Feasibility Study

What is a Feasibility Study?

A feasibility study is one such analysis that takes relevant factors of a project into account, including scheduling, legal, technical, and economic considerations, to comprehend the possibility of completing the entire project successfully.

Generally, project managers use this study to ascertain the advantages and disadvantages of undertaking a project before they begin Investing money and time into it. With the feasibility study, the management team of a company may also get essential information that can help to prevent the company from entering into a risky way blindly.

Explaining Feasibility Studies

In simple words, the feasibility study is an assessment of the practicality of the given project or plan. As the name suggests, this study concentrates on important questions, like:

• Is it a feasible project?
• Do we have sufficient resources, technology, tools and people to make this project successful?
• Are we going to get Return on Investment as per the requirement and expectation?

Majorly, the goals of the feasibility study are:

• To comprehend if the project is viable and is worthwhile or not (after considering all the substantial factors)
• To figure out all the aspects of the plan, concept or project
• To know potential problems and issues that may come up while implementing the project

Why is Feasibility Study Important?

The importance of feasibility study is directly linked to the development of a business. It allows a business to look into how and where it will be operating. Furthermore, this study can also help to discover potential issues that may cause trouble and identity the funding amount required to continue the operations.

The primary aim of the feasibility study is to help convince banks or investors to put their money in a specific project.

Example of a Feasibility Study

Suppose there is an elite college located in the wealthy suburb of a city that wishes to expand the campus. The college kept delaying this project because the administration couldn’t figure out whether they had enough funds to go with this option or not.

This and several other concerns were enough to conduct a feasibility study that the college decided to undertake. As a result of this, the college is now going ahead with the plans of expansion. If the authorities hadn’t taken the efforts and time to conduct this study, the college wouldn’t have expanded to provide better and efficient infrastructure to students.