What is a Feasibility Study?

A feasibility study refers to an analysis that takes every relevant factor of a project into account (legal, economic, technical, and scheduling considerations) to determine the possibility of completing the project successfully. 

Project managers utilize feasibility studies to determine whether a project's return is worth the time and effort. 

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Tips for Conducting a Feasibility Study

Suggested best practices Feasibility studies show the unique goals and needs of a project, so each is different. Nevertheless, the tips below can apply widely to carrying out a feasibility study. You might, for instance, want to:

• Get feedback concerning the new concept from the right stakeholders.
• Examine and also asking questions about your data to ensure that it is solid.
• Carry out a market research or market survey to improve data collection.
• Write an operational, organizational, or business plan.
• Prepare a projected income statement.
• Prepare an opening day balance sheet.
• Make the first "go" or "no-go" decision about forging ahead with the plan.
• Suggested components

Once you've completed your basic due diligence, you may consider the elements below as a template of items to add in your study:

• Executive summary - Narrative explaining information of the product, plan, project, service, or business.
• Technological considerations - What would it take? Do we have it? If we don't, can we get it? What would it cost?
• Existing marketplace - Analyze the local, as well as, broader markets for the plan, service, product, or business.
• Marketing strategy - Give a detailed description.
• Required staffing, including organizational chart - For this project, what are the human capital needs?
• Schedule and Timeline, and major interim markers, for the completion date of the project. 
• Project financials.
• Findings and Recommendations - Break down into sections of technology, organization, financials, and marketing.

(Important: When carrying out a feasibility study, it is good to have a contingency plan, that you also test to ensure it's a possible alternative supposing the first plan fails.)