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Top 5 Feasibility Study Templates with Samples and Examples

Top 5 Feasibility Study Templates with Samples and Examples

Sapna Singh

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A feasibility study is the first stage of any project or plan’s design. The study ensures that a project is legally, technically, and commercially feasible. In 1979, Essilor, a French-based international ophthalmic optics business, developed a new type of glass-and-plastic composite lens. The management failed to perform market studies (feasibility studies) due to overconfidence in the success of their original product. The company, however, struggled to keep the product afloat and eventually abandoned it in 1990, after spending $300 million.

A feasibility report is significant in deciding on multi-million-dollar projects. Find PPT Templates  that can make your project feasibility report stand out.

To prevent this situation, businesses should conduct detailed feasibility assessments and review them frequently at the start of each project. A thorough assessment of a project’s feasibility is essential for determining its chances of success.

Feasibility Study: A preliminary exploration of a proposed project

A feasibility study assesses the objective and logical analysis of a new business or endeavor to identify its strengths and weaknesses, potential opportunities and risks, resources needed to execute it, and chances of success in the long run. It assists you in determining whether to proceed with the suggested project concept.

Download our fascinating Feasibility Analysis PPT Templates  to build your organization’s assessment guidelines. Click here  to learn more.

This blog offers templates and samples you need to make an informed choice about the business opportunity by creating a market-driven, cost-effective feasibility study. Use Top 5 Feasibility Study Templates  from SlideTeam to examine the aspects of a proposed project. These templates will help you and other stakeholders understand the planned project. The 100% customizable nature of the templates provides you with the flexibility to edit your presentations. The content-ready slides give you the much-needed structure.

Use SlideTeam’s best-in-class PowerPoint Templates to evaluate a new business endeavor ’s viability from all angles.

These presentation templates are the greatest assessment tools when contemplating starting a new project.

Template 1: Feasibility Study Templates across Varied Projects

A feasibility analysis evaluates the likelihood of a project’s success. Use this PPT Template as a valuable and practical project assessment tool to assist your company in researching and assessing risks connected with a project or operation. This comprehensive deck includes feasibility studies for healthcare, restaurant, construction, e-commerce, software, and bank businesses. Executive summary, project overview, project program costs, project overview, financial study, technical analysis, conclusion, and recommendation are all included. This presentation template offers a thorough analysis, insight into current business practices and issues, and information on how solutions may impact a particular business setting. Get it now!

Feasibility Study Templates across Varied Projects

Download this template

Template 2: Proposal for Retail Store Opening Feasibility Study PPT

Use this PPT Template to present a retail proposal’s economic feasibility assessment. This feasibility analysis comprises market and competitive assessments, location and site analyses, and political, legal, and financial components. This is essential for determining a project’s feasibility and final go/no-go decision. Use this presentation to create a well-defined retail business strategy that will help you succeed. Download now!

Proposal for Retail Store Opening Feasibility Study PPT

Template 3: Financial and Economic Feasibility Study Framework

Use this PPT Template to outline the feasibility analysis framework for conducting financial and economic assessments. This template is valuable for completing a project analysis and creating a solid proposal. It includes details on the work scope, project initiation, environmental analysis, technical analysis, financial planning, etc. This presentation slide demonstrates the relationship between your product’s distinctiveness and customer expectations. Save it now!

Financial and Economic Feasibility Study Framework

Template 4: Construction Project Cost Financial Feasibility Study

Use this PPT Template to demonstrate the economic feasibility of a construction project. This component of a business feasibility study assists project owners/proposed investors in determining the project's likelihood of success. It covers cost-benefit analysis and construction cost analysis to estimate project value, project return, and project sustainability. Using this download, you can evaluate your Return On Investment (ROI) and the venture's success. Download now!

Construction Project Cost Financial Feasibility Study

Template 5: Project Current Status with Feasibility Study

A business feasibility study assesses the proposal’s viability. Use this PPT Template to review the current state of your project. This project analysis contains metrics such as site selection, site screen, feasibility study, baseline surveys, appraisal drill, and or seismic studies. Use this presentation template to assess the project’s viability for possible investors and financial institutions. Get it now!

Project Current Status with Feasibility Study

Template 6: Project Management Plan Process with Feasibility Study

Use this PPT Template to demonstrate a thorough review of critical variables for a capital campaign. This feasibility analysis contains tasks such as pre-campaign preparation, campaign planning, feasibility study, campaign launch, and campaign follow-up. This is an essential tool for project managers to grasp project characteristics, business goals, and risk concerns. With this download, you can use feasibility tools to break down assignments into digestible chunks with attainable timeframes. Get it now!

Project Management Plan Process with Feasibility Study

Analyze viability of an idea

A feasibility study describes and analyses options or approaches for achieving commercial success. Use SlideTeam’s PPT Templates to increase the likelihood of success by identifying and minimizing project-related concerns early on.

PS A well-crafted Project Tasks List  is at the heart of any successful project. Click here  to download the best roadmap for your team, stakeholders, and yourself.

FAQs ON FEASIBILITY STUDY

What are the four types of feasibility studies in project management.

  • A technical feasibility study examines the technical resources available for your project.
  • Financial feasibility describes if your proposal is financially viable. A financial feasibility report includes a cost/benefit analysis of the project.
  • Market feasibility is assessing within your team on how it anticipates the project’s deliverables to perform in the market.
  • An operational feasibility assessment determines whether your organization can complete this project.

What are the five major components of a feasibility study?

  • Economic Feasibility
  • Market Feasibility
  • Technical Feasibility
  • Financial Feasibility
  • Management Feasibility

SlideTeam has specialized products to study and establish each of these types of feasibility.

Who conducts feasibility studies?

An independent competent expert with recognized experience in the operation type under consideration should conduct a feasibility study. The analyst must be a firm with a proprietary interest in the project, a vendor, or any other person with an interest or vested interest in the study’s outcome.

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How to conduct a feasibility study: Template and examples

business feasibility study presentation

Opportunities are everywhere. Some opportunities are small and don’t require many resources. Others are massive and need further analysis and evaluation.

How To Conduct A Feasibility Study: Template And Examples

One of your key responsibilities as a product manager is to evaluate the potential success of those opportunities before investing significant money, time, and resources. A feasibility study, also known as a feasibility assessment or feasibility analysis, is a critical tool that can help product managers determine whether a product idea or opportunity is viable, feasible, and profitable.

So, what is a feasibility analysis? Why should product managers use it? And how do you conduct one?

What is a feasibility study?

A feasibility study is a systematic analysis and evaluation of a product opportunity’s potential to succeed. It aims to determine whether a proposed opportunity is financially and technically viable, operationally feasible, and commercially profitable.

A feasibility study typically includes an assessment of a wide range of factors, including the technical requirements of the product, resources needed to develop and launch the product, the potential market gap and demand, the competitive landscape, and economic and financial viability.

Based on the analysis’s findings, the product manager and their product team can decide whether to proceed with the product opportunity, modify its scope, or pursue another opportunity and solve a different problem.

Conducting a feasibility study helps PMs ensure that resources are invested in opportunities that have a high likelihood of success and align with the overall objectives and goals of the product strategy .

What are feasibility analyses used for?

Feasibility studies are particularly useful when introducing entirely new products or verticals. Product managers can use the results of a feasibility study to:

  • Assess the technical feasibility of a product opportunity — Evaluate whether the proposed product idea or opportunity can be developed with the available technology, tools, resources, and expertise
  • Determine a project’s financial viability — By analyzing the costs of development, manufacturing, and distribution, a feasibility study helps you determine whether your product is financially viable and can generate a positive return on investment (ROI)
  • Evaluate customer demand and the competitive landscape — Assessing the potential market size, target audience, and competitive landscape for the product opportunity can inform decisions about the overall product positioning, marketing strategies, and pricing
  • Identify potential risks and challenges — Identify potential obstacles or challenges that could impact the success of the identified opportunity, such as regulatory hurdles, operational and legal issues, and technical limitations
  • Refine the product concept — The insights gained from a feasibility study can help you refine the product’s concept, make necessary modifications to the scope, and ultimately create a better product that is more likely to succeed in the market and meet users’ expectations

How to conduct a feasibility study

The activities involved in conducting a feasibility study differ from one organization to another. Also, the threshold, expectations, and deliverables change from role to role.

For a general set of guidelines to help you get started, here are some basic steps to conduct and report a feasibility study for major product opportunities or features.

1. Clearly define the opportunity

Imagine your user base is facing a significant problem that your product doesn’t solve. This is an opportunity. Define the opportunity clearly, support it with data, talk to your stakeholders to understand the opportunity space, and use it to define the objective.

2. Define the objective and scope

Each opportunity should be coupled with a business objective and should align with your product strategy.

business feasibility study presentation

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business feasibility study presentation

Determine and clearly communicate the business goals and objectives of the opportunity. Align those objectives with company leaders to make sure everyone is on the same page. Lastly, define the scope of what you plan to build.

3. Conduct market and user research

Now that you have everyone on the same page and the objective and scope of the opportunity clearly defined, gather data and insights on the target market.

