Elements that Need to be Consider for Good Feasibility Study Other Services

Introduction

A feasibility study is necessary for a successful business in today's world. It assists in looking at the viability of a business venture as well as in identifying potential problems. Before making the blueprint of the business plan, you first need to identify how, where, and to whom you intend to sell a product or service. You also need to figure out how much money you need to start a business.

Hence, a feasibility study assists you in getting in-depth information about the business as well as components to determine whether the plan would successfully execute or not.

Feasibility Study

What is the Feasibility Study? – It refers to the definition of the problem to be studied, a definition of requirements, an analysis of the current mode of operation, and evaluation of alternatives, and an agreed-upon course of action. It assists in getting the right answer before spending money, time, and resources on an idea that is not viable.

The objective of the Feasibility Study – The main objective of the feasibility study is to assess the viability of business ideas in terms of technicality and economics. It also allows you to analyze and explore business possibilities and making a vital decision on the necessity to begin the project.

Stages in the Feasibility Study – There are two basic stages in the feasibility study that are Preliminary and Detailed Study.

● Preliminary Study – It is also known as a primary study. A simplified document assists in accepting & rejecting the project, and if the project is accepted, then we go for a detailed stage. In this stage, we collect all the basic things of the project.

● Comprehensive Study – In this stage, we aggregate all the information related to projects. It includes the results obtained from the primary stage, as well as detailed information about the projects. This stage consists of five more stages as well that are Preliminary Feasibility Study, Architectural Feasibility Study, Project Feasibility Analysis, Market Feasibility, Fundraising Feasibility Study. 

Types of Feasibility Study 

●Preliminary Feasibility Study –. It assists in determining the feasibility of the project means whether the project would succeed in the initial phase or not. In the case of unsuccessful projects, various plans employed to make it successful. It also identifies the market of the project as well to figure out all the product's market.

●Architectural Feasibility Study – It assists in answering the big questions early in the decision-making process. It also considers all the possible aspects of the proposed project. It can range from a relatively simple assessment to a complex review of distinct potential uses. Along with that it evaluates and investigates the potential of the sites.

●Project Feasibility Analysis – It assists in determining the project feasibility. If the project is not feasible, then it is reviewed again. You do not need to spend the money and need to apply some tools so that the project made feasibly. And benefit may achieve from the successful project execution.

●Market Feasibility – It acts as a basis to determine the demand's rate for the services or products. If you find any errors during this study, you will continuously face the error throughout the study. It also acts as a basis for the technical study

●Fundraising Feasibility Study – It comes after the completion of the feasibility marketing study. In this phase, we do a technical study to find out the optimal source to finance the project like short-term loans, long-term loans. This stage assists in understanding the estimated budget of the project as well.

Importance of Feasibility Study – The data that you collect from the feasibility study and that are present in it used to identify things you need to make the business work. You may target the business problems very easily and can make strategies to convince an investor that your business is worth investing in it. And serve as a solid foundation for developing your business plan.

Advantages of Feasibility Study – Some of the advantages of the feasibility studies are:

●identifies new opportunities
●Identifies a valid reason to undertake the project
●Provides valuable information for making a suitable decision
●Improves project team's focus
●Enhances the success rate by evaluating several parameters
●Narrows the business alternatives
●Assists in decision-making on the project

Some Key Components for Good Feasibility Study

●The Project Scope – It refers to the definition of the problem. Project scope must be concise, clear, and also need to define parts of the venture that are being affected directly or indirectly. And during this phase, the project sponsor also needs to be identified.

●The Current Analysis – It uncovers the inefficiencies as well as defines the current method of implementation. You may save time & money by identifying the strengths and weaknesses of the current approach. It also assists in identifying the opportunities instead of a thorough overhaul.

●The Requirements – For this, you need to define the requirements for the projects. And it all relied on the objective of the project. For example - requirements for the products may be different from the requirements which you specified for the information system. In the feasibility study, it is very important how you define the need very accurately.

●The Approach - Next, you need to select the recommended solutions that could meet your project needs. You may consider various alternatives and may even choose a preferable solution for your project. For choosing the best approach, you need to consider the various factors for this as well.

●Evaluation – It examines the cost-effectiveness of your selected project. You can easily know the total cost of the project. You may consider other alternatives for the comparison as well. After the calculation and evaluation of the total cost, you may prepare a cost summary to include a return on investment, etc.

●Review – It is the final stage of the feasibility study. During this phase, we make the project's decision after verifying the accuracy of the feasibility study. At this stage, you may reject, approve, and even go for revision of the study while making a decision.