In large enterprises, schools, and government agencies, a feasibility study could take months or even years of work in conjunction with outside consultants. On the other hand, a small business with the right connections and resources can perform an ad hoc feasibility study over the course of a few days. Regardless of the timeframe involved, the project manager in charge of the feasibility study must remain impartial as he or she handles four critical tasks: Examine the Market The first step to an effective feasibility study method involves a critical analysis of the competitive landscape for a product or service.
Hiring of additional employees As mentioned above, a feasibility study is often at the core of launching a business. It can be the key to launching a successful start-up, as it helps to underline the future pain points and to determine whether the plan is viable in the first place.
Overall, a feasibility study is the perfect tool for situations where the impact is likely to be big in terms of operational or economic significance.
Gumpert nailed the essential importance of a feasibility study in his book How to Really Create a Successful Business Plan. When discussing the possible failure of a feasibility study i.
While these are often all required for conducting a study, you might sometimes focus mostly on a single element or a combination of a few of them. This part of the feasibility study should answer the following questions: What is the proposed product or service?
Is the product or service already on sale? If not, how far is it from an existing marketplace and what will the introduction cost? How can you protect the product or service from the competition? What are the strengths of the product or service? What are the main benefits to customers or users?
What resources are required for producing or providing it? How capable is the organization to acquire these resources?
What are the regulatory standards surrounding the product or service and its use? Remember the above questions can be used when you are introducing a new product or launching a business, but also if you are implementing a new product or service within your organization.
For instance, if you are introducing new software, you must understand the strengths of it, as well as the resources required for implementing it. Market feasibility should answer the following questions: What market segments are you targeting? Why would people buy the product or service? Who are the potential customers and how many of them are there?
What are the buying patterns of these potential customers? How will you sell the product or service? Who are your competitors? Including past, current and future competitors. What are the strengths and weaknesses of your competitors? The above essentially points out to the importance of conducting market research as part of your feasibility study.
Market feasibility is an important part of a feasibility study when the plan of action deals with issues such as business expansion, new product or service launch, product development and starting up a business. The questions that require answering as part of the commercial feasibility study include: What are the strengths and weaknesses of your business?
What are the potential sales volumes of the product or service? What are the sensitivity points for your business in terms of sales?Once the criteria are used to evaluate the solutions, your next step for writing a feasibility study report is to determine the most economically reasonable and technically feasible solution which lets the company 1) keep to optimal use of project resources and 2) gain the best possible benefit.
Follow these step-by-step instructions to write a feasibility study for your business idea, from doing the ground work to a professional presentation. Four-Step Feasibility Study Method. Feasibility studies can take on different forms, depending on their contexts.
In large enterprises, schools, and government agencies, a feasibility study could take months or even years . Feasibility Study Template The executive summary provides an overview of the content contained in the feasibility study document.
Many people write this section after the rest of the document is completed. This section is important in that it provides a higher level summary of the detail contained. Writing a professional feasibility study report can be challenging. If you find it difficult learning how to write a feasibility study report in Nigeria, Africa, or anywhere else around the world, you could rather have an affordable feasibility study report service write you a bank and investor ready feasibility study report.
Purpose: To identify who to consult to complete the Feasibility Study Stage. Timing Note: While you will decide the plan for stakeholder consultation during this step, consultation with the stakeholders will continue throughout the Feasibility Study Stage.