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Feasibility Study
Feasibility Study
If you try to read a feasibility study example, you’ll realize that it’s a document which analyzes the relevant factors of a specific project including
the scheduling, legal, economic, and technical considerations. This document helps to ascertain the success of the project’s completion.
A feasibility study may reveal new challenges or concepts which may completely change the scope of a project. It’s better to make such determinations beforehand instead of
starting the project only to realize that it won’t work. Simply put, conducting this study gives you a clearer picture of the project.
For instance, a hospital wants to expand by adding an extension to one of the buildings. Before doing this, they should conduct a feasibility study to determine whether or not
they should go through with this expansion. Here are the steps to take:
First, they must take into consideration the costs of materials and labor. They must also think about the disruptions the project might cause to the patients and the staff.
They must also gauge the opinion of the public about the project. To do this, they can ask the local community if they’re against or in favor of the project.
The next step is to start a conversation with the stakeholders and see how they respond to the idea.
Finally, they should come up with a list of all the project’s pros and cons. After that, they weigh the points against each other.
After all these steps, the team who conducts the feasibility study can determine whether or not they should continue with the expansion.
After performing this study, you should come up with a feasibility report example to help you make a final decision about your project. Before creating this feasibility study
example, let’s take a look at the factors required for it:
Business alignment
When you’re trying to envision a new project, think about whether it corresponds with the mission statement of your company or not. The project must align with your business
for it to be a viable one. It should support the best interests of the organization which means that it will be highly beneficial too.
After brainstorming and coming up with the scope, it’s time to assess the system and technology viability of the project along with its deliverables. In this step, the team must
have senior technical consultants who will provide the needed input.
Economic viability
It’s also important to examine the economic viability of the project before proceeding. This means having to come up with an estimate for the implementation costs, the ROI of
the project, the target market niche, and how saturated the market is.
Operational considerations
After establishing the scope and making a list of the requirements, it’s time to determine whether or not the solution you came up with solves the issue. In some cases, a
proposed project may provide a tangential solution to the expectations of the target market. In such a case, this doesn’t make the project fully viable.
Legal ramifications
You must also check if the project comes with any legal ramifications. Make sure that there are no concerns regarding local and foreign government regulations, company
policies, infringement issues, and so on. You must address these issues to make sure that you don’t run into any roadblocks after implementation.
This is one of the most important factors to consider. If you don’t have enough resources, you can’t push through with the project. Also, if the project might take too long, this
would cause issues too.
You must clearly establish the scope of the project or the issue you plan to address. Also, define the parts of your business which would get affected by the project either
indirectly or directly. Creating a well-defined scope allows for the accuracy of your feasibility study.
A current analysis
This is important for the evaluation of the current implementation. Through this analysis, you can determine the weaknesses and strengths of the existing approach to help save
you a lot of time and money.
It’s important to define all of the requirements depending on your project’s objectives. This helps give you a better idea of the resources you need and if you have enough.
Next, you must decide on the recommended course of action or solution to meet the requirements of the project. Think about different alternatives and choose the most viable
option.
Evaluation
Here, you assess the cost-effectiveness of the approach you’ve chosen along with an estimate of the project’s total cost. You may also estimate the costs of the alternative
options for the purpose of comparison.
Review
After bringing together all of these elements into your feasibility study, it’s time to conduct a formal review. Use this review to check how accurate your feasibility study is. This,
in turn, helps you make a final decision about the project.
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.
Create an outline
Whether you plan to include the executive summary at the beginning or end of your report, creating an outline makes the task easier for you. The outline helps guide you as
you’re writing the report. It also gives you an idea of what you’ve finished and what you must still work on.
Make a list of all the materials you need for your project. Also, include other details like where you plan to get the materials, whether you can get discounts for bulk purchases,
the details about the materials, and so on.
You must also come up with a list of the labor requirements no matter what the size of your project is. Most of the time, labor is one of the biggest expenses you might have in
your project.
Think about how you will start transporting the materials you need for your project. While small items aren’t a problem, if you need to ship or transport equipment or other
heavy items, you might have to hire a trucking or a freight company.
Marketing is also an important part of your project, especially if you want to reach out to a target audience. Think about the marketing requirements you need and how you
plan to produce them.
Depending on the nature of your project, you may need some type of technology during implementation. Include this component in your feasibility study and incorporate the
details about it into your report.
This is important information too, especially for the investors and stakeholders of your projects. Target dates give them a better idea of when your project will get accomplished.
Again, this information is for the benefit of the project’s investors and stakeholders. But it’s also important for you to have these documents, especially if you’re the one in
charge of the project’s finances.