Include elements like the total addressable market (TAM) , growth potential, competitors’ insights, and deep insight into users’ problems and preferences collected through techniques like interviews, surveys, observation studies, contextual inquiries, and focus groups.

4. Analyze technical feasibility

Suppose your market and user research have validated the problem you are trying to solve. The next step should be to, alongside your engineers, assess the technical resources and expertise needed to launch the product to the market.

Dig deeper into the proposed solution and try to comprehend the technical limitations and estimated time required for the product to be in your users’ hands.

5. Assess financial viability

If your company hasa product pricing team, work closely with them to determine the willingness to pay (WTP) and devise a monetization strategy for the new feature.

Conduct a comprehensive financial analysis, including the total cost of development, revenue streams, and the expected return on investment (ROI) based on the agreed-upon monetization strategy.

6. Evaluate potential risks

Now that you have almost a complete picture, identify the risks associated with building and launching the opportunity. Risks may include things like regulatory hurdles, technical limitations, and any operational risks.

7. Decide, prepare, and share

Based on the steps above, you should end up with a report that can help you decide whether to pursue the opportunity or not. Either way, prepare your findings, including any recommended modifications to the product scope, and present your final findings and recommendations to your stakeholders.

Make sure to prepare an executive summary for your C-suite; they will be the most critical stakeholders and the decision-makers at the end of the meeting.

Feasibility study example

Imagine you’re a product manager at a digital software company that specializes in building project management tools.

Your team has identified a potential opportunity to expand the product offering by developing a new AI-based feature that can automatically prioritize tasks for users based on their deadlines, workload, and importance.

To assess the viability of this opportunity, you can conduct a feasibility study. Here’s how you might approach it according to the process described above:

  • Clearly define the opportunity — In this case, the opportunity is the development of an AI-based task prioritization feature within the existing project management software
  • Define the objective and scope — The business objective is to increase user productivity and satisfaction by providing an intelligent task prioritization system. The scope includes the integration of the AI-based feature within the existing software, as well as any necessary training for users to understand and use the feature effectively
  • Conduct market and user research — Investigate the demand for AI-driven task prioritization among your target audience. Collect data on competitors who may already be offering similar features and determine the unique selling points of your proposed solution. Conduct user research through interviews, surveys, and focus groups to understand users’ pain points regarding task prioritization and gauge their interest in the proposed feature
  • Analyze technical feasibility — Collaborate with your engineering team to assess the technical requirements and challenges of developing the AI-based feature. Determine whether your team has the necessary expertise to implement the feature and estimate the time and resources required for its development
  • Assess financial viability — Work with your pricing team to estimate the costs associated with developing, launching, and maintaining the AI-based feature. Analyze the potential revenue streams and calculate the expected ROI based on various pricing models and user adoption rates
  • Evaluate potential risks — Identify any risks associated with the development and implementation of the AI-based feature, such as data privacy concerns, potential biases in the AI algorithm, or the impact on the existing product’s performance
  • Decide, prepare, and share — Based on your analysis, determine whether the AI-based task prioritization feature is a viable opportunity for your company. Prepare a comprehensive report detailing your findings and recommendations, including any necessary modifications to the product scope or implementation plan. Present your findings to your stakeholders and be prepared to discuss and defend your recommendations

Feasibility study template

The following feasibility study template is designed to help you evaluate the feasibility of a product opportunity and provide a comprehensive report to inform decision-making and guide the development process.

Remember that each study will be unique to your product and market, so you may need to adjust the template to fit your specific needs.

  • Briefly describe the product opportunity or feature you’re evaluating
  • Explain the problem it aims to solve or the value it will bring to users
  • Define the business goals and objectives for the opportunity
  • Outline the scope of the product or feature, including any key components or functionality
  • Summarize the findings from your market research, including data on the target market, competitors, and unique selling points
  • Highlight insights from user research, such as user pain points, preferences, and potential adoption rates
  • Detail the technical requirements and challenges for developing the product or feature
  • Estimate the resources and expertise needed for implementation, including any necessary software, hardware, or skills
  • Provide an overview of the costs associated with the development, launch, and maintenance of the product or feature
  • Outline potential revenue streams and calculate the expected ROI based on various pricing models and user adoption rates
  • Identify any potential risks or challenges associated with the development, implementation, or market adoption of the product or feature
  • Discuss how these risks could impact the success of the opportunity and any potential mitigation strategies
  • Based on your analysis, recommend whether to proceed with the opportunity, modify the scope, or explore other alternatives
  • Provide a rationale for your recommendation, supported by data and insights from your research
  • Summarize the key findings and recommendations from your feasibility study in a concise, easily digestible format for your stakeholders

Overcoming stakeholder management challenges

The ultimate challenge that faces most product managers when conducting a feasibility study is managing stakeholders .

Stakeholders may interfere with your analysis, jumping to conclude that your proposed product or feature won’t work and deeming it a waste of resources. They may even try to prioritize your backlog for you.

Here are some tips to help you deal with even the most difficult stakeholders during a feasibility study:

  • Use hard data to make your point — Never defend your opinion based on your assumptions. Always show them data and evidence based on your user research and market analysis
  • Learn to say no — You are the voice of customers, and you know their issues and how to monetize them. Don’t be afraid to say no and defend your team’s work as a product manager
  • Build stakeholder buy-in early on — Engage stakeholders from the beginning of the feasibility study process by involving them in discussions and seeking their input. This helps create a sense of ownership and ensures that their concerns and insights are considered throughout the study
  • Provide regular updates and maintain transparency — Keep stakeholders informed about the progress of the feasibility study by providing regular updates and sharing key findings. This transparency can help build trust, foster collaboration, and prevent misunderstandings or misaligned expectations
  • Leverage stakeholder expertise — Recognize and utilize the unique expertise and knowledge that stakeholders bring to the table. By involving them in specific aspects of the feasibility study where their skills and experience can add value, you can strengthen the study’s outcomes and foster a more collaborative working relationship

Final thoughts

A feasibility study is a critical tool to use right after you identify a significant opportunity. It helps you evaluate the potential success of the opportunity, analyze and identify potential challenges, gaps, and risks in the opportunity, and provides a data-driven approach in the market insights to make an informed decision.

By conducting a feasibility study, product teams can determine whether a product idea is profitable, viable, feasible, and thus worth investing resources into. It is a crucial step in the product development process and when considering investments in significant initiatives such as launching a completely new product or vertical.

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What Is a Feasibility Study and How to Conduct It? (+ Examples)

Appinio Research · 26.09.2023 · 28min read

What Is a Feasibility Study and How to Conduct It Examples

Are you ready to turn your project or business idea into a concrete reality but unsure about its feasibility? Whether you're a seasoned entrepreneur or a first-time project manager, understanding the intricate process of conducting a feasibility study is vital for making informed decisions and maximizing your chances of success.

This guide will equip you with the knowledge and tools to navigate the complexities of market, technical, financial, and operational feasibility studies. By the end, you'll have a clear roadmap to confidently assess, plan, and execute your project.

What is a Feasibility Study?

A feasibility study is a systematic and comprehensive analysis of a proposed project or business idea to assess its viability and potential for success. It involves evaluating various aspects such as market demand, technical feasibility, financial viability, and operational capabilities. The primary goal of a feasibility study is to provide you with valuable insights and data to make informed decisions about whether to proceed with the project.

Why is a Feasibility Study Important?

Conducting a feasibility study is a critical step in the planning process for any project or business. It helps you:

  • Minimize Risks: By identifying potential challenges and obstacles early on, you can develop strategies to mitigate risks.
  • Optimize Resource Allocation: A feasibility study helps you allocate your resources more efficiently, including time and money.
  • Enhance Decision-Making: Armed with data and insights, you can make well-informed decisions about pursuing the project or exploring alternative options.
  • Attract Stakeholders: Potential investors, lenders, and partners often require a feasibility study to assess the project's credibility and potential return on investment.

Now that you understand the importance of feasibility studies, let's explore the various types and dive deeper into each aspect.

Types of Feasibility Studies

Feasibility studies come in various forms, each designed to assess different aspects of a project's viability. Let's delve into the four primary types of feasibility studies in more detail:

1. Market Feasibility Study

Market feasibility studies are conducted to determine whether there is a demand for a product or service in a specific market or industry. This type of study focuses on understanding customer needs, market trends, and the competitive landscape. Here are the key elements of a market feasibility study:

  • Market Research and Analysis: Comprehensive research is conducted to gather market size, growth potential , and customer behavior data. This includes both primary research (surveys, interviews) and secondary research (existing reports, data).
  • Target Audience Identification: Identifying the ideal customer base by segmenting the market based on demographics, psychographics, and behavior. Understanding your target audience is crucial for tailoring your product or service.
  • Competitive Analysis : Assessing the competition within the market, including identifying direct and indirect competitors, their strengths, weaknesses, and market share.
  • Demand and Supply Assessment: Analyzing the balance between the demand for the product or service and its supply. This helps determine whether there is room for a new entrant in the market.

