“People who count their chickens before they are hatched act very wisely because chickens run about so absurdly that it’s impossible to count them accurately.”
― Oscar Wilde
Business success is primarily determined in terms of ROI, which is the amount of profit that will be generated from the venture. Perception of the same is an imperative call that enhances the Initiation of business proposal. Feasibility study followed by appropriate Business planning are the right tools in place that gives a perfect shape to the proposal. Engaging expertise for feasibility studies can optimise time and money along with diligently serving the study requisites.
A feasibility study is a comprehensive analysis of the Market for a product, service or location in terms of Economical, Technical, operational, demographical, legal and competition factors.
Economic Feasibility: This assessment plays crucial role in determining the positive economic benefits that can be provided by the proposed project. This involves a cost/ benefits analysis of the project, that gives clear picture on the cost and benefits associated with a project. This gives decision makers a choice on investment decisions and well in advance planning on financial resources to be allocated for the project. It also serves as an independent project appraisal, in turn enhancing its credibility.
Technical Feasibility: This assessment focuses on the technical resources needed for the project. That involves the evaluation of the hardware, software, and other technical requirements, training needed for the proposed system. This helps in determining whether the currently available technical resources can cover up the capacity needs and also whether the technical team is capable of converting the ideas into working platforms. Additional technical advancements / support systems needed to meet the capacity and technical training needed to handle the project are to be proposed.
Legal Feasibility: This assessment studies on laws and regulation compliances that should fall in place for the project and guides on meeting the paper requirements. Also investigates whether any aspect of the proposed project conflicts with legal requirements like delimiting laws, data protection acts or social media laws. The organization can save considerable time and effort by having firsthand information on legal compliances.
Operational Feasibility: This assessment involves analysing whether the proposed project would subject to meet the requirements of the organisation, overcoming the challenges of Project Constraints like Technical, Technology, Budget, Resource etc, Corporate Constraints like Financial, Marketing, Export, etc and External Constraints like Logistics, Environment, Laws, and Regulations, etc. Within the stipulated time or estimated time for the project
The significance of feasibility study is” hitting the mark” before committing resources, time, or budget. Further it uncovers new ideas that could give new dimensions for the proposed project.
Engaging Market Research and Consulting, an expertise in Conducting a feasibility study is always beneficial to the project as it gives the organization and other stakeholders a clear picture of the proposed project. Some key benefits identified are
- Identifying Project credibility
- Improves project teams’ focus
- Identifies new scopes / unlock new dimensions
- Provides Insights on “go/no-go” decision
- Identifies potential business alternatives
- Enhances the success rate by evaluating multiple parameters
Several other factors considered under feasibility study includes product or service marketability, company’s financial stability, technology and resources required, return on investment and competition.
Hence a Project feasibility study gains its importance by evaluating a project before starting it on terms of its viability and potentiality to be successful, that guides through decision making and moving forward.
