If you need to know whether it is worth investing in a project or not, the feasibility study is the primary step to decide it. You can best assess the technical and economic viability of a proposed project from this study.
The elements of the perfect feasibility study can give the best answer to important questions even before investing your time, efforts, money and resources. There are several basic yet vital points to conduct this study properly for getting perfect results. The following are the most crucial basic elements that comprise a feasibility study –
- Project scope – it is used to find the issues and opportunity in the business. The business statement “the problem properly explained is already half solved” is quite true. The project scope should be proper definitive to the point.
- Current analysis – the use of it is done to understand and define the latest method of implementation like a product or system. It helps in identifying the weakness and strength of the current system. In short, it is very important to analyze each and every aspect to take decision accordingly and get the best results.
- Analyzing requirements – generally, there are two types of requirement i.e. organizational requirements and technical requirements. In case there is a potential market and demand for a specific service or product than it is very much important to identify that what resources are required for a new venture.
- Evaluation - Examining the cost-effectiveness of the approach and estimation of total cost is done under it. There are a lot of other alternatives which would be estimated for the purpose of comparison. Once the total cost has been calculated then a summary of the cost would be prepared to check ROI.
- Approach – It shows up the solution to question that how each and every requirement would be fulfilled. It can be stated as a rough design showing the method of fulfilling every single requirement.
- Reviews – All of the above-described elements would be assembled within the feasibility study to generate a formal review. This review will be used to measure the accuracy of the idea of the project. Once the review is generated, it will be the planners’ turn to decide whether going ahead with the business is a good idea or should it be scrapped.
So here are the basics or the elemental steps for conducting a fruitful feasibility study. Any new venture, before even starting out, must undergo this procedure to avoid any unforeseen conditions leading to a sudden halt of operations. In case you want to start your own business venture, then make sure that you reach out to experienced professionals for the correct guidance to a feasibility study.