Feasibility

Report
Your business slogan here.

Prepared By:

[YOUR NAME]
[YOUR JOB TITLE]
Phone 555.555.5555
Email info@yourbusiness.com
www.yourbusiness.com

Confidential Information
 Statement of Confidentiality
& Non-Disclosure

This document contains proprietary and confidential information. All data submitted to
[RECEIVING PARTY] is provided in reliance upon its consent not to use or disclose any
information contained herein except in the context of its business dealings with [YOUR
COMPANY NAME]. The recipient of this document agrees to inform its present and future
employees and partners who view or have access to the document's content of its
confidential nature.

The recipient agrees to instruct each employee that they must not disclose any
information concerning this document to others except to the extent that such matters are
generally known to, and are available for use by, the public. The recipient also agrees not
to duplicate or distribute or permit others to duplicate or distribute any material contained
herein without [YOUR COMPANY NAME]'s express written consent.

[YOUR COMPANY NAME] retains all title, ownership and intellectual property rights to the
material and trademarks contained herein, including all supporting documentation, files,
marketing material, and multimedia.

BY ACCEPTANCE OF THIS DOCUMENT, THE RECIPIENT AGREES TO BE BOUND

BY THE AFOREMENTIONED STATEMENT.
 Table of Contents
Statement of Confidentiality 2
Table of Contents 3
1. Executive Summary 4
2. Introduction 5
3. Justification 6
4. Solution 8
5. Alternatives 9
6. Cost-Benefit Analysis 10
7. Project Viability by Feasibility 11
8. References 16

[YOUR COMPANY NAME] // FEASIBILITY REPORT 3

 1. Executive Summary
The executive summary should provide a detailed overview of the content of the feasibility
report. It's advisable to write this section after completing the entire document. The
executive summary contains the most important and decision-relevant information relating
to the project. Fill in the sections below for the executive summary

Business Description

Provide a brief history of your company and explain what your business does.

Product/Service

Describe the product/service that you consider as part of the feasibility study. Note that
this section provides a detailed breakdown of what the organization is considering. Ensure
this section captures the product and service appropriately and how it benefits customers
and the organization.

Objectives

Briefly describe the objectives that you want to reach by preparing the feasibility report.

N.B: Generally, the executive summary should adequately create a summary of:

 Problem analyzed in the feasibility report

 Significant business objectives
 Process impact
 Expected costs and benefits
 Anticipated risks

[YOUR COMPANY NAME] // FEASIBILITY REPORT 4

 2. Introduction
Provide a general statement about the overall content of the feasibility report.

Purpose

Highlight the major purpose of creating the feasibility report

N.B: The primary purpose of the document should be for the presentation of project
parameters. It should expressly define the possible solutions to the need, problem, or
opportunity. The feasibility report should also determine what is viable for further analysis
or review.

Target Audience

State the specific group of people that are intended readers of the feasibility report.

N.B: The target audience typically includes investors or stakeholders

[YOUR COMPANY NAME] // FEASIBILITY REPORT 5

 3. Justification
Explain the reason and motivation behind carrying out the feasibility analysis. It expands
on the "purpose" sub-section in the Introduction.

Let the introduction to the Justification section be no more than three to four paragraphs.
Provide a detailed summary of the objectives and justification process.

Problem Statement

Provide a brief description of the main problem, suitable opportunity, and key issue that
the project should address.

Organizational Impact

Explain how the problem from the problem statement will affect your organization.

Business Impact

Provide a detailed narrative about the problem's impact on business resources, workforce,
divisions, and other parts of the organization's environment. Fill in the table below for
better clarity and comprehension.

Problem Organization Environment Impact

Statement
[Ex: Business Resource (Be [Explain Impact]
[Write Problem Specific)]
Statement] [Ex: Workforce] [Explain Impact]

[YOUR COMPANY NAME] // FEASIBILITY REPORT 6

 Process Impact

List the business processes affected by the problem from the problem statement.

1. BUSINESS PROCESS #1
2. BUSINESS PROCESS #2
3. BUSINESS PROCESS #3

Solution Objectives

Give a detailed description of the benefits yet to be received and costs to be incurred due
to problem solving.

Business Solution Benefits Yet to Receive Costs to Be Incurred

N.B: Write the entire Justification section using simple and straightforward words. Place
higher focus on highlighting the different characteristics of the justification process.

[YOUR COMPANY NAME] // FEASIBILITY REPORT 7

 4. Solution
Give a summary of the proposed solution. Ensure that it restates the costs of the solution
and benefits. Note that the main focus of the solution is to describe how it can improve the
overall organization environment. Include the overview of the solution's functionality and
features. Provide a detailed breakdown of the impact the solution will have on the
company.

N.B: This section of the feasibility report highlights similar topics as the Justification
section. The major difference between them is that this Solution section relates to how
exactly it impacts the business processes.

When writing the Solution section, utilize the structure of the Justification section and
summarize the characteristics of the solution. Ensure to keep the narrative
comprehensive, highly informative, and complete.

