Feasibility Study

A feasibility study is an analysis tool on the viability of an idea. It is an analytical tool used during the business development process to show how business would operate under a set of assumptions. These assumptions often include main factors such as technology, finance, and marketing.




It also includes recommendations and limitations that assist decision making on the proposed project or business. It is important to understand that it is neither the role of feasibility study nor consultant to make any decision of the proposed business or project. A decisive role is topped to project leaders who use information from feasibility study and input from consultants.


Importances of feasibility study.

  • A feasibility study is very important to proposed business or project. It is used to support decision-making process on matters pertaining to cost-benefit analysis of the actual business or project viability.Feasibility studies help in taking business management decision on whether to accept, modify, or reject a business project based on the analysis of the project's merits and demerits.
  • A feasibility study is ar of the planning process. It defines all factors surrounding the market, production, marketing, staffing, and financial aspect of the business venture. By examining these factors, it focuses on the project and outlines alternatives. It also narrows business alternatives as a result of recommendations and limitations of the report.
  • Feasibility study identifies new opportunities through the investigative process. Like academic research , feasibility study involves research tools than make consultants or study team to visit various people and places for data collection. This helps them to uncover different opportunities and challenges for new opportunities to invest on.
  • Feasibility study enhances the probability of success by addressing and mitigating factors that could affect the project. Successful business or project is that which starts with the thorough investigation before its commencement. Therefore, feasibility study minimizes risks of the proposed jet or business during its actual operation.
  • The feasibility study provides documentation that business venture was thoroughly investigated. Even if the document is not intended for loan seeking, it is, in some circumstances, likely to help the project or business in securing funding from lending institutions and other monetary sources. It may also help to attract equity investment.

  • Feasibility study helps to safeguard against waste resources.Once the proposed project is feasible, it propels the next step of the business plan. But if the proposed project is not feasible, i can be discarded to reduce cost in terms of time and money.