2. Technical Feasibility Study

Technical feasibility studies evaluate whether the project can be developed and implemented from a technical standpoint. This assessment focuses on the project's design, technical requirements, and resource availability. Here's what it entails:

  • Project Design and Technical Requirements: Defining the technical specifications of the project, including hardware, software, and any specialized equipment. This phase outlines the technical aspects required for project execution.
  • Technology Assessment: Evaluating the chosen technology's suitability for the project and assessing its scalability and compatibility with existing systems.
  • Resource Evaluation: Assessing the availability of essential resources such as personnel, materials, and suppliers to ensure the project's technical requirements can be met.
  • Risk Analysis: Identifying potential technical risks, challenges, and obstacles that may arise during project development. Developing risk mitigation strategies is a critical part of technical feasibility.

3. Financial Feasibility Study

Financial feasibility studies aim to determine whether the project is financially viable and sustainable in the long run. This type of study involves estimating costs, projecting revenue, and conducting financial analyses. Key components include:

  • Cost Estimation: Calculating both initial and ongoing costs associated with the project, including capital expenditures, operational expenses, and contingency funds.
  • Revenue Projections: Forecasting the income the project is expected to generate, considering sales, pricing strategies, market demand, and potential revenue streams.
  • Investment Analysis: Evaluating the return on investment (ROI), payback period, and potential risks associated with financing the project.
  • Financial Viability Assessment: Analyzing the project's profitability, cash flow, and financial stability to ensure it can meet its financial obligations and sustain operations.

4. Operational Feasibility Study

Operational feasibility studies assess whether the project can be effectively implemented within the organization's existing operational framework. This study considers processes, resource planning, scalability, and operational risks. Key elements include:

  • Process and Workflow Assessment: Analyzing how the project integrates with current processes and workflows, identifying potential bottlenecks, and optimizing operations.
  • Resource Planning: Determining the human, physical, and technological resources required for successful project execution and identifying resource gaps.
  • Scalability Evaluation: Assessing the project's ability to adapt and expand to meet changing demands and growth opportunities, including capacity planning and growth strategies.
  • Operational Risks Analysis: Identifying potential operational challenges and developing strategies to mitigate them, ensuring smooth project implementation.

Each type of feasibility study serves a specific purpose in evaluating different facets of your project, collectively providing a comprehensive assessment of its viability and potential for success.

How to Prepare for a Feasibility Study?

Before you dive into the nitty-gritty details of conducting a feasibility study, it's essential to prepare thoroughly. Proper preparation will set the stage for a successful and insightful study. In this section, we'll explore the main steps involved in preparing for a feasibility study.

1. Identify the Project or Idea

Identifying and defining your project or business idea is the foundational step in the feasibility study process. This initial phase is critical because it helps you clarify your objectives and set the direction for the study.

  • Problem Identification: Start by pinpointing the problem or need your project addresses. What pain point does it solve for your target audience?
  • Project Definition: Clearly define your project or business idea. What are its core components, features, or offerings?
  • Goals and Objectives: Establish specific goals and objectives for your project. What do you aim to achieve in the short and long term?
  • Alignment with Vision: Ensure your project aligns with your overall vision and mission. How does it fit into your larger strategic plan?

Remember, the more precisely you can articulate your project or idea at this stage, the easier it will be to conduct a focused and effective feasibility study.

2. Assemble a Feasibility Study Team

Once you've defined your project, the next step is to assemble a competent and diverse feasibility study team. Your team's expertise will play a crucial role in conducting a thorough assessment of your project's viability.

  • Identify Key Roles: Determine the essential roles required for your feasibility study. These typically include experts in areas such as market research, finance, technology, and operations.
  • Select Team Members: Choose team members with the relevant skills and experience to fulfill these roles effectively. Look for individuals who have successfully conducted feasibility studies in the past.
  • Collaboration and Communication: Foster a collaborative environment within your team. Effective communication is essential to ensure everyone is aligned on objectives and timelines.
  • Project Manager: Designate a project manager responsible for coordinating the study, tracking progress, and meeting deadlines.
  • External Consultants: In some cases, you may need to engage external consultants or specialists with niche expertise to provide valuable insights.

Having the right people on your team will help you collect accurate data, analyze findings comprehensively, and make well-informed decisions based on the study's outcomes.

3. Set Clear Objectives and Scope

Before you begin the feasibility study, it's crucial to establish clear and well-defined objectives. These objectives will guide your research and analysis efforts throughout the study.

Steps to Set Clear Objectives and Scope:

  • Objective Clarity: Define the specific goals you aim to achieve through the feasibility study. What questions do you want to answer, and what decisions will the study inform?
  • Scope Definition: Determine the boundaries of your study. What aspects of the project will be included, and what will be excluded? Clarify any limitations.
  • Resource Allocation: Assess the resources needed for the study, including time, budget, and personnel. Ensure that you allocate resources appropriately based on the scope and objectives.
  • Timeline: Establish a realistic timeline for the feasibility study. Identify key milestones and deadlines for completing different phases of the study.

Clear objectives and a well-defined scope will help you stay focused and avoid scope creep during the study. They also provide a basis for measuring the study's success against its intended outcomes.

4. Gather Initial Information

Before you delve into extensive research and data collection, start by gathering any existing information and documents related to your project or industry. This initial step will help you understand the current landscape and identify gaps in your knowledge.

  • Document Review: Review any existing project documentation, market research reports, business plans, or relevant industry studies.
  • Competitor Analysis: Gather information about your competitors, including their products, pricing, market share, and strategies.
  • Regulatory and Compliance Documents: If applicable, collect information on industry regulations, permits, licenses, and compliance requirements.
  • Market Trends: Stay informed about current market trends, consumer preferences, and emerging technologies that may impact your project.
  • Stakeholder Interviews: Consider conducting initial interviews with key stakeholders, including potential customers, suppliers, and industry experts, to gather insights and feedback.

By starting with a strong foundation of existing knowledge, you'll be better prepared to identify gaps that require further investigation during the feasibility study. This proactive approach ensures that your study is comprehensive and well-informed from the outset.

How to Conduct a Market Feasibility Study?

The market feasibility study is a crucial component of your overall feasibility analysis. It focuses on assessing the potential demand for your product or service, understanding your target audience, analyzing your competition, and evaluating supply and demand dynamics within your chosen market.

Market Research and Analysis

Market research is the foundation of your market feasibility study. It involves gathering and analyzing data to gain insights into market trends, customer preferences, and the overall business landscape.

  • Data Collection: Utilize various methods such as surveys, interviews, questionnaires, and secondary research to collect data about the market. This data may include market size, growth rates, and historical trends.
  • Market Segmentation: Divide the market into segments based on factors such as demographics, psychographics , geography, and behavior. This segmentation helps you identify specific target markets .
  • Customer Needs Analysis: Understand the needs, preferences, and pain points of potential customers . Determine how your product or service can address these needs effectively.
  • Market Trends: Stay updated on current market trends, emerging technologies, and industry innovations that could impact your project.
  • SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to identify internal and external factors that may affect your market entry strategy.

In today's dynamic market landscape, gathering precise data for your market feasibility study is paramount. Appinio offers a versatile platform that enables you to swiftly collect valuable market insights from a diverse audience.

With Appinio, you can employ surveys, questionnaires, and in-depth analyses to refine your understanding of market trends, customer preferences, and competition.

Enhance your market research and gain a competitive edge by booking a demo with us today!

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Target Audience Identification

Knowing your target audience is essential for tailoring your product or service to meet their specific needs and preferences.

  • Demographic Analysis: Define the age, gender, income level, education, and other demographic characteristics of your ideal customers.
  • Psychographic Profiling: Understand the psychographics of your target audience, including their lifestyle, values, interests, and buying behavior.
  • Market Segmentation: Refine your target audience by segmenting it further based on shared characteristics and behaviors.
  • Needs and Pain Points: Identify your target audience's unique needs, challenges, and pain points that your product or service can address.
  • Competitor's Customers: Analyze the customer base of your competitors to identify potential opportunities for capturing market share.

Competitive Analysis

Competitive analysis helps you understand the strengths and weaknesses of your competitors, positioning your project strategically within the market.

  • Competitor Identification: Identify direct and indirect competitors within your industry or market niche.
  • Competitive Advantage: Determine the unique selling points (USPs) that set your project apart from competitors. What value can you offer that others cannot?
  • SWOT Analysis for Competitors: Conduct a SWOT analysis for each competitor to assess their strengths, weaknesses, opportunities, and threats.
  • Market Share Assessment: Analyze each competitor's market share and market penetration strategies.
  • Pricing Strategies: Investigate the pricing strategies employed by competitors and consider how your pricing strategy will compare.

Leveraging the power of data collection and analysis is essential in gaining a competitive edge. With Appinio , you can efficiently gather critical insights about your competitors, their strengths, and weaknesses. Seamlessly integrate these findings into your market feasibility study, empowering your project with a strategic advantage.

Demand and Supply Assessment

Understanding supply and demand dynamics is crucial for gauging market sustainability and potential challenges.

