A feasibility study is an analysis of the viability of an idea.
The feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea?” All activities of the study are directed toward helping answer this question. Feasibility studies can be used in many ways including evaluation of a proposed business venture or a potential infrastructure project.
A pre-feasibility study may be conducted prior to the more exhaustive Feasibility Analysis. A preliminary feasibility study is used in due diligence work, determining whether to proceed with a detailed feasibility study and as a “reality check” to determine areas within the project that require more attention. If you find out early-on that the proposed business idea or project is not feasible, it will save time and resources. If the findings lead you to proceed with the feasibility study, your pre-feasibility work may have resolved some basic issues.
Please note that a feasibility study is not a business plan.
The roles of the feasibility study and the business plan are often misunderstood. The feasibility study provides a pre-qualification function. It addresses the question of “Is this a viable venture?” The business plan provides a planning function. The business plan outlines the actions needed to take the proposal from “idea” to “reality.”
The feasibility study outlines and analyzes several alternatives or methods of achieving success and helps to narrow the scope of the project to identify the best business scenario(s). The business plan deals with only one alternative or scenario. The feasibility study is conducted before the business plan. A business plan is prepared only after the business venture has been deemed to be feasible and provides the “blueprint” for project implementation.
In the Subscribers Only Section you will find:
- Threshold Analysis for Rural Areas and Small Urbans
- Key Elements of Pre-Feasibility and Feasibility Studies
- Examples of feasibility studies for hotels, restaurants and convention centers
- Examples of transportation and infrastructure feasibility studies
- Feasibility Guidebook on starting a co-operative
- Agricultural Feasibility Studies
- Housing Feasibility Studies
- Workbook for pre-feasibility assessment of tourism projects