A feasibility study is designed to answer whether or not a proposed project or idea should go forward by determining whether the project or plan is practical and doable. A feasibility study can identify the strengths and weaknesses of the proposed plan.
What Are the Four Types of Feasibility?
The four types of feasibility include:
- Technical: Technology, hardware, and labor needed
- Financial: The return on investment and the amount of funds needed to pay for the project, including the sources of capital, such as a financial institution or investors
- Market: an analysis for the market for the product or service, the industry, competition, consumer demand, sales forecasts, and growth projections
- Organizational: An outline of the business and the legal structure, as well as a management team analysis that includes a measurement of competency, such as the skills and experience needed
Feasibility studies help project managers determine the viability of a project or business venture by identifying the factors that can lead to its success. The study also shows the potential return on investment and any risks to the venture’s success.
Important Features of a Basic Feasibility Report
The seven elements of the feasibility report are-
- Overview of Alternative Options
Note: All seven elements outlined do not need to be included in the feasibility report depending on the audience, circumstance, mission, etc. The elements do not need to be in the exact order outlined above.