[YOUR COMPANY NAME] // FEASIBILITY REPORT 8

 5. Alternatives
Explain previous alternative solutions that have been considered and compare them with
the proposed solution. Highlight the key differences between the proposed solution and
alternative solutions.

N.B: When writing this section, consider:

 Utilizing a cost-benefit analysis: This analysis helps decide which decisions to
make and which to ignore. Since the cost-benefit analysis is data driven, the
business can evaluate the decision without personal biases.

When performing the cost-benefit analysis, it's imperative to begin by establishing

the framework of the analysis, identifying the costs and benefits, and attaching a
value to each cost and benefit. Tally the overall value of costs and benefits and
compare appropriately.

 Designing a comparison matrix to consider the differences between alternative

solutions

COMPARISON MATRIX/TABLE

Proposed Solution Alternative Alternative Alternative

Solution #1 Solution #2 Solution #3

If applicable, highlight the differences using the table below after cost-benefit analysis:

Proposed Solution Difference from Difference from Difference from

Alternative Alternative Alternative
Solution #1 Solution #2 Solution #3

[YOUR COMPANY NAME] // FEASIBILITY REPORT 9

 6. Cost-Benefit Analysis
Provide an accurate description of the approach and tools utilized in the study for the cost-
benefit analysis. This offers a significant comparison between the current value of the
solution and the initial cost. Another name for this comparison is the "cost-benefit ratio."

N.B: The cost-benefit ratio doesn't provide a sense of the economic value to be created.
It's important for developing the necessary rough data relating to the viability of the
company project and how the internal rate of return (IRR) exceeds the discount rate.

The reader should find valuable details for solution approval in this section for more
decision making. This section should also accurately justify the proposed solution through
reasonable indicators and calculations.

Some of these indicators are:

 Net Present Value (NPV): This describes the current value of the cash flows of
the project at the required return rate compared to the initial investment. In other
words, it's the difference between the present value of cash inflows and that of
cash outflows over a certain period.
 Return on Investment (ROI): Another name for ROI is the Rate of Return or Rate
of Profit. It helps evaluate the efficiency of an investment and compares it to a
number of other investments. Note that it's one of the most important indicators in
cost-benefit analysis.
 Payback Period (PP): The value of the payback period is derived by dividing the
projected total cost of the project by the projected overall revenues.

[YOUR COMPANY NAME] // FEASIBILITY REPORT 10

 7. Project Viability by Feasibility
Market Feasibility

Explain the company statistics, market research, and future outlook.

COMPANY STATISTICS

[WRITE CONTENT HERE]

MARKET RESEARCH

[WRITE CONTENT HERE]

FUTURE OUTLOOK

[WRITE CONTENT HERE]

Fill in the table below:

Competitor Primary Revenue Sales Figure Niche

Source

[YOUR COMPANY NAME] // FEASIBILITY REPORT 11

 Operational Feasibility

Outline the various operational factors that can significantly influence the success of the
business. Give details of the company's location materials for the creation of products and
services offered, quality assurance facilities, manufacturing process, and required
transportation to ship products to retail locations

Financial Feasibility

Give details of the necessary aspects of the company's finances, including investors,
current revenue, assets, and liabilities

LIST OF INVESTORS
1. INVESTOR #1
2. INVESTOR #2
3. INVESTOR #3

TOTAL ANNUAL REVENUE FROM PREVIOUS YEAR

[WRITE CONTENT HERE]

CURRENT REVENUE

[WRITE CONTENT HERE]

ASSETS AND LIABILITIES

Fill in the table below

Assets Liabilities

[YOUR COMPANY NAME] // FEASIBILITY REPORT 12

 FINANCIAL PROJECTIONS TABLE

Fill in the financial projections table.

N.B: Filled fields are only examples.

Measure Year 1 Year 2 Year 3 Year 4 Year 5 Total

Online sales projections $350,000 $425,000 $500,000 $850,000 $600,000 $2,725,000
Additional staffing costs
Projected material, shipping
insurance costs
Additional web server and IT
hosting/maintenance
Training for sales and
marketing staff
Contract for design, build, and
implementation of online store
Total additional costs for
online sales
Cash inflow

Organizational Feasibility

Provide details about the company's legal state

DEPARTMENTS

List the current departments in the company.

1. DEPARTMENT #1
2. DEPARTMENT #2
3. DEPARTMENT #3

[YOUR COMPANY NAME] // FEASIBILITY REPORT 13

 BRANCH LOCATIONS

List the branch locations of the company.

1. BRANCH LOCATION #1
2. BRANCH LOCATION #2
3. BRANCH LOCATION #3

BOARD MEMBERS BIOS

Provide detailed board members/founders bios. Fill in the table below if applicable

BOARD MEMBER BRIEF BIO

[BOARD MEMBER #1]
[BOARD MEMBER #2]
[BOARD MEMBER #3]
[BOARD MEMBER #4]
[BOARD MEMBER #5]
[BOARD MEMBER #6]

[YOUR COMPANY NAME] // FEASIBILITY REPORT 14

 8. References
ID Reference Document Name Location (Web File Volume Number
Address, File
Number)
1.
2.
3.
4.

[YOUR COMPANY NAME] // FEASIBILITY REPORT 15