A feasibility study is practical analysis and an assessment of proposed project plan or method through measure ability and likelihood, to ensure potentiality. Usually the study may contain technical feasibility, cost estimation, and profitability of proposed plan or method. Most of the businesses are using this analysis, to ensure their large sums investments will be secure and potentially profitable.
Actually, the feasibility study uses to determine the viability of any method or plan of system. Generally, the entire analysis focus on technical, economical, and potentiality of each aspect.
What is feasibility study of a project?
Normally for project, an analysis and its evaluation are conducts to determine basic three aspects. Even this aspect should be viable to ensure the investment on project may legally and technically feasible, as well economically justifiable. Usually there are major aspects that may require to focus this analysis are:
- Technical Feasibility
- Economic & legal feasibility
- Feasibility within the estimate costs.
- Operational feasibility
- Schedule feasibility
Actually the study will be help to ensure that the project will be viable to the investment. Even, there are so many aspects, reasons and resources related analysis can be possible with the feasibility analysis. But the basic of the study will be essentially focus on above major aspects. Here as below some analysis may contain in the feasibility study are:
At the phase of technical feasibility analysis – require to ensure the proposed technology use as resources for project will be practical. Even the technical solution is sufficient within the project. The technical aspects are very important part of the project. Hence this analysis will be help to understand the current possess the necessary technology even and technical expertise.
Economic & legal feasibility
In the section of the analysis require to ensure the problems, and opportunities warrant the cost of detailed study. Even and analysis of the current system? Normally in economic analysis may contains the cost to develop, payback period, and net present values. The calculation of these three major elements may help to understand overall picture of the economic feasibility study.
Hence with legal feasibility study will be focus on local government rules and regulations, factory acts, and other resources related legal viability to ensure the project will be complying the legal requirements accordingly.
Feasibility within the estimate costs.
Actually this is one of the most important part of a business analysis. The part of this analysis may help to understand how the costs / saving a project may easier to manage. Even quantify the financial benefits or the project much as possible. Normally this phase considers as cost benefit analysis.
This phase is helpful understand even help to identify the operational feasibility. Proposed system for the project should be solves the problems and satisfy system requirements identified in the requirements analysis section.
This is one of the important part of the project. That every business needs to know the project complete on time and successfully in time manner. At this section in the schedule feasibility, analysis may help to understand the deadlines are reasonable? and the define or specified schedule mandatory or desirable?
Business feasibility study template for excel
The business feasibility study may help to define fully controlled processes. It may include identification of problems, opportunities, understand and determining objectives, even and describe results. The analysis also may help to estimate the costs, as well as help to determine what actual costs at which process.
Actually this is analytic tool that provides a recommendations and potential status of entire project. The business feasibility makes easier to creating business plan, even most businesses are using outcomes from business feasibility study to create their business plans.
Sample Feasibility study template
The sample feasibility analysis template helps to determine the potential status of entire project. It may cover each stages, process, costs, financial, as well technical aspects of the project. Hence overall the what will be status on scheduled, and how the project will be successfully complete their tasks can incorporate.
Project feasibility study example
Normally the project feasibility study may includes major key aspects. Such as technical, economical, legal, estimation of costs and operations management. But it may can also include some deep analyzing such as market analysis, completion and pre-feasibility studies, and business life cycle analysis.