plan

It's essential to analyse the similarities between a feasibility study and a business plan because they're both implemented altogether in same ways to help you build a lucrative company. The following are some of the similarities between the two documents:

Time: Both the reports are completed before the business begins and can be repeated afterwards to decide the next stages for new concepts.

Input: Both Feasibility report and the Business plan include input from a variety of people or departments with a variety of talents.

Format: Both report formats incorporate other documents that are gathered in order to create the report.

Components: Examining the target market, market circumstances, and financial expenses are some of the topics examined.

Use: Both may be displayed to potential investors and can assist the organization's management in making choices.

Organizations uses a business plan and a feasibility study as analytical and decision-making tools.

Although the three tools can be used in conjunction with one another in decision-making processes, they each have their own strengths and weaknesses, and they appear to target and address separate processes.

You might also like to read How to write a feasibility study report?

Now let us evaluate the difference between feasibility report and a business report-

A feasibility study is conducted to determine the viability and profitability of a business endeavour. A feasibility study is conducted before any money is committed in a new business endeavour to see whether it is worth the time, effort, and resources.

A business plan, on the other hand, is created only when it has been determined that a business opportunity exists and that the endeavour is about to begin.

A feasibility report is the first step and after that a business plan is made to be implemented, without feasibility report a business plan cannot be made.
A feasibility study contains computations, research, and projected financial forecasts for a company possibility. A business plan, on the other hand, is mostly comprised of tactics and strategies to be applied to establish and expand the company.
A feasibility study is concerned with the viability of a business concept, but a business plan is concerned with the development and sustainability of a company.
A feasibility report informs the entrepreneur about the profit potential of a company concept or opportunity, whereas a business plan assists the entrepreneur in raising the necessary start-up cash from investors.
Key components of a feasibility study and a business plan
A business plan does not include the description of the sales methods used, such as distribution agreements, strategic alliances, and the amount of involvement with partners, as well as the payment terms, warranties, and other customer support.

But a feasibility report includes all the sales methods, strategies, alliances to payment and customer support.

Feasibility report contains:
Assists in cost estimation, describe the production site, required inputs, and sourcing region.
Physical description of the factory, including machine, capacity, warehouse, and supply chain, is necessary.
Indicate if the area used for production is rented or owned. This will have an impact on the financial forecast.
Information regarding the manufacturer's capacity, order details, price, and so on, if manufacturing is outsourced. To aid in cost estimation, describe the production site, needed inputs, and sourcing location.
A physical description of the factory, including machine, capacity, warehouse, and supply chain, is necessary.

But a business plan does not contain anything related to production and operations, but a business plan contains all the information related to management.

A poorly written business plan – poor projections, strategies, analysis, business model, and environmental factors, among other things – can be easily adjusted during business operations, but this cannot be said of a feasibility study because an incorrect conclusion in a feasibility study can be costly — it could mean launching a venture with little chance of survival or approving a proposal that wastes the company's human and financial resources.
A business plan presume that a company will prosper and lays out the procedures needed to get there. Those in charge of conducting a feasibility study should not have any predetermined notions regarding the likelihood of success. They must maintain as much objectivity as possible. They do research and allow the facts to lead to the study's conclusion. If the study concludes that the idea is viable, some of the findings, such as market size predictions, may be incorporated in the company's business plan.

You should also read What is land development feasibility study?

These 10 differences will help you to evaluate and differentiate between a feasibility study and a business plan.

Feasibility study may appear to be like the business plan in many respects. "A feasibility study may easily be transformed to a business plan” but it is crucial to remember that the feasibility study is completed prior to the endeavor. The business plan should be thought of in terms of growth and sustainability, whereas the feasibility study should be thought of in terms of concept viability.

This is all you need to know and understand about feasibility study and business plan.

Get ready to apply your knowledge in the real words with lots of success.

You might also like to explore below external contents on feasibility study :

What Is a Feasibility Study? – Types & Benefits
Best 8 Property Management Software
FEASIBILITY STUDIES & BUSINESS PLANS

Hope you enjoyed this post on feasibility study , let me know what you think in the comment section below.

Are you someone involved with real estate feasibility?

We are excited to launch the next generation of real estate feasibility software to help you manage your development projects with ease.

This is a very good piece of writing. When you have a concept for a company but want to be sure it’s a good idea, you do a feasibility study.

It was very helpful. Thank you so much!

Appropriately timed! A company’s future operations are laid out in great detail in the company’s business plan. Once you’ve done your feasibility study, you’ll know whether or not the proposal has merit. The next step is to lay out your goals, whether financial and otherwise, as well as the strategies you want to use to attain them and the organisational structure you envision.

Prior to the company opening, both are undertaken, and may be repeated again in the future to identify the next steps on new ideas that may arise.

Great Content.

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Follow Us On

Latest Posts

Looking for Feasibility Study Samples?

60+ real-life feasibility study samples for FREE!

Advisory boards aren’t only for executives. Join the LogRocket Content Advisory Board today →

Product Management
Solve User-Reported Issues
Find Issues Faster
Optimize Conversion and Adoption

How to conduct a feasibility study: Template and examples

Opportunities are everywhere. Some opportunities are small and don’t require many resources. Others are massive and need further analysis and evaluation.

How To Conduct A Feasibility Study: Template And Examples

One of your key responsibilities as a product manager is to evaluate the potential success of those opportunities before investing significant money, time, and resources. A feasibility study, also known as a feasibility assessment or feasibility analysis, is a critical tool that can help product managers determine whether a product idea or opportunity is viable, feasible, and profitable.

So, what is a feasibility analysis? Why should product managers use it? And how do you conduct one?

What is a feasibility study?

A feasibility study is a systematic analysis and evaluation of a product opportunity’s potential to succeed. It aims to determine whether a proposed opportunity is financially and technically viable, operationally feasible, and commercially profitable.

A feasibility study typically includes an assessment of a wide range of factors, including the technical requirements of the product, resources needed to develop and launch the product, the potential market gap and demand, the competitive landscape, and economic and financial viability.

Based on the analysis’s findings, the product manager and their product team can decide whether to proceed with the product opportunity, modify its scope, or pursue another opportunity and solve a different problem.

Conducting a feasibility study helps PMs ensure that resources are invested in opportunities that have a high likelihood of success and align with the overall objectives and goals of the product strategy .

What are feasibility analyses used for?

Feasibility studies are particularly useful when introducing entirely new products or verticals. Product managers can use the results of a feasibility study to:

Assess the technical feasibility of a product opportunity — Evaluate whether the proposed product idea or opportunity can be developed with the available technology, tools, resources, and expertise
Determine a project’s financial viability — By analyzing the costs of development, manufacturing, and distribution, a feasibility study helps you determine whether your product is financially viable and can generate a positive return on investment (ROI)
Evaluate customer demand and the competitive landscape — Assessing the potential market size, target audience, and competitive landscape for the product opportunity can inform decisions about the overall product positioning, marketing strategies, and pricing
Identify potential risks and challenges — Identify potential obstacles or challenges that could impact the success of the identified opportunity, such as regulatory hurdles, operational and legal issues, and technical limitations
Refine the product concept — The insights gained from a feasibility study can help you refine the product’s concept, make necessary modifications to the scope, and ultimately create a better product that is more likely to succeed in the market and meet users’ expectations

How to conduct a feasibility study

The activities involved in conducting a feasibility study differ from one organization to another. Also, the threshold, expectations, and deliverables change from role to role.

For a general set of guidelines to help you get started, here are some basic steps to conduct and report a feasibility study for major product opportunities or features.

1. Clearly define the opportunity

Imagine your user base is facing a significant problem that your product doesn’t solve. This is an opportunity. Define the opportunity clearly, support it with data, talk to your stakeholders to understand the opportunity space, and use it to define the objective.

2. Define the objective and scope

Each opportunity should be coupled with a business objective and should align with your product strategy.

Over 200k developers and product managers use LogRocket to create better digital experiences

Determine and clearly communicate the business goals and objectives of the opportunity. Align those objectives with company leaders to make sure everyone is on the same page. Lastly, define the scope of what you plan to build.

3. Conduct market and user research

Now that you have everyone on the same page and the objective and scope of the opportunity clearly defined, gather data and insights on the target market.

Include elements like the total addressable market (TAM) , growth potential, competitors’ insights, and deep insight into users’ problems and preferences collected through techniques like interviews, surveys, observation studies, contextual inquiries, and focus groups.

4. Analyze technical feasibility

Suppose your market and user research have validated the problem you are trying to solve. The next step should be to, alongside your engineers, assess the technical resources and expertise needed to launch the product to the market.

Dig deeper into the proposed solution and try to comprehend the technical limitations and estimated time required for the product to be in your users’ hands.

5. Assess financial viability

If your company hasa product pricing team, work closely with them to determine the willingness to pay (WTP) and devise a monetization strategy for the new feature.

Conduct a comprehensive financial analysis, including the total cost of development, revenue streams, and the expected return on investment (ROI) based on the agreed-upon monetization strategy.

6. Evaluate potential risks

Now that you have almost a complete picture, identify the risks associated with building and launching the opportunity. Risks may include things like regulatory hurdles, technical limitations, and any operational risks.

7. Decide, prepare, and share

Based on the steps above, you should end up with a report that can help you decide whether to pursue the opportunity or not. Either way, prepare your findings, including any recommended modifications to the product scope, and present your final findings and recommendations to your stakeholders.

Make sure to prepare an executive summary for your C-suite; they will be the most critical stakeholders and the decision-makers at the end of the meeting.

Feasibility study example

Imagine you’re a product manager at a digital software company that specializes in building project management tools.

Your team has identified a potential opportunity to expand the product offering by developing a new AI-based feature that can automatically prioritize tasks for users based on their deadlines, workload, and importance.

To assess the viability of this opportunity, you can conduct a feasibility study. Here’s how you might approach it according to the process described above:

Clearly define the opportunity — In this case, the opportunity is the development of an AI-based task prioritization feature within the existing project management software
Define the objective and scope — The business objective is to increase user productivity and satisfaction by providing an intelligent task prioritization system. The scope includes the integration of the AI-based feature within the existing software, as well as any necessary training for users to understand and use the feature effectively
Conduct market and user research — Investigate the demand for AI-driven task prioritization among your target audience. Collect data on competitors who may already be offering similar features and determine the unique selling points of your proposed solution. Conduct user research through interviews, surveys, and focus groups to understand users’ pain points regarding task prioritization and gauge their interest in the proposed feature
Analyze technical feasibility — Collaborate with your engineering team to assess the technical requirements and challenges of developing the AI-based feature. Determine whether your team has the necessary expertise to implement the feature and estimate the time and resources required for its development
Assess financial viability — Work with your pricing team to estimate the costs associated with developing, launching, and maintaining the AI-based feature. Analyze the potential revenue streams and calculate the expected ROI based on various pricing models and user adoption rates
Evaluate potential risks — Identify any risks associated with the development and implementation of the AI-based feature, such as data privacy concerns, potential biases in the AI algorithm, or the impact on the existing product’s performance
Decide, prepare, and share — Based on your analysis, determine whether the AI-based task prioritization feature is a viable opportunity for your company. Prepare a comprehensive report detailing your findings and recommendations, including any necessary modifications to the product scope or implementation plan. Present your findings to your stakeholders and be prepared to discuss and defend your recommendations

Feasibility study template

The following feasibility study template is designed to help you evaluate the feasibility of a product opportunity and provide a comprehensive report to inform decision-making and guide the development process.

Remember that each study will be unique to your product and market, so you may need to adjust the template to fit your specific needs.

Briefly describe the product opportunity or feature you’re evaluating
Explain the problem it aims to solve or the value it will bring to users
Define the business goals and objectives for the opportunity
Outline the scope of the product or feature, including any key components or functionality
Summarize the findings from your market research, including data on the target market, competitors, and unique selling points
Highlight insights from user research, such as user pain points, preferences, and potential adoption rates
Detail the technical requirements and challenges for developing the product or feature
Estimate the resources and expertise needed for implementation, including any necessary software, hardware, or skills
Provide an overview of the costs associated with the development, launch, and maintenance of the product or feature
Outline potential revenue streams and calculate the expected ROI based on various pricing models and user adoption rates
Identify any potential risks or challenges associated with the development, implementation, or market adoption of the product or feature
Discuss how these risks could impact the success of the opportunity and any potential mitigation strategies
Based on your analysis, recommend whether to proceed with the opportunity, modify the scope, or explore other alternatives
Provide a rationale for your recommendation, supported by data and insights from your research
Summarize the key findings and recommendations from your feasibility study in a concise, easily digestible format for your stakeholders

Overcoming stakeholder management challenges

The ultimate challenge that faces most product managers when conducting a feasibility study is managing stakeholders .

Stakeholders may interfere with your analysis, jumping to conclude that your proposed product or feature won’t work and deeming it a waste of resources. They may even try to prioritize your backlog for you.

Here are some tips to help you deal with even the most difficult stakeholders during a feasibility study:

Use hard data to make your point — Never defend your opinion based on your assumptions. Always show them data and evidence based on your user research and market analysis
Learn to say no — You are the voice of customers, and you know their issues and how to monetize them. Don’t be afraid to say no and defend your team’s work as a product manager
Build stakeholder buy-in early on — Engage stakeholders from the beginning of the feasibility study process by involving them in discussions and seeking their input. This helps create a sense of ownership and ensures that their concerns and insights are considered throughout the study
Provide regular updates and maintain transparency — Keep stakeholders informed about the progress of the feasibility study by providing regular updates and sharing key findings. This transparency can help build trust, foster collaboration, and prevent misunderstandings or misaligned expectations
Leverage stakeholder expertise — Recognize and utilize the unique expertise and knowledge that stakeholders bring to the table. By involving them in specific aspects of the feasibility study where their skills and experience can add value, you can strengthen the study’s outcomes and foster a more collaborative working relationship

Final thoughts

A feasibility study is a critical tool to use right after you identify a significant opportunity. It helps you evaluate the potential success of the opportunity, analyze and identify potential challenges, gaps, and risks in the opportunity, and provides a data-driven approach in the market insights to make an informed decision.

By conducting a feasibility study, product teams can determine whether a product idea is profitable, viable, feasible, and thus worth investing resources into. It is a crucial step in the product development process and when considering investments in significant initiatives such as launching a completely new product or vertical.

LogRocket generates product insights that lead to meaningful action

Get your teams on the same page — try LogRocket today.

Stop guessing about your digital experience with LogRocket

Leader Spotlight: Improving product development through documentation, with Mark Francis

Mark Francis discusses the importance of stakeholders across all business groups embracing the need for documentation and transparency.

A guide to crafting your brand strategy

Brand strategy is one of the most underestimated forces that shapes the trajectory of your products and services.

Leader Spotlight: Helping turn Apple’s business around, with Steve Chazin

Steve Chazin, VP of Products at Alarm.com, shares how he was re-hired by Steve Jobs to help turn Apple around.

Leader Spotlight: Building a comprehensive migration plan, with Deepika Manglani

Deepika Manglani discusses major transitions she’s worked on at Tribune Publishing, including a divestiture and application migration plan.

.css-s5s6ko{margin-right:42px;color:#F5F4F3;}@media (max-width: 1120px){.css-s5s6ko{margin-right:12px;}} Join us: Learn how to build a trusted AI strategy to support your company's intelligent transformation, featuring Forrester .css-1ixh9fn{display:inline-block;}@media (max-width: 480px){.css-1ixh9fn{display:block;margin-top:12px;}} .css-1uaoevr-heading-6{font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-1uaoevr-heading-6:hover{color:#F5F4F3;} .css-ora5nu-heading-6{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:start;-ms-flex-pack:start;-webkit-justify-content:flex-start;justify-content:flex-start;color:#0D0E10;-webkit-transition:all 0.3s;transition:all 0.3s;position:relative;font-size:16px;line-height:28px;padding:0;font-size:14px;line-height:24px;font-weight:500;-webkit-text-decoration:underline;text-decoration:underline;color:#F5F4F3;}.css-ora5nu-heading-6:hover{border-bottom:0;color:#CD4848;}.css-ora5nu-heading-6:hover path{fill:#CD4848;}.css-ora5nu-heading-6:hover div{border-color:#CD4848;}.css-ora5nu-heading-6:hover div:before{border-left-color:#CD4848;}.css-ora5nu-heading-6:active{border-bottom:0;background-color:#EBE8E8;color:#0D0E10;}.css-ora5nu-heading-6:active path{fill:#0D0E10;}.css-ora5nu-heading-6:active div{border-color:#0D0E10;}.css-ora5nu-heading-6:active div:before{border-left-color:#0D0E10;}.css-ora5nu-heading-6:hover{color:#F5F4F3;} Register now .css-1k6cidy{width:11px;height:11px;margin-left:8px;}.css-1k6cidy path{fill:currentColor;}

Project planning |
How to use a feasibility study in proje ...

How to use a feasibility study in project management

It can be exciting to run a large, complex project that has a huge potential impact on your organization. On the one hand, you’re driving real change. On the other, failure is intimidating.

What is a feasibility study?

A feasibility study—sometimes called a feasibility analysis or feasibility report—is a way to evaluate whether or not a project plan could be successful. A feasibility study evaluates the practicality of your project plan in order to judge whether or not you’re able to move forward with the project.

It does so by answering two questions:

Does our team have the required tools or resources to complete this project?

Will there be a high enough return on investment to make the project worth pursuing?

Feasibility studies are important for projects that represent significant investments for your business. Projects that also have a large potential impact on your presence in the market may also require a feasibility study.

As the project manager , you may not be directly responsible for driving the feasibility study, but it’s important to know what these studies are. By understanding the different elements that go into a feasibility study, you can better support the team driving the feasibility study and ensure the best outcome for your project.

When should you conduct a feasibility study

A feasibility study should be conducted after the project has been pitched but before any work has actually started. The study is part of the project planning process. In fact, it’s often done in conjunction with a SWOT analysis or project risk assessment , depending on the specific project.

Feasibility studies help:

Confirm market opportunities before committing to a project

Narrow your business alternatives

Create documentation about the benefits and detriments of your proposed initiative

Provide more information before making a go/no go decision

You likely don’t need a feasibility study if:

You already know the project is feasible

You’ve run a similar project in the past

Your competitors are succeeding with a similar initiative in market

The project is small, straightforward, and has minimal long-term business impact

Your team ran a similar feasibility study within the past three years

One thing to keep in mind is that a feasibility study is not a project pitch. During a project pitch, you’re evaluating whether or not the project is a good idea for your company, and whether the goals of the project are in line with your overall strategic plan. Typically, once you’ve established that the project is a good idea, you’d then run a feasibility study to confirm the project is possible with the tools and resources you have at your disposal.

Feasibility study vs. project charter

A project charter is a relatively informal document to pitch your project to stakeholders. Think of the charter like an elevator pitch of your project objectives, scope, and responsibilities. Typically, your project sponsor or executive stakeholders reviews the charter before ratifying the project.

A feasibility study should be implemented after the project charter has been ratified. This isn’t a document to pitch whether or not the project is in line with your team’s goals—rather, it’s a way to ensure the project is something you and your team can accomplish.

Feasibility study vs. business case

A business case is a more formalized version of the project charter. While you’d typically create a project charter for small or straightforward initiatives, you should create a business case if you are pitching a large, complex initiative that will make a major impact on the business. This longer, more formal document will also include financial information, and typically involves more senior stakeholders.

After your business case is approved by relevant stakeholders, you’d then run a feasibility study to make sure the work is doable. If you find it isn’t, you might return to your executive stakeholders and request more resources, tools, or time in order to ensure your business case is feasible.

Feasibility study vs. business plan

A business plan is a formal document of your organization’s goals. You typically write a business plan when founding your company, or when your business is going through a significant shift. Your business plan informs a lot of other business decisions, including your three to five year strategic plan .

As you implement your business and strategic plan, you’ll invest in individual projects. A feasibility study is a way to evaluate the practicality of any given individual project or initiative.

4 elements of a feasibility analysis

There are four main elements that go into a feasibility study: technical feasibility, financial feasibility, market feasibility (or market fit), and operational feasibility. You may also see these referred to as the four types of feasibility studies, though most feasibility studies actually include a review of all four elements.

Technical feasibility

A technical feasibility study reviews the technical resources available for your project. This study determines if you have the right equipment, enough equipment, and the right technical knowledge to complete your project objectives . For example, if your project plan proposes creating 50,000 products per month, but you can only produce 30,000 products per month in your factories, this project isn’t technically feasible.

Financial feasibility

Financial feasibility describes whether or not your project is fiscally viable. A financial feasibility report includes a cost/benefit analysis of the project. It also forecasts an expected return on investment (ROI), as well as outlines any financial risks. The goal at the end of the financial feasibility study is to understand the economic benefits the project will drive.

Market feasibility

The market feasibility study is an evaluation of how your team expects the project’s deliverables to perform in the market. This part of the report includes a market analysis, market competition breakdown, and sales projections.

Operational feasibility

An operational feasibility study evaluates whether or not your organization is able to complete this project. This includes staffing requirements, organizational structure, and any applicable legal requirements. At the end of the operational feasibility study, your team will have a sense of whether or not you have the resources, skills, and competencies to complete this work.

Feasibility study checklist

Most feasibility studies are structured in a similar way. These documents serve as an assessment of the practicality of a proposed business idea. Creating a clear feasibility study helps project stakeholders during the decision making process.

A feasibility study contains:

An executive summary describing the project’s overall viability

A description of the product or service being developed during this project

Any technical considerations , including technology, equipment, or staffing

The market survey , including a study of the current market and the marketing strategy

The operational feasibility study , evaluating whether or not your team’s current organizational structure can support this initiative

The project timeline

Financial projections based on your financial feasibility report

6 steps to conduct a feasibility study

You likely won’t be conducting the feasibility study yourself, but you will probably be called on to provide insight and information. To conduct a feasibility study, hire a trained consultant or, if you have an in-house project management office (PMO) , ask if they take on this type of work. In general, here are the steps they’ll take to complete this work:

1. Run a preliminary analysis

Creating a feasibility study is a time-intensive process. Before diving into the feasibility study, it’s important to evaluate the project for any obvious and insurmountable roadblocks. For example, if the project requires significantly more budget than your organization has available, you likely won’t be able to complete it. Similarly, if the project deliverables need to be live and in market by a certain date, but they won’t be available for several months after the fact, the project likely isn’t feasible either. These types of large-scale obstacles make a feasibility study unnecessary, because it’s clear the project is not viable.

