Why conduct a feasibility study?

A feasibility study example is also known as a feasibility report example or a

feasibility analysis example. No matter what name you use, the importance stays the
same. The main reason why you would create a feasibility study document is to check
whether or not you should commit your time and resources towards a project.

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.

What is an example of a feasibility study?

A feasibility report example or a feasibility analysis example shows the analysis and
evaluation of a specific proposed system or project. The study aims to determine
whether or not the project is financially and technically feasible. To help you
understand better, let’s have a feasibility study example.

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.
What factors are required for preparing the
feasibility report?
Projects are an important part of organizations and businesses. While you want all of
your projects to succeed, this isn’t always the case. If you want to avoid starting
projects which have a high likelihood of failing, then you must first perform a
feasibility study.

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.

 System and technology assessment

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.
  Resource and schedule concerns
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.
What is included in a feasibility report?

A feasibility study is an important aspect of any project. Through it, you analyze whether or not you
should go through with the project given the current situation and the details of the project itself. If
you’re tasked to come up with a report or a feasibility study example, include the following
information:

The scope of the project

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.

The requirements of the project

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.

The project approach

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.

How do you write a feasibility study report?

If you’ve ever read a feasibility analysis example before, you’ll see that it’s quite technical. After all,
it’s an analysis of the details of a specific project. It contains a lot of important information which
helps the decision-makers of the organization to come to a more informed 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.

 Estimate and calculate the required materials and labor

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.

 Shipping and transportation requirements

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.

 Include the marketing requirements too

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.

 Consider the technology requirements of your business

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.

 Include the project’s target dates

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.

 Provide supporting documents for the financial information

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.