Technical criteria

for a business of
an Entrepreneur.
B. BHARATHIE,
ROLL.NO:20
Introduction
 Technical feasibility is a standard practice for companies to conduct
feasibility studies before commencing work on a project.
 Technical feasibility, can be described as the formal process of
assessing whether it is technically possible to manufacture a product
or service.
 A technical feasibility study helps an organization to determine
whether they have the technical resources to convert the idea into a
fully functional and profitable working system.
 The study identifies potential challenges and uncovers ways to
overcome them.
 It also helps in long-term planning, as it can serve as a flowchart for
Purpose Of Technical Feasibility Study

A technical feasibility study helps find the answers to the following questions:
1. Is it possible to develop the product with the available technology in the
company?
2. Is the organization equipped with the necessary technology for project
completion?
3. Are there technically strong employees who can deliver the product on time
and within budget using the available technology?
 4. Is there scope in the company's budget to add more technical
resources?
5. Is the available technology the right choice to help the product team
save time and complete development within budget?
6. Does the client require specific technology, or is the client open to
developing the product, irrespective of the technology?
steps

1. The Initial Analysis (also known as preliminary analysis) helps decide whether the project is
worth undertaking from an economic and time perspective. The two main areas of preliminary
analysis include:
Project outline
Start by describing the project using the available details. The outline lists all the critica
elements like the target market, the expected goals and outcomes.
Technical and equipment accessibility
Evaluate if there are any barriers or factors that hinder profitability. If the preliminary
analysis results show optimistic returns, you can proceed to the next step.
2. Calculate the estimated income
Work with the preliminary study results to predict the expected income that the product or service
is likely to generate when sold in the target market.
If the projected income is more than the overall cost of production, then you can proceed to the
next step of the feasibility study.

3. Do a market survey
A market survey helps determine the realistic revenues the project is likely to earn. The market
study has to be in-depth and includes various steps like:
Identifying the right market: It involves analyzing the demographic factors, the average
disposable income of the target market, cultural aspects of the audience
Comparing similar offerings: Identify the pros and cons of each product on your list.
Estimating the scope of expansion: Determine if the market offers expansion opportunities for
launching new products or services down the line.
4. Prepare a business plan
A business plan explains the project in detail. It outlines the raw material requirements and the
planned product launch schedule and has a step-by-step plan on the expected costs at each step
of the project and how to manage them. The critical elements of the business plan include:
i Executive summary
ii Organizational chart
iii Materials, supplies and equipment
iv SWOT analysis
v Labour costs
vi Facility costs
vii Overheads, including utilities, taxes, and insurance
viii Marketing and merchandising costs
5. Build a day-one project balance sheet
The day-one project balance sheet lists the liabilities and assets of the project on launch day before
it starts generating revenue. Make sure to include the following:
i Assets like the project's initial capital investment, land, building and equipment
ii Liabilities like rent, loan repayments and margins for receivables

6. Review the data and decide

In this step, you compare the data you compiled in the previous steps to determine if the project is
still feasible.
Does the feasibility study determine whether the project guarantees the minimum expected
ROI?
Does this project have growth potential?
If the answer is 'yes' to all three questions, you can arrive at the conclusion that the project is
Things To Be Included In A Technical Feasibility Study Report
Once you complete the feasibility study, it is common to present a detailed report to your
manager, senior leaders or clients. include the following information in it:

The scope of the project

The report establishes the scope of the project and its objectives. A well-defined scope is
critical to verify the accuracy of the feasibility study.

The technical requirements of the project

The next step includes all the technical requirements to achieve the project's objectives.
Start by listing all available resources, including personnel and equipment.

The project approach

Develop an outline of the planned approach to tackle the project. This involves the
recommended course of action to achieve the objectives of the project.
 Evaluation
In this step, assess the cost-effectiveness of the different approaches. You are also required
to provide an estimate of the project's total cost and compare it with the expected revenues.

Final review
The final step of the feasibility study is to provide a formal review of the various elements
completed until now. The assessment helps the stakeholders arrive at a final decision about
whether it is technically feasible and economically justifiable to proceed with the pl
Practices to conduct the technical feasibility study
Gather feedback and suggestions from all stakeholders, including
clients, product designers, developers and other team members.
Ask technical questions to the core team members to investigate and
get reliable data.
Collate the feedback from each stage and develop the final review
without any bias.
If possible, outsource the market survey to a market research team with
experience and expertise in the field.
Break the study into different parts and evaluate the information you
collect separately in each stage.
Thank you