2. Evaluate financial feasibility

Think of the financial feasibility study as the projected income statement for the project. This part of the feasibility study clarifies the expected project income and outlines what your organization needs to invest—in terms of time and money—in order to hit the project objectives.

During the financial feasibility study, take into account whether or not the project will impact your business's cash flow. Depending on the complexity of the initiative, your internal PMO or external consultant may want to work with your financial team to run a cost-benefit analysis of the project.

3. Run a market assessment

The market assessment, or market feasibility study, is a chance to identify the demand in the market. This study offers a sense of expected revenue for the project, and any potential market risks you could run into.

The market assessment, more than any other part of the feasibility study, is a chance to evaluate whether or not there’s an opportunity in the market. During this study, it’s critical to evaluate your competitor’s positions and analyze demographics to get a sense of how the project will do.

4. Consider technical and operational feasibility

Even if the financials are looking good and the market is ready, this initiative may not be something your organization can support. To evaluate operational feasibility, consider any staffing or equipment requirements this project needs. What organizational resources—including time, money, and skills—are necessary in order for this project to succeed?

Depending on the project, it may also be necessary to consider the legal impact of the initiative. For example, if the project involves developing a new patent for your product, you will need to involve your legal team and incorporate that requirement into the project plan.

5. Review project points of vulnerability

At this stage, your internal PMO team or external consultant have looked at all four elements of your feasibility study—financials, market analysis, technical feasibility, and operational feasibility. Before running their recommendations by you and your stakeholders, they will review and analyze the data for any inconsistencies. This includes ensuring the income statement is in line with your market analysis. Similarly, now that they’ve run a technical feasibility study, are any liabilities too big of a red flag? (If so, create a contingency plan !)

Depending on the complexity of your project, there won’t always be a clear answer. A feasibility analysis doesn’t provide a black and white decision for a complex problem. Rather, it helps you come to the table with the right questions—and answers—so you can make the best decision for your project and for your team.

6. Propose a decision

The final step of the feasibility study is an executive summary touching on the main points and proposing a solution.

Depending on the complexity and scope of the project, your internal PMO or external consultant may share the feasibility study with stakeholders or present it to the group in order to field any questions live. Either way, with the study in hand, your team now has the information you need to make an informed decision.

Achieve project success with Asana

Done with your feasibility study? You’re ready to run a project! Set your project up for success by tracking your progress in a work management tool , like Asana. From the small stuff to the big picture, Asana organizes work so teams know what to do, why it matters, and how to get it done.

Related resources

Unmanaged business goals don’t work. Here’s what does.

How Asana uses work management to drive product development

How Asana uses work management to streamline project intake processes

How Asana uses work management for smoother creative production

Start Your Business
Grow Your Business
Business Ideas
Business Plan Writing

The Difference Between A Feasibility Study And A Business Plan

Should you prepare a feasibility study report or a business plan? This is a question that is always asked by thousands of people daily. They want to prepare either of the two but classify both as the same without understanding the clear distinction between a feasibility study report and a business plan.

Feasibility study reports and business plans have different goals, although similar. One is more in-depth than the other, and the reasons for preparing each is partly different from the other.

While a feasibility study report and a business plan are both analysis and decision making tools, it is highly important to know the difference between a feasibility study report and a business plan at all times, as I have detailed below:

See Also: The Difference Between A Business Plan And A Business Proposal

Reasons For A Feasibility Study Report

A feasibility study report is a document that is prepared after a feasibility study has been carried out. It contains in-depth analysis, projections, cost estimates, production requirements, production processes, and is the ultimate tool to determine whether a business should be started or not.

Since the feasibility study that’s first carried out is a comprehensive market research, its results will show the market size, their demographics, genders, age brackets, number of businesses operating in the industry, and much more.

These results are then put together in the report along with their cost projections, and will ultimately show whether the business is worth following through or not.

Feasibility Study Report Structure

A sample feasibility study report structure could look like the list below:

Introduction
Product or Service
Market Environment
Competition
Business Model
Market and Sales Strategy
Production Operations Requirements
Management and Personnel Requirements
Regulations and Environmental Issues
Critical Risk Factors
Financial Projections

See Also: How To Write A Feasibility Study Report In Nigeria Or Africa: The Complete Guide

Reasons For A Business Plan

A business plan is a strategy and tactical document that is prepared after a successful feasibility study has been carried out. It is written based on the results of a feasibility study, and focuses instead on how the business can achieve a successful market penetration and growth.

A business plan also contains financial projections, cash flow statements, balance sheets, profit and loss statements, break even analysis, and much more. It shows how profitable or not the business will be after acting on the results gotten from the feasibility study, and what it can do to either grow its revenues or change its focus to another industry.

Business Plan Structure

A sample business plan structure could look like the list below:

Executive Summary
Business Description
Service or Product Line
Market Analysis & Strategies
Organization & Management
Funding Request

See Also: How To Write A Business Plan: The Complete Guide

What Then Do You Need?

If you know nothing about the business you intend to start, the first step is to prepare a feasibility study report after an extensive market research has been carried out. After which, you can go on to prepare a business plan, so you can show the growth, sustainability, and profit potential of the business you’ve set out to run.

See Also: How to Choose A Business Plan Consultant

What are your thoughts on the difference between a feasibility study report and a business plan? Let me know by leaving a comment below.

How To Start A Lucrative Solar Energy Installation Business In Nigeria and Africa: The Complete Guide

How to start a lucrative ketchup production business in nigeria and africa: the complete guide, how to start a lucrative salt production business in nigeria and africa: the complete guide, 20 comments.

Until now,I always think that business plan and feasibility study report are the same. Thank you a million times for pointing out the difference to me. An eye opener I may say.Thanks once again.

Imeh Enuah.

I’m glad you found the article valuable, Imeh.

Do have a great time!

Thank you brother ❤️👍

Thanks for the effort but still not crystal clear to me…

Thank you for the comment, Victor.

Indeed they’re similar. But the simplest way to understand it is that “a feasibility study is first carried out and documented in a report before a business plan is written to show how you can execute your plans to take the market”.

Stan, even though we don’t go writing you for those your valuable articles, which are changing a lot of lives for good, mullions of people are there silently waiting to read your article everyday. Thanks for impacting knowledge and sharing those priceless write-ups.

Thank you for the kind words and for being a reader, Elvis.

Stan, this has cleared my inquisition on the differentiating factor between the two.

I’m glad you found the article valuable, Daniel.

Thank you for the comment.

Thanks a lot for the article. My position as a Consulting Executive in my previous employment taught me that in industry every feasibility studies is accompanied by a business plan all in one report.

Business plans usually standalone for only existing businesses which usually requires such things as a new marketing or market research, cashflow analysis and asset reappraisal.

Thank you for the contribution, Jeremiah.

Indeed a detailed feasibility report is an in-depth business plan.

What is the difference between a marketing plan and bussines plan

We’d still post an article about that.

Do look out for it on the blog.

Thank you for asking.

Very insightful to say the least. Well done sir!

Thank you for the kind words, Tobechi.

Indeed you are doing a great job.i feel so blessed and fortunate to have such unquontifiable opportunity of learning daily,God bless you, thanks.

Thank you for the kind words, Gideon.

Hello, I wanto prepare a feasibility study report for a potential investor I have a meeting with in another 2 weeks. How do I reach you and where do we start from?

Stan, this is lovely I think I have a better conclusion n knowledge. God bless you.

Thank you for reading, Obi.

Comments are closed.

What Is a Feasibility Study and How to Conduct It? (+ Examples)

Appinio Research · 26.09.2023 · 28min read

Are you ready to turn your project or business idea into a concrete reality but unsure about its feasibility? Whether you're a seasoned entrepreneur or a first-time project manager, understanding the intricate process of conducting a feasibility study is vital for making informed decisions and maximizing your chances of success.

This guide will equip you with the knowledge and tools to navigate the complexities of market, technical, financial, and operational feasibility studies. By the end, you'll have a clear roadmap to confidently assess, plan, and execute your project.

What is a Feasibility Study?

A feasibility study is a systematic and comprehensive analysis of a proposed project or business idea to assess its viability and potential for success. It involves evaluating various aspects such as market demand, technical feasibility, financial viability, and operational capabilities. The primary goal of a feasibility study is to provide you with valuable insights and data to make informed decisions about whether to proceed with the project.

Why is a Feasibility Study Important?

Conducting a feasibility study is a critical step in the planning process for any project or business. It helps you:

Minimize Risks: By identifying potential challenges and obstacles early on, you can develop strategies to mitigate risks.
Optimize Resource Allocation: A feasibility study helps you allocate your resources more efficiently, including time and money.
Enhance Decision-Making: Armed with data and insights, you can make well-informed decisions about pursuing the project or exploring alternative options.
Attract Stakeholders: Potential investors, lenders, and partners often require a feasibility study to assess the project's credibility and potential return on investment.

Now that you understand the importance of feasibility studies, let's explore the various types and dive deeper into each aspect.

Types of Feasibility Studies

Feasibility studies come in various forms, each designed to assess different aspects of a project's viability. Let's delve into the four primary types of feasibility studies in more detail:

1. Market Feasibility Study

Market feasibility studies are conducted to determine whether there is a demand for a product or service in a specific market or industry. This type of study focuses on understanding customer needs, market trends, and the competitive landscape. Here are the key elements of a market feasibility study:

Market Research and Analysis: Comprehensive research is conducted to gather market size, growth potential , and customer behavior data. This includes both primary research (surveys, interviews) and secondary research (existing reports, data).
Target Audience Identification: Identifying the ideal customer base by segmenting the market based on demographics, psychographics, and behavior. Understanding your target audience is crucial for tailoring your product or service.
Competitive Analysis : Assessing the competition within the market, including identifying direct and indirect competitors, their strengths, weaknesses, and market share.
Demand and Supply Assessment: Analyzing the balance between the demand for the product or service and its supply. This helps determine whether there is room for a new entrant in the market.

2. Technical Feasibility Study

Technical feasibility studies evaluate whether the project can be developed and implemented from a technical standpoint. This assessment focuses on the project's design, technical requirements, and resource availability. Here's what it entails:

Project Design and Technical Requirements: Defining the technical specifications of the project, including hardware, software, and any specialized equipment. This phase outlines the technical aspects required for project execution.
Technology Assessment: Evaluating the chosen technology's suitability for the project and assessing its scalability and compatibility with existing systems.
Resource Evaluation: Assessing the availability of essential resources such as personnel, materials, and suppliers to ensure the project's technical requirements can be met.
Risk Analysis: Identifying potential technical risks, challenges, and obstacles that may arise during project development. Developing risk mitigation strategies is a critical part of technical feasibility.

3. Financial Feasibility Study

Financial feasibility studies aim to determine whether the project is financially viable and sustainable in the long run. This type of study involves estimating costs, projecting revenue, and conducting financial analyses. Key components include:

Cost Estimation: Calculating both initial and ongoing costs associated with the project, including capital expenditures, operational expenses, and contingency funds.
Revenue Projections: Forecasting the income the project is expected to generate, considering sales, pricing strategies, market demand, and potential revenue streams.
Investment Analysis: Evaluating the return on investment (ROI), payback period, and potential risks associated with financing the project.
Financial Viability Assessment: Analyzing the project's profitability, cash flow, and financial stability to ensure it can meet its financial obligations and sustain operations.

4. Operational Feasibility Study

Operational feasibility studies assess whether the project can be effectively implemented within the organization's existing operational framework. This study considers processes, resource planning, scalability, and operational risks. Key elements include:

Process and Workflow Assessment: Analyzing how the project integrates with current processes and workflows, identifying potential bottlenecks, and optimizing operations.
Resource Planning: Determining the human, physical, and technological resources required for successful project execution and identifying resource gaps.
Scalability Evaluation: Assessing the project's ability to adapt and expand to meet changing demands and growth opportunities, including capacity planning and growth strategies.
Operational Risks Analysis: Identifying potential operational challenges and developing strategies to mitigate them, ensuring smooth project implementation.

Each type of feasibility study serves a specific purpose in evaluating different facets of your project, collectively providing a comprehensive assessment of its viability and potential for success.

How to Prepare for a Feasibility Study?

Before you dive into the nitty-gritty details of conducting a feasibility study, it's essential to prepare thoroughly. Proper preparation will set the stage for a successful and insightful study. In this section, we'll explore the main steps involved in preparing for a feasibility study.

1. Identify the Project or Idea

Identifying and defining your project or business idea is the foundational step in the feasibility study process. This initial phase is critical because it helps you clarify your objectives and set the direction for the study.

Problem Identification: Start by pinpointing the problem or need your project addresses. What pain point does it solve for your target audience?
Project Definition: Clearly define your project or business idea. What are its core components, features, or offerings?
Goals and Objectives: Establish specific goals and objectives for your project. What do you aim to achieve in the short and long term?
Alignment with Vision: Ensure your project aligns with your overall vision and mission. How does it fit into your larger strategic plan?

Remember, the more precisely you can articulate your project or idea at this stage, the easier it will be to conduct a focused and effective feasibility study.

2. Assemble a Feasibility Study Team

Once you've defined your project, the next step is to assemble a competent and diverse feasibility study team. Your team's expertise will play a crucial role in conducting a thorough assessment of your project's viability.

Identify Key Roles: Determine the essential roles required for your feasibility study. These typically include experts in areas such as market research, finance, technology, and operations.
Select Team Members: Choose team members with the relevant skills and experience to fulfill these roles effectively. Look for individuals who have successfully conducted feasibility studies in the past.
Collaboration and Communication: Foster a collaborative environment within your team. Effective communication is essential to ensure everyone is aligned on objectives and timelines.
Project Manager: Designate a project manager responsible for coordinating the study, tracking progress, and meeting deadlines.
External Consultants: In some cases, you may need to engage external consultants or specialists with niche expertise to provide valuable insights.

Having the right people on your team will help you collect accurate data, analyze findings comprehensively, and make well-informed decisions based on the study's outcomes.

3. Set Clear Objectives and Scope

Before you begin the feasibility study, it's crucial to establish clear and well-defined objectives. These objectives will guide your research and analysis efforts throughout the study.

Steps to Set Clear Objectives and Scope:

Objective Clarity: Define the specific goals you aim to achieve through the feasibility study. What questions do you want to answer, and what decisions will the study inform?
Scope Definition: Determine the boundaries of your study. What aspects of the project will be included, and what will be excluded? Clarify any limitations.
Resource Allocation: Assess the resources needed for the study, including time, budget, and personnel. Ensure that you allocate resources appropriately based on the scope and objectives.
Timeline: Establish a realistic timeline for the feasibility study. Identify key milestones and deadlines for completing different phases of the study.

Clear objectives and a well-defined scope will help you stay focused and avoid scope creep during the study. They also provide a basis for measuring the study's success against its intended outcomes.

4. Gather Initial Information

Before you delve into extensive research and data collection, start by gathering any existing information and documents related to your project or industry. This initial step will help you understand the current landscape and identify gaps in your knowledge.

Document Review: Review any existing project documentation, market research reports, business plans, or relevant industry studies.
Competitor Analysis: Gather information about your competitors, including their products, pricing, market share, and strategies.
Regulatory and Compliance Documents: If applicable, collect information on industry regulations, permits, licenses, and compliance requirements.
Market Trends: Stay informed about current market trends, consumer preferences, and emerging technologies that may impact your project.
Stakeholder Interviews: Consider conducting initial interviews with key stakeholders, including potential customers, suppliers, and industry experts, to gather insights and feedback.

By starting with a strong foundation of existing knowledge, you'll be better prepared to identify gaps that require further investigation during the feasibility study. This proactive approach ensures that your study is comprehensive and well-informed from the outset.

How to Conduct a Market Feasibility Study?

The market feasibility study is a crucial component of your overall feasibility analysis. It focuses on assessing the potential demand for your product or service, understanding your target audience, analyzing your competition, and evaluating supply and demand dynamics within your chosen market.

Market Research and Analysis

Market research is the foundation of your market feasibility study. It involves gathering and analyzing data to gain insights into market trends, customer preferences, and the overall business landscape.

Data Collection: Utilize various methods such as surveys, interviews, questionnaires, and secondary research to collect data about the market. This data may include market size, growth rates, and historical trends.
Market Segmentation: Divide the market into segments based on factors such as demographics, psychographics , geography, and behavior. This segmentation helps you identify specific target markets .
Customer Needs Analysis: Understand the needs, preferences, and pain points of potential customers . Determine how your product or service can address these needs effectively.
Market Trends: Stay updated on current market trends, emerging technologies, and industry innovations that could impact your project.
SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to identify internal and external factors that may affect your market entry strategy.

In today's dynamic market landscape, gathering precise data for your market feasibility study is paramount. Appinio offers a versatile platform that enables you to swiftly collect valuable market insights from a diverse audience.

With Appinio, you can employ surveys, questionnaires, and in-depth analyses to refine your understanding of market trends, customer preferences, and competition.

Enhance your market research and gain a competitive edge by booking a demo with us today!

Book a Demo

Target Audience Identification

Knowing your target audience is essential for tailoring your product or service to meet their specific needs and preferences.

Demographic Analysis: Define the age, gender, income level, education, and other demographic characteristics of your ideal customers.
Psychographic Profiling: Understand the psychographics of your target audience, including their lifestyle, values, interests, and buying behavior.
Market Segmentation: Refine your target audience by segmenting it further based on shared characteristics and behaviors.
Needs and Pain Points: Identify your target audience's unique needs, challenges, and pain points that your product or service can address.
Competitor's Customers: Analyze the customer base of your competitors to identify potential opportunities for capturing market share.

Competitive Analysis

Competitive analysis helps you understand the strengths and weaknesses of your competitors, positioning your project strategically within the market.

Competitor Identification: Identify direct and indirect competitors within your industry or market niche.
Competitive Advantage: Determine the unique selling points (USPs) that set your project apart from competitors. What value can you offer that others cannot?
SWOT Analysis for Competitors: Conduct a SWOT analysis for each competitor to assess their strengths, weaknesses, opportunities, and threats.
Market Share Assessment: Analyze each competitor's market share and market penetration strategies.
Pricing Strategies: Investigate the pricing strategies employed by competitors and consider how your pricing strategy will compare.

Leveraging the power of data collection and analysis is essential in gaining a competitive edge. With Appinio , you can efficiently gather critical insights about your competitors, their strengths, and weaknesses. Seamlessly integrate these findings into your market feasibility study, empowering your project with a strategic advantage.

Demand and Supply Assessment

Understanding supply and demand dynamics is crucial for gauging market sustainability and potential challenges.

Market Demand Analysis: Estimate the current and future demand for your product or service. Consider factors like seasonality and trends.
Supply Evaluation: Assess the availability of resources, suppliers, and distribution channels required to meet the expected demand.
Market Saturation: Determine whether the market is saturated with similar offerings and how this might affect your project.
Demand Forecasting: Use historical data and market trends to make informed projections about future demand.
Scalability: Consider the scalability of your project to meet increased demand or potential fluctuations.

A comprehensive market feasibility study will give you valuable insights into your potential customer base, market dynamics, and competitive landscape. This information will be pivotal in shaping your project's direction and strategy.

How to Conduct a Technical Feasibility Study?

The technical feasibility study assesses the practicality of implementing your project from a technical standpoint. It involves evaluating the project's design, technical requirements, technological feasibility, resource availability, and risk analysis. Let's delve into each aspect in more detail.

1. Project Design and Technical Requirements

The project design and technical requirements are the foundation of your technical feasibility study. This phase involves defining the technical specifications and infrastructure needed to execute your project successfully.

Technical Specifications: Clearly define the technical specifications of your project, including hardware, software, and any specialized equipment.
Infrastructure Planning: Determine the physical infrastructure requirements, such as facilities, utilities, and transportation logistics.
Development Workflow: Outline the workflow and processes required to design, develop, and implement the project.
Prototyping: Consider creating prototypes or proof-of-concept models to test and validate the technical aspects of your project.

2. Technology Assessment

A critical aspect of the technical feasibility study is assessing the technology required for your project and ensuring it aligns with your goals.

Technology Suitability: Evaluate the suitability of the chosen technology for your project. Is it the right fit, or are there better alternatives?
Scalability and Compatibility: Assess whether the chosen technology can scale as your project grows and whether it is compatible with existing systems or software.
Security Measures: Consider cybersecurity and data protection measures to safeguard sensitive information.
Technical Expertise: Ensure your team or external partners possess the technical expertise to implement and maintain the technology.

3. Resource Evaluation

Resource evaluation involves assessing the availability of the essential resources required to execute your project successfully. These resources include personnel, materials, and suppliers.

Human Resources: Evaluate whether you have access to skilled personnel or if additional hiring or training is necessary.
Material Resources: Identify the materials and supplies needed for your project and assess their availability and costs.
Supplier Relationships: Establish relationships with reliable suppliers and consistently assess their ability to meet your resource requirements.

4. Risk Analysis

Risk analysis is a critical component of the technical feasibility study, as it helps you anticipate and mitigate potential technical challenges and setbacks.

Identify Risks: Identify potential technical risks, such as hardware or software failures, technical skill gaps, or unforeseen technical obstacles.
Risk Mitigation Strategies: Develop strategies to mitigate identified risks, including contingency plans and resource allocation for risk management.
Cost Estimation for Risk Mitigation: Assess the potential costs associated with managing technical risks and incorporate them into your project budget.

By conducting a thorough technical feasibility study, you can ensure that your project is technically viable and well-prepared to overcome technical challenges. This assessment will also guide decision-making regarding technology choices, resource allocation, and risk management strategies.

How to Conduct a Financial Feasibility Study?

The financial feasibility study is a critical aspect of your overall feasibility analysis. It focuses on assessing the financial viability of your project by estimating costs, projecting revenue, conducting investment analysis, and evaluating the overall financial health of your project. Let's delve into each aspect in more detail.

