By May 3, 2017 Read More →

Project Feasibility Study

As the name implies, a feasibility study is used to determine the viability of an idea. The objective of such a study is to ensure a project is legally and technically feasible and economically justifiable. It tells us whether a project is worth the investment.

Feasibility studies are useful to businesses in many ways. Some of the reasons organizations conduct feasibility studies are as follows:

  • Not every project is doable.
  • Not every project should be taken up. This will engage otherwise useful resources and block their use on other tasks.
  • Not every project makes effective use of the resources of an organization.

But What is a Feasibility Study?

In simple terms, a feasibility study involves taking a judgment call on whether a project is doable. The two criteria to judge feasibility are cost required and value to be delivered. A well-designed study should offer a historical background of the business or project, a description of the product or service, accounting statements, details of operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, such studies precede technical development and project implementation.

A feasibility study evaluates the project’s potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for potential investors and lending institutions.

Five Areas of Project Feasibility:

  • Technical Feasibility
  • Economic Feasibility
  • Legal Feasibility
  • Operational Feasibility
  • Scheduling Feasibility

Benefits of Conducting a Feasibility Study:

Conducting a feasibility study is always beneficial to the project as it gives you and other stakeholders a clear picture of your idea. Below are the key benefits of conducting a feasibility study:

  • Gives project teams more focus and provides an alternative outline.
  • Narrows the business alternatives.
  • Identifies a valid reason to undertake the project.
  • Enhances the success rate by evaluating multiple parameters.
  • Aids decision-making on the project.

Apart from the approaches to feasibility study listed above, some projects also require for other constraints to be analyzed –

  • Internal Project Constraints: Technical, Technology, Budget, Resource, etc.
  • Internal Corporate Constraints: Financial, Marketing, Export, etc.
  • External Constraints: Logistics, Environment, Laws and Regulations, etc.

Our experts can give you comprehensive feasibility analysis on you existing or upcoming project which will help you to take important and right decisions of project implementation or restructuring.

Need more information or a quote?

Feel free to contact us, or dial our 24/7 hotline +88 01733 502222.

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