A feasibility study is a formal study conducted as early as the planning phase of a project. Its purpose is to define the probability of successfully carrying out the project and succeeding in its implementation. To assess whether the project’s objectives have a realistic chance of success, the feasibility study should answer the following questions:
- Are there financial, organizational, technical, legal, etc. constraints?
- Does the team have the right tools and resources needed to execute the project?
- Will there be sufficient cash flow at each stage of the project to keep it going?
- Will the overall earnings from the investment exceed its cost?
Of course, many more of these questions can be asked – the more accurate they are, the greater the chance of preparing a feasibility study that allows you to well assess the feasibility of the project, conduct an accurate financial analysis and predict the success of the investment.
Feasibility study vs. business plan
A feasibility study is often compared to a business plan, and this is not surprising, as they have many elements in common. However, the main difference is that a business plan defines ways to implement a project, while a feasibility study focuses on the feasibility aspects of the project.
Advantages of preparing a feasibility study
The purpose of a feasibility study is to develop the costs and benefits of a project, which in itself is a huge advantage. In addition to this, the feasibility study provides an opportunity to choose the best option for carrying out the planned project, to develop a schedule for the implementation of the various stages, to assess profitability and to prepare an economic analysis and financial perspective, and as a result, to estimate the expected profit from the project.
Our offer
In order for the prepared feasibility study to be valid, the technical study should be carried out on many levels, and for this purpose it is recommended to appoint a broad team with the appropriate knowledge and qualifications. Our team is just such a team!
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