1. Cost Estimation

Cost estimation is the process of calculating the expenses associated with planning, developing, and implementing your project. This involves identifying both initial and ongoing costs.

Initial Costs: Calculate the upfront expenses required to initiate the project, including capital expenditures, equipment purchases, and any development costs.
Operational Costs: Estimate the ongoing operating expenses, such as salaries, utilities, rent, marketing, and maintenance.
Contingency Funds: Allocate funds for unexpected expenses or contingencies to account for unforeseen challenges.
Depreciation: Consider the depreciation of assets over time, as it impacts your financial statements.

2. Revenue Projections

Revenue projections involve forecasting the income your project is expected to generate over a specific period. Accurate revenue projections are crucial for assessing the project's financial viability.

Sales Forecasts: Estimate your product or service sales based on market demand, pricing strategies, and potential growth.
Pricing Strategy: Determine your pricing strategy, considering factors like competition, market conditions, and customer willingness to pay.
Market Penetration: Analyze how quickly you can capture market share and increase sales over time.
Seasonal Variations: Account for any seasonal fluctuations in revenue that may impact your cash flow.

3. Investment Analysis

Investment analysis involves evaluating the potential return on investment (ROI) and assessing the attractiveness of your project to potential investors or stakeholders.

Return on Investment (ROI): Calculate the expected ROI by comparing the project's net gains against the initial investment.
Payback Period: Determine how long it will take for the project to generate sufficient revenue to cover its initial costs.
Risk Assessment: Consider the level of risk associated with the project and whether it aligns with investors' risk tolerance.
Sensitivity Analysis: Perform sensitivity analysis to understand how changes in key variables, such as sales or costs, affect the investment's profitability.

4. Financial Viability Assessment

A financial viability assessment evaluates the project's ability to sustain itself financially in the long term. It considers factors such as profitability, cash flow, and financial stability.

Profitability Analysis: Assess whether the project is expected to generate profits over its lifespan.
Cash Flow Management: Analyze the project's cash flow to ensure it can cover operating expenses, debt payments, and other financial obligations.
Break-Even Analysis: Determine the point at which the project's revenue covers all costs, resulting in neither profit nor loss.
Financial Ratios: Calculate key financial ratios, such as debt-to-equity ratio and return on equity, to evaluate the project's financial health.

By conducting a comprehensive financial feasibility study, you can gain a clear understanding of the project's financial prospects and make informed decisions regarding its viability and potential for success.

How to Conduct an Operational Feasibility Study?

The operational feasibility study assesses whether your project can be implemented effectively within your organization's operational framework. It involves evaluating processes, resource planning, scalability, and analyzing potential operational risks.

1. Process and Workflow Assessment

The process and workflow assessment examines how the project integrates with existing processes and workflows within your organization.

Process Mapping: Map out current processes and workflows to identify areas of integration and potential bottlenecks.
Workflow Efficiency: Assess the efficiency and effectiveness of existing workflows and identify opportunities for improvement.
Change Management: Consider the project's impact on employees and plan for change management strategies to ensure a smooth transition.

2. Resource Planning

Resource planning involves determining the human, physical, and technological resources needed to execute the project successfully.

Human Resources: Assess the availability of skilled personnel and consider whether additional hiring or training is necessary.
Physical Resources: Identify the physical infrastructure, equipment, and materials required for the project.
Technology and Tools: Ensure that the necessary technology and tools are available and up to date to support project implementation.

3. Scalability Evaluation

Scalability evaluation assesses whether the project can adapt and expand to meet changing demands and growth opportunities.

Scalability Factors: Identify factors impacting scalability, such as market growth, customer demand, and technological advancements.
Capacity Planning: Plan for the scalability of resources, including personnel, infrastructure, and technology.
Growth Strategies: Develop strategies for scaling the project, such as geographic expansion, product diversification, or increasing production capacity.

4. Operational Risk Analysis

Operational risk analysis involves identifying potential operational challenges and developing mitigation strategies.

Risk Identification: Identify operational risks that could disrupt project implementation or ongoing operations.
Risk Mitigation: Develop risk mitigation plans and contingency strategies to address potential challenges.
Testing and Simulation: Consider conducting simulations or testing to evaluate how the project performs under various operational scenarios.
Monitoring and Adaptation: Implement monitoring and feedback mechanisms to detect and address operational issues as they arise.

Conducting a thorough operational feasibility study ensures that your project aligns with your organization's capabilities, processes, and resources. This assessment will help you plan for a successful implementation and minimize operational disruptions.

How to Write a Feasibility Study?

The feasibility study report is the culmination of your feasibility analysis. It provides a structured and comprehensive document outlining your study's findings, conclusions, and recommendations. Let's explore the key components of the feasibility study report.

1. Structure and Components

The structure of your feasibility study report should be well-organized and easy to navigate. It typically includes the following components:

Executive Summary: A concise summary of the study's key findings, conclusions, and recommendations.
Introduction: An overview of the project, the objectives of the study, and a brief outline of what the report covers.
Methodology: A description of the research methods , data sources, and analytical techniques used in the study.
Market Feasibility Study: Detailed information on market research, target audience, competitive analysis, and demand-supply assessment.
Technical Feasibility Study: Insights into project design, technical requirements, technology assessment, resource evaluation, and risk analysis.
Financial Feasibility Study: Comprehensive information on cost estimation, revenue projections, investment analysis, and financial viability assessment.
Operational Feasibility Study: Details on process and workflow assessment, resource planning, scalability evaluation, and operational risks analysis.
Conclusion: A summary of key findings and conclusions drawn from the study.

Recommendations: Clear and actionable recommendations based on the study's findings.

2. Write the Feasibility Study Report

When writing the feasibility study report, it's essential to maintain clarity, conciseness, and objectivity. Use clear language and provide sufficient detail to support your conclusions and recommendations.

Be Objective: Present findings and conclusions impartially, based on data and analysis.
Use Visuals: Incorporate charts, graphs, and tables to illustrate key points and make the report more accessible.
Cite Sources: Properly cite all data sources and references used in the study.
Include Appendices: Attach any supplementary information, data, or documents in appendices for reference.

3. Present Findings and Recommendations

When presenting your findings and recommendations, consider your target audience. Tailor your presentation to the needs and interests of stakeholders, whether they are investors, executives, or decision-makers.

Highlight Key Takeaways: Summarize the most critical findings and recommendations upfront.
Use Visual Aids: Create a visually engaging presentation with slides, charts, and infographics.
Address Questions: Be prepared to answer questions and provide additional context during the presentation.
Provide Supporting Data: Back up your findings and recommendations with data from the feasibility study.

4. Review and Validation

Before finalizing the feasibility study report, conducting a thorough review and validation process is crucial. This ensures the accuracy and credibility of the report.

Peer Review: Have colleagues or subject matter experts review the report for accuracy and completeness.
Data Validation: Double-check data sources and calculations to ensure they are accurate.
Cross-Functional Review: Involve team members from different disciplines to provide diverse perspectives.
Stakeholder Input: Seek input from key stakeholders to validate findings and recommendations.

By following a structured approach to creating your feasibility study report, you can effectively communicate the results of your analysis, support informed decision-making, and increase the likelihood of project success.

Feasibility Study Examples

Let's dive into some real-world examples to truly grasp the concept and application of feasibility studies. These examples will illustrate how various types of projects and businesses undergo the feasibility assessment process to ensure their viability and success.

Example 1: Local Restaurant

Imagine you're passionate about opening a new restaurant in a bustling urban area. Before investing significant capital, you'd want to conduct a thorough feasibility study. Here's how it might unfold:

Market Feasibility: You research the local dining scene, identify target demographics, and assess the demand for your cuisine. Market surveys reveal potential competitors, dining preferences, and pricing expectations.
Technical Feasibility: You design the restaurant layout, plan the kitchen setup, and assess the technical requirements for equipment and facilities. You consider factors like kitchen efficiency, safety regulations, and adherence to health codes.
Financial Feasibility: You estimate the initial costs for leasing or purchasing a space, kitchen equipment, staff hiring, and marketing. Revenue projections are based on expected foot traffic, menu pricing, and seasonal variations.
Operational Feasibility: You create kitchen and service operations workflow diagrams, considering staff roles and responsibilities. Resource planning includes hiring chefs, waitstaff, and kitchen personnel. Scalability is evaluated for potential expansion or franchising.
Risk Analysis: Potential operational risks are identified, such as food safety concerns, labor shortages, or location-specific challenges. Risk mitigation strategies involve staff training, quality control measures, and contingency plans for unexpected events.

Example 2: Software Development Project

Now, let's explore the feasibility study process for a software development project, such as building a mobile app:

Market Feasibility: You analyze the mobile app market, identify your target audience, and assess the demand for a solution in a specific niche. You gather user feedback and conduct competitor analysis to understand the competitive landscape.
Technical Feasibility: You define the technical requirements for the app, considering platforms (iOS, Android), development tools, and potential integrations with third-party services. You evaluate the feasibility of implementing specific features.
Financial Feasibility: You estimate the development costs, including hiring developers, designers, and ongoing maintenance expenses. Revenue projections are based on app pricing, potential in-app purchases, and advertising revenue.
Operational Feasibility: You map out the development workflow, detailing the phases from concept to deployment. Resource planning includes hiring developers with the necessary skills, setting up development environments, and establishing a testing framework.
Risk Analysis: Potential risks like scope creep, technical challenges, or market saturation are assessed. Mitigation strategies involve setting clear project milestones, conducting thorough testing, and having contingency plans for technical glitches.

These examples demonstrate the versatility of feasibility studies across diverse projects. Whatever type of venture or endeavor you want to embark on, a well-structured feasibility study guides you toward informed decisions and increased project success.

In conclusion, conducting a feasibility study is a crucial step in your project's journey. It helps you assess the viability and potential risks, providing a solid foundation for informed decision-making. Remember, a well-executed feasibility study not only enables you to identify challenges but also uncovers opportunities that can lead to your project's success.

By thoroughly examining market trends, technical requirements, financial aspects, and operational considerations, you are better prepared to embark on your project confidently. With this guide, you've gained the knowledge and tools needed to navigate the intricate terrain of feasibility studies.

How to Conduct a Feasibility Study in Minutes?

Speed and precision are paramount for feasibility studies, and Appinio delivers just that. As a real-time market research platform, Appinio empowers you to seamlessly conduct your market research in a matter of minutes, putting actionable insights at your fingertips.

Here's why Appinio stands out as the go-to tool for feasibility studies:

Rapid Insights: Appinio's intuitive platform ensures that anyone, regardless of their research background, can effortlessly navigate and conduct research, saving valuable time and resources.
Lightning-Fast Responses: With an average field time of under 23 minutes for 1,000 respondents, Appinio ensures that you get the answers you need when you need them, making it ideal for time-sensitive feasibility studies.
Global Reach: Appinio's extensive reach spans over 90 countries, allowing you to define the perfect target group from a pool of 1,200+ characteristics and gather insights from diverse markets.

Get free access to the platform!

Join the loop 💌

Be the first to hear about new updates, product news, and data insights. We'll send it all straight to your inbox.

Get the latest market research news straight to your inbox! 💌

Wait, there's more

09.04.2024 | 29min read

What is a Confidence Interval and How to Calculate It?

05.04.2024 | 27min read

What is Field Research? Definition, Types, Methods, Examples

03.04.2024 | 29min read

What is Cluster Sampling? Definition, Methods, Examples

Difference Between Feasibility Study and Business Plan

Many people don’t know that there is a difference between a business plan and a feasibility study.

Frequently, clients reach out seeking a feasibility study, but after an in-depth conversation, it becomes evident that what they truly require is a comprehensive business plan. In this article, I’ll clarify this common misconception and provide a clearer understanding of the distinction.

So let us start with the first one, which will give us a brief overview of what a business plan and a feasibility study is all about

Table of Contents

What is the Difference Between Feasibility Study and Business Plan

Business plans and feasibility studies are vital business tools for analysis and for making business decisions. However, a feasibility study is not the same thing as a business plan because a feasibility study gives a conclusion or recommendation that would be completed prior to developing the business plan.

Feasibility Study

A feasibility study is done to determine whether a proposed business has a high enough probability of success that it should be undertaken. A feasibility study is carried out first in order to know if the business will be viable before venturing into it. Before a company can invest in a business or launch a new product, a feasibility study is done to determine if there will be a return on investment.

According to Rochester.edu, a feasibility study can be defined as “a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes, and assessing the range of costs and benefits associated with several alternatives for solving a problem.”

It can also be used to make decisions about whether to launch a new product for an existing company or enter a new market. Feasibility studies are sometimes termed cost-benefit analyses because the projected costs of the project are compared to the expected benefits to yield a conclusion.

For instance, imagine that you have been an instructor in a company that provides IT training and certifications in the USA and you want to come to Africa to impact the knowledge by starting a new business and even adding training like IT Certification Practice Test Dumps , but you are faced with the big question, “Would my business fly?”. Is there a market for my services?

In this situation, the best decision is to conduct a feasibility study to determine if those IT programmes have an established market. If they are a company that needs interns trained by your company.

Business plans are guidelines for carrying out actions that the company’s management has already determined to be feasible. So a business plan is like a roadmap for your business that outlines goals and details how you plan to achieve those goals.

Business plans map out the direction a company intends to take to reach its revenue and profit objectives in the future. They are a compilation of numerous decisions made by the management team about how the company should be run. A business plan is done after a feasibility study has been carried out. If the recommendation of the feasibility study is negative, then there will be no need to venture into the business. Then, if the feasibility study says the business will be feasible, a business plan is developed, which will then map out plans and strategies to adopt in order to achieve business goals, including revenue generation, market penetration, customer acquisition, marketing, and sales strategies, among others.

A business plan can be done for internal or external use. The internal use of a business plan is for the management and staff of the company, while the external use is for shareholders, investors, bank loans, and customers.

Main Purpose of a Business Plan and a Feasibility Study

In short, a feasibility study gives a conclusion or recommendations, while a business plan gives a roadmap.

The feasibility study helps determine whether an idea or business is a viable option. Therefore, a feasibility study is done first before investing a dime in the business. Before considering approaching investors, you must have done your research to know that the business is feasible before taking any decision. That is why a feasibility study gives a conclusion or recommendations.

A business plan will map out the roadmap and strategies to achieve your business goal because a business plan assumes a business is viable and presents the steps necessary to achieve success. If you are looking forward to approaching an investor or trying to get a bank loan, what you need is a business plan. Some investors might request for a feasibility study before the business plan

Outline of a Business Plan and a Feasibility Study

Below is the outline of a business plan:

Executive Summary
Business/Company Overview
Products/Services
Market/Industry Analysis
Operation Plan
Management/Personal plan
Sales Forcast
Financial Plan
Appendices and Exhibits

A good outline for a feasibility study includes:

Introduction
Product or Service
Market Environment
Competition
Business Model
Market and Sales Strategy
Production Operations Requirements
Management and Personnel Requirements
Regulations and Environmental Issues
Critical Risk Factors
Financial Predictions Including: Balance Sheet, Income Statement, Cash Flow Statement, Break Even Analysis, and Capital Requirements

Challenges of a Business Plan and a Feasibility Study

Looking at both the business plan and feasibility study, you will discover that both attempt to predict future outcomes using assumptions about what is likely to happen in the business and the business environment, which include government policies, the market, competition, and risk, among others. Any poorly done feasibility study can lead to a costly mistake. If a business is not viable and the recommendation says it will be viable, the end result will not be palatable. This will affect the business plan and the operation of the business adversely.

A poorly done business plan—poor projections, strategies, analysis, business model, and environmental factors, among others—can easily be adjusted in the course of running the business, but the same cannot be said of a feasibility study because, in a feasibility study, an incorrect conclusion can be costly—it could mean launching a venture that has very little chance of surviving or approving a project that wastes the company’s human and financial resources.

If you need a standard business plan, check out the list of Business Plan we have

Do you want us to develop a unique business plan for you, Check out our business plan service page

I would love to hear your thoughts. Kindly use the comment box below to leave your comment.

Thank you for reading this post, don't forget to subscribe!

About The Author

5 thoughts on “Difference Between Feasibility Study and Business Plan”

This is beautiful. Thank you for sharing this informative article by shading more light on the two.

I’ve been planning to hire a feasibility analysis service, so I’ll have an idea, whether my candle business is feasible. I agree with you that this must be done first before approaching the investors. It is also true that an incorrect conclusion in the feasibility study could be costly.

It’s inevitable! It helps you to make the right decision.

My business plan is ready but I will like you to review it

Alright, You can reach out to me on 07031542324 or email me at [email protected]

What Is a Feasibility Study for Small Business?

Published July 17, 2020

Published Jul 17, 2020

WRITTEN BY: Blake Stockton

This article is part of a larger series on Starting a Business .

A feasibility study for small business is an in-depth research and financial analysis that recommends if one should pursue a business idea or product. The study contains estimates of items such as income, costs, obstacles, and technical challenges. Typically, a feasibility study for a small business costs a minimum of $5,000. However, they can cost up to $100,000 for businesses that have a multimillion dollar startup budget.

Throughout this article, we discuss what a feasibility study is and how it differs from a business plan, so that you can decide whether or not you really need one for your business.

How the Feasibility Study Works

Usually, businesses conduct feasibility studies to determine if their idea or product is worth pursuing. It’s one of the more complicated and costly ways to test a business idea.

Depending on the idea’s complexity and scope, a study can take weeks or months to prepare. With the help of templates or programs, business owners can conduct feasibility studies on their own. However, because of the in-depth research and complicated financial projections, they often hire an expert to create the study.

Feasibility studies do not determine the final decision but present all the evidence and make a strong recommendation on whether or not it’s best to move forward. The entrepreneur, stakeholders, and/or other authorities decide whether to go ahead with the business idea or product, using the study as a guide.

Who Should Get a Feasibility Study?

Small business entrepreneurs use a feasibility study to prevent the costly mistake of launching an unsuccessful business, product, or project. You can use a study to help make strategic decisions, such as determining whether you should:

Start a new business
Open a new store or factory
Change product lineup or approach
Expand to a new area or market
Acquire another company
Make a significant investment in new technology
Enter an already crowded or competitive market segment
Invest personal capital into a project

Feasibility Study vs Business Plan

A feasibility study often comes before the business plan, because the information and data uncovered in the study are included in the business plan. Plus, if the feasibility gives a recommendation not to move forward, you may want to rethink your business idea or product altogether before creating a plan.

What Should Be in a Feasibility Study?

Depending on the project or business, you will use each of the aspects below to a certain degree. The feasibility study’s organization may vary depending on its focus—you may have a section for each of these topics:

Executive Summary: This summarizes the project and business. The ultimate conclusions are outlined here. It should be about a page long.
Demand: A marketing analysis determines the need for your product or business in the industry you want to sell. Even if you have a brick-and-mortar business, you should consider online aspects as well.
Technical issues: What tool, hardware, or software do you need to create your business or product? Will you create the tech, buy it, or rent it? This section also includes the facilities, including layout, shelving, offices, and manufacturing space.
Logistics issues: This piece outlines vendors, pricing schedules, exclusive agreements, and franchised product contracts. It may include getting supplies and delivering finished products or working online elements like an ecommerce site. Location issues can be placed here.
Legal concerns: Do you need permits? Are there regulations or prohibitions to consider? What about environmental, historical, or legacy issues to negotiate?
Marketing strategy: This section will define the target market as specific as possible: How you will meet their needs, and how you will target them?
Required staffing: How many employees will you need? What are their qualifications? What is the typical salary in your area? You can include a sample organizational chart along with a corresponding discussion of who among your current employees may change jobs to fill new positions.
Scheduling: This section includes milestones for financials as well as physical projects and a timeline for completion.
Financials: In addition to anticipated expenses and potential profits, this section will include an opening day balance sheet that lists total assets and liabilities on your business’s first day. This financial data gives you an indication of your return on investment (ROI).
ROI: If you don’t see a return on investment, it makes no sense to start or expand your business. A feasibility study estimates when you’ll earn profits and what or how much they may be.
Analysis: You will see discussions answering questions like: Does it seem realistic? Are the sources strong? Are there outlying data points to consider? Also, analyze potential risks: What are the worst-case scenarios, and how likely are they?
Recommendations: This gives a go or no-go recommendation and breaks down specific suggestions based on the main elements. If the project is not feasible, it may offer alternatives.

Cost of a Feasibility Study

A feasibility study for small business takes an average of 60 to 90 days to complete and may cost anywhere from $5,000 to $10,000. As a general rule of thumb, a feasibility study will cost 1% of the business’s total cost to open or a product’s cost to build. So if you’re requesting a feasibility study for a complicated business with millions in startup costs, be prepared to spend more than $10,000.

The cost is also determined by the study’s depth, the tools needed to conduct it—survey software, focus groups, and lawyers—and the scope of the project. For example, a study to determine if a business should bring manufacturing back to the US from overseas will cost more than a study on whether to open a restaurant.

Here are costs for various feasibility study projects:

Who Provides Feasibility Studies?

You may find it challenging to find a firm that only produces feasibility studies. Often, a market research firm will provide feasibility studies in addition to other services. For example, Drive Research in Syracuse, New York, offers a host of market research services, including feasibility studies .

There are also business plan writing companies that specialize in feasibility studies. Wise Business Plans provides a study with in-depth market research and industry analysis.

If you’d like to connect one-on-one and choose your own independent market researcher for a feasibility study, you could look to the freelancer platform Upwork . You can find several market research experts and analysts that may be interested in tackling your specific project. Upwork is an excellent platform to find market researchers, because you can review a freelancer’s past work to see if they’d be a good fit.

Tips and Best Practices to Follow When Purchasing a Feasibility Study

Conduct a preliminary analysis first: Before paying thousands of dollars for a feasibility study, do a minor check to ensure there are no insurmountable technical, legal, or financial obstacles to the business idea or product.
Involve stakeholders: Before, during, and after the study, keep people relevant to the business in the loop. Get their input, suggestions, and feedback.
Review research: Review the feasibility study data and see if you come to a similar conclusion as the research analyst. You may also want to pay for a second expert’s opinion on the final determination.
Assess your current company or situation: Before making any decision on a business idea or product, consider your own strengths, weaknesses, and financial situation in the final decision to move forward or not.

