The purpose of a feasibility study is to analyze a business proposal to determine if the project is viable and if it should be followed through with. Determining if a business is feasible prior to establishing it prevents an investor from wasting money and time on a failed business venture.
Some concerns that are addressed through a feasibility study include:
A feasibility study is conducted in the idea stage of planning a business. It is not to be confused with a business plan. A business plan is only created after a feasibility study is conducted and a decision is made to move forward with the business.Learn More
A technical study of feasibility is an assessment of the logistical aspects of a business operation. It includes segments on necessary materials, labor and technology, and the means of shipping or transporting goods, according to About.com. Although not part of the technical portion of the study, a financial feasibility report is typically included, and it is supported by the details of the technical study.Full Answer >
A feasibility study report should include the project description, possible solutions, evaluation criteria, pinpointing the most feasible solution and a conclusion. Feasibility study reports are used to provide evidence for a project's effectiveness and to give supportive reasons why this project should be undertaken.Full Answer >
A feasibility study is used to determine the likelihood of a venture succeeding. In the management aspect of the study, those conducting it identify the management team of the venture and judge whether or not they have the skills to run the business effectively.Full Answer >
A feasibility study for an information system project is an in-depth look at the project in order to determine whether or not an organization should proceed with its implementation. Feasibility studies provide project managers with an overview of the primary issues related to the project, as well as insights about the outcomes of the project, before the company invests too much time and money.Full Answer >