What Is a Feasibility Study?

A feasibility study is an analysis that considers all of a project's relevant

factors—including economic, technical, legal, and scheduling
considerations—to ascertain the likelihood of completing the project
successfully.
Whether a project is feasible or not can depend on several factors,
including the project's cost and return on investment, meaning whether
the project generated enough revenue or sales from consumers.
However, a feasibility study isn't only used for projects looking to
measure and forecast financial gains. In other words, feasible can mean
something different, depending on the industry and the project's goal.
For example, a feasibility study could help determine whether a hospital
can generate enough donations and investment dollars to expand and
build a new cancer center.
Although feasibility studies can help project managers determine the
risk and return of pursuing a plan of action, several steps and best
practices should be considered before moving forward.
What is Feasibility Study?
As the name implies, a feasibility analysis is used to determine the
viability of an idea, such as ensuring a project is legally and technically
feasible as well as economically justifiable.

It tells us whether a project is worth the investment—in some cases, a

project may not be doable (feasible ).

There can be many reasons for this, including requiring too many
resources, which not only prevents those resources from performing
other tasks but also may cost more than an organization would earn
back by taking on a project that isn’t profitable.
1. Technical Feasibility
This assessment focuses on the technical resources available to the
organization. It helps organizations determine whether the technical
resources meet capacity and whether the technical team is capable of
converting the ideas into working systems. Technical feasibility also
involves the evaluation of the hardware, software, and other technical
requirements of the proposed system. As an exaggerated example, an
organization wouldn’t want to try to put Star Trek’s transporters
(Transporters allow for teleportation by converting a person or object
into an energy pattern, then send it to a target location or else return it
to the transporter, where it is reconverted into matter ) in their building
—currently, this project is not technically feasible.
2. Economic Feasibility
This assessment typically involves a cost/ benefits analysis of the
project, helping organizations determine the viability, cost, and benefits
associated with a project before financial resources are allocated. It also
serves as an independent project assessment and enhances project
credibility—helping decision-makers determine the positive economic
benefits to the organization that the proposed project will provide.
3. Legal Feasibility
This assessment investigates whether any aspect of the proposed
project conflicts with legal requirements like zoning laws, data
protection acts or social media laws. Let’s say an organization wants to
construct a new office building in a specific location. A feasibility study
might reveal the organization’s ideal location isn’t zoned for that type of
business. That organization has just saved considerable time and effort
by learning that their project was not feasible right from the beginning.
4. Operational Feasibility

This assessment involves undertaking a study to analyze and determine

whether—and how well—the organization’s needs can be met by
completing the project.

Operational feasibility studies also examine how a project plan satisfies

the requirements identified in the requirements analysis phase of
system development.
5. Scheduling Feasibility
This assessment is the most important for project success; after all, a
project will fail if not completed on time. In scheduling feasibility, an
organization estimates how much time the project will take to complete.
When these areas have all been examined, the feasibility analysis helps
identify any constraints the proposed project may face, including:

Internal Project Constraints: Technical, Technology, Budget, Resource,

etc.

Internal Corporate Constraints: Financial, Marketing, Export, etc.

External Constraints: Logistics, Environment, Laws, and Regulations, etc.

BENEFITS OF CONDUCTING A FEASIBILITY STUDY:
What is a development loan?
A development loan is a short-term funding option, usually for between
6-24 months.
It is designed specifically to assist with the purchase costs and build
costs associated with a residential or commercial development project.
This can be a new build, conversion or refurbishment covering a single
unit through to multiple units built across a number of phases.

It’s a loan granted for the development or refurbishment of residential,

commercial or mixed use properties.

Development finance is often granted to experienced builders and

developers so that they can raise the capital to turn their building ideas
into a commercial reality.
The loan comes in two parts
1. To purchase the site
The first element of the funding will often be used to assist with the
purchase of the development site. This could be land where a number
of new properties will be built or an existing property that will undergo
a refurbishment.
2. To fund the building costs
The second stage of the loan is used to pay for the costs of the build
works associated with the project. This is usually drawn in stages, as
opposed to being given in one amount at the outset. This often happens
once a month as works are completed on the project.
Here’s how the process works:
You submit an application which includes how much you paid for the
site/ property, your development or refurbishment costs, professional
fees and build timescales
You will be offered some terms from a lender based on this information
and supporting evidence
Credit searches will be run on your existing finances, experiences and
the development location
Once the loan has been approved there will be ongoing monitoring of
your project
Pros of development finance
Allows you to raise capital
Quick access to funds which could be made available within 48 hours
It is a short term loan that means you won’t be tied down with a loan
over a long period of time
Can be used to cover the cost of contractors and materials
Cons of development finance
You have to provide comprehensive paperwork
There will be fixed expenses to take into account such as arrangement
and exit fees which are likely to be higher than on a commercial
mortgage
Your interest rate will be decided during negotiations between you and
your lender
Do I want a short term loan to help me through my development
project?
Am I confident I’ll be able to repay the loan once the project is
finished?
Can I provide all of the paperwork needed to access the development
loan?