Frequently Asked Questions (FAQs) for a Feasibility Study

Is it better to hire out for a feasibility study.

Most likely, yes. Feasibility studies typically contain in-depth expert data analysis and financial projections. Hiring out the work will ensure you get an objective evaluation of the project and its potential downfalls and successes. It’s human nature to bias our own ideas, and a third party can avoid.

How much should I invest in a feasibility study?

For a simpler study on a business idea or product, expect to pay anywhere from $5,000 to $10,000. The general rule of thumb is that a feasibility study will cost 1% of the expected project budget or business’s cost to build.

Should feasibility studies include solutions as well as pointing out obstacles?

Yes, the more information the study provides, the better it will aid in the decision-making process. Feasibility studies should provide an objective determination because of the time and expense involved.

Can my feasibility study become my business plan?

Many times, yes. With some changes in focus and scope, a feasibility study can be re-imagined into a business plan. However, be sure it meets the purpose, which outlines the strategic and tactical steps needed to make the business work.

Bottom Line

Feasibility studies can cost thousands of dollars, but they can save you millions you may lose from making a poor business decision. They examine a new business or product idea by researching the endeavor’s technological, financial, and operational aspects. The study analyzes the data and offers a recommendation on if you should move ahead with your project or idea and how to maximize its success.

About the Author

Find Blake On LinkedIn Twitter

Blake Stockton

Blake Stockton is a staff writer at Fit Small Business focusing on how to start brick-and-mortar and online businesses. He is a frequent guest lecturer at several undergraduate business and MBA classes at University of North Florida . Prior to joining Fit Small Business, Blake consulted with over 700 small biz owners and assisted with starting and growing their businesses.

Join Fit Small Business

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Select the newsletters you’re interested in below.

Business Plan Vs. Feasibility Study

Small Business
Business Planning & Strategy
Business Plans
')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

How to Write a Business Plan for Starting a Medical Spa Practice

What are the key elements of a business plan, what are the components of a global business plan.

How to Write a Business Plan for a Food Truck Business
What Is a Dehydrated Business Plan?

If you're considering starting a business, you'll need both a feasibility study and a business plan. Both documents should be written after conducting thorough research and critical thinking, and conveyed in formats that others can understand. That way, you can show both to people whose opinions you value as well as to those you hope will invest in your idea. Before you begin, it's important to define and distinguish between a feasibility study and a business plan.

Defining Both Terms

A feasibility study is done before starting a business, when you have the idea for the business but you want to make sure it's feasible, or advisable. Put another way, is it worth your time, effort and money to create this business? Several different professionals may contribute to the study, such as an accountant, entrepreneurs who have opened successful businesses, and Realtors who advise on the worth of the location and pricing, comparing similar businesses in the area.

A business plan details how the business will operate. It assumes your feasibility study has been completed and it was determined the idea is viable. Now you're going to spell out your financial and other objectives, the methods you plan to use to achieve them, and your proposed organizational structure.

Consider the Similarities

Comparing the similarities between feasibility study and business plan is important because both are used in different ways to help you create a profitable business. Similarities between the two documents include:

Timing : Both are initially done before the business opens, and can be conducted again later to determine the next steps on future ideas.
Input : Both include input from several individuals or departments that have different skills.
Format : Both include other documents that are pulled together in order to compose the report.
Components : Some of the issues analyzed are similar, including examining the target market, market conditions and financial costs.
Usage : Both help the organization's management make decisions, and can also be shown to potential investors.

Understand the Differences

It's equally important to understand the difference between feasibility study and business plan . They are not the same, and one cannot substitute for the other. Differences include:

Purpose : Feasibility studies determine whether to go ahead with the business or with another idea, whereas business plans are designed after the decision to go ahead has already been made.
Methodology : Essentially, feasibility studies are research projects, whereas business plans are projections for the future.
Risks : Feasibility studies determine the risks associated with the idea, whereas business plans explain how management will deal with the risks so that it will make a profit.
Cost : Feasibility studies can require hiring outside professionals with expertise who will conduct thorough studies, whereas business plans are written by employees of the business, as part of their jobs.

Conducting a Feasibility Study

If you're doing the feasibility study yourself, conduct a complete competitive analysis considering the following:

Product demand: Is there a need or want for your product or service? Is the need already being met, or is there room for another product?
Market conditions : Who would buy your product and where are they? Can you serve their location? Is the market saturated, or is there room/need for more products?
Pricing: What do current users pay for similar products? What do you need to charge so that you will be profitable, and will consumers pay your price?
Risks : What are the risks associated with your idea?
Probability of Success : Can you reasonably overcome the risks to become profitable?

Writing a Business Plan

Writing a business plan may seem daunting, but if you take it step-by-step, it will come to fruition. The Small Business Administration advises that business plans should include the following:

Executive Summary : Include your mission statement, products and or services, some brief information about your leadership team and key employees, as well as the location of your business. To attract investors, add current financial information and projections for growth.
Company description : Detail the problems your business solves; its target market; its competitive advantages, compared with the competition, and anything else that makes your company superior to others: i.e., product awards or recognition, big increases in sales, and so on.
Market analysis : Perform competitive research of what other businesses are doing; their strengths and weaknesses, and how and why your business will be competitive and successful in the market.
Organization or management: State the legal status of your business, such as a corporation or partnership, and include an organizational chart showing management levels, departments, and so on.
Service or product line : State what you will sell or provide and describe the benefits of each. Explain any research done, and any patents filed, and so on.
Marketing and sales : Explain in detail your marketing strategy and how sales will be made.
Funding request : If necessary, detail the amount of funding you’ll need for the next five years - specifically, what you’ll do with the funds, and the terms you’re asking for.
Financial projections : This is the business’s financial outlook for the next five years. Include current financial statements, if the business is in operation.
Appendix : This includes supporting documents or requested materials, such as resumes, product photos, letters of reference, patents, licenses and so on.
MBN: Market Business News: What is a Feasibility Study? Definition and Examples
Cleverism: How to Conduct a Feasibility Study the Right Way
Entrepreneur: 7 Steps to a Perfectly Written Business Plan
SBA: Write Your Business Plan

Barbara Bean-Mellinger is a freelance writer who lives in the Washington, D.C. area. She has written on business topics for bizfluent.com, afkinsider.com, Harbor Style Magazine, the Charlotte Sun and more. Barbara holds a B.S. from the University of Pittsburgh and has won numerous awards in B2B and B2C marketing.

How to write a comprehensive business plan, how to design an effective business plan, what is the role of a business plan in getting venture capital funding, how to outline a feasibility study, what factors make the difference between a good business plan & an excellent one, 6 types of business plans, examples of business feasibility reports, how to create a business plan as an entrepreneur, how to write a business description, most popular.

1 How to Write a Comprehensive Business Plan
2 How to Design an Effective Business Plan
3 What Is the Role of a Business Plan in Getting Venture Capital Funding?
4 How to Outline a Feasibility Study

Contact sales

Start free trial

What Is a Feasibility Study? How to Conduct One for Your Project

What is a feasibility study, what’s the importance of a feasibility study, what is included in a feasibility study report, types of feasibility study.

7 Steps To Do a Feasibility Study

Feasibility Study Examples

Why is a feasibility study so important in project management? For one, the feasibility study or feasibility analysis is the foundation upon which your project plan resides. That’s because the feasibility analysis determines the viability of your project. Now that you know the importance, read on to learn what you need to know about feasibility studies.

A feasibility study is simply an assessment of the practicality of a proposed project plan or method. This is done by analyzing technical, economic, legal, operational and time feasibility factors. Just as the name implies, you’re asking, “Is this feasible?” For example, do you have or can you create the technology that accomplishes what you propose? Do you have the people, tools and resources necessary? And, will the project get you the ROI you expect?

Get your free

Feasibility study template

Use this free Feasibility Study Template for Word to manage your projects better.

A project feasibility study should be done during the project management life cycle after the business case has been completed. So, that’s the “what” and the “when” but how about the “why?” Why is it important to conduct a feasibility study?

An effective feasibility study points a project in the right direction by helping decision-makers have a holistic view of the potential benefits, disadvantages, barriers and constraints that could affect its outcome. The main purpose of a feasibility study is to determine whether the project can be not only viable but also beneficial from a technical, financial, legal and market standpoint.

The findings of your project feasibility study are compiled in a feasibility report that usually includes the following elements.

Executive summary
Description of product/service
Technology considerations
Product/service marketplace
Marketing strategy
Organization/staffing
Financial projections
Findings and recommendations

Free Feasibility Study Template

Use this free feasibility study template for Word to begin your own feasibility study. It has all the fundamental sections for you to get started, and it’s flexible enough to adapt to your specific needs. Download yours today.

There are many things to consider when determining project feasibility, and there are different types of feasibility studies you might conduct to assess your project from different perspectives.

Pre-Feasibility Study

A pre-feasibility study, as its name suggests, it’s a process that’s undertaken before the feasibility study. It involves decision-makers and subject matter experts who will prioritize different project ideas or approaches to quickly determine whether the project has fundamental technical, financial, operational or any other evident flaws. If the project proposal is sound, a proper feasibility study will follow.

Technical Feasibility Study

A technical feasibility study consists in determining if your organization has the technical resources and expertise to meet the project requirements . A technical study focuses on assessing whether your organization has the necessary capabilities that are needed to execute a project, such as the production capacity, facility needs, raw materials, supply chain and other inputs. In addition to these production inputs, you should also consider other factors such as regulatory compliance requirements or standards for your products or services.

Economic Feasibility Study

Also called financial feasibility study, this type of study allows you to determine whether a project is financially feasible. Economic feasibility studies require the following steps:

Before you can start your project, you’ll need to determine the seed capital, working capital and any other capital requirements, such as contingency capital. To do this, you’ll need to estimate what types of resources will be needed for the execution of your project, such as raw materials, equipment and labor.
Once you’ve determined what project resources are needed, you should use a cost breakdown structure to identify all your project costs.
Identify potential sources of funding such as loans or investments from angel investors or venture capitalists.
Estimate the expected revenue, profit margin and return on investment of your project by conducting a cost-benefit analysis , or by using business forecasting techniques such as linear programming to estimate different future outcomes under different levels of production, demand and sales.
Estimate your project’s break-even point.
Conduct a financial benchmark analysis with industrial averages and specific competitors in your industry.
Use pro forma cash flow statements, financial statements, balance sheets and other financial projection documents.

Legal Feasibility Study

Your project must meet legal requirements including laws and regulations that apply to all activities and deliverables in your project scope . In addition, think about the most favorable legal structure for your organization and its investors. Each business legal structure has advantages and disadvantages when it comes to liability for business owners, such as limited liability companies (LLCs) or corporations, which reduce the liability for each business partner.

Market Feasibility Study

A market feasibility study determines whether your project has the potential to succeed in the market. To do so, you’ll need to analyze the following factors:

Industry overview: Assess your industry, such as year-over-year growth, identify key direct and indirect competitors, availability of supplies and any other trends that might affect the future of the industry and your project.
SWOT analysis: A SWOT analysis allows organizations to determine how competitive an organization can be by examining its strengths, weaknesses and the opportunities and threats of the market. Strengths are the operational capabilities or competitive advantages that allow an organization to outperform its competitors such as lower costs, faster production or intellectual property. Weaknesses are areas where your business might be outperformed by competitors. Opportunities are external, such as an underserved market, an increased demand for your products or favorable economic conditions. Threats are also external factors that might affect your ability to do well in the market such as new competitors, substitute products and new technologies.
Market research: The main purpose of market research is to determine whether it’s possible for your organization to enter the market or if there are barriers to entry or constraints that might affect your ability to compete. Consider variables such as pricing, your unique value proposition, customer demand, new technologies, market trends and any other factors that affect how your business will serve your customers. Use market research techniques to identify your target market, create buyer personas, assess the competitiveness of your niche and gauge customer demand, among other things.

7 Steps to Do a Feasibility Study

If you’re ready to do your own feasibility study, follow these 7 steps. You can use this free feasibility study template to help you get started.

1. Conduct a Preliminary Analysis

Begin by outlining your project plan . You should focus on an unserved need, a market where the demand is greater than the supply and whether the product or service has a distinct advantage. Then, determine if the feasibility factors are too high to clear (i.e. too expensive, unable to effectively market, etc.).

2. Prepare a Projected Income Statement

This step requires working backward. Start with what you expect the income from the project to be and then what project funding is needed to achieve that goal. This is the foundation of an income statement. Factor in what services are required and how much they’ll cost and any adjustments to revenues, such as reimbursements, etc.

Related: Free Project Management Templates

3. Conduct a Market Survey or Perform Market Research

This step is key to the success of your feasibility study, so make your market analysis as thorough as possible. It’s so important that if your organization doesn’t have the resources to do a proper one, then it is advantageous to hire an outside firm to do so.

Market research will give you the clearest picture of the revenues and return on investment you can realistically expect from the project. Some things to consider are the geographic influence on the market, demographics, analyzing competitors, the value of the market and what your share will be and if the market is open to expansion (that is, in response to your offer).

4. Plan Business Organization and Operations

Once the groundwork of the previous steps has been laid, it’s time to set up the organization and operations of the planned project to meet its technical, operational, economic and legal feasibility factors. This isn’t a superficial, broad-stroke endeavor. It should be thorough and include start-up costs, fixed investments and operating costs.

These costs address things such as equipment, merchandising methods, real estate, personnel, supply availability, overhead, etc.

5. Prepare an Opening Day Balance Sheet

This includes an estimate of the assets and liabilities, one that should be as accurate as possible. To do this, create a list that includes items, sources, costs and available financing. Liabilities to consider are such things as leasing or purchasing land, buildings and equipment, financing for assets and accounts receivables.

6. Review and Analyze All Data

All of these steps are important, but the review and analysis are especially important to ensure that everything is as it should be and that nothing requires changing or tweaking. Take a moment to look over your work one last time.

Reexamine your previous steps, such as the income statement, and compare them with your expenses and liabilities. Is it still realistic? This is also the time to think about risk and come up with any contingency plans .

7. Make a Go/No-Go Decision

You’re now at the point to make a decision about whether or not the project is feasible. That sounds simple, but all the previous steps lead to this decision-making moment. A couple of other things to consider before making that binary choice are whether the commitment is worth the time, effort and money and whether it aligns with the organization’s strategic goals and long-term aspirations.

Here are some simple feasibility study examples so you have a better idea of what a feasibility study is used for in different industries.

Construction Feasibility Study

For this construction feasibility study example, let’s imagine a large construction company that’s interested in starting a new project in the near future to generate profits.

Pre-Feasibility Study: The first step is to conduct a preliminary feasibility study. It can be as simple as a meeting where decision-makers will prioritize projects and discuss different project ideas to determine which poses a bigger financial benefit for the organization.
Technical Feasibility Study: Now it’s time to estimate what resources are needed to execute the construction project, such as raw materials, equipment and labor. If there’s work that can’t be executed by the company with its current resources, a subcontractor will be hired to fill the gap.
Economic Feasibility Study: Once the construction project management team has established what materials, equipment and labor are needed, they can estimate costs. Cost estimators use information from past projects, construction drawings and documents such as a bill of quantities to come up with an accurate cost estimate. Then, based on this estimate, a profit margin and financial forecasts will be analyzed to determine if there’s economic feasibility.
Legal Feasibility Study: Now the company needs to identify all potential regulations, building codes and laws that might affect the project. They’ll need to ask for approval from the local government so that they can begin the construction project .
Market Feasibility Study: Market feasibility will be determined depending on the nature of the project. For this feasibility example, let’s assume a residential construction project will be built. To gauge market potential, they’ll need to analyze variables such as the average income of the households in the city, crime rate, population density and any trends in state migration.

Manufacturing Feasibility Study

Another industry that uses feasibility studies is manufacturing. It’s a test run of the steps in the manufacturing production cycle to ensure the process is designed properly. Let’s take a look at what a manufacturing feasibility study example would look like.

Feasibility Study: The first step is to look at various ideas and decide which is the best one to pursue. You don’t want to get started and have to stop. That’s a waste of time, money and effort. Look at what you intend to manufacture, does it fill an unserved need, is the market able to support competition and can you manufacture a quality product on time and within your budget?
Financial Feasibility Study: Find out if your estimated income from the sale of this product is going to cover your costs, both direct and indirect costs. Work backward from the income you expect to make and the expenses you’ll spend for labor, materials and production to determine if the manufacturing of this product is financially feasible.
Market Feasibility Study: You’ve already determined that there’s a need that’s not being served, but now it’s time to dig deeper to get realistic projections of revenue. You’ll want to define your target demographic, analyze the competitive landscape, determine the total market volume and what your market share will be and estimate what market expansion opportunities there are.
Technical Feasibility Study: This is where you’ll explore the production , such as what resources you’ll need to produce your product. These findings will inform your financial feasibility study as well as labor, material, equipment, etc., costs have to be within your budget. You’ll also figure out the processes you’ll use to produce and deliver your product to the market, including warehousing and retail distribution.

There could be other feasibility studies you’ll have to make depending on the product and the market, but these are the essential ones that all manufacturers have to look at before they can make an educated decision as to whether to go forward or abandon the idea.

Best Practices for a Feasibility Study

Use project management software like ProjectManager to organize your data and work efficiently and effectively
Use templates or any data and technology that gives you leverage
Involve the appropriate stakeholders to get their feedback
Use market research to further your data collection
Do your homework and ask questions to make sure your data is solid

If your project is feasible, then the real work begins. ProjectManager helps you plan more efficiently. Our online Gantt chart organizes tasks, sets deadlines, adds priority and links dependent tasks to avoid delays. But unlike other Gantt software, we calculate the critical path for you and set a baseline to measure project variance once you move into the execution phase.

ProjectManager's Gantt chart is ideal for tracking feasibility studies

Watch a Video on Feasibility Studies

There are many steps and aspects to a project feasibility study. If you want yours to be accurate and forecast correctly whether your project is doable, then you need to have a clear understanding of all its moving parts.

Jennifer Bridges, PMP, is an expert on all aspects of project management and leads this free training video to help you get a firm handle on the subject.

Here’s a screenshot for your reference!

feasibility study definition and template

Pro tip: When completing a feasibility study, it’s always good to have a contingency plan that you test to make sure it’s a viable alternative.

ProjectManager Improves Your Feasibility Study

A feasibility study is a project, so get yourself a project management software that can help you execute it. ProjectManager is an award-winning software that can help you manage your feasibility study through every phase.

Once you have a plan for your feasibility study, upload that task list to our software and all your work is populated in our online Gantt chart. Now you can assign tasks to team members, add costs, create timelines, collect all the market research and attach notes at the task level. This gives people a plan to work off of, and a collaborative platform to collect ideas and comments.

ProjectManager's Gantt chart, ideal to track your feasibility study

If you decide to implement the project, you already have it started in our software, which can now help you monitor and report on its progress. Try it for yourself with this free 30-day trial.

Transcription

Today we’re talking about How to Conduct A Feasibility Study, but first of all, I want to start with clarifying what a feasibility study is.

Feasibility Analysis Definition

Basically, it’s an assessment of the practicality of a proposed plan or method. Basically, we’ll want to want to know, is this feasible. Some of the questions that may generate this or we can hear people asking are, “Do we have or can we create the technology to do this? Do we have the people resource who can produce this and will we get our ROI, our Return On Investment?”

When to Do a Feasibility Study

So when do we do the feasibility study? So it’s done during a project lifecycle and it’s done after the business case because the business case outlines what we’re proposing. Is it a product or service that we’re proposing?

So why do we do this? The reason we do this is that we need to determine the factors that will make the business opportunity a success.

How to Conduct a Feasibility Study

Well, let’s talk about a few steps that we do in order to conduct the feasibility study.

Well, first of all, we conduct a preliminary analysis of what all’s involved in the business case and what we’re analyzing and what we’re trying to determine is feasible.

Then we prepare a projected income statement. We need to know what are the income streams, how are we gonna make money on this. Where’s the revenue coming from? We also need to conduct a market survey.

We need to know, is this a demand? Is there a market for this? Are customers willing to use this product or use this service?

The fourth one is to plan the business organization and operations. What is the structure, what kind of resources do we need? What kind of staffing requirements do we have?

We also want to prepare an opening day balance sheet. What are the…how again, what are the expenses, what’s the revenue and to ensure that being able to determine if we’re gonna make our ROI.

So we want to review and analyze all of the data that we have and with that, we’re going to determine, we’re going to make a go, no-go decision. Meaning, are we going to do this project or this business opportunity or not.

Well, here are some of the best practices to use during your feasibility study.

One is to use templates, tools and surveys that exist today. The great news is, data is becoming more and more prevalent. There are all kinds of technologies. There are groups that they do nothing but research. Things that we can leverage today.

We want to involve the appropriate stakeholders to ensure that input is being considered from the different people involved.

We also want to use again the market research to ensure we’re bringing in good, reliable data.

Do your homework, meaning act like is if this is your project, if it’s your money. So do your homework and do it well and make sure you give credible data.

What Is a Feasibility Report?

So ultimately in the end what we’re doing is, we’re producing and we’re providing a feasibility report. So in that report, think of this is like a template.

So what you’re gonna do is give it an executive summary of the business opportunity that you’re evaluating and the description of the product or the service.

You want to look at different technology considerations. Is it technology that you’re going to use? Are you going to build the technology?

What kind of product and service marketplace and being able again, to identify the specific market you’re going to be targeting? Also, what is the marketing strategy you’re going to use to target the marketplace?

And also what’s the organizational structure? What are the staffing requirements? What people do you need to deliver the product or service and even support it?

So also we want to know the schedule to be able to have the milestones to ensure that as we’re building things, that as we’re spending money that we’re beginning to bring in income to pay and knowing when we’re going to start recuperating some of the funding. Again, which also ties into the financial projections.

Ultimately in this report, you’re going to provide the findings and the recommendations.

Again, we’ll probably talk about technology. Are you going to build it? Are you going to buy it? What are the marketing strategies for the specific marketplace organization? You may have some recommendations for whether you’re going to insource the staff, maybe you are going to outsource some staff and what that looks like and also financial recommendation.