  • Market Demand Analysis: Estimate the current and future demand for your product or service. Consider factors like seasonality and trends.
  • Supply Evaluation: Assess the availability of resources, suppliers, and distribution channels required to meet the expected demand.
  • Market Saturation: Determine whether the market is saturated with similar offerings and how this might affect your project.
  • Demand Forecasting: Use historical data and market trends to make informed projections about future demand.
  • Scalability: Consider the scalability of your project to meet increased demand or potential fluctuations.

A comprehensive market feasibility study will give you valuable insights into your potential customer base, market dynamics, and competitive landscape. This information will be pivotal in shaping your project's direction and strategy.

How to Conduct a Technical Feasibility Study?

The technical feasibility study assesses the practicality of implementing your project from a technical standpoint. It involves evaluating the project's design, technical requirements, technological feasibility, resource availability, and risk analysis. Let's delve into each aspect in more detail.

1. Project Design and Technical Requirements

The project design and technical requirements are the foundation of your technical feasibility study. This phase involves defining the technical specifications and infrastructure needed to execute your project successfully.

  • Technical Specifications: Clearly define the technical specifications of your project, including hardware, software, and any specialized equipment.
  • Infrastructure Planning: Determine the physical infrastructure requirements, such as facilities, utilities, and transportation logistics.
  • Development Workflow: Outline the workflow and processes required to design, develop, and implement the project.
  • Prototyping: Consider creating prototypes or proof-of-concept models to test and validate the technical aspects of your project.

2. Technology Assessment

A critical aspect of the technical feasibility study is assessing the technology required for your project and ensuring it aligns with your goals.

  • Technology Suitability: Evaluate the suitability of the chosen technology for your project. Is it the right fit, or are there better alternatives?
  • Scalability and Compatibility: Assess whether the chosen technology can scale as your project grows and whether it is compatible with existing systems or software.
  • Security Measures: Consider cybersecurity and data protection measures to safeguard sensitive information.
  • Technical Expertise: Ensure your team or external partners possess the technical expertise to implement and maintain the technology.

3. Resource Evaluation

Resource evaluation involves assessing the availability of the essential resources required to execute your project successfully. These resources include personnel, materials, and suppliers.

  • Human Resources: Evaluate whether you have access to skilled personnel or if additional hiring or training is necessary.
  • Material Resources: Identify the materials and supplies needed for your project and assess their availability and costs.
  • Supplier Relationships: Establish relationships with reliable suppliers and consistently assess their ability to meet your resource requirements.

4. Risk Analysis

Risk analysis is a critical component of the technical feasibility study, as it helps you anticipate and mitigate potential technical challenges and setbacks.

  • Identify Risks: Identify potential technical risks, such as hardware or software failures, technical skill gaps, or unforeseen technical obstacles.
  • Risk Mitigation Strategies: Develop strategies to mitigate identified risks, including contingency plans and resource allocation for risk management.
  • Cost Estimation for Risk Mitigation: Assess the potential costs associated with managing technical risks and incorporate them into your project budget.

By conducting a thorough technical feasibility study, you can ensure that your project is technically viable and well-prepared to overcome technical challenges. This assessment will also guide decision-making regarding technology choices, resource allocation, and risk management strategies.

How to Conduct a Financial Feasibility Study?

The financial feasibility study is a critical aspect of your overall feasibility analysis. It focuses on assessing the financial viability of your project by estimating costs, projecting revenue, conducting investment analysis, and evaluating the overall financial health of your project. Let's delve into each aspect in more detail.

1. Cost Estimation

Cost estimation is the process of calculating the expenses associated with planning, developing, and implementing your project. This involves identifying both initial and ongoing costs.

  • Initial Costs: Calculate the upfront expenses required to initiate the project, including capital expenditures, equipment purchases, and any development costs.
  • Operational Costs: Estimate the ongoing operating expenses, such as salaries, utilities, rent, marketing, and maintenance.
  • Contingency Funds: Allocate funds for unexpected expenses or contingencies to account for unforeseen challenges.
  • Depreciation: Consider the depreciation of assets over time, as it impacts your financial statements.

2. Revenue Projections

Revenue projections involve forecasting the income your project is expected to generate over a specific period. Accurate revenue projections are crucial for assessing the project's financial viability.

  • Sales Forecasts: Estimate your product or service sales based on market demand, pricing strategies, and potential growth.
  • Pricing Strategy: Determine your pricing strategy, considering factors like competition, market conditions, and customer willingness to pay.
  • Market Penetration: Analyze how quickly you can capture market share and increase sales over time.
  • Seasonal Variations: Account for any seasonal fluctuations in revenue that may impact your cash flow.

3. Investment Analysis

Investment analysis involves evaluating the potential return on investment (ROI) and assessing the attractiveness of your project to potential investors or stakeholders.

  • Return on Investment (ROI): Calculate the expected ROI by comparing the project's net gains against the initial investment.
  • Payback Period: Determine how long it will take for the project to generate sufficient revenue to cover its initial costs.
  • Risk Assessment: Consider the level of risk associated with the project and whether it aligns with investors' risk tolerance.
  • Sensitivity Analysis: Perform sensitivity analysis to understand how changes in key variables, such as sales or costs, affect the investment's profitability.

4. Financial Viability Assessment

A financial viability assessment evaluates the project's ability to sustain itself financially in the long term. It considers factors such as profitability, cash flow, and financial stability.

  • Profitability Analysis: Assess whether the project is expected to generate profits over its lifespan.
  • Cash Flow Management: Analyze the project's cash flow to ensure it can cover operating expenses, debt payments, and other financial obligations.
  • Break-Even Analysis: Determine the point at which the project's revenue covers all costs, resulting in neither profit nor loss.
  • Financial Ratios: Calculate key financial ratios, such as debt-to-equity ratio and return on equity, to evaluate the project's financial health.

By conducting a comprehensive financial feasibility study, you can gain a clear understanding of the project's financial prospects and make informed decisions regarding its viability and potential for success.

How to Conduct an Operational Feasibility Study?

The operational feasibility study assesses whether your project can be implemented effectively within your organization's operational framework. It involves evaluating processes, resource planning, scalability, and analyzing potential operational risks.

1. Process and Workflow Assessment

The process and workflow assessment examines how the project integrates with existing processes and workflows within your organization.

  • Process Mapping: Map out current processes and workflows to identify areas of integration and potential bottlenecks.
  • Workflow Efficiency: Assess the efficiency and effectiveness of existing workflows and identify opportunities for improvement.
  • Change Management: Consider the project's impact on employees and plan for change management strategies to ensure a smooth transition.

2. Resource Planning

Resource planning involves determining the human, physical, and technological resources needed to execute the project successfully.

  • Human Resources: Assess the availability of skilled personnel and consider whether additional hiring or training is necessary.
  • Physical Resources: Identify the physical infrastructure, equipment, and materials required for the project.
  • Technology and Tools: Ensure that the necessary technology and tools are available and up to date to support project implementation.

3. Scalability Evaluation

Scalability evaluation assesses whether the project can adapt and expand to meet changing demands and growth opportunities.

  • Scalability Factors: Identify factors impacting scalability, such as market growth, customer demand, and technological advancements.
  • Capacity Planning: Plan for the scalability of resources, including personnel, infrastructure, and technology.
  • Growth Strategies: Develop strategies for scaling the project, such as geographic expansion, product diversification, or increasing production capacity.

4. Operational Risk Analysis

Operational risk analysis involves identifying potential operational challenges and developing mitigation strategies.

  • Risk Identification: Identify operational risks that could disrupt project implementation or ongoing operations.
  • Risk Mitigation: Develop risk mitigation plans and contingency strategies to address potential challenges.
  • Testing and Simulation: Consider conducting simulations or testing to evaluate how the project performs under various operational scenarios.
  • Monitoring and Adaptation: Implement monitoring and feedback mechanisms to detect and address operational issues as they arise.

Conducting a thorough operational feasibility study ensures that your project aligns with your organization's capabilities, processes, and resources. This assessment will help you plan for a successful implementation and minimize operational disruptions.

How to Write a Feasibility Study?

The feasibility study report is the culmination of your feasibility analysis. It provides a structured and comprehensive document outlining your study's findings, conclusions, and recommendations. Let's explore the key components of the feasibility study report.

1. Structure and Components

The structure of your feasibility study report should be well-organized and easy to navigate. It typically includes the following components:

  • Executive Summary: A concise summary of the study's key findings, conclusions, and recommendations.
  • Introduction: An overview of the project, the objectives of the study, and a brief outline of what the report covers.
  • Methodology: A description of the research methods , data sources, and analytical techniques used in the study.
  • Market Feasibility Study: Detailed information on market research, target audience, competitive analysis, and demand-supply assessment.
  • Technical Feasibility Study: Insights into project design, technical requirements, technology assessment, resource evaluation, and risk analysis.
  • Financial Feasibility Study: Comprehensive information on cost estimation, revenue projections, investment analysis, and financial viability assessment.
  • Operational Feasibility Study: Details on process and workflow assessment, resource planning, scalability evaluation, and operational risks analysis.
  • Conclusion: A summary of key findings and conclusions drawn from the study.

