Feasibility Study

What is a feasibility study?

Feasibility study is a systematic evaluation of a proposed project, system or a business venture. Feasibility study is sometimes confused with business plans. Although both pretty much have similar elements, however, are for two different purposes.

Feasibility study is a rigorous examination exercise where essentially all relevant elements of the proposed initiative are tested against multiple variables. Feasibility results in an informed decision on whether or not to proceed with the proposed initiative.

What it brings and why you need it?

In each type of feasibility study, certain set of variables are tested and analysed e.g. in commercial feasibility, price sensitivity analysis is done to see the impact of price variation on consumer behaviour at one end and profitability on the other. For a new business, a comprehensive feasibility is conducted to have a 360 degree evaluation of the proposed initiative.

So if you have

• a new business idea,
• an investment decision,
• make or buy decision,
• an outsourcing decision,
• a new product or service, or
• a new project

Conduct a feasibility study !