If you’ve been looking for an all-in-one tool that can help with your feasibility study, consider ProjectManager. We offer five project views and countless features that make it seamless to plan projects, organize tasks and stay connected with your team. See what our software can do for you by taking this free 30-day trial.

Click here to browse ProjectManager's free templates

Deliver your projects on time and under budget

Start planning your projects.

Feasibility study: definition, benefits and differences with a Business Plan

Last updated on 09 January, 2024

Welcome to our series of articles on feasibility studies.

What is a Feasibility study?
What is a bankable feasibility study?
How to do a feasibility study?
Feasibility study consultants: expertise needed
Cost of a feasibility study
Car Park Feasibility Study: Key considerations
Hotel Feasibility Study: Methodology
Feasibility study of solar PV projects: Key components
Feasibility study of real estate developments
Feasibility study of marina projects

In this post, we will touch on all the basic concepts behind a feasibility study. definition, benefits of doing it, main parts, differences with a business plan, etc. Aninver Development Partners is a consulting firm specializing in Feasibility studies for projects such as hotels, infrastructure, energy, technology, etc. We assist clients globally.

Definition of Feasibility study

A feasibility study is a comprehensive and systematic analysis and evaluation of a proposed project, business venture, or initiative to determine its practicality, viability, and potential for success. It involves a thorough examination of various factors, such as financial, technical, operational, legal, environmental, and market-related aspects, to assess whether the project is feasible and worth pursuing.

The primary goal of a feasibility study is to provide stakeholders with essential information and insights to make informed decisions about whether to proceed with the project, abandon it, or make necessary adjustments to enhance its chances of success.

Differences between a feasibility study and a business plan

Feasibility studies and business plans are both important tools in the development and evaluation of a business or project, but they serve different purposes and are created at different stages of the process. Here are the key differences between a feasibility study and a business plan:

Differences in Purpose

Feasibility Study : Feasibility studies are conducted in the early stages of project development or business planning. Their primary purpose is to determine whether a proposed project or business idea is viable and should be pursued. Feasibility studies focus on assessing the potential risks, challenges, and opportunities associated with the project.
Business Plan : Business plans are created after the feasibility study, once it has been established that the project is viable. The purpose of a business plan is to outline in detail how the business will be structured, operated, and grown. It serves as a roadmap for the future of the business and is often used to secure financing.

Differences in Content

Feasibility Study : A feasibility study includes an analysis of the project's overall concept, market research, technical requirements, financial projections, potential risks, and recommendations. It provides a high-level overview of the project's feasibility.
Business Plan : A business plan is a detailed document that outlines the company's mission, vision, goals, organizational structure, market strategy, marketing and sales plans, financial forecasts, and operational details. It delves into the specifics of how the business will operate.

Differences in Timing

Feasibility Study : Feasibility studies are conducted at the outset of a project or business idea to assess its potential feasibility. They help stakeholders decide whether to move forward with the project.
Business Plan : Business plans are typically created after the feasibility study, once it has been determined that the project is feasible and worth pursuing. They provide a roadmap for the actual operation and growth of the business.

Differences in Audience

Feasibility Study : The primary audience for a feasibility study includes project stakeholders, investors, and decision-makers who need to determine whether the project should proceed.
Business Plan : Business plans are used to communicate the business's vision and strategy to a wider audience, including potential investors, lenders, partners, and employees.

In summary, a feasibility study is a preliminary assessment of the potential success of a project, while a business plan is a detailed document that outlines how a business will be run. The feasibility study helps determine whether a business plan should be developed, while the business plan provides a comprehensive strategy for the ongoing operation and growth of the business.

Feasibility study vs Pre-feasibility study

Let's explore now the key differences between a prefeasibility study and a feasibility study:

Purpose and Scope : A prefeasibility study and a feasibility study both play critical roles in project evaluation, but they serve distinct purposes. A prefeasibility study is typically the initial phase in the assessment process. Its primary purpose is to provide a preliminary evaluation of a project's potential viability. It helps stakeholders decide whether it's worth investing further resources into a detailed feasibility study. In contrast, a feasibility study goes into much greater depth and detail, assessing the project's practicality from technical, financial, operational, and market perspectives. It aims to provide a comprehensive understanding of whether the project is feasible and worth pursuing.

Level of Detail : One of the key distinctions between the two studies is the level of detail they encompass. A prefeasibility study offers a broad overview of the project, examining high-level factors like market demand, technical requirements, and rough cost estimates. It provides enough information to make an initial go/no-go decision. In contrast, a feasibility study drills down into finer details, providing precise financial projections, risk assessments, engineering specifics, and a comprehensive business plan. It seeks to leave no stone unturned in assessing the project's practicality.

Resource and Cost Implications : A prefeasibility study is generally less resource-intensive and cheaper to conduct compared to a full feasibility study. It acts as a cost-effective filter to eliminate unviable projects early in the evaluation process. Once a project passes the prefeasibility stage and proceeds to a feasibility study, it implies a commitment of more resources, time, and finances due to the comprehensive nature of the study. A prefeasibility study helps in efficient resource allocation by focusing only on the most promising projects, while a feasibility study is a more intensive process suitable for projects that have demonstrated a higher likelihood of success during the prefeasibility assessment.

Benefits of doing a Feasibility study

Conducting a feasibility study offers numerous benefits, making it an essential step in the decision-making process for any project, business venture, or initiative. Here are the key advantages of performing a feasibility study:

Risk Assessment : Feasibility studies help identify potential risks and challenges associated with a project. By thoroughly examining technical, financial, operational, and market-related aspects, stakeholders can pinpoint areas of concern and develop strategies to mitigate or manage these risks effectively.
Decision-Making : Feasibility studies provide critical information to decision-makers, helping them make informed choices about whether to proceed with a project. These studies offer a basis for go/no-go decisions, preventing resources from being wasted on unviable endeavors.
Resource Allocation : By assessing the feasibility of a project, stakeholders can allocate resources more efficiently. They can avoid overinvesting in projects with limited potential and allocate resources to those with a higher likelihood of success.
Financial Planning : Feasibility studies include detailed financial projections and cost estimates. This financial information is invaluable for securing funding from investors, lenders, or other sources. It helps in creating a solid business case.
Market Insight : Market feasibility studies provide insights into customer demand, market trends, and competitive dynamics. This information is crucial for designing products or services that meet market needs and for formulating effective marketing strategies.
Optimized Design : Technical feasibility studies ensure that a project's technical requirements and design are viable. They help in avoiding costly design flaws and ensuring that the project can be implemented as planned.
Legal and Regulatory Compliance : Feasibility studies can identify potential legal and regulatory challenges. This allows for the development of strategies to navigate and comply with relevant laws and regulations, reducing the risk of legal complications later on.
Enhanced Project Viability : Feasibility studies may lead to adjustments and improvements in the project plan, making it more viable and likely to succeed. This iterative process ensures that potential issues are addressed proactively.
Investor and Stakeholder Confidence : When potential investors and stakeholders see that a comprehensive feasibility study has been conducted, they are more likely to have confidence in the project. This can make it easier to secure funding and support.
Long-Term Planning : Feasibility studies not only assess the viability of a project in the short term but also help in long-term planning. They provide insights into the sustainability and growth potential of a business or initiative.

In summary, conducting a feasibility study is a valuable step in the project development process. It provides a structured approach to assess the viability of a project, manage risks, make informed decisions, secure financing, and set the stage for a successful venture. The benefits of a feasibility study extend beyond initial decision-making and contribute to the overall success and sustainability of a project or business.

Components of a Feasibility study

A feasibility study typically consists of several key components that provide a comprehensive evaluation of a project, business venture, or initiative. These components help stakeholders make informed decisions about the feasibility and viability of the proposed endeavor. The main components of a feasibility study include:

Executive Summary

The executive summary provides a concise overview of the entire feasibility study. It includes a brief description of the project, its objectives, and the key findings and recommendations. It serves as a quick reference for decision-makers.

Project Description

This section outlines the project's goals, objectives, and scope. It defines the problem the project aims to solve or the opportunity it seeks to capture. It also specifies the project's location and the stakeholders involved.

Market Analysis

Market analysis assesses the demand for the product or service within the target market. It includes information on target customers, market size, growth potential, competition, and market trends. This component helps determine whether there is a viable market for the project.

Technical Feasibility

Technical feasibility examines the project's technical requirements. It assesses whether the necessary technology, equipment, and resources are available or can be developed. It also identifies any technical challenges that may need to be addressed.

Operational Feasibility

Operational feasibility evaluates how the project will be implemented and operated. It includes details about project timelines, workflow, personnel requirements, and operational processes. This section helps in understanding how the project will function on a day-to-day basis.

Financial Feasibility

Financial feasibility is a critical component that includes detailed financial projections and analysis. It covers aspects such as startup costs, revenue forecasts, expense estimates, cash flow analysis, and return on investment calculations. It assesses the project's financial viability and potential profitability.

Legal and Regulatory Analysis

This section examines the legal and regulatory requirements that may impact the project. It identifies permits, licenses, or compliance issues that need to be addressed. Understanding and addressing legal and regulatory aspects are essential to avoid potential obstacles.

Risk Assessment

The risk assessment component identifies potential risks and challenges associated with the project. It evaluates the probability and impact of these risks and suggests risk mitigation strategies. Risks can be financial, technical, operational, market-related, or related to external factors.

Recommendations and Conclusion

In this section, the feasibility study summarizes the findings and presents clear recommendations based on the assessment. It often includes a conclusion that states whether the project is feasible and worth pursuing or whether it should be abandoned or modified.

The appendices contain additional supporting documentation and data, such as detailed financial spreadsheets, market research reports, technical specifications, and any other relevant information. These provide a more in-depth reference for stakeholders.

The main components of a feasibility study collectively provide a thorough assessment of a project's viability from multiple angles, ensuring that decision-makers have a comprehensive understanding of the project's potential, risks, and benefits.

Examples of Feasibility studies

Let's look now into some examples of feasibility studies for different types of projects and initiatives:

Real Estate Development

A real estate developer is considering constructing a residential apartment complex in a growing urban area. A feasibility study would assess factors like market demand, location, zoning regulations, construction costs, potential revenue from rentals, and the financial viability of the project.

Manufacturing Plant Expansion

A manufacturing company is considering expanding its operations by building a new production facility. The feasibility study would evaluate factors such as available land, infrastructure, equipment requirements, workforce, environmental impact, and the financial feasibility of the expansion.

Small Business Startup

An entrepreneur is exploring the feasibility of starting a small restaurant in a specific location. The feasibility study would examine the local market, including competitors, target customer demographics, startup costs, regulatory requirements, and financial projections for the first few years of operation.

Renewable Energy Project

A renewable energy company is considering the construction of a solar power plant. The feasibility study would assess the site's solar exposure, grid connection feasibility, equipment costs, revenue from energy sales, environmental impact, and the return on investment over the project's lifespan.

Healthcare Facility Expansion

A hospital is contemplating an expansion to meet growing patient demands. The feasibility study would include an assessment of the required medical equipment, staffing needs, regulatory compliance, funding sources, and the anticipated patient load.

Tourism Development

A tourist destination is considering the construction of a new hotel and recreational facilities. The feasibility study would evaluate the area's appeal to tourists, competition with existing businesses, construction costs, expected occupancy rates, and potential revenue from tourism.

Nonprofit Program Expansion

A nonprofit organization is looking to expand its community outreach programs. The feasibility study would assess the need for the programs, funding sources, volunteer availability, operational costs, and the impact of the expansion on the organization's mission and goals.

E-commerce Startup

An entrepreneur plans to launch an e-commerce website. The feasibility study would examine market demand, website development costs, marketing strategies, competitive analysis, and projected sales revenue and profitability.

These examples illustrate how feasibility studies are conducted in various fields and industries to evaluate the potential success and viability of a wide range of projects and initiatives. The specific components and focus areas of a feasibility study will vary depending on the nature of the project and the questions it seeks to address.

7 steps to conduct a Feasibility study

Now, let's think we are going to write a feasibility study. Let's check what steps we need to take to develop the final report.

Conduct a Preliminary Analysis

Begin by conducting an initial evaluation of the project's objectives and scope. This step involves defining the problem the project intends to address or the opportunity it aims to seize. Ensure that the project's goals are clear and well-defined.

Analyze Technical Specifications

Examine the technical aspects of the project in detail. Evaluate the availability of required technology, equipment, and resources. Verify that the project's technical requirements can be met effectively.

Conduct a Commercial Analysis

Perform a comprehensive analysis of the project's commercial aspects. This step involves assessing the market's demand for the product or service, analyzing market size, competition, customer needs, and market trends. Determine if there is a feasible market for the project.

Prepare a Projected Income Statement

Create a detailed projected income statement for the project. This includes estimating startup costs, revenue forecasts, expense projections, and cash flow analysis. Calculate the return on investment (ROI) to determine the project's financial viability, the Internal Rate of Return (IRR) of the investment and the Net Present Value (NPV) of future cash flows.

Prepare a Day-Zero Balance Sheet

Develop a balance sheet that represents the project's financial position at the outset (day zero). This financial snapshot should account for all assets, liabilities, and equity to provide a clear overview of the project's financial situation before it begins.

Analyze Different Alternatives for Feasibility

Explore various alternatives and scenarios for the project's feasibility. Assess different approaches, technologies, or business models to identify the most viable option. Consider the potential impact of these alternatives on the project's success. Make sensibilities to potentila risks.

Make a Go/No-Go Decision

Based on the findings and analysis conducted throughout the feasibility study, make a well-informed decision on whether to proceed with the project (a "Go" decision) or abandon it (a "No-Go" decision). Ensure that the decision aligns with the project's goals and aligns with the information presented in the study.

These steps provide a structured approach to conducting a feasibility study, ensuring that all relevant aspects of the project are thoroughly assessed and considered before making a decision on its viability.

In conclusion, a feasibility study is an indispensable tool for any project, business venture, or initiative. It serves as the critical bridge between a concept and a well-informed decision. By following a systematic process that includes a preliminary analysis, technical assessment, commercial evaluation, financial projections, and a careful consideration of alternatives, stakeholders can gain a comprehensive understanding of a project's viability.

The feasibility study's ability to assess market demand, technical feasibility, operational requirements, financial viability, and potential risks empowers decision-makers to make informed choices. Whether it's a real estate development, a new product launch, a manufacturing expansion, an IT system upgrade, or any other endeavor, a feasibility study helps in risk management, efficient resource allocation, and, ultimately, the successful realization of the project's goals.

It's important to remember that a well-conducted feasibility study not only serves the purpose of greenlighting a project but also provides a foundation for its long-term success. It gives stakeholders the confidence that the project is based on sound analysis and planning. In a world of complex challenges and opportunities, the feasibility study is a guiding compass for those seeking to turn innovative ideas into reality.

Make sure you hire the right consultants to deliver your feasibility study or business plan. Our firm, Aninver Development Partners, specializes in designing bankable feasibility studies to make sure projects continue to their following phase.

Send us a message on our contact page and we can discuss how we can help you.

Some of our experience conducting feasibility studies can be seen below:

Feasibility Study for a new marina in the island of San Andrés through PPP
Pre-feasibility study for construction of silo storages in Northern Ghana through PPP
Feasibility study of a real estate WAQF project in Cotonou (Benin)
Feasibility study and analysis of strategic alternatives of a touristic development in Natal
Feasibility study for creation of an Investment and Export Promotion Agency of Health services in Tunisia
Feasibility Study for car parks in Bishkek though PPP
Feasibility study of markets in Benin and Togo under PPP scheme
Feasibility Study for the establishment of a Large-Scale Cashew Processing Plant in Zambia
Public Private Partnership (PPPs) study in the Housing Sector
Review of Business Case for Manila Central Subway
First Mover PPP Prefeasibility Study
Review of the feasibility study of the PPP project Complejo El Brillante, in Cordoba (Spain)
Review of pre-feasibility study of a Health PPP project

Alvaro de la Maza is one the founding partners of Aninver Development Partners. Alvaro is a Civil Engineer, MS on Infrastructure Management and MBA by IESE Business School.Alvaro has extensive experience in Infrastructure and Public Private Partnerships. Alvaro has worked and led multiple consulting projects for clients such as the World Bank, the African Development Bank and other donors.Alvaro enjoys creating digital products and he has led the development of market intelligence platforms in d...

Most popular articles

Related insights

Join our newsletter.

11.3 Conducting a Feasibility Analysis

Learning objectives.

By the end of this section, you will be able to:

Describe the purpose of a feasibility analysis
Describe and develop the parts of a feasibility analysis
Understand how to apply feasibility outcomes to a new venture

As the name suggests, a feasibility analysis is designed to assess whether your entrepreneurial endeavor is, in fact, feasible or possible. By evaluating your management team, assessing the market for your concept, estimating financial viability, and identifying potential pitfalls, you can make an informed choice about the achievability of your entrepreneurial endeavor. A feasibility analysis is largely numbers driven and can be far more in depth than a business plan (discussed in The Business Plan ). It ultimately tests the viability of an idea, a project, or a new business. A feasibility study may become the basis for the business plan, which outlines the action steps necessary to take a proposal from ideation to realization. A feasibility study allows a business to address where and how it will operate, its competition, possible hurdles, and the funding needed to begin. The business plan then provides a framework that sets out a map for following through and executing on the entrepreneurial vision.

Organizational Feasibility Analysis

Organizational feasibility aims to assess the prowess of management and sufficiency of resources to bring a product or idea to market Figure 11.12 . The company should evaluate the ability of its management team on areas of interest and execution. Typical measures of management prowess include assessing the founders’ passion for the business idea along with industry expertise, educational background, and professional experience. Founders should be honest in their self-assessment of ranking these areas.

Resource sufficiency pertains to nonfinancial resources that the venture will need to move forward successfully and aims to assess whether an entrepreneur has a sufficient amount of such resources. The organization should critically rank its abilities in six to twelve types of such critical nonfinancial resources, such as availability of office space, quality of the labor pool, possibility of obtaining intellectual property protections (if applicable), willingness of high-quality employees to join the company, and likelihood of forming favorable strategic partnerships. If the analysis reveals that critical resources are lacking, the venture may not be possible as currently planned. 46

Financial Feasibility Analysis

A financial analysis seeks to project revenue and expenses (forecasts come later in the full business plan); project a financial narrative; and estimate project costs, valuations, and cash flow projections Figure 11.13 .

The financial analysis may typically include these items:

A twelve-month profit and loss projection
A three- or four-year profit-and-loss projection
A cash-flow projection
A projected balance sheet
A breakeven calculation

The financial analysis should estimate the sales or revenue that you expect the business to generate. A number of different formulas and methods are available for calculating sales estimates. You can use industry or association data to estimate the sales of your potential new business. You can search for similar businesses in similar locations to gauge how your business might perform compared with similar performances by competitors. One commonly used equation for a sales model multiplies the number of target customers by the average revenue per customer to establish a sales projection:

Another critical part of planning for new business owners is to understand the breakeven point , which is the level of operations that results in exactly enough revenue to cover costs (see Entrepreneurial Finance and Accounting for an in-depth discussion on calculating breakeven points and the breakdown of cost types). It yields neither a profit nor a loss. To calculate the breakeven point, you must first understand the two types of costs: fixed and variable. Fixed costs are expenses that do not vary based on the amount of sales. Rent is one example, but most of a business’s other costs operate in this manner as well. While some costs vary from month to month, costs are described as variable only if they will increase if the company sells even one more item. Costs such as insurance, wages, and office supplies are typically considered fixed costs. Variable costs fluctuate with the level of sales revenue and include items such as raw materials, purchases to be sold, and direct labor. With this information, you can calculate your breakeven point—the sales level at which your business has neither a profit nor a loss. 47 Projections should be more than just numbers: include an explanation of the underlying assumptions used to estimate the venture’s income and expenses.

Projected cash flow outlines preliminary expenses, operating expenses, and reserves—in essence, how much you need before starting your company. You want to determine when you expect to receive cash and when you have to write a check for expenses. Your cash flow is designed to show if your working capital is adequate. A balance sheet shows assets and liabilities, necessary for reporting and financial management. When liabilities are subtracted from assets, the remainder is owners’ equity. The financial concepts and statements introduced here are discussed fully in Entrepreneurial Finance and Accounting .

Market Feasibility Analysis

A market analysis enables you to define competitors and quantify target customers and/or users in the market within your chosen industry by analyzing the overall interest in the product or service within the industry by its target market Figure 11.14 . You can define a market in terms of size, structure, growth prospects, trends, and sales potential. This information allows you to better position your company in competing for market share. After you’ve determined the overall size of the market, you can define your target market, which leads to a total available market (TAM) , that is, the number of potential users within your business’s sphere of influence. This market can be segmented by geography, customer attributes, or product-oriented segments. From the TAM, you can further distill the portion of that target market that will be attracted to your business. This market segment is known as a serviceable available market (SAM) .

Projecting market share can be a subjective estimate, based not only on an analysis of the market but also on pricing, promotional, and distribution strategies. As is the case for revenue, you will have a number of different forecasts and tools available at your disposal. Other items you may include in a market analysis are a complete competitive review, historical market performance, changes to supply and demand, and projected growth in demand over time.

Are You Ready?

You’ve been hired by a leading hotel chain to determine the market and financial potential for the development of a mixed-use property that will include a full-service hotel in downtown Orlando, located at 425 East Central Boulevard, in Orlando, Florida. The specific address is important so you can pinpoint existing competitors and overall suitability of the site. Using the information given, conduct a market analysis that can be part of a larger feasibility study.

Work It Out

Location feasibility.

You’re considering opening a boutique clothing store in downtown Atlanta. You’ve read news reports about how downtown Atlanta and the city itself are growing and undergoing changes from previous decades. With new development taking place there, you’re not sure whether such a venture is viable. Outline what steps you would need to take to conduct a feasibility study to determine whether downtown Atlanta is the right location for your planned clothing store.