Recommendations: Clear and actionable recommendations based on the study's findings.

2. Write the Feasibility Study Report

When writing the feasibility study report, it's essential to maintain clarity, conciseness, and objectivity. Use clear language and provide sufficient detail to support your conclusions and recommendations.

  • Be Objective: Present findings and conclusions impartially, based on data and analysis.
  • Use Visuals: Incorporate charts, graphs, and tables to illustrate key points and make the report more accessible.
  • Cite Sources: Properly cite all data sources and references used in the study.
  • Include Appendices: Attach any supplementary information, data, or documents in appendices for reference.

3. Present Findings and Recommendations

When presenting your findings and recommendations, consider your target audience. Tailor your presentation to the needs and interests of stakeholders, whether they are investors, executives, or decision-makers.

  • Highlight Key Takeaways: Summarize the most critical findings and recommendations upfront.
  • Use Visual Aids: Create a visually engaging presentation with slides, charts, and infographics.
  • Address Questions: Be prepared to answer questions and provide additional context during the presentation.
  • Provide Supporting Data: Back up your findings and recommendations with data from the feasibility study.

4. Review and Validation

Before finalizing the feasibility study report, conducting a thorough review and validation process is crucial. This ensures the accuracy and credibility of the report.

  • Peer Review: Have colleagues or subject matter experts review the report for accuracy and completeness.
  • Data Validation: Double-check data sources and calculations to ensure they are accurate.
  • Cross-Functional Review: Involve team members from different disciplines to provide diverse perspectives.
  • Stakeholder Input: Seek input from key stakeholders to validate findings and recommendations.

By following a structured approach to creating your feasibility study report, you can effectively communicate the results of your analysis, support informed decision-making, and increase the likelihood of project success.

Feasibility Study Examples

Let's dive into some real-world examples to truly grasp the concept and application of feasibility studies. These examples will illustrate how various types of projects and businesses undergo the feasibility assessment process to ensure their viability and success.

Example 1: Local Restaurant

Imagine you're passionate about opening a new restaurant in a bustling urban area. Before investing significant capital, you'd want to conduct a thorough feasibility study. Here's how it might unfold:

  • Market Feasibility: You research the local dining scene, identify target demographics, and assess the demand for your cuisine. Market surveys reveal potential competitors, dining preferences, and pricing expectations.
  • Technical Feasibility: You design the restaurant layout, plan the kitchen setup, and assess the technical requirements for equipment and facilities. You consider factors like kitchen efficiency, safety regulations, and adherence to health codes.
  • Financial Feasibility: You estimate the initial costs for leasing or purchasing a space, kitchen equipment, staff hiring, and marketing. Revenue projections are based on expected foot traffic, menu pricing, and seasonal variations.
  • Operational Feasibility: You create kitchen and service operations workflow diagrams, considering staff roles and responsibilities. Resource planning includes hiring chefs, waitstaff, and kitchen personnel. Scalability is evaluated for potential expansion or franchising.
  • Risk Analysis: Potential operational risks are identified, such as food safety concerns, labor shortages, or location-specific challenges. Risk mitigation strategies involve staff training, quality control measures, and contingency plans for unexpected events.

Example 2: Software Development Project

Now, let's explore the feasibility study process for a software development project, such as building a mobile app:

  • Market Feasibility: You analyze the mobile app market, identify your target audience, and assess the demand for a solution in a specific niche. You gather user feedback and conduct competitor analysis to understand the competitive landscape.
  • Technical Feasibility: You define the technical requirements for the app, considering platforms (iOS, Android), development tools, and potential integrations with third-party services. You evaluate the feasibility of implementing specific features.
  • Financial Feasibility: You estimate the development costs, including hiring developers, designers, and ongoing maintenance expenses. Revenue projections are based on app pricing, potential in-app purchases, and advertising revenue.
  • Operational Feasibility: You map out the development workflow, detailing the phases from concept to deployment. Resource planning includes hiring developers with the necessary skills, setting up development environments, and establishing a testing framework.
  • Risk Analysis: Potential risks like scope creep, technical challenges, or market saturation are assessed. Mitigation strategies involve setting clear project milestones, conducting thorough testing, and having contingency plans for technical glitches.

These examples demonstrate the versatility of feasibility studies across diverse projects. Whatever type of venture or endeavor you want to embark on, a well-structured feasibility study guides you toward informed decisions and increased project success.

In conclusion, conducting a feasibility study is a crucial step in your project's journey. It helps you assess the viability and potential risks, providing a solid foundation for informed decision-making. Remember, a well-executed feasibility study not only enables you to identify challenges but also uncovers opportunities that can lead to your project's success.

By thoroughly examining market trends, technical requirements, financial aspects, and operational considerations, you are better prepared to embark on your project confidently. With this guide, you've gained the knowledge and tools needed to navigate the intricate terrain of feasibility studies.

How to Conduct a Feasibility Study in Minutes?

Speed and precision are paramount for feasibility studies, and Appinio delivers just that. As a real-time market research platform, Appinio empowers you to seamlessly conduct your market research in a matter of minutes, putting actionable insights at your fingertips.

Here's why Appinio stands out as the go-to tool for feasibility studies:

  • Rapid Insights: Appinio's intuitive platform ensures that anyone, regardless of their research background, can effortlessly navigate and conduct research, saving valuable time and resources.
  • Lightning-Fast Responses: With an average field time of under 23 minutes for 1,000 respondents, Appinio ensures that you get the answers you need when you need them, making it ideal for time-sensitive feasibility studies.
  • Global Reach: Appinio's extensive reach spans over 90 countries, allowing you to define the perfect target group from a pool of 1,200+ characteristics and gather insights from diverse markets.

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What Is a Feasibility Study? How to Conduct One for Your Project

ProjectManager

Table of Contents

What is a feasibility study, what’s the importance of a feasibility study, what is included in a feasibility study report, types of feasibility study.

  • 7 Steps To Do a Feasibility Study

Feasibility Study Examples

Why is a feasibility study so important in project management? For one, the feasibility study or feasibility analysis is the foundation upon which your project plan resides. That’s because the feasibility analysis determines the viability of your project. Now that you know the importance, read on to learn what you need to know about feasibility studies.

A feasibility study is simply an assessment of the practicality of a proposed project plan or method. This is done by analyzing technical, economic, legal, operational and time feasibility factors. Just as the name implies, you’re asking, “Is this feasible?” For example, do you have or can you create the technology that accomplishes what you propose? Do you have the people, tools and resources necessary? And, will the project get you the ROI you expect?

business feasibility study presentation

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Feasibility study template

Use this free Feasibility Study Template for Word to manage your projects better.

A project feasibility study should be done during the project management life cycle after the business case has been completed. So, that’s the “what” and the “when” but how about the “why?” Why is it important to conduct a feasibility study?

An effective feasibility study points a project in the right direction by helping decision-makers have a holistic view of the potential benefits, disadvantages, barriers and constraints that could affect its outcome. The main purpose of a feasibility study is to determine whether the project can be not only viable but also beneficial from a technical, financial, legal and market standpoint.

The findings of your project feasibility study are compiled in a feasibility report that usually includes the following elements.

  • Executive summary
  • Description of product/service
  • Technology considerations
  • Product/service marketplace
  • Marketing strategy
  • Organization/staffing
  • Financial projections
  • Findings and recommendations

Free Feasibility Study Template

Use this free feasibility study template for Word to begin your own feasibility study. It has all the fundamental sections for you to get started, and it’s flexible enough to adapt to your specific needs. Download yours today.

Free feasibility study template

There are many things to consider when determining project feasibility, and there are different types of feasibility studies you might conduct to assess your project from different perspectives.

Pre-Feasibility Study

A pre-feasibility study, as its name suggests, it’s a process that’s undertaken before the feasibility study. It involves decision-makers and subject matter experts who will prioritize different project ideas or approaches to quickly determine whether the project has fundamental technical, financial, operational or any other evident flaws. If the project proposal is sound, a proper feasibility study will follow.

Technical Feasibility Study

A technical feasibility study consists in determining if your organization has the technical resources and expertise to meet the project requirements . A technical study focuses on assessing whether your organization has the necessary capabilities that are needed to execute a project, such as the production capacity, facility needs, raw materials, supply chain and other inputs. In addition to these production inputs, you should also consider other factors such as regulatory compliance requirements or standards for your products or services.

Economic Feasibility Study

Also called financial feasibility study, this type of study allows you to determine whether a project is financially feasible. Economic feasibility studies require the following steps:

  • Before you can start your project, you’ll need to determine the seed capital, working capital and any other capital requirements, such as contingency capital. To do this, you’ll need to estimate what types of resources will be needed for the execution of your project, such as raw materials, equipment and labor.
  • Once you’ve determined what project resources are needed, you should use a cost breakdown structure to identify all your project costs.
  • Identify potential sources of funding such as loans or investments from angel investors or venture capitalists.
  • Estimate the expected revenue, profit margin and return on investment of your project by conducting a cost-benefit analysis , or by using business forecasting techniques such as linear programming to estimate different future outcomes under different levels of production, demand and sales.
  • Estimate your project’s break-even point.
  • Conduct a financial benchmark analysis with industrial averages and specific competitors in your industry.
  • Use pro forma cash flow statements, financial statements, balance sheets and other financial projection documents.

