Components of a Feasibility Study - What, When and How
Updated: Jul 8, 2018
What is a feasibility study? In simple definition, a feasibility study is a comprehensive analysis of the viability of a project, idea or concept. The study typically considers relevant data sources for determining whether a BIG idea is sustainable, achievable, affordable and ideal considering its scope, cost, location and/or overall economic impact. Technology today allows for the additional layering of artificial intelligence regarding site demographic and consumer behaviors making the analysis of feasibility even more reliable.
Feasibility studies can be used for various planning purposes. A new retail or mixed use development may request a feasibility study to determine project costs, community support, economic impact and market demographics. Retail restaurant franchises may request a study to determine site selection and identify ideal site opportunities within a region. And, an inventor may request a feasibility study to help determine the scope of interest, market approach for a new product and evaluate potential competition. Feasibility studies are key resource reports that provide detailed insight into a project or "BIG idea"; and, they are great tools for use in the planning stages of an organization's goals. In addition, lender's and/or investor groups may require feasibility studies to strengthen fundraising campaigns and determine funding options.
When should a feasibility study be used? Here are a few examples of when feasibility studies are typically required or needed:
Initial idea exploration, concept development and overall assessment.
Development project requiring community support and proof of economic impact.
Major business decisions that require a "Go/No Go" conclusion.
New community based projects that require detailed analysis of project scope, needs and potential impact.
A comprehensive analysis of competitors in the marketplace and what their offerings include vs. what goals an organization desires to pursue.
Business planning and preparation stages.
Technical, legal, operational and scheduling feasibility applications in project management.
Determining market viability, financial viability and detailed SWOT analysis.
Launching a new business.
Launching a new product or service.
Feasibility studies are compiled based upon the scope and type of "BIG idea" being validated. In general the components of a feasibility study include:
Defining the project scope
Determining current market trends and conducting detailed risk analysis
Defining and reviewing technical and organizational requirements for project viability
Evaluating a comprehensive cost analysis for the project
Identifying potential site selection and/or determining highest and best use for an existing site
Reviewing artificial intelligence and market data as it relates to the project and provides insight
Presentation and review of feasibility to key stakeholders
The feasibility report provides an overview and summary of all relevant data, artificial intelligence and pertinent information. Depending on the scope of the project, a comprehensive feasibility study can be completed within a few days or take up to a few weeks. The feasibility report will look at how a certain proposal can work on a long-term basis or endure financial risks that may come. It is also helpful in recognizing potential cash flow needs and possible shortages.
Accordingly, a feasibility study can provide reasons not to pursue a project or provide support for continuing momentum for the "Big Idea". When it comes to the operational aspect, the analysis determines whether the plan has the necessary resources for it to be achievable. The Osborn Group, LLC is available to help you figure out whether or not a feasibility study is appropriate and determine the scope of what data is needed to validate or scratch the idea. Feasibility studies look at the present-day market trends and analyze the anticipated growth of your target business sector.
If you have a "Big Idea" that requires a feasibility study, feel free to review our process at www.theosborngroup.biz/feasibility-studies to learn more and request your FREE quote. Our leadership team has over 25 years experience consulting, analyzing and preparing studies for startups and projects across the region.
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About the Author - Timothy G. Osborn is the Senior Consultant/Founder at The Osborn Group, LLC where "We build top talented teams to enhance and create next level solutions for efficient business operations, learning & development, human resources, content marketing, engagement, brand development, talent acquisition, startup mentoring services, feasibility studies, and management consulting."
"Expect exceptional experiences every time!"