What is a Feasibility Study?
An idea’s viability is determined by doing a feasibility study, which includes verifying that the proposal is lawful, technically possible, and financially viable. Whether a project is worth the investment or not may be determined by looking at the project’s feasibility.
This may be due to a variety of factors, including the need for too many resources, which not only hinders those resources from completing other jobs but also may cost more than an organization would make back by taking on a project that isn’t lucrative.
A feasibility study is an in-depth review of a proposed project’s chances of success, taking into account all of the relevant factors.
Return on investment (ROI) may be used as a primary indicator of a project’s success in the business world. The influence on the community and the environment, for example, might be seen as a plus or a negative on many other crucial criteria.
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Steps in a Feasibility Study
The following procedures are required in order to carry out a feasibility study:
- Do some preliminary research.
- Make an estimate of your income: What are the different ways the project could make money?
- Do a survey of the market: Does the project make something people want to buy or need? How much do people want to pay for the good or service?
- Plan how the new project will be put together: What are the needs for staffing? How many people do you need? What other materials do you need?
- Make a balance sheet of expected expenses and income for the first day of business.
- Review and analyze the project’s internal points of vulnerability that can be controlled or removed.
- Figure out if you want to keep going with the plan or project.
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