What is a feasibility study?

Factors that August Brown analyzes in Financial Feasibility:

A feasibility study analyzes how practical or realistic a
business idea is. Whether your idea is a proposed plan, new
product or offering, or a new business strategy, the key
purpose of a feasibility study is to determine whether you can
deliver on the plan’s goal effectively and within a reasonable
amount of time and financial investment.
At the end of a feasibility study, you present the findings to
key stakeholders for review. If the findings are acceptable, the
idea is considered feasible and project planners add the report
to a project plan so the next phase of the project can begin.
How to do a feasibility study: A step-by-step guide
1. Outline your plan and perform a preliminary analysis
2. Conduct a market survey or perform market analysis
3.Answer the core feasibility questions
4. Calculate the costs
5. Polish and review your feasibility report
6. Present your findings
Financial projections over 5-years
Revenue & expenses assumptions
Sensitivity analysis
Accounting policies & cost accounting system
Equity contribution and source of repayment
Use of funds
Availability of short-term credit
Peer industry comparison
5. Management Feasibility
Management feasibility analysis examines the ownership,
board, history, and qualifications of the business or
organization, as well as the skill or experience required to
implement the project.
Factors that August Brown analyzes in Management
Feasibility:
History of the business or organization
Key staff review (professional, experience and skills)
Key staff assessment (qualifications and character of
management team)

Ref. How To Do a Feasibility Study in 6 Steps (getapp.com)

5 Key Components of a Feasibility Study

1. Economic Feasibility
Economic feasibility is a cost-benefit analysis that examines
whether all the required inputs and contracts are in place for
the business to be operational, and whether the resulting
benefits and impacts are significant.
Factors that August Brown analyzes in Economic Feasibility:
The minimum amount of inputs (labor, infrastructure, utilities,
renewable resources, feedstocks) to operate successfully.
Contracts in place and contracts to be negotiated, including
terms and renewals.
Environmental risks.
Cost of the project relative to the increase in revenues or
benefits provided.
The overall economic impact of the project, including new
markets created and economic development in the sector.

2. Market Feasibility
Market feasibility is an essential concept for any business or
organization to consider. It focuses on the current and future
market potential of a project as well as the business’ target
customers and competition.
Factors that August Brown analyzes in Market Feasibility:
Competition
End user analysis, captive versus competitive
Marketing plan
By-product revenue streams
Industry risk (scalability, supply chain issues, and more)

4. Financial Feasibility

Financial feasibility analysis identifies the elements needed to

achieve a project’s financial sustainability and meet all debt
obligations through sufficient income, credit, and cash flow
over the long term.