Legal Feasibility Study

Your project must meet legal requirements including laws and regulations that apply to all activities and deliverables in your project scope . In addition, think about the most favorable legal structure for your organization and its investors. Each business legal structure has advantages and disadvantages when it comes to liability for business owners, such as limited liability companies (LLCs) or corporations, which reduce the liability for each business partner.

Market Feasibility Study

A market feasibility study determines whether your project has the potential to succeed in the market. To do so, you’ll need to analyze the following factors:

  • Industry overview: Assess your industry, such as year-over-year growth, identify key direct and indirect competitors, availability of supplies and any other trends that might affect the future of the industry and your project.
  • SWOT analysis: A SWOT analysis allows organizations to determine how competitive an organization can be by examining its strengths, weaknesses and the opportunities and threats of the market. Strengths are the operational capabilities or competitive advantages that allow an organization to outperform its competitors such as lower costs, faster production or intellectual property. Weaknesses are areas where your business might be outperformed by competitors. Opportunities are external, such as an underserved market, an increased demand for your products or favorable economic conditions. Threats are also external factors that might affect your ability to do well in the market such as new competitors, substitute products and new technologies.
  • Market research: The main purpose of market research is to determine whether it’s possible for your organization to enter the market or if there are barriers to entry or constraints that might affect your ability to compete. Consider variables such as pricing, your unique value proposition, customer demand, new technologies, market trends and any other factors that affect how your business will serve your customers. Use market research techniques to identify your target market, create buyer personas, assess the competitiveness of your niche and gauge customer demand, among other things.

7 Steps to Do a Feasibility Study

If you’re ready to do your own feasibility study, follow these 7 steps. You can use this free feasibility study template to help you get started.

1. Conduct a Preliminary Analysis

Begin by outlining your project plan . You should focus on an unserved need, a market where the demand is greater than the supply and whether the product or service has a distinct advantage. Then, determine if the feasibility factors are too high to clear (i.e. too expensive, unable to effectively market, etc.).

2. Prepare a Projected Income Statement

This step requires working backward. Start with what you expect the income from the project to be and then what project funding is needed to achieve that goal. This is the foundation of an income statement. Factor in what services are required and how much they’ll cost and any adjustments to revenues, such as reimbursements, etc.

Related: Free Project Management Templates

3. Conduct a Market Survey or Perform Market Research

This step is key to the success of your feasibility study, so make your market analysis as thorough as possible. It’s so important that if your organization doesn’t have the resources to do a proper one, then it is advantageous to hire an outside firm to do so.

Market research will give you the clearest picture of the revenues and return on investment you can realistically expect from the project. Some things to consider are the geographic influence on the market, demographics, analyzing competitors, the value of the market and what your share will be and if the market is open to expansion (that is, in response to your offer).

4. Plan Business Organization and Operations

Once the groundwork of the previous steps has been laid, it’s time to set up the organization and operations of the planned project to meet its technical, operational, economic and legal feasibility factors. This isn’t a superficial, broad-stroke endeavor. It should be thorough and include start-up costs, fixed investments and operating costs.

These costs address things such as equipment, merchandising methods, real estate, personnel, supply availability, overhead, etc.

5. Prepare an Opening Day Balance Sheet

This includes an estimate of the assets and liabilities, one that should be as accurate as possible. To do this, create a list that includes items, sources, costs and available financing. Liabilities to consider are such things as leasing or purchasing land, buildings and equipment, financing for assets and accounts receivables.

6. Review and Analyze All Data

All of these steps are important, but the review and analysis are especially important to ensure that everything is as it should be and that nothing requires changing or tweaking. Take a moment to look over your work one last time.

Reexamine your previous steps, such as the income statement, and compare them with your expenses and liabilities. Is it still realistic? This is also the time to think about risk and come up with any contingency plans .

7. Make a Go/No-Go Decision

You’re now at the point to make a decision about whether or not the project is feasible. That sounds simple, but all the previous steps lead to this decision-making moment. A couple of other things to consider before making that binary choice are whether the commitment is worth the time, effort and money and whether it aligns with the organization’s strategic goals and long-term aspirations.

Here are some simple feasibility study examples so you have a better idea of what a feasibility study is used for in different industries.

Construction Feasibility Study

For this construction feasibility study example, let’s imagine a large construction company that’s interested in starting a new project in the near future to generate profits.

  • Pre-Feasibility Study: The first step is to conduct a preliminary feasibility study. It can be as simple as a meeting where decision-makers will prioritize projects and discuss different project ideas to determine which poses a bigger financial benefit for the organization.
  • Technical Feasibility Study: Now it’s time to estimate what resources are needed to execute the construction project, such as raw materials, equipment and labor. If there’s work that can’t be executed by the company with its current resources, a subcontractor will be hired to fill the gap.
  • Economic Feasibility Study: Once the construction project management team has established what materials, equipment and labor are needed, they can estimate costs. Cost estimators use information from past projects, construction drawings and documents such as a bill of quantities to come up with an accurate cost estimate. Then, based on this estimate, a profit margin and financial forecasts will be analyzed to determine if there’s economic feasibility.
  • Legal Feasibility Study: Now the company needs to identify all potential regulations, building codes and laws that might affect the project. They’ll need to ask for approval from the local government so that they can begin the construction project .
  • Market Feasibility Study: Market feasibility will be determined depending on the nature of the project. For this feasibility example, let’s assume a residential construction project will be built. To gauge market potential, they’ll need to analyze variables such as the average income of the households in the city, crime rate, population density and any trends in state migration.

Manufacturing Feasibility Study

Another industry that uses feasibility studies is manufacturing. It’s a test run of the steps in the manufacturing production cycle to ensure the process is designed properly. Let’s take a look at what a manufacturing feasibility study example would look like.

  • Feasibility Study: The first step is to look at various ideas and decide which is the best one to pursue. You don’t want to get started and have to stop. That’s a waste of time, money and effort. Look at what you intend to manufacture, does it fill an unserved need, is the market able to support competition and can you manufacture a quality product on time and within your budget?
  • Financial Feasibility Study: Find out if your estimated income from the sale of this product is going to cover your costs, both direct and indirect costs. Work backward from the income you expect to make and the expenses you’ll spend for labor, materials and production to determine if the manufacturing of this product is financially feasible.
  • Market Feasibility Study: You’ve already determined that there’s a need that’s not being served, but now it’s time to dig deeper to get realistic projections of revenue. You’ll want to define your target demographic, analyze the competitive landscape, determine the total market volume and what your market share will be and estimate what market expansion opportunities there are.
  • Technical Feasibility Study: This is where you’ll explore the production , such as what resources you’ll need to produce your product. These findings will inform your financial feasibility study as well as labor, material, equipment, etc., costs have to be within your budget. You’ll also figure out the processes you’ll use to produce and deliver your product to the market, including warehousing and retail distribution.

There could be other feasibility studies you’ll have to make depending on the product and the market, but these are the essential ones that all manufacturers have to look at before they can make an educated decision as to whether to go forward or abandon the idea.

Best Practices for a Feasibility Study

  • Use project management software like ProjectManager to organize your data and work efficiently and effectively
  • Use templates or any data and technology that gives you leverage
  • Involve the appropriate stakeholders to get their feedback
  • Use market research to further your data collection
  • Do your homework and ask questions to make sure your data is solid

If your project is feasible, then the real work begins. ProjectManager helps you plan more efficiently. Our online Gantt chart organizes tasks, sets deadlines, adds priority and links dependent tasks to avoid delays. But unlike other Gantt software, we calculate the critical path for you and set a baseline to measure project variance once you move into the execution phase.

ProjectManager's Gantt chart is ideal for tracking feasibility studies

Watch a Video on Feasibility Studies

There are many steps and aspects to a project feasibility study. If you want yours to be accurate and forecast correctly whether your project is doable, then you need to have a clear understanding of all its moving parts.

Jennifer Bridges, PMP, is an expert on all aspects of project management and leads this free training video to help you get a firm handle on the subject.

Here’s a screenshot for your reference!

feasibility study definition and template

Pro tip: When completing a feasibility study, it’s always good to have a contingency plan that you test to make sure it’s a viable alternative.

ProjectManager Improves Your Feasibility Study

A feasibility study is a project, so get yourself a project management software that can help you execute it. ProjectManager is an award-winning software that can help you manage your feasibility study through every phase.

Once you have a plan for your feasibility study, upload that task list to our software and all your work is populated in our online Gantt chart. Now you can assign tasks to team members, add costs, create timelines, collect all the market research and attach notes at the task level. This gives people a plan to work off of, and a collaborative platform to collect ideas and comments.

ProjectManager's Gantt chart, ideal to track your feasibility study

If you decide to implement the project, you already have it started in our software, which can now help you monitor and report on its progress. Try it for yourself with this free 30-day trial.

