What is Feasibility Study?
The term “feasible” describes an
action or event that is likely, probably or possible to happen or achieve. A Feasibility Study is the total of the actions you take and the questions you
ask to determine whether an idea, thought or plan is likely to succeed. An
effective study can guide you on whether you should move forward with your
idea, refine it, or scrap it altogether and go back to the drawing board.
A Feasibility Study can be defined as a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes and assessing the range of costs and benefits associated with several alternatives for solving a problem. The Business Feasibility Study is used to support the decision-making process based on a cost benefit analysis of the actual business or project viability. The Feasibility Study is conducted during the deliberation phase of the Business Development Cycle prior to commencement of a formal Business Plan. It is an analytical tool that includes recommendations and limitations, which are utilised to assist the decision-makers when determining if the Business Concept is viable.
Feasibility Studies are focused and
specific. They start with a single question -- asking whether the idea, event
or action is a viable solution -- and force you to focus solely on that
question to the exclusion of everything else, drilling down to explore possible
outcomes. A Feasibility Study is not the same as a Business Plan. A Feasibility Study is an investigative tool that might cause you to discount an idea,
whereas a Business Plan is call to action. You can, in fact, use a Feasibility Study as a predecessor to creating a Business Plan.
0 comments