Applying Feasibility Outcomes

After conducting a feasibility analysis, you must determine whether to proceed with the venture. One technique that is commonly used in project management is known as a go-or-no-go decision . This tool allows a team to decide if criteria have been met to move forward on a project. Criteria on which to base a decision are established and tracked over time. You can develop criteria for each section of the feasibility analysis to determine whether to proceed and evaluate those criteria as either “go” or “no go,” using that assessment to make a final determination of the overall concept feasibility. Determine whether you are comfortable proceeding with the present management team, whether you can “go” forward with existing nonfinancial resources, whether the projected financial outlook is worth proceeding, and make a determination on the market and industry. If satisfied that enough “go” criteria are met, you would likely then proceed to developing your strategy in the form of a business plan.

What Can You Do?

Love beyond walls.

When Terence Lester saw a homeless man living behind an abandoned, dilapidated building, he asked the man if he could take him to a shelter. The man scoffed, replying that Lester should sleep in a shelter. So he did—and he saw the problem through the homeless man’s perspective. The shelter was crowded and smelly. You couldn’t get much sleep, because others would try to steal your meager belongings. The dilapidated building provided isolation away from others, but quiet and security in its own way that the shelter could not. This experience led Lester to voluntarily live as a homeless person for a few weeks. His journey led him to create Love Beyond Walls (www.lovebeyondwalls.org), an organization that aids the homeless, among other causes. Lester didn’t conduct a formal feasibility study, but he did so informally by walking in his intended customers’ shoes—literally. A feasibility study of homelessness in a particular area could yield surprising findings that might lead to social entrepreneurial pursuits.

What is a social cause you think could benefit from a formal feasibility study around a potential entrepreneurial solution?
46 Ulrich Kaiser. “A primer in Entrepreneurship – Chapter 3 Feasibility analysis” University of Zurich Institute for Strategy and Business Economics . n.d. https://docplayer.net/7775267-A-primer-in-entrepreneurship-chapter-3-feasibility-analysis.html
47 In a preliminary financial model and business plan, startup costs should be allocated, as they are intended for one-time investments in development; pre-launch costs and other necessary expenses will not carry over once the product/solution has launched.

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/entrepreneurship/pages/1-introduction

Authors: Michael Laverty, Chris Littel
Publisher/website: OpenStax
Book title: Entrepreneurship
Publication date: Jan 16, 2020
Location: Houston, Texas
Book URL: https://openstax.org/books/entrepreneurship/pages/1-introduction
Section URL: https://openstax.org/books/entrepreneurship/pages/11-3-conducting-a-feasibility-analysis

© Jan 4, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

BUS5 181: Introduction to Entrepreneurship

Introduction to Entrepreneurship
Company & Financial Information
Industry & Market Information
Country Information
Find an Entrepreneur
Business Plans & Feasibility Studies
General Search Strategies
Suggested Publications
Harvard Business School Recommended Books
Case Studies
Elevator Pitch
Porter's Five Forces

Resources for Business Plans

The library holds a wide variety of books and ebooks on how to write business plans and concept statements. Use OneSearch with keywords such as "business plan" or "concept statement" and your product, market, or industry of interest.

Business Plans

US Small Business Administration Information on how to start a business, where to find financial sources, how to succeed a business, how to write a business plan, and many more.
Entrepreneur.com Excellent examples on how to start a business. Click on the MENU icon on the upper left corner to see a list of links that are helpful for anyone who is interested in entrepreneurship, such as leadership, starting a business, marketing, franchise, business plans, business ideas, etc.
Inc. Magazine Inc. Magazine's comprehensive description of writing a successful business plan. It provides steps on how to build a business plan, section by section
Business Plans Plenty of resources on how to write winning business plans, elements of a business plan, links to actual samples.
Business guides from Shopify Shopify is a Canadian eCommerce company that provides examples of business guides for anyone who is interested in starting a company. Go to https://www.shopify.com/guides for details.

San Jose Public Resources on Business Planning

San Jose Public Library maintains a large, current collection of business resources, including books on business plans. To check out their materials, either online or in print, you will need an SJPL library card. Most SJSU students are eligible for this card -- please see SJPL's website to apply for free card or e-card. Once you have that, you can check out their vast business collection.

Get an SJPL Library Card To check out SJPL's materials you will need to have a library card.

Library Resources for Feasibility Studies

<< Previous: Find an Entrepreneur
Next: General Search Strategies >>
Last Updated: Feb 5, 2024 10:24 AM
URL: https://libguides.sjsu.edu/entrepreneurship

How to Write a Feasibility Study

Our team at Prospectus writes feasibility reports on a daily basis for a wide variety of companies offering an even wider array of products and services. Many ask us how to write a feasibility study and if it’s possible for one to do so without employing (or paying really) an outside party for assistance. The short answer is yes.

The first step in writing a feasibility study report is to identify the project or product at hand. Here are the 10 steps to on how to write a feasibility study. Please note that within each category below there are sub-categories – and not to discourage you – there are even sub-categories to those sub-categories!

Top 10 Steps to Writing a Feasibility Study Analysis Report

Step by Step Process to Write a Feasibility Study

Identify the project you wish to undertake and clearly explain it. Know exactly what you want to do and illustrate the business plan. Deviation is only a good idea if the current business model falls through or you must pivot due to a change in market conditions.
Ensure your market statistics and analysis is up to date. Double and triple check your market research numbers. Inaccurate numbers can doom a project and certainly hinder growth, contribute to the failure of not raising capital and much more.
Identify any legal hurdles that must be overcome. Regulatory issues, permitting, government licenses and more need to be ascertained from the onset. If for any reason you believe you cannot obtain a particular legal requirement then it may be best to move on from the project.
Financials. Know your numbers. From your development or budgetary requirements, to the proforma, income statements, cash flows and balance sheets, profit and loss and others. Know your numbers backwards and forwards.
Use of proceeds. The use of proceeds is somewhat tied to the financials, however this is a separate standalone document that shows where your capital will go, how it will be utilized, from purchasing equipment, to hiring to development, sales and marketing.
Risk Factors. Identify the risk of the business. List all reasonable and valid risks and even unforeseen risks. Not including adequate risk factors in a feasibility study can doom a business from obtaining financing and bring a company to the non-existent world. Risk factors should not be underestimated, and all resources should be utilized to ensure you have covered all notable risks to the business.
Exit Strategies. Include an analysis of your business’ potential exit strategies and how you plan on achieve such an exit. An exit strategy might include a strategic sale or an investor buy-out or even an initial public offering or IPO.
Scale the business. Any feasibility study should show how you plan on scaling the business and growing the products or service.
Profit Explanation. Explain how you will make a profit. Profit is also tied into the scaling of the business, the financials and the exit strategy. There really is no positive exit unless the company generates revenue and profit (of course this is not always the case for publicly listed companies that do not generate any profit yet are priced on future performance – but not all of us are that lucky).
Team. Last but not least the team aspect of the company should be emphasized in the feasibility report. A solid management team can go a long way with any business, especially if capital is needed to launch or grow the company. Surround yourself with an experienced group of people and make sure you emphasize their skills in the report.

While each of the noted steps above are somewhat broad, it is important to keep in mind that there are many variations of this model and subsets of categories within each group. But the above should give you an idea as to the importance of covering the basic fundamentals of any feasibility study.

Prospectus’ Feasibility Services

Prospectus.com’s team writes first class feasibility study reports . Indeed, hundreds of companies worldwide have utilized our feasibility services. Our staff of researchers, business plan and financial consultants and attorneys have written hundreds of feasibility study documents in more than 50 countries. We have written feasibility studies for a diverse range of industries and businesses, including real estate development, oil, gas and energy, product launching, scientific exploration and much more.

A feasibility study is conducted prior to a project’s undertaking. Principals of companies and their investors want to ensure that any given project they plan on developing is actually “feasible”, and preparing a study showing this feasibility is the main point of writing such a report (which of course will help save needed capital and time in the long run). A feasibility study includes such vital information and data as the funding needs to complete the project, the market opportunity, government regulations, risk factors, strength and weaknesses, the management team and the financials of the company. While a feasibility study somewhat sounds like a business plan, such reports tend to be many times longer with more details on the market and financials.

Prospectus.com’s team is respected for its keen insights into any given market, and our straight forward assessment regarding a projects viability. We work one-on-one with our clients to ensure that each project is specifically tailored to the company’s needs.

Various Types of Feasibility Study Reports and How to Writer Them

Prospectus.com’s team can assist with any of the noted feasibility studies below. Each separate study has its own features but there are more similarities among them than there are differences.

4 Main Feasibility Studies

Real Estate Feasibility – This is the most common feasibility study that we at Prospectus.com write. Real estate feasibility reports include such features as the land survey, building permits, zoning laws, impact on the surrounding environment and natural habits, traffic issues and general impact on businesses in the area as well as the overall market opportunity. Housing developments such as condos, single family homes and apartments, or larger projects such as hotels or buildings or sky scrapers often create real estate feasibility studies before land acquisition and development.
Comprehensive Feasibility – A comprehensive feasibility study is an all-inclusive report that takes into consideration some of the most rational business practices one should implement before undertaking any project. The comprehensive feasibility includes data on land acquisitions and real estate issues, economic and cultural impact on the greater surrounding areas, and more. Such comprehensive studies can be found in our business plan features (if a client wants a very long and detailed analysis). The comprehensive feasibility study is also referenced in the real estate feasibility study (see above) and together with the real estate report is the most popular feasibility study we offer.
Financial Economic Feasibility – An economic feasibility study is conducted when a company wants to know if the proposed amount of capital and financing is sufficient to complete a project successfully. While a business plan may have a section called the “CBA” or cost-benefit-analysis, in an economic feasibility study it will be greater in detail and have more statistics and numbers in the financials.
Marketing Feasibility – The marketing feasibility studies the market impact and penetration, such as the demographics, target market, product testing and more. Prior to launching a project into the market, whether in a local, regional, national or global environment, a viable study on the market is imperative.

Additional Feasibility Studies

Our firm has also written and assisted with the following additional (not as popular) feasibility reports, including:

Technical Feasibility – If a company has the technological know how and resources to achieve its goals.

Schedule Feasibility -Is there enough time and resources to complete the project on time?
Cultural Feasibility -Local and greater cultural and societal impact.
Legal and Ethical Feasibility – Are there ethical and legal implications of a project and if so what are they?
Resource Feasibility -What resources are needed and is that enough to complete the project successfully?
Operational Feasibility – can your firm solve difficulties and maximize potential opportunities during the development.

Why Write a Financial or Market Feasibility Study?

Writing a professional feasibility study is good business practice, especially for companies that are planning on raising many millions of dollars and want to have the knowledge readily available to make an educated decision about a projects viability. By creating such a feasibility study, for instance, for a real estate project, you will be able to navigate potential pitfalls during development and save needed capital in the process, as well as possibly discover new opportunities in the market.

Our team at Prospectus.com has worldwide experience in writing feasibility studies. Here is a partial list of our process. We have used a real estate project as an example. Numerous features are missing but the general idea can be conveyed as follows:

Initial analysis of your project
Recommendation on next course of action
Undertake the project

Information assessment and collection

Initial analysis of the proposed development area, including the initial demographics
Conduct land or site review
Proposed construction and development costs

Market analysis

Demographic analysis of proposed area
Neighborhood analysis
Demographic comparison
Municipal incentives
National market overview
Analysis of similar project or developments
Regional market analysis
Competitive market analysis
Competitive advantages of project or location
Disadvantages of project or location
Projected overall market
Pricing analysis
Purchases or occupancy
Interviews if needed
Financial analysis

Management summary

Third party team, i.e. law firm, accountant etc.

Financial Statements and Projections

Balance sheet
Income statement
Profit and loss

Recommendations

Appendixes and Addendum

Once complete we will then send the draft version of the feasibility study for review and comments.

Start to Finish

Prospectus.com is a one-stop company for all your feasibility study, prospectus, business plan or offering document needs. Our team has been involved in literally thousands of projects. We have set the bar high for feasibility study performance, taking into consideration time constraints and budgets. We pride ourselves on offering superior service – not just on a local or national level but on a global scale – at a fraction of the cost of our competitors and usually twice as fast. We give our clients the tools they need to make an educated decision about the business opportunity at hand by producing a market driven, financially conscience feasibility study. The success of our clients is the number goal of our company.

Feel free to reach out to us any time for a free consultation for your feasibility study.

Prospectus Writing
Feasibility Study
Real Estate Market Feasibility Study
Market Feasibility Study
Financial Feasibility Study
IPO Stock Exchange Listing
Bond Offerings
Hedge Funds and Mutual Funds
Offering Memorandum
Private Placement Memorandum
Offering Circular
Explanatory Memorandum
Information Memorandum
Fund Setup Formation
Securities Identifiers
Registration and Filing
Escrow Services
Business Plans

Newsletter Sign Up

Get the latest updates sent to your email

For Unique Capital Growth Strategies

Questions? Fill out the Contact form , or get in touch:

(212 ) 812-2127
[email protected]

How to Write a Feasibility Study Step by Step

Get Started With These Tips

Management & Leadership
Human Resources
Employee Benefits

Lahle Wolfe has more than 25 years of experience in small business development and ran her own digital marketing firm.

Northern Virginia Community College

A feasibility study looks at the viability of a business venture or project with an emphasis on identifying potential problems. The study attempts to answer two main questions: Will the proposed business venture or project work, and should you proceed with it?

Before you start to write your business plan, it's important that you first identify how, where, and to whom you intend to sell your product or service. You also need to assess your competition and figure out how much money you will need to start your business—and more importantly, how much it will take to keep it running smoothly until it is well-established.

A feasibility study also addresses important issues such as where (and how) the business will operate. If done properly, your feasibility analysis will provide in-depth details about all the various components of your business to determine if it can succeed. In the end, this document will serve as a valuable tool for developing a winning business plan.

Why Feasibility Studies Are So Important

The information you gather and present in your feasibility study will help you identify all the things you need to make the business work, pinpoint logistical and other business-related problems and solutions, develop marketing strategies to convince a bank or investor that your business is worth investing in, and serve as a solid foundation for developing your business plan

The Importance of Location

Even if you have a great business idea, you'll have to find a cost-effective way to market and sell your products or services. This is especially important for storefront retail businesses where the location you choose could make or break your business. The right store in the wrong place is doomed to fail. Most commercial space leases place restrictions on businesses that can have a dramatic effect on income. A lease might limit business hours or days, parking spaces, and restrict what products or services you can offer. In extreme cases, it can even limit the number of customers a business can receive each day.

You'll need to ask yourself if you should rent space in a business park, industrial park, or retail location—because they each have their own pros and cons.

6 Components of a Feasibility Study

Description of the Business : Describes the product or services you plan to offer.
Market Feasibility : Describes the industry, the current market, anticipated future market potential, competition, sales projections, and potential buyers.
Technical Feasibility : Details how you will deliver your product or service, including issues of materials, labor, transportation, where your business will be located, and the technology needed.
Financial Feasibility: Projects how much startup capital you'll need and examines potential sources of capital and returns on investment.
Organizational Feasibility : Examines the legal and corporate structure of the business. You can also include professional background information about the founders of the business and what skills they can contribute to the business.
Conclusions: Discusses how you envision the business succeeding. You need to be honest in your assessment because investors won't look at your conclusions and take that as proof. They will look at the data and question your conclusions if they appear unrealistic.

The Bottom Line

Feasibility studies contain comprehensive, detailed information about your business structure, products, services, and the market. They also examine the logistics of how you will deliver a product or service and the resources you need to make the business run efficiently.

How to Write a Professional Technical Feasibility Study
Find Out If Your Home Business Idea Is Good
Quick-Start Business Plan: Is Your Business Idea Viable?
Building a Marketing Strategy for Your Business
Starting a Free Online Business
Performance Improvement Plan
The Best Small Business Opportunities
How to Create a Coffee Shop Business Plan
6 Essential Parts of a Retail Business Plan
List of the Best Academic Research on Crowdfunding
How to Start a Business With Student Loan Debt
Learn About Industrial Space Leases
How to Write a Restaurant Business Plan
Benchmarking in The Supply Chain
Small Business Grants in Canada
How Black Founders Can Access Venture Capital

Difference between Feasibility Study and Business Plan

Entrepreneurs face many challenges when creating a new venture. Although the business plan is one of the most well-known documents, the feasibility study may be just as important. Before the entrepreneur can seek funding, he or she must demonstrate that the idea is truly a good one.

Rochester.edu explained that a feasibility study, “can be defined as a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes, and assessing the range of costs and benefits associated with several alternatives for solving a problem.”

In order to create a feasibility study, entrepreneurs need to define dimensions of business viability including: market viability, technical viability, business model viability, management model viability, economic and financial model viability, and exit strategy viability.

A good outline for a feasibility study includes:

Introduction
Product or Service
Market Environment
Competition
Business Model
Market and Sales Strategy
Production Operations Requirements
Management and Personnel Requirements
Regulations and Environmental Issues
Critical Risk Factors
Financial Predictions Including: Balance Sheet, Income Statement, Cash Flow Statement, Break Even Analysis, and Capital Requirements

A feasibility study is not the same thing as a business plan. The feasibility study would be completed prior to the business plan. The feasibility study helps determine whether an idea or business is a viable option. The business plan is developed after the business opportunity is created. StrategicBusinessTeam.com explained, “A feasibility study is carried out with the aim of finding out the workability and profitability of a business venture. Before anything is invested in a new business venture, a feasibility study is carried out to know if the business venture is worth the time, effort and resources. A feasibility study is filled with calculations, analysis and estimated projections while a business plan is made up of mostly tactics and strategies to be implemented in other to grow the business.”

While it may seem the feasibility study is similar in many ways to the business plan, it is important to keep in mind that the feasibility study is developed prior to the venture. StrategicBusinessStream pointed out that “a feasibility study can readily be converted to a business plan.” It’s important to think of the business plan in terms of growth and sustainability and the feasibility study in terms of idea viability.

Top 30 Links for the Successful Entrepreneur
Top 10 Companies Code of Ethics and Conduct
Top 10 Company Mission Statements
How to Conduct a Feasibility Study
How to Create a Business Plan
Business Plan Outline
Feasibility Plan Outline
Writing a Winning Business Plan

Updated July, 2020 File C5-68

Writing a business plan.

Every business needs to have a written business plan, whether creating or expanding a business. Formulating a business plan should be one of the first things done when starting a new business , because the primary goal of most business plans is to raise outside-investor capital. The business plan is the tool to convince others their investment is worthy.

Although a comprehensive and well thought out business plan is important to the success of your business venture, many people drag their feet when it comes to preparing one. The major reason people don’t want to write a business plan is that it is extra work that they don’t find enjoyable. But if you are serious about creating a successful business, you need to be serious about creating a good business plan.

Reasons for Writing a Business Plan

Before you start writing your business determine the purpose of your plan. That means you need to identify why you are writing it and how to prepare it properly. Below are eight reasons for writing a business plan. Identify which ones are relevant in your situation.

1. Putting the pieces together - Determine the purpose of your plan. Until you prepare your business plan, you won’t know if the internal logic of your proposal is consistent. In other words, do the pieces fit together? Writing the business plan will lead you to well-researched and insightful answers ahead of time to identify holes in your project and force you to critically think through various aspects of your plan that you previously had not identified. Building a business plan allows you to proactively determine the most tangible answers to some of the most critical business decisions. Think of the business plan like a substitute teacher, ready to answer questions anytime there’s an absence (because odds-are you won’t make every decision yourself).

2. Creating a blueprint for action - The business plan provides you with a "blueprint" or "action plan" for creating your business or business expansion. The more specific your business plan, the easier it is to implement the plan and build your business. Without a business plan, objectives often become arbitrary, while business planning tends to make benchmarks more intentional and consequential.

Business planning is a 2-stage process. The first stage is creating the plan and the second is implementing the plan. A great business plan is worthless if it is not properly implemented. This is why it is critical that you are intimately involved in writing the business plan. If you are not involved in writing the business plan, how can you implement it?

3. Focusing founders/management team - During this stage of business development, the founders often become weary from the relentless onslaught of issues facing them. The business plan helps to focus their activities and presents issues in an organized manner. It tends to bring structure and organization to a process that may be become chaotic.

Many small businesses employ contractors or freelance professionals, e.g. accounting, marketing, legal assistance, etc. With a business plan in place, the pertinent sections can get to the right support staff, while keeping everyone on the same page. Writing a business plan can go a long way in better understanding the competition and the market by more broadly illuminating consumer trends and preferences, potential disruptions, or other pitfalls that aren’t plainly visible.

4. Obtaining financing - Business plans are often used to obtain financing from venture capitalists and banks. These capital sources will likely need a business plan and many times business plans are the most-effective way of proving business viability. In this sense the business plan is a promotional piece to present and describe your business venture, how you will put it together and why it will be successful. The basic premise is to show that you know what you are doing and why your business will be successful.

Look upon lenders as partners. They can point out shortcomings and deficiencies of the plan. Lender concerns about financing your business should be looked upon as opportunities to strengthen your project and increase its chances of success. However, understand the lenders role in your project. It is not the lender’s responsibility to be the financial manager of your business and make it successful. The lenders purpose is to generate returns for the lending institution while protecting their investment in your business.

Business plans can be used to attract equity investors to your business. A business plan forms the basis of the offering presentation to potential investors. The business plan is the tool you’ll use to convince people that working with you (investing in your company) is a smart choice. Your attorney will use the business plan in the creation of your offering documents.

5. Attracting key managers and employees - An important element of creating a successful business is your ability to attract key managers and employees. These individuals will want to be assured that you know what you are doing and that your business concept is viable. A well designed business plan is essential in this process. If a general manager has already been selected, the business plan should describe why this person is capable of achieving success.

6. Obtaining contracts – Entrepreneurship is a risky business. That risk becomes more manageable once tested against a well-crafted business plan. The success of many businesses is based on their ability to have commitments or contracts in place from users. However, potential users need to be assured that you can actually deliver on the commitment. Once again, a well-designed business plan is essential for these commitments.

7. Creating joint ventures, mergers and acquisitions – Create a company profile, including history of the organization, your product or service offerings, target market and audience, what makes your business unique, etc. These profiles, found best in the first written parts of your plan, can be used to attract customers and talent.