Transcription

Today we’re talking about How to Conduct A Feasibility Study, but first of all, I want to start with clarifying what a feasibility study is.

Feasibility Analysis Definition

Basically, it’s an assessment of the practicality of a proposed plan or method. Basically, we’ll want to want to know, is this feasible. Some of the questions that may generate this or we can hear people asking are, “Do we have or can we create the technology to do this? Do we have the people resource who can produce this and will we get our ROI, our Return On Investment?”

When to Do a Feasibility Study

So when do we do the feasibility study? So it’s done during a project lifecycle and it’s done after the business case because the business case outlines what we’re proposing. Is it a product or service that we’re proposing?

So why do we do this? The reason we do this is that we need to determine the factors that will make the business opportunity a success.

How to Conduct a Feasibility Study

Well, let’s talk about a few steps that we do in order to conduct the feasibility study.

Well, first of all, we conduct a preliminary analysis of what all’s involved in the business case and what we’re analyzing and what we’re trying to determine is feasible.

Then we prepare a projected income statement. We need to know what are the income streams, how are we gonna make money on this. Where’s the revenue coming from? We also need to conduct a market survey.

We need to know, is this a demand? Is there a market for this? Are customers willing to use this product or use this service?

The fourth one is to plan the business organization and operations. What is the structure, what kind of resources do we need? What kind of staffing requirements do we have?

We also want to prepare an opening day balance sheet. What are the…how again, what are the expenses, what’s the revenue and to ensure that being able to determine if we’re gonna make our ROI.

So we want to review and analyze all of the data that we have and with that, we’re going to determine, we’re going to make a go, no-go decision. Meaning, are we going to do this project or this business opportunity or not.

Well, here are some of the best practices to use during your feasibility study.

One is to use templates, tools and surveys that exist today. The great news is, data is becoming more and more prevalent. There are all kinds of technologies. There are groups that they do nothing but research. Things that we can leverage today.

We want to involve the appropriate stakeholders to ensure that input is being considered from the different people involved.

We also want to use again the market research to ensure we’re bringing in good, reliable data.

Do your homework, meaning act like is if this is your project, if it’s your money. So do your homework and do it well and make sure you give credible data.

What Is a Feasibility Report?

So ultimately in the end what we’re doing is, we’re producing and we’re providing a feasibility report. So in that report, think of this is like a template.

So what you’re gonna do is give it an executive summary of the business opportunity that you’re evaluating and the description of the product or the service.

You want to look at different technology considerations. Is it technology that you’re going to use? Are you going to build the technology?

What kind of product and service marketplace and being able again, to identify the specific market you’re going to be targeting? Also, what is the marketing strategy you’re going to use to target the marketplace?

And also what’s the organizational structure? What are the staffing requirements? What people do you need to deliver the product or service and even support it?

So also we want to know the schedule to be able to have the milestones to ensure that as we’re building things, that as we’re spending money that we’re beginning to bring in income to pay and knowing when we’re going to start recuperating some of the funding. Again, which also ties into the financial projections.

Ultimately in this report, you’re going to provide the findings and the recommendations.

Again, we’ll probably talk about technology. Are you going to build it? Are you going to buy it? What are the marketing strategies for the specific marketplace organization? You may have some recommendations for whether you’re going to insource the staff, maybe you are going to outsource some staff and what that looks like and also financial recommendation.

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Feasibility Project Proposal

Feasibility project proposal presentation, free google slides theme and powerpoint template.

Every time you start working on a new project, the ultimate goal is for it to be successful and generate profit, correct? But before you begin, it's good to assess its feasibility—you wouldn't want to spend months working on a project that ends up being canceled. We have this new template for you, with which you can give a presentation to investors, higher-ups or colleagues and discuss whether a project should go ahead. This elegant proposal has subtle gradients and some wavy lines on the backgrounds.

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Home Blog Business How to Carry Out a Feasibility Study and Get Better at Business Decision Making

How to Carry Out a Feasibility Study and Get Better at Business Decision Making

How to Carry Out a Feasibility Study and Get Better at Business Decision Making

It’s a well-known fact that projects fail more often than they succeed. This happens for a multitude of reasons, but the lack of proper planning tends to be the most common one. The best tool for determining whether your project will be a win or a loss is a feasibility study.

In this post, we’ll provide a quick feasibility study definition for those who are new to the concept, explain the importance of feasibility study for different types of initiatives, plus provide a quick framework for writing a feasibility report.

What is a Feasibility Study?

A feasibility study (also known as feasibility analysis) is an evaluation of a business venture or project aimed at determining its viability for execution and identifying potential bottlenecks. The main purpose of a feasibility study is to answer the next two questions:

  • Will the suggested business/project work?
  • Should your organization proceed with the execution?

Assessing feasibility in project management gives you several advantages:

Identity the optimal timing for launch/execution. Every business has multiple operational facets such as production cycles, supply chain, cash flow and financing operations that could impact the project success. A feasibility evaluation takes into account those factors plus the time of the year, thus allowing you to determine the optimal timeframe for conducting a certain initiative. As well, it you can see how the project results may change depending on when you decide to execute it.

Assess demand. Most business ideas are initially based on a “gut feeling”. But that feeling should be backed up by hard facts.  Feasibility studies (similar to market analysis ) allow you to gauge the depth of a demand for a product/service. This is equally important for both internal projects and external customer offers.

Make better cash flow projections. A feasibility study will help you determine whether you have enough cash at hand to adequately fund the project.

Gain better insights into supply chain management. Your plan may look good at the drawing board, but if it puts too much stress on one or more areas of your business, it will harm your company more than help. For instance, your go to market strategy indicates that launching a new product right now will be profitable. But if your sales/marketing teams are already swapped, you will need to either re-assign or hire more people. Or accept a less than expected outcome of your launch. A project feasibility study will help you determine whether that new product or service will stress your sales, production, billing, warehousing, and shipping operations and identify what kind of load your business can tolerate.

And here are some additional benefits of conducting a feasibility analysis:

  • Helps narrow the business alternatives
  • Improves resources assessments
  • Aids with developing a strong business case
  • Assists with decision-making during the project
  • Enhances project teams’ focus
  • Identifies the possible risks and reasons for not proceeding with the project

When to Carry Out a Feasibility Assessment?

Prof. Don Hofstrand from Iowa State University recommends conducting a feasibility study when you have one or more alternative business models or scenarios that you’ll want to explore.

In a nutshell, a feasibility study is a more detailed “follow-up” on your business plan and market research. Unlike the latter, a feasibility assessment takes a more holistic look at your business as a whole, including your business structure, operations, current offerings and target market(s).

Feasibility studies also include information on how you will deliver the product and what kind of resources you will need to accomplish the project/run your business. Additionally, feasibility studies are often needed when:

  • You plan to secure funding from financial institutions and/or attract equity investments.
  • You want to change the business location or open another branch.
  • You plan to purchase new expensive equipment/software that will change your operations.

However, considering that feasibility studies are time- and investment-heavy investigations, there’s no need to do a feasibility study for every project. Here are a few good reasons to bypass it:

  • You already know that the idea is feasible based on your past project, other research or competitor data.
  • When your project is based on a regulatory requirement, and you must carry it out in any case.
  • A recent feasibility analysis was conducted by another sub-division proving that a similar project can/can not be done.

The Types of Feasibility Study

Economic feasibility (also referred to as market feasibility): a detailed investigation into the current market landscape, future market potential, sales projections, competition and target buyers. This part also involves a costs and benefits analysis of the project at stake.

Cost Benefit Analysis PowerPoint template

The goal of this type of study is to determine the positive economic gains for the business that the project will deliver.

Technical Feasibility. This part of study should answer the following question: does your company the technical capabilities and sufficient resources to carry out the project? Specifically, you’ll want to assess areas such as labor, materials, logistics and technology needs.

Legal Feasibility. Assess the legal and regulatory requirements for the project success and your company’s ability to meet them. Here’s a quick feasibility study example to illustrate this point. As a healthcare provider, you may be interested in migrating to the cloud to slash IT infrastructure maintenance costs. Public clouds such as AWS/Azure may seem like a good choice cost-wise. However, you will need to make sure that your new tech setup will be compliant with HIPAA requirements .

Operational Feasibility. This one dives into how well the company’s needs can be met by undertaking the project. Specifically, this area of study is geared towards answering the following questions:

  • How will the work environment be affected by post-implementation?
  • How the end-users (your team) feels about the new process/project that will be implemented.
  • Can the proposed system/process work in your company, and how well?

Operational feasibility assessments are typically conducted for internal business projects.

Risk Assessment. Determine what risks and challenges are associated with the project. Are those risks/constraints outweigh the possible benefits of the project?

After analyzing these areas, you can draw the conclusions that should clearly communicate the possible risks your project may face such as:

  • External Constraints: Logistics, Laws and Regulations, etc.
  • Internal Project Constraints : Technology, Budget, Resources, etc.
  • Internal Corporate Constraints: Financial, Marketing, Export, etc.

