A feasibility study is an assessment of the practicality of a project or program. The outcome of a feasibility study is documented in a feasibility report. This objectively and rationally analyzes the strengths and weaknesses of an existing or proposed project and ultimately provides the prospects of viability of the project.
The purpose of the feasibility report is to present the project parameters and define the potential solutions to the defined problem, need, or opportunity. Having brainstormed a variety of potential solutions, the project team expands on each of these potential solutions, providing sufficient detail, including very high-level costing information, to permit the project leader to recommend to the approving authority all of the viable potential solutions that should be further analyzed in the next phase (Business Case). Project constraints and limitations of expenditure are among the various factors that will determine viability.
An economic feasibility study reports on the cost factors of a proposed plan to an organization. Economic feasibility assesses the costs associated with the project and weighs them against the benefits from the project. In analyzing economic feasibility of a project, projected profit statements, projected statements of financial position and cash flow statements for some periods into the future are required. These assists in assessment of whether the project is financially viable or whether it makes a good business case.
An operational feasibility report focuses on the effectiveness of the function of the operations of an organization. If a business has a global market, for example, an operational feasibility study could examine the roles within each of its divisions both locally and in each global office. Based on the data from the feasibility study, the report could recommend that the organization consolidate and centralize certain departments for greater efficiency and cost-savings. Further, operational feasibility analyzes what operations will be required for the project and establishes whether the project sponsor has capacity for such operations.
If you are setting up a new business venture, the right location plays an important role in the success of the enterprise. A market feasibility study helps determine if your location is beneficial to your business. The market-feasibility study inspects the surrounding community, identifies competition, lifestyle, shopping patterns and other influences. Analysis of the data in the market-feasibility provides the basis of assessing whether the project is competitive enough and whether it has enough demand for survival and sustainability.
Each business needs equipment, technology, machinery and infrastructure to enable it perform its activities competently. Technical feasibility study focuses on whether the equipment and technology required in project processes and activities are available. Technical information provided in this section demonstrates to potential investors and lenders (and in some cases, potential clients) that the project has the capacity to procure the material and human resources required for the project. The best technical options that bring costs savings or revenue increases are selected.
We provide feasibility studies and reports for:
- Real estate residential projects
- Real estate commercial projects
- New business ventures
- Introduction of new products
- Introduction of new operations