Feasibility study and its importance
What is feasibilty study ?
An analysis and evaluation of a proposed project to determine if –
- it is technically feasible,
- it is feasible within the estimated cost, and
- it will be profitable.
Feasibility studies are almost always conducted where large sums are at stake. Also called feasibility analysis.
To check Out Various Types Of Feasibity studies, check this link Types of feasibility studies and feasibility reports
Importance of Feasibility study
A feasibility study is conducted in order to determine the success and minimize the risks related to the project. When it becomes certain that the specific project could be carried out profitably, it is only then it could be implemented. The feasibility study is not merely a project research, but a framework or a plan on how to establish and run business successfully in the long run. A feasibility study contains five essential components, including market research, financial research, management research, schedule determination and technical research.
- Marketing study : Marketing research is conducted to evaluate whether the project is suited for the current and future organizational culture. In this process, the consultants will look in finding data on overall impact on business structure, employees an organization. Sale projection is also one of the vital parts of market research. The main objective of marketing research is to identify the target consumers, know the demand of the consumers, understand the market characteristics and evaluate the factors that provide a great impact on the buying decisions.
- Financial study : Financial planning is very important to handle the different operations of the organization within the budget limits. In financial research, the researchers cover the assessment of total capital requirements, sales and prices, break even outputs, amount of sales required to attain profit in the business. It helps entrepreneurs to get an idea about how much money is required for handling a business project successfully.
- Management study : Management research is conducted to determine the overall resources required for the successful completion of the project. Some projects, like manufacturing will require more physical resource while some IT project requires lots of human resources. Schedule study Schedule feasibility is conducted to determine how much time and resources are required to finish the project on time. As the feasibility research plays a vital role in the successful completion of the project. You need to hire professional management consulting firms in order to get the right and effective report. Gulf Resources is one of the top business management consulting firm that conduct a Feasibility study in UAE for clients from various fields like healthcare, food, engineering, cosmetic and body care shop
Example Of Feasibity Study
By following an example of feasibility study for any project, there is a decent possibility you will have the capacity to cover the vital components to uncover all the information that is required. This is vital on the grounds that a decent number of elements about an project are dependent on this study for it to win the approval of the partners.
Every example of feasibility study is extraordinary and these varieties ought to be considered. The segments of the example will be extremely valuable as a guide, however the content ought to be remarkable for your record.
One zone that might be comparative with your example of feasibility study and the report you are making is the intended interest audience. There are just such a large number of socioeconomics and age groups that a business can rely on for an income stream. Therefore the manner in which they are reached with a positive response ought to be copied or nearly followed in anticipation of a similar positive response.
Other information that can be acquired from a example of feasibility study is the coordinations of providing the intended interest group. In the event that the intended interest group is loca, at that point the expenses are negligible. On the off chance that the group of onlookers is in another area, at that point the cost of providing the deliverable should be considered into the general money related cost of the undertaking. One of the reasons for this sort of study is to decide the gainfulness of the venture. This must be remembered.
The issues that were experienced in your case feasibility study ought to be comprehended and analyzed. On the off chance that the issues or impediments can't be defeated in a practical way, at that point another way ought to be investigated. Regardless of what the result of the information, it should all be archived so no inquiries emerge amid the audit procedure of your study.
These are a portion of the things that can be gained from a case feasibility study. How you apply what you have realized will be the distinction if your arrangement is acknowledged or denied.
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The Examples of Feasibility Studies are:
it is measure of, how well the solution will work in the organization. it is also the measure of , what people feel about the project/system
it is the measure of the practicality of a specific technical solution and the availability of technical resource and expertise.
it is a measure of , how reasonable the project timetable is.
it is measure of cost effectiveness of the system/project and its solution it is often called cost benefit analysis.
What will be the impact of particular thing on both local and general cultures? How they will respond to that. What type of implications does the feasibility study have?
it is a measure of legal implications on the project, ethical considerations. We need to make sure that project undertaken will meet all legal and ethical requirements.
Do we have enough resources, what resources and facilities will be required for the project, etc.
Will anyone want the product once its done? What is the target demographic? Should there be a test run? Is there enough buzz that can be created for the product?
Real Estate Feasibility
What kind of land or property will be required to undertake the project? What is the market like? What are the zoning laws? How will the business impact the area?
Managerial Feasibility Study
Managerial feasibility is measured by certain key elements like employee involvement, demonstrated management availability & capability and commitment.
Financial Feasibility Study
Validating that a project is possible within your financial constraints. For example, a construction project that uses reference class forecasting as a sanity check for project budget.