Many rural businesses focus on moving up the supply chain to take advantage of profit opportunities closer to the consumer. To achieve this, it is common for businesses to create relationships with existing business in the supply chain through joint ventures, mergers or acquisitions. One of the purposes of this strategy is to take advantage of skills and experience of these businesses. Once again, a well-designed business plan is essential for creating these relationships.

8. Avoiding the big mistake - About half of small businesses are not around to see their 5th anniversary. While there are many reasons for failure many of the most common are purposefully addressed in business plans: no market need; lack of capital; inadequate managerial team; stiff competition; or pricing.

Research, research, research! Consider spending twice as much time researching, evaluating and thinking as actually spent writing the plan.

How to Write the Plan

Business plans help to run your business, determined viable from the feasibility study! A good plan guides you through each stage of starting and managing. The business plan should be written in plain, easy-to-read language. Use short simple sentences and easy to understand terms. Avoid jargon and terms that are unfamiliar to people outside of your industry.

There is no right or wrong way to writing a business plan. What is important is picking the format where the plan meets your needs. Determine what you want to cover in your business plan and make headings for each of the items. Begin each major section on a new page with the appropriate title (e.g. Marketing Plan). Make sure your business plan covers all of the relevant topics. To help you organize your business plan use Information File C5-69, Create Your Own Business Plan .

Fine tune your business plan. It is extremely rare to achieve the finished version of a plan in the first draft. It may need to be re-written several times. So, review, revise and rewrite.

The purpose of rewriting the plan is to fill in gaps, solidify the logic and make the plan easier to understand by the reader. It is not to add extraneous materials. So if you find the length of the plan expanding greatly after each rewrite, your efforts are probably counterproductive. At some point in time you need to declare the plan finished - for now - remembering that the plan will need to be updated as conditions change.

The business plan is a promotional document. So, in addition to your own purposes, consider the viewpoint of others you are writing the plan for (banker, investor, customer, etc.). The business plan may be used as a sales document. The content and quality of the plan should be representative of your company. Represent your company’s image and convince the reader you understand all aspects of the business.

Be honest. Do not be overly optimistic or try to hide limitations or weaknesses. Be sure to support the goals and the claims you make in the business plan. Include supporting evidence. This includes statistics, studies and other research support.

It is usually a good idea to have someone proofread your business plan who is not involved in the project. He/she can help you identify aspects of your business plan that may need additional clarification and explanation.

A great business plan will always have a strategic and aggressive marketing plan, including marketing objectives like:

Introducing new products
Extending or regaining market for existing products
Entering new territories
Boosting sales in a particular product, market or price range
Cross-selling or bundling
Entering into long-term contracts with desirable clients
Raising prices
Refining a product
Having a content marketing strategy
Enhancing manufacturing or product delivery

Proofread your plan for the following:

Poor organization
Vague statements
Errors in logic
Gaps in the plan
Repetitive statements
Inconsistency
Misspelled words
Poor grammar
Incomplete sentences
Mathematical errors

Questions to Answer in Writing the Plan

There are certain elements that are critical for a business plan. Below are eight questions your business plan should answer. The quality of your business plan will depend on how well you can answer them. You can use these as a “checklist” of the completeness of your plan.

1. Who are we? 2. What do we do? 3. What do we have to offer? 4. Why will someone pay for our product or service? 5. What resources do we have? 6. Why will we be successful? 7. Why would someone participate/invest? 8. How will we measure performance?

Who Should Write the Plan

Involvement in creating the business plan is critical. Although it is common and often preferable to have someone help you write the business plan, the founders are ultimately responsible for creating the ideas and content of the business plan. Stated simply, if you are not intimately involved in writing the business plan, you will not know what it contains. If you don’t know what the business plan contains, how can you implement the plan? If you cannot implement the plan, how can you create a successful business?

So, the primary responsibility for writing the business plan is with you, the founders. You can hire someone (consultant) to help prepare the plan. He/she can challenge and question assumptions and conclusions. But you are responsible for the content of the plan. The role of consultants or professional writers is only to assist you in this important process.

Place one person in charge of preparing the plan. You may divide the responsibility of preparing and/or writing various sections of the plan among the founders, or you may hire a consultant to assist you in preparing the plan. However, one person needs to be responsible for moving the process forward and integrating the various sections.

How Long Should It Be

Focus on the quality of your business plan, not its length. The length of the business plan should be the shortest version needed to adequately cover the topic. The business plan should properly and succinctly tell your story. Does it address the relevant issues? Anything more is not a sign of depth or completeness. Rather, it will dissuade people from reading the plan because of its length. Remember, focus on content - not length.

How is Your Business Unique

Rural agriculture includes many types of businesses. Businesses range from a few producers marketing products directly to local consumers to large-scale integrated processing/manufacturing businesses. So, a business plan is a unique document. The actual content of the business plan will vary depending on the nature and complexity of the business, the stage of development and the type of financing needed. Likewise, the individuals whom you are writing the business plan for can vary substantially.

The plan must fit the needs of the business. For example, the marketing needs of a commodity processing business like ethanol are much different than those of a niche food business. The financial needs of a processing business are much greater than those of a direct marketing business. So the focus on investors and lenders is much greater. In addition, the need for risk management strategies is much greater due to the capital intensive nature of the business and the volatility of commodity markets. Conversely, the management needs of both types of businesses are substantial, although of a different type.

Because your business is unique, the role of developing a strategy to achieve success is important.

1. Where are we now? 2. Where do we want to be? 3. How do we get there?

Although all three questions are relevant, it is essential the business plan answers the question “how do we get there?”.

Who are the Readers of Your Plan

Make your business plan adaptable based upon your audience. Although this is a diverse group, it is a finite one. Strive for versions directed at a particular audience, by including the specific reader’s interest (lender, supplier, etc.).

Most businesses have several types of stakeholders. A stakeholder is someone who has a stake or interest in the outcome of the business. In addition to the business founders, stakeholders include equity investors, bankers, key employees and others. Different stakeholders have different priorities. These priorities need to be balanced in the business plan.

Table 1 shows issues to emphasize or deemphasize depending on whom the plan is written for. For example, bankers are usually looking for cash-flow while investors may be looking for growth. This is not to say that the content and direction of the business plan should be altered. However, it does mean that the focus of the plan may shift.

This means that you may have more than one version of the business plan. This works well, as long as the same story is told - just with different emphasis.

Implementing the Business Plan

Preparing a business plan is only one step in creating a viable business. Writing a great business plan is meaningless unless you properly implement the plan. Many start-up business ventures fail because they do not focus their efforts on properly implementing the plan. Essentially this is a plan for implementing the plan. A portion of the business plan should focus on the steps required to implement the plan. It should include a timeline and milestones for when various aspect of the plan are accomplished.

Reviewed by Gary Wright, extension farm management specialist, 712-223-1574, [email protected] Original author: Don Hofstrand, retired extension value added agriculture specialist, [email protected]

Gary Wright

Extension farm management specialist 712-223-1574 view more from this author, don hofstrand, retired extension value added agriculture specialist view more from this author.

Business Feasibility Study for Startup

Write a business feasibility study for startup, write a business feasibility study for startup: service description.

This service is part of our Idea to Product program. We help you in validating your project idea and conducting a through feasibility study to help you decide how to proceed with your business project. We gather the data needed, analyze it, and report back to you with a full feasibility study.

Write a Business Feasibility Study for Startup: Goals

Collecting and analyzing accurate data about the business project
Conducting the needed research
Finalizing an accurate and detailed feasibility study
Create business, technical and financial feasibility study

Book a Meeting

You can also reach us directly with any questions you have on whatsapp.

Please use only numbers

1. What is a Business Feasibility Study for Startup?

A feasibility study analysis is a study conducted as part of project management whereby one can decide whether to carry on or not with a project by judging its practicality and viability and deciding whether it is feasible or not based on data and analysis.

A BFS typically includes the following steps:

1. Gathering financial information. This includes estimating the initial startup costs, estimated revenues, and estimated costs of operating the business.

2. Assessing the marketability of the proposed concept. This includes understanding the competition, analyzing how well the proposed concept matches customer needs, and estimating how much demand there is for the product or service.

3. Investigating potential sources of funding. This includes estimating how much money will be needed to get the business started and estimating how long it will take to generate revenues.

4. Determining whether the proposed concept is feasible. This includes evaluating whether there is enough demand for the product or service, whether the startup costs are reasonable, and whether there are any potential obstacles to starting the business.

2. Why to conduct a Business Feasibility Study for Startup?

You need to conduct a business feasibility study as a crucial part of starting any new business endeavor. Collecting the data, doing the needed analyses, and studying the findings are all necessary steps before any major business changes or new business projects. An accurate and detailed feasibility study helps you determine your ROI and the costs for your business project, and this is the first step in making data-driven decisions.

The idea of conducting a feasibility study comes from the desire to identify if an idea or venture is possible and whether there are any potential obstacles that need to be overcome. The first step in conducting a feasibility study is to develop a clear understanding of what you want to achieve. Once you have a clear idea of the goal, you can begin to think about how to achieve it. In order to assess the feasibility of your project, you will need to answer some important questions.

We help you in taking the first steps into your project's feasibility study by preparing an executive summary and a detailed description and plan for the project; its objectives, time frames, and requirements. This is a basic element that helps us define the project before studying its feasibility.

3. When to conduct a Business Feasibility Study for Startup?

When starting a new business or startup

When starting a new business project or process

When planning to enter a new market or open a new business branch

When launching a new product/service

A business feasibility study should be conducted when there is a significant change in the company's status or when there is a new opportunity that requires more information about the potential profitability of the project. Additionally, a business feasibility study can be helpful in determining any necessary up-front investments and in exploring potential partnerships or joint ventures.

4. Write a Business Feasibility Study and plan for your project

We help you plan for your project and conduct the needed feasibility study. We work with you step by step to collect the data needed and do the required analysis, report to you, and discuss with you whether it is best to carry on your business project or not based on your budget, business objectives, business needs, resources and staff abilities, and other factors.

When planning your project, you need to take into account a few things. First, you need to understand the business and what your project will do for it. Next, you need to think about the feasibility of your project and how much it will cost. Finally, you need to come up with a plan and timeline for completing your project.

We help you plan for your project and conduct your feasibility study. We have worked with startups and businesses on starting and carrying out various business projects. We provide you with the needed mentorship and guidance for your next business project and cater to your business needs.

5. The Types of Business Feasibility Studies for Startup

Basically, there are four main types of feasibility studies.

5.1 Write a Technical Business Feasibility Study for Startup

This type of feasibility study aims at deciding whether the company has or can create the needed technology to carry out the planned project.

The technical team in the company can conduct the technical feasibility study. You might need to consult with your technical advisor or technical partner who can decide about building the needed product and help in defining its technical needs. Their input is needed for conducting an accurate technical feasibility study.

Technical feasibility is not solely about the technology that you use. It is also about how well the technology works together with your business model and how well it meets your customer’s needs. For example, if you are a web-based business, then you need to make sure that your website looks good and is easy to use. Your website should also be responsive so that it looks good on different devices, like phones and tablets.

FasterCapital works with you on conducting your technical feasibility study for building a new tech product, launching a new feature, or executing any project that requires technical development. We help you assess the costs needed for the product , the skillsets, and the ROI, among many other aspects.

Developing a product is a series of challenges that must be overcome in order to bring the idea to market. In order to validate the feasibility and utility of the product, it must be tested and found to meet the needs of its target audience. The process of product development and validation can take many different forms, but they all share common goals: to create a successful product that meets customer needs. There are many different aspects to consider when developing a new product, from designing the perfect interface to testing various iterations of the concept. Validation is essential in ensuring that all these factors lead to a final product that meets customer expectations. This process can involve conducting user interviews, testing products on a large scale, and measuring user feedback. We take into account all of these factors when we conduct a feasibility study for your product

Read more about our full technical development services

5.2 Write a Market Business Feasibility Study for Startup

Aside from the technical feasibility of the product, the project should pass the market feasibility test.

Market research is the process by which a company gathers information about the current and potential needs of consumers, competitors, and other stakeholders in order to create successful marketing plans. This information can be used to improve products and services, develop new marketing strategies, and better understand consumer preferences.

We study the targeted market and work with you on optimizing your market-product fit. Choosing the right market for your project is a vital aspect of it. We help you explore the potential markets and choose the right ones based on your product, targeted customers, objectives, and others.

Read more about our full program to help you enter a new market(s)

5.3 Write a Financial Feasibility Study for Startup

Financial analysis is the process of reconciling financial statements and determining whether they are indicative of the financial health and performance of a business. The goal of financial analysis is to provide insights that help make informed decisions about future investments and operations. Financial statement items that typically fall under the purview of financial analysis include earning, spending, assets, liabilities, shareholders’ equity, and net income.

You should have a clear idea about the costs and the projected revenues of your business project. We work with you on estimating the costs. We go over the staffing requirements, the hardware and the equipment, and all the other operational and capital project budget needs.

The first step in calculating the financial feasibility of a business is to understand its current financial position. This includes understanding the company's assets, liabilities, and net worth.

Next, it is important to determine the company's operating expenses. These include costs such as rent, salaries, and utilities. It is also important to include other expenses such as marketing, research and development, and legal fees.

Then, it is necessary to calculate the company's net income. This includes net income from operations, plus depreciation and amortization (both of which are expenses).

Moreover, we study the projected revenues generated based on setting the goals and the assumptions that the market and the business opportunity involve.

We can work with you on creating the balance sheet and the projected revenues sheet of your business project and study how financially feasible and aligned with your startup’s budget the project is.

Read more about our full financial modeling services

5.4 Write an Organizational Business Feasibility Study for Startup

After looking at the market, the budget, and the product(s) needed, you have to take an internal look and see whether this business project is a viable business opportunity for your company/startup as an organization.

The purpose of an organizational feasibility study is to decide whether or not the proposed business project would be sufficiently backed up by the right management team members and management resources that would support the project and contribute to its success.

You would need to study what staff members and external connections the project would require. You should also study the legal structures, operations, and types of ownership included.

When starting a business, it is important to consider all of the legal ramifications that could come up. A business feasibility study can help you identify any potential risks and deal with them head on.

For example, if you’re thinking of starting a business that involves the sale of alcohol, you will need to get a license from your state government. Make sure to check with the appropriate department beforehand so that you don’t run into any legal issues down the road.

Another thing to keep in mind is trademarking your company name. This will protect your name from being used by someone else without your permission. It’s also important to protect your intellectual property (such as copyrighted material) by filing copyrights and trademarks.

In short, getting a business feasibility study from an expert can help you avoid common legal pitfalls and ensure success for your new venture.

We help you conduct the organizational feasibility study of your new business or project and work with you on how to build the needed organizational and management-related cornerstones of your business project or startup.

Don't know how to conduct a project feasibility study?

FasterCapital' team works with you on conducting different types of feasibility studies for your project

6. The Steps of Writing a Business Feasibility Study for Startup

Our feasibility study process goes through the following steps:

6.1 Planning for Writing a Business Feasibility Study for Startup

The planning phase comprises discussing the project with the team and setting up a clear project plan with a detailed description of the project, the expectations, and the goals.

We work with you on preparing the draft project plan which serves as a foundation for the next steps in our business feasibility study process.

Read more about how we help in writing a full business plan for startups.

6.2 Make Research before Writing a Business Feasibility Study for Startup

After setting up what the project is all about we start the research phase. At this stage, our purpose is to collect and gather data related to the project. The data is relevant for the four main parts of the project's feasibility study (technical data, market data, financial data, and organizational data). It is important to make sure the data is accurate to ensure the accuracy of the final feasibility study report.

In order to carry out a business feasibility study, you will need to do a great deal of research. This research can be done in a number of ways, but the most important part is gathering accurate and up-to-date information about your business.

Gathering accurate information about your business can be difficult, but there are a few key steps that you can take to help make the process easier. First, you will want to gather as much information as possible about your business, including its history, current status, and projected future. You should also identify your target market, and research what they want and need. Additionally, you will need to gather financial data about your business, including estimates of your startup costs and expected profits.

Our team handles the research needed with the help of the startup’s team to create an accurate and complete data report which will be fully analyzed during the next step.

6.3 Write a Technical feasibility study for Startup

If you already have prepared your data, we can start immediately at this stage. We make sure we use the right data analysis tools and methods for the planned project and the feasibility study.

Each type of data set (technical, financial, market, organizational) is going to be analyzed separately and using the right data analysis methods that would work best for it.

We work on analyzing and studying the project’s data to put together our feasibility study. Like all data analysis endeavors, our goal is to extract insights that help in making the right decision about the project.

6.4 Prepare Reports after Writing a Business Feasibility Study

We report back to your team a final feasibility study report with all the data presented and the studies made. We also send you our comments, insights, and thoughts about the planned project and the impact of both options of carrying it out or not. We mostly avoid making the final decisions and stick to presenting the study and the findings for you and your team to have a closer look and think about what works best for you.

We also provide you with the advisory and the support you need in case you are looking for an external perspective about your final decision about the proposed project.

7. FAQ about Writing a Business Feasibility Study for Startup

Sure, it might be within your team’s abilities scope to conduct your business feasibility study. Sometimes, an entrepreneur is left to their own devices to conduct the whole feasibility study of their new business or startup. We believe that feasibility studies are an essential foundation element of any business project and so the right expertise and investment should be made when conducting them. If that requires external advisors, then this is one step further towards making the right decision for the business.

On average, the process takes 2-6 weeks depending on the data needed and the project’s scope. We can make an estimation after taking a closer look at your proposed project and the steps needed.

We can help you in two ways:

We can handle the feasibility study and all the steps on our own. However, the more data the company’s team can provide us with and the more analysis and details, the sooner we can finalize our work on the feasibility study and report back to them.

If you're considering conducting a business feasibility study, here are some tips to help make the process easier.

1. Make a list of your goals for the study. What do you want to learn about potential business ideas? What do you want to understand about the market conditions?

2. Identify key stakeholders in your target market. Who would be most likely to benefit from your proposed business? Who would be most likely to resist your proposal?

3. Determine how much money you need to invest in order to conduct a thorough feasibility study. How much time will it take you to complete the research? What resources will you need (e.g. interviews, surveys)?

4. Create a plan for surveying your target market and collecting feedback. How will you collect information from individuals who might be interested in pursuing your proposed business? How will you determine whether or not people are satisfied with the proposed product or service?

A business feasibility study (BFS) is an analysis of a proposed business venture to determine whether it is feasible and if there are any opportunities for improvement. A BFS can help assess the financial viability of a business idea, identify potential market opportunities, and suggest ways to improve the chances of success.

This depends on the specific details of your case, but in general, a BFS can take anywhere from a few weeks to a few months.

There are a variety of business feasibility studies available, and the one that you choose will depend on your specific needs and goals. However, all business feasibility studies have certain common features, including a review of your business idea ( proof of concept ), analysis of potential market size, and identification of potential financial resources.

There are a variety of business feasibility studies available, and the one that you choose will depend on your specific needs and goals. However, all business feasibility studies have certain common features, including a review of your business idea, conducting business market research , and identification of potential financial resources.

A business feasibility study for startup is a comprehensive analysis conducted to evaluate the viability of a proposed business idea or project. It examines various aspects like market potential, financial feasibility, operational requirements, and potential risks to determine if the business idea is achievable and sustainable.

A feasibility study helps business owners and entrepreneurs assess the potential success of their idea before investing significant time, effort, and resources. It provides critical insights into the market, competition, financial projections, and operational requirements, enabling informed decision-making and risk mitigation.

A business feasibility study for startup typically includes an analysis of the market and target audience, competitor assessment, financial projections, operational requirements, legal and regulatory considerations, risk assessment, and a conclusion outlining the project's feasibility.

Market analysis involves gathering and evaluating data related to the target market, including its size, growth potential, demographics, trends, and customer preferences. It may involve primary research such as surveys or interviews and secondary research utilizing industry reports, government data, and market research studies.

A competitor assessment involves identifying and analyzing existing businesses that offer similar products or services within the target market. It assesses their strengths, weaknesses, market share, pricing strategies, customer base, and any competitive advantages they possess. This analysis helps determine the potential market share and positioning of the proposed business. Check out our business SWOT analysis and business competitive analysis services.

Financial feasibility evaluates the potential profitability and financial viability of the proposed business. It involves estimating start-up costs, revenue projections, operating expenses, profit margins, cash flow analysis, return on investment (ROI), and break-even analysis. By assessing these factors, one can determine if the business will generate sufficient profits to sustain operations. It is somehow similair to a financial model. Check out how we help startups in building financial model and projections .

Operational requirements refer to the resources, facilities, equipment, technology, and manpower needed to run the proposed business. This analysis includes identifying the physical location, production capacity, supply chain management, labor requirements, technology infrastructure, and any regulatory or licensing requirements.

Legal and regulatory considerations assess the legal requirements, permits, licenses, and compliance obligations necessary to operate the business. This analysis ensures that the proposed business complies with all applicable laws, industry regulations, health and safety standards, environmental regulations, and employment laws.

Assessing potential risks involves identifying and analyzing internal and external factors that could adversely affect the success of the business. This may include market risks, competitive risks, financial risks, operational risks, regulatory risks, economic risks, and technological risks. By understanding and quantifying these risks, appropriate mitigation strategies can be developed.

Conducting a feasibility study offers several benefits, including minimizing financial risks by identifying potential challenges, validating the business idea, determining market demand, assisting in securing business angel capital or startup business loans , establishing realistic financial projections, and guiding strategic decision-making.

Yes, a well-prepared feasibility study can significantly enhance the chances of securing funding from investors or lenders. It provides a comprehensive understanding of the business opportunity, market potential, financial projections, and risk assessment, which instills confidence in potential financiers.

The duration of a feasibility study varies depending on the complexity of the business idea and the depth of analysis required. It can range from a few weeks to several months, considering the time required for research, data collection, analysis, and report preparation.

A business feasibility study for startup can be conducted by the entrepreneur or business owner themselves if they possess the necessary skills and expertise. However, it is often beneficial to engage external consultants or experts who can provide an unbiased assessment and bring industry-specific knowledge and experience to the study.

Feasibility studies are based on assumptions, research, and analysis, which may have inherent limitations. These limitations include the accuracy of business market research , future market conditions, changing customer preferences, unforeseen economic factors, and unexpected competition. It is essential to regularly revisit and update the feasibility study as circumstances evolve.