How to Do a Feasibility Study: Step-by-Step Guide

We should start by saying that there’s no unified feasibility study format. Every organization has different needs and operational structures. While each feasibility study includes the elements mentioned above, the final format will be commanded by the type of project in the spotlight. Hence, in this section, we’ll provide the general framework for performing a feasibility study that can be easily customized for different initiatives.

Ground Zero: Before you decided to perform a full-fledged feasibility study, it’s worth to conduct a pre-feasibility analysis to weed out the non-viable business ideas. This will save you a lot of time and money in the long run.

This preliminary assessment should be aimed at determining the clearly prohibitive issues your project may face such as:

  • Regulatory requirements that stall the implementation
  • Lack of market depth
  • Insufficient labor resources
  • Clearly negative ROI post-implementation

If your workgroup has not found any significant roadblock during the early exploration, it’s worth pursuing a more detailed investigation. Here are the essential tips for writing a feasibility report, and creating a presentation to complement it.

Step 1: Establish a Clear Project Scope

Without a well-defined project scope, your feasibility study may end up being too long and scattered. Hence, before you begin any work, determine whether you will need to assess all five parts of feasibility study or just several of them? You can use the following feasibility analysis template to help you with that:

Feasibility Analysis PowerPoint template matrix

To narrow down the project scope, at first take a look at all five analysis elements and consider which areas of business will be most affected by your project. But mind that even if you aren’t proposing a major project that will impact the entire organization (new product launch), your actions may still have an impact on all sectors of your business.

The key here is to understand the different end-users and participants of the proposed project. Asking the following questions should help:

  • How the internal stakeholders (your employees) will be affected?
  • What will change for external customers/clients?

Additionally, analyze the current situation of your business. Do a quick SWOT analysis to determine the current weaknesses and strengths of your business, plus new opportunities.

>> Recommended template for presentations: Detailed SWOT Analysis PowerPoint Template

Afterwards,  analyze the operational benefits and savings you plan to gauge post-implementation.

Step 2: Conduct Market Analysis

Next, you’ll want to determine if there is a viable place for your project within the target market and how strong your competition is. Using a business model canvas as part of your feasibility study template can be incredibly helpful in this case:

Business Model Canvas for PowerPoint with editable fields

Business Model Canvas template by SlideModel.com

You have nine boxes to fill in here:

  • Feasibility : Key in-house resources available, key activities, key partners and unique value proposition.
  • Desirability: Targeted customer segments, current customer relationships (can be assessed using the VoC data ), main marketing/distribution channels.
  • Viability: Cost structure (costs and benefits analysis) and revenue streams.

Step 3: Determine the Financial Costs of Execution

No matter what type of project your business is considering the financial costs and potential ROI will be a major factor in determining feasibility. Of course, the financial costs will vary depending on the type of project at stake. Ask the following questions to capture all the cost factors:

  • What type of resources will be needed for implementation?
  • What’s the source of these resources – internal or external financing?
  • When will your business break-even post project?
  • What are the financial risks e.g. risky market conditions, likely budget/time-to-market underestimates?
  • What will be the financial cost of failure? In other words, what will it cost your business to deal with the worst-case scenario?

>> Recommended template for presentations: Business Review PowerPoint Template

Step 4: Potential Roadblocks and Alternatives

The goal of a feasibility study is to uncover the most pressing problems that can occur during the project. When those resurface during your analysis, be sure to address them with alternative solutions to ensure a positive outcome.

>> Recommended template for presentations: Overcoming Challenges PowerPoint Template

Step 5: Final Review

Once you are done with the bulk of work, step aside for a bit, and then return to your report once again to reflect on the findings. Consider asking yourself the following questions:

  • Have the market conditions changed since you have conducted the analysis?
  • Did any new risks resurface?
  • Is your business situation the same in terms of financials and operations?

Step 6: Recommendations: Go or No-Go Decision

Feasibility studies should be concluded with a summary of all scenarios examined, along with their implications for business, plus strengths and weaknesses of each. Based on the findings, the study should recommend further course of action i.e. conclude whether the project is a go or no-go for reasons X, Y, Z.

Conclusions

When done properly, a feasibility study will deliver you in-depth insights into the various aspects of your business and help you determine the success of your new endeavor. It’s an essential document for executive decision-making that will help you shape your agenda and pursue the most profitable opportunities out there.

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Feasibility study – a document that provides information from which the appropriateness of creating a product or service is derived. Although the feasibility study is similar to a business plan, the difference is that the feasibility study is the rationale for the project, while the business plan describes the mission and goals of the organization. That is why we decided to make a separate template to help you present your feasibility study in the best possible way. So, meet the Feasibility Study Template. It will help to present the potential risks and benefits of the project, justify the need for the purchase of equipment and hiring employees, and much more.

The template consists of four slides that are interconnected by one design and color scheme. The first slide is perfect for the introductory part of your project. Here it is possible to describe the potential risks and evaluate the profitability of the project. Great infographics will organically complement this information. The right side of the slide has a green background that will contribute to the success of your presentation. The second slide is devoted to the assessment of the practicality of the proposed project or system. Here you can describe in detail the processes that accompany project evaluations. The processes are divided into four types – concept, development, implementation, and roll-out. The third slide is necessary to present key aspects of the feasibility study in a tabular form. It contains information about the concept, projects, systems, and ideas. It also allows you to evaluate the project from the beginning of planning to the end of implementation. The fourth slide complements the previous one and provides more visual information for audience perception. Here you can specify the percentage ratio of the influence of the main categories on the final result. Dotted lines allow you to better track the relationships between the main categories that affect the final result.

This template looks professional and modern. It uses visually attractive colors that do not make it difficult to read the contents of the template. It perfectly combines various design techniques. One of which is the use of curly braces using the transparency effect. It is also worth noting the presentation of tabular data in a form somewhat unusual for users. The table consists of blocks that are visually separated from each other and have a different fill color. However, this does not interfere with them, and even vice versa makes it possible to perceive these blocks as a single table into which the icons fit organically when evaluating project parameters. The combination of various techniques for presenting data visualization, namely the use of a large number of infographics, icons, tables, and figures, clearly helps the audience perceive your information. This template will be useful to specialists from various sectors of the economy – marketing, manufacturing, services, and education. Feasibility Study Template can be used not only in evaluating projects but also in drawing up business plans, risk assessments, or in summing up intermediate results.

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Feasibility Study Presentation Slide

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  1. Top 5 Feasibility Study Templates with Samples and Examples

    Template 5: Project Current Status with Feasibility Study. A business feasibility study assesses the proposal's viability. Use this PPT Template to review the current state of your project. This project analysis contains metrics such as site selection, site screen, feasibility study, baseline surveys, appraisal drill, and or seismic studies.

  2. How to conduct a feasibility study: Template and examples

    For a general set of guidelines to help you get started, here are some basic steps to conduct and report a feasibility study for major product opportunities or features. 1. Clearly define the opportunity. Imagine your user base is facing a significant problem that your product doesn't solve. This is an opportunity.

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    The technical feasibility study assesses the practicality of implementing your project from a technical standpoint. It involves evaluating the project's design, technical requirements, technological feasibility, resource availability, and risk analysis. Let's delve into each aspect in more detail.

  5. Feasibility Study

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    3. Conduct a Market Survey or Perform Market Research. This step is key to the success of your feasibility study, so make your market analysis as thorough as possible. It's so important that if your organization doesn't have the resources to do a proper one, then it is advantageous to hire an outside firm to do so.

  7. Feasibility Project Proposal

    But before you begin, it's good to assess its feasibility—you wouldn't want to spend months working on a project that ends up being canceled. We have this new template for you, with which you can give a presentation to investors, higher-ups or colleagues and discuss whether a project should go ahead. This elegant proposal has subtle gradients ...

  8. How to Carry Out a Feasibility Study and Get Better at Business

    Step 4: Potential Roadblocks and Alternatives. The goal of a feasibility study is to uncover the most pressing problems that can occur during the project. When those resurface during your analysis, be sure to address them with alternative solutions to ensure a positive outcome.

  9. How To Write Feasibility Studies (With Tips and Examples)

    Here is a step-by-step guide to help you write your own feasibility study: Describe the project. Outline the potential solutions resulting from the project. List the criteria for evaluating these solutions. State which solution is most feasible for the project. Make a conclusion statement. 1.

  10. Feasibility Study: 7 Key Elements of a Feasibility Study

    Learn more and discover the key elements of a feasibility study. From startups to enterprise companies, organizations conduct analyses to make informed decisions about new projects. Learn more and discover the key elements of a feasibility study. ... Business Feasibility Study: 7 Key Elements of a Feasibility Study. Written by MasterClass. Last ...

  11. Feasibility Study Template

    Feasibility study - a document that provides information from which the appropriateness of creating a product or service is derived. Although the feasibility study is similar to a business plan, the difference is that the feasibility study is the rationale for the project, while the business plan describes the mission and goals of the organization. … Continue reading "Feasibility Study"

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    Creating a feasibility study example doesn't have to be a difficult task as long as you know what information to include. To guide you, here are some tips: Include an executive summary at the beginning or end of your report. The key here is the word "summary.". Emphasize the most important points of each of the sections.

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