A feasibility study provides comprehensive insights into the business idea, allowing decision-makers to assess the project's potential success, risks, and financial viability. This information empowers decision-makers to make informed choices regarding whether to proceed with the business idea, modify the strategy, or abandon it altogether.

Challenges during a feasibility study can include obtaining accurate and reliable market data, predicting future market trends, analyzing complex financial projections, identifying and quantifying risks, and ensuring the feasibility study remains objective and unbiased. These challenges can be overcome through thorough research, diverse data sources, and expert guidance.

The conclusion is a crucial component of a feasibility study as it summarizes the findings and recommendations based on the analysis conducted. It provides a clear indication of whether the business idea is feasible or not, based on the evaluation of market potential, financial viability, operational requirements, and risks.

Not conducting a feasibility study can result in significant financial losses, wasted resources, and business failure. Without a thorough understanding of the market, competition, financial projections, and operational requirements, entrepreneurs may invest in a business idea that lacks demand, faces intense competition, or has unrealistic financial expectations.

Yes, a feasibility study can be conducted to assess the viability of expanding an existing business. It can analyze factors such as market demand, profitability, operational capacity, scalability, competitive landscape, and potential risks associated with the expansion. This helps make informed decisions about the feasibility and potential success of the expansion.

A feasibility study provides critical insights into the market, competition, financial projections, and operational requirements, which are essential for strategic planning. It helps identify opportunities, target market segments, pricing strategies, business marketing strategy , competitive advantages, and resource allocation, enabling the development of an effective business strategy.

A feasibility study helps determine the pricing strategy by analyzing the market, competition, cost structure, and customer preferences. It assesses the price sensitivity of potential customers, the perceived value of the product or service, the pricing strategies of competitors, and the desired profit margins. This analysis guides the decision-making process for setting optimal prices.

A feasibility study involves conducting market research to identify the target customers. This research includes analyzing demographics, psychographics, consumer behavior, and market segmentation. By understanding the characteristics, preferences, and needs of potential customers, the business can tailor its offerings and marketing strategies to effectively target and attract the intended audience.

To analyze the potential demand, a feasibility study examines market size, growth rates, existing demand-supply gaps, customer behavior, and trends. It also considers factors like the product's uniqueness, competitive advantages, pricing, and marketing strategies. By assessing these elements, the feasibility study can estimate the potential demand and market share for the proposed business.

Financial metrics included in a feasibility study may vary depending on the nature of the business, but commonly include net present value (NPV), internal rate of return (IRR), payback period, return on investment (ROI), gross margin, operating expenses, break-even analysis, and cash flow projections. These metrics help determine the financial viability and profitability of the proposed business.

A feasibility study assesses the potential scalability of a business by analyzing factors such as market size, growth rates, operational capacity, production capabilities, supply chain management, and resource availability. It also considers the potential barriers to expansion, such as regulatory requirements or limited market demand. This analysis helps determine if the business can grow and adapt in the long term.

Conducting a feasibility study contributes to risk management by identifying, assessing, and quantifying potential risks associated with the proposed business. It enables the development of risk mitigation strategies and contingency plans to minimize the impact of risks on the business's success. By understanding and planning for risks upfront, the business can enhance its chances of survival and success.

Yes, a feasibility study can be conducted to explore alternative business ideas and compare their potential success and viability. By analyzing multiple ideas, entrepreneurs can assess which one aligns best with their goals, market demand, financial projections, and operational capabilities. This analysis helps in making an informed decision about the most feasible and promising business opportunity.

Potential sources of data and information for a feasibility study include government reports, industry publications, market research studies, surveys, interviews, focus groups, existing databases, trade associations, business competitive analysis , financial statements, academic research, and expert opinions. A combination of primary and secondary research methods can provide comprehensive and reliable data for the study.

A feasibility study helps in resource planning by identifying the specific resources required to establish and operate the business successfully. This includes determining the capital investment needed, operational expenses, equipment, technology, personnel, raw materials, and supply chain requirements. By accurately estimating these resource needs, the business can plan and allocate resources effectively.

Yes, a feasibility study can be revisited after the business is operational to assess its accuracy and relevance. This allows for a comparison of the original projections with the actual performance and helps identify any discrepancies or areas requiring adjustment. Revisiting the feasibility study also enables continuous improvement and strategic decision-making throughout the business's lifespan.

Reach us on Whatsapp!

Reach us on Email

Reach us on Telegram!

How to Make a Feasibility Study for a Business Easily

Definition of the feasibility study for business.

What is the feasibility study for business? How is the feasibility study different from the ordinary business plan? Definition: A feasibility study is a documented result of marketing and practicality studies justifying the feasibility of implementing an investment project, selecting the most effective organizational, technical, and economic solutions for commissioning new developments or reconstruction and modernization of existing production facilities. A feasibility study, if necessary, is included in the composition of the business plan.

how to make a feasibility study for a business

Having thoroughly studied this “problem,” we came to the strange conclusion that a feasibility study is simply a “stripped-down” semblance of a business plan, and in some cases, it is a business plan called a “feasibility study,” and no more. Before you find out how to make a feasibility study for a business, it is also important to learn what is the aim of creating this document.

The Aim of the Feasibility Study

Knowing the aim is important if you want to understand how to do a feasibility study for a new business. The main aim of this type of business paper is to make an analysis of demand for products, goods, and services planned for production. The main goal of entrepreneurial activity is profit making. When planning the planned transaction, you should first of all determine the amount of profit you can expect, and make sure that the project can bring the desired profit. It is important to take into account the time factor, as well as in general when creating a business plan. In other words, along with the magnitude of the expected profit, it is necessary to know how it will be distributed over time and whether the profit will be too late, taking into account the entrepreneur’s need for money and the impact of inflation.

Peculiarities of the Feasibility Study

The business plan and feasibility study differ in their structure. So the business plan has a clear structure which must be adhered to; the same can not be said about the feasibility study. As a rule, the structure of the feasibility study depends on the specific investment project. For example, if a feasibility study is prepared for a newly established enterprise, then its structure should contain all the most important aspects of the activity of this enterprise. If the investment project involves the renovation and reconstruction of the company’s fixed assets, then in this case special attention should be given to the assessment and efficiency of capital expenditures.

Now that you know the definition, the aim, and the particularities of a feasibility study, it is time to learn how to make feasibility report for business.

Feasibility Business Plan Writing Steps

How to Write a Feasibility Business Plan

Write the business description with key success factors. The beginning of any feasibility study is the presentation of the company, which reflects its main characteristics, the degree of technology it is equipped with, the share of the market, and a brief financial analysis of the company.
Describe the product/service and its benefits. Write why your product or service is the best choice on the market.
Point out target market feasibility, demand and supply analysis, and location.
Quantitative and qualitative requirements to material resources and labor funds are determined. Possible ways of supplying raw materials and/or components are reflected. The level of training of personnel participating in the implementation of the investment project is determined.
Consider government regulations and technology costs. Calculate the costs associated with research and production in this investment project. In the case when a feasibility study is developed for a manufacturing enterprise, the factory cost of the future product is calculated by the method of increasing the cost calculations for one product-unit.
Carry out an analysis on competitive advantage and entry barriers. Try to find methods of working that your competitors use.
Think about technical feasibility, resources, and work force. You should describe the level of technological potential of the enterprise.
Write on sales forecast, profitability, and financial viability. You should make a calculation of financial indicators of profitability and sustainability of the project.
Describe marketing potential and strategy, advertising, and pricing. Include data of marketing research in the areas of the consumer market, counterparties, the surrounding business environment, and production conditions.
Talk about possible risks. Include technical and financial risks.
Summarize and conclude the feasibility study of business.

Analysis of Feasibility Plan Example

This feasibility plan template is used to analyze credit risks and prospects. We recommend you to develop your own feasibility study in accordance with the following analysis. Preparation of the feasibility study and its creation will be much easier if you read through the following analysis of one of feasibility plan examples .

Feasibility Study Writing Tips

If you want to know how to make feasibility study for small business, you should understand that each business project begins with the initiation, identification of the main tasks and objectives, and the preparation of the feasibility study. After the feasibility study has been developed, the management team of the company decides: – The project is rejected because it is inexpedient and unprofitable. – The project is deferred until the necessary information is clarified. – The project is approved and submitted for review and approval by the investor or creditor. – The project is approved and passed to the project manager for its implementation.
The initiator and the project manager participate in the preparation of the feasibility study. The initiator is the representative of the business unit – he or she manages all stages of the project implementation and is responsible for the targeted use of the financing allocated for the project.
It is important to understand that only top managers fully know all the topical issues on the introduction of innovations and the tasks the company is faced with. Therefore, it is best to develop a feasibility study on your own, without the help of outsiders. A special role in this matter is the preservation of information about the project, as a document of strategic importance.
The feasibility study can be developed both in the format of an independent document and be included in the business plan and other developments. The compiled feasibility study in different companies looks different: in some firms it is 1-2 sheets of A-4 format, and some firms approach the development of a feasibility study in the most responsible way, involving professionals of various specializations in this process – in this case the final type of feasibility study is a set of documents.
The time of performance of the feasibility study is determined by: – the degree of detail in the presentation of the document; – the volume of the planned functionality required for the preparation and implementation of the plan; – readiness and relevance of necessary legal documents; – presence of necessary employees for development of the company.
It is not difficult to compile a feasibility study of a business or its modernization, if you adhere to two specific factors: dependence on the case and the requirements put forward by the party for which the document is drawn up. A case is a specific project. So, for the introduction of a single product or service there will be one volume and format, and for the implementation of a global project to open a production complex, the scale of calculations and their estimates will be completely different.
It is important to understand that in developing a feasibility study, the requirements for this document depend on the subject or object which approves the project. For example, for the feasibility study of credit or investment capital, it is necessary to show more carefully the calculations of the economic efficiency of the project, and for modernization of production carried out with the company’s own money, greater attention is paid to marketing analysis and consumer characteristics of products.
Any feasibility study methodology should reflect both fixed costs and non-recurring expenses, and also have a calculation of the profit received under different conditions of demand. It is important that the feasibility study depicts an overall assessment of the implementation of the business project.

Mistakes in Feasibility Study

Forgetting about the marketing block or including unnecessary details in it. The marketing block should describe all the relevant details and circumstances related to the impact on the market and the reaction of the market in connection with the implementation of the business project. This block should describe what competitive strategy will be chosen and why it will lead to success, and which companies will gain competitive advantages.
Forgetting to describe the technology of production of goods or services, the organization of production processes, as well as other important parameters for achieving the basic production indicators – assortment, cost, terms, and quality. The production and technological block should describe how the production of products (services) will be organized and the provision of the necessary raw materials, components, and goods.
Forgetting to describe the enterprise management system, the investment development plan, as well as all the necessary parameters related to the recruitment, training, and management of the work force.

Now you know how to do a high-quality feasibility study which can help you to get better results in your business. If you want to learn more information about other types of business papers, check out our blog for more information.

Give your grades a boost

Original papers by high quality experts

Free preview and unlimited revisions

Flexible prices

Retirement Farewell Speech Example
Farewell Speech Example
Business Owner Farewell Speech Sample
Receiving a Twenty Year Service Award
Princeton Graduation Speech
Never Giving up on a Dream
Medical Student Graduation Speech

Semi-formal

Tribute Presentation Sample
Greenpeace Organization
Treatments of Autism Spectrum Disorder
Marketing Manager Speech Sample
Demographic Policy and Abortion in China
Causes of Teenage Drug Addiction
Positive Effects of Classical Music
Developing of Professional Skills of the Employees
College Psychologist Speech
How to Plan an International Trip Essay
Demonstrating a Marketing Plan for New Product Line
Destructive Effects of GMO on Children
Child Adoption Speech
Become a Volunteer
Why Videos Go Viral
Party Planning for Children’s Birthday Parties
Modern Relationship Problems Presentation Sample
The Advantages of Jogging
Let’s Become Vegetarians
Killing Routines

Fiction review

Non-fiction review, creative review, business letters, academic letters, personal letters, essay writing, business writing, creative writing, research papers, writing tips.

IMAGES

48 Feasibility Study Examples & Templates (100% Free) ᐅ TemplateLab
Components of Feasibility Analysis
How to do Feasibility Study for any Business?
How to Conduct a Feasibility Study: A Step-By-Step Guide
48 Feasibility Study Examples & Templates (100% Free) ᐅ TemplateLab
How to Write a Feasibility Business Plan

VIDEO

Top 10 Business Plan Software for General Contractors (2024)
በ1 ደቂቃ ውስጥ በExcel የቢዝነስ አዋጭነት መለኪያ (NPV, IRR እና Payback Period) አሰራር!
خطة العمل الجزء الأول Business Plan Part 1
WBS Management Consultant Services regarding Feasibility Study/feasibility study
Upwork introduction video
خطة العمل الجزء الثاني Business Plan Part 2

COMMENTS

10 Feasibility study and business plan differences you should know
Feasibility study and business plan differences are subtle. In this post we will discuss 10 differences will help you to evaluate and differentiate between a feasibility study and a business plan. ... Writing a credible business plan is typically a requirement for banks and venture capital companies before contemplating granting funding to new ...
How to conduct a feasibility study: Template and examples
For a general set of guidelines to help you get started, here are some basic steps to conduct and report a feasibility study for major product opportunities or features. 1. Clearly define the opportunity. Imagine your user base is facing a significant problem that your product doesn't solve. This is an opportunity.
How To Write Feasibility Studies (With Tips and Examples)
Here is a step-by-step guide to help you write your own feasibility study: Describe the project. Outline the potential solutions resulting from the project. List the criteria for evaluating these solutions. State which solution is most feasible for the project. Make a conclusion statement. 1.
Using Feasibility Studies in Project Management [2024] • Asana
Feasibility study vs. business plan. A business plan is a formal document of your organization's goals. You typically write a business plan when founding your company, or when your business is going through a significant shift. Your business plan informs a lot of other business decisions, including your three to five year strategic plan.
The Difference Between A Feasibility Study And A Business Plan
A business plan is a strategy and tactical document that is prepared after a successful feasibility study has been carried out. It is written based on the results of a feasibility study, and focuses instead on how the business can achieve a successful market penetration and growth. A business plan also contains financial projections, cash flow ...
What Is a Feasibility Study and How to Conduct It? (+ Examples)
Operational Feasibility Study: Details on process and workflow assessment, resource planning, scalability evaluation, and operational risks analysis. Conclusion: A summary of key findings and conclusions drawn from the study. Recommendations: Clear and actionable recommendations based on the study's findings. 2. Write the Feasibility Study Report
Feasibility Study
A feasibility study is part of the initial design stage of any project/plan. It is conducted in order to objectively uncover the strengths and weaknesses of a proposed project or an existing business. It can help to identify and assess the opportunities and threats present in the natural environment, the resources required for the project, and ...
Difference Between Feasibility Study and Business Plan
Main Purpose of a Business Plan and a Feasibility Study. In short, a feasibility study gives a conclusion or recommendations, while a business plan gives a roadmap. The feasibility study helps determine whether an idea or business is a viable option. Therefore, a feasibility study is done first before investing a dime in the business.
What Is a Feasibility Study for Small Business?
A feasibility study for small business is an in-depth research and financial analysis that recommends if one should pursue a business idea or product. The study contains estimates of items such as income, costs, obstacles, and technical challenges. Typically, a feasibility study for a small business costs a minimum of $5,000.
Business Plan Vs. Feasibility Study
Methodology: Essentially, feasibility studies are research projects, whereas business plans are projections for the future. Risks: Feasibility studies determine the risks associated with the idea ...
What Is a Feasibility Study? How to Conduct One for Your Project
3. Conduct a Market Survey or Perform Market Research. This step is key to the success of your feasibility study, so make your market analysis as thorough as possible. It's so important that if your organization doesn't have the resources to do a proper one, then it is advantageous to hire an outside firm to do so.
Feasibility study: definition, benefits and differences with a Business
Here are the key differences between a feasibility study and a business plan: Differences in Purpose. Feasibility Study: Feasibility studies are conducted in the early stages of project development or business planning. Their primary purpose is to determine whether a proposed project or business idea is viable and should be pursued.
Write a Feasibility Study
A feasibility study answers this question—so let's see how to write one. A feasibility study identifies capabilities for implementing the solutions proposed in a business case. Be sure to mention any inherent risks or threats to the project's success. In addition, the feasibility study should depict whether the desired outcomes are ...
11.3 Conducting a Feasibility Analysis
A feasibility study may become the basis for the business plan, which outlines the action steps necessary to take a proposal from ideation to realization. A feasibility study allows a business to address where and how it will operate, its competition, possible hurdles, and the funding needed to begin.
Business Plans & Feasibility Studies
A systematic, four-step plan for reducing the risk associated with launching a new business. The proper sequence in planning and launching a business is as follows: 1. Identifying a business idea. 2. Screening and testing the idea to determine its initial feasibility. 3. Writing a business plan. 4. Launching the business.
How to Write a Feasibility Study
Top 10 Steps to Writing a Feasibility Study Analysis Report. Step by Step Process to Write a Feasibility Study. Identify the project you wish to undertake and clearly explain it. Know exactly what you want to do and illustrate the business plan. Deviation is only a good idea if the current business model falls through or you must pivot due to a ...
A PRACTICAL GUIDE TO WRITING A FEASIBILITY STUDY
The purpose of the book is to provide practical guide to write a feasibility study to determine the viability of a specific project. Specifically, this will book will provide the description of ...
Business Plans: How to Develop a Feasibility Plan
Business Plans: How to Develop a Feasibility Plan. Lesson Transcript. Instructor Sean Kennedy. Sean has 8 years experience as a supervisor and has an MBA with a concentration in marketing. Cite ...
Discover Why a Feasibility Study Is So Important
A feasibility study also addresses important issues such as where (and how) the business will operate. If done properly, your feasibility analysis will provide in-depth details about all the various components of your business to determine if it can succeed. In the end, this document will serve as a valuable tool for developing a winning ...
Difference between Feasibility Study and Business Plan
A feasibility study is filled with calculations, analysis and estimated projections while a business plan is made up of mostly tactics and strategies to be implemented in other to grow the business.". While it may seem the feasibility study is similar in many ways to the business plan, it is important to keep in mind that the feasibility ...
Writing a Business Plan
The feasibility study determines whether the idea/project of a good or service is viable. The business plan is formalized, after the business opportunity is created. A feasibility study includes financial analysis, while the business plan focuses more on implementing well-thought out tactics and strategies.
Write a Business Feasibility Study for Startup
Additionally, a business feasibility study can be helpful in determining any necessary up-front investments and in exploring potential partnerships or joint ventures. 4. Write a Business Feasibility Study and plan for your project. We help you plan for your project and conduct the needed feasibility study.
How to Write a Feasibility Business Plan
Feasibility Business Plan Writing Steps. Write the business description with key success factors. The beginning of any feasibility study is the presentation of the company, which reflects its main characteristics, the degree of technology it is equipped with, the share of the market, and a brief financial analysis of the company.
Do you need a PINEAPPLE CULTIVATION & PROCESSING feasibility study or
We write the best and affordable business documents, suitable for... Do you need a PINEAPPLE CULTIVATION & PROCESSING feasibility study or business plan? We write the best and affordable business documents, suitable for bank loans and investor funds. They are concise,...

10 Feasibility study and business plan differences you should know

Similarities between a Feasibility study and a business plan

Submit a Comment Cancel reply

Follow Us On

Latest Posts

Looking for Feasibility Study Samples?

Advisory boards aren’t only for executives. Join the LogRocket Content Advisory Board today →

How to conduct a feasibility study: Template and examples

What is a feasibility study?

What are feasibility analyses used for?

How to conduct a feasibility study

1. Clearly define the opportunity

2. Define the objective and scope

Over 200k developers and product managers use LogRocket to create better digital experiences

3. Conduct market and user research

4. Analyze technical feasibility

5. Assess financial viability

6. Evaluate potential risks

7. Decide, prepare, and share

Feasibility study example

Feasibility study template

Overcoming stakeholder management challenges

Final thoughts

LogRocket generates product insights that lead to meaningful action

Share this:

Stop guessing about your digital experience with LogRocket

Leader Spotlight: Improving product development through documentation, with Mark Francis

A guide to crafting your brand strategy

Leader Spotlight: Helping turn Apple’s business around, with Steve Chazin

Leader Spotlight: Building a comprehensive migration plan, with Deepika Manglani

Leave a Reply Cancel reply

How to use a feasibility study in project management

What is a feasibility study?

When should you conduct a feasibility study

Feasibility study vs. project charter

Feasibility study vs. business case

Feasibility study vs. business plan

4 elements of a feasibility analysis

Technical feasibility

Financial feasibility

Market feasibility

Operational feasibility

Feasibility study checklist

6 steps to conduct a feasibility study

1. Run a preliminary analysis

2. Evaluate financial feasibility

3. Run a market assessment

4. Consider technical and operational feasibility

5. Review project points of vulnerability

6. Propose a decision

Achieve project success with Asana

Related resources

Unmanaged business goals don’t work. Here’s what does.

How Asana uses work management to drive product development

How Asana uses work management to streamline project intake processes

How Asana uses work management for smoother creative production

The Difference Between A Feasibility Study And A Business Plan

Reasons For A Feasibility Study Report

Feasibility Study Report Structure

Reasons For A Business Plan

Business Plan Structure

What Then Do You Need?

What are your thoughts on the difference between a feasibility study report and a business plan? Let me know by leaving a comment below.

How To Start A Lucrative Solar Energy Installation Business In Nigeria and Africa: The Complete Guide

What Is a Feasibility Study and How to Conduct It? (+ Examples)

What is a Feasibility Study?

Why is a Feasibility Study Important?

Types of Feasibility Studies

1. Market Feasibility Study

2. Technical Feasibility Study

3. Financial Feasibility Study

4. Operational Feasibility Study

How to Prepare for a Feasibility Study?

1. Identify the Project or Idea

2. Assemble a Feasibility Study Team

3. Set Clear Objectives and Scope

4. Gather Initial Information

How to Conduct a Market Feasibility Study?

Market Research and Analysis

Target Audience Identification