A Feasibility study should continually be performed prior to starting any project because it assists with go or no go of the project. The main objective of the feasibility study itself is to save the management from taking wrong decisions & avoid further losses in business.
A feasibility study typically consists of a business description, market feasibility, technical feasibility, financial feasibility, organizational feasibility and conclusions. It includes comprehensive home elevators the business enterprise structure, products or services, market, logistics of how to supply the products or services, and the required resources to operate a business efficiently or to execute a determination efficiently.
Thus, conducting a feasibility study is an essential task, where parameters like target market, consumer behaviour, their needs and preferences, existing and potential market trends, potential competitors, challenges and threats, legal compliances, financial aspects, etc. are studied.
No matter project size, scope and type, there are many key steps to writing this kind of important document. The following list offers an outline of the main element sections to be contained in report content:
Executive Summary – an explanation of the problem/opportunity highlighted in the study, the purpose of the report, and here the significance of the investigation for your audience
Background – a more detailed description of the feasibility study, who it absolutely was carried out, and if it was implemented elsewhere
Analysis – an examination and evaluation method employed in conducting your feasibility study
Alternatives and Options – an summary of any alternative proposals or options and their features in comparison to the main proposal of the analysis
Cost-Benefit Evaluation – a rigorous analysis method which was implemented to examine and evaluate the main proposal for cost-benefit effectiveness and to demonstrate the tech feasibility, economic practicality, social desirability, and eco soundness of the proposal.
Conclusion – a summary of the task done and your conclusions relating to your analysis
Recommendations – a series of recommendations practices and follow-up actions based on your conclusions.
It's worthwhile to pay attention to the listed below pitfall when creating a feasibility study to attain an optimum result.
Avoid Overestimation or underestimation of market size,
Not understanding the consumer needs and trends,
Ignoring competition,
Too slow/hurry in conducting a feasibility study,
Erroneous financial calculations,
Wrong team.
The feasibility is conducted properly as a periscope for the business. It is an excellent business practice to examine this document at intervals and keep this document as current as business conditions keep on changing. In such circumstances, this document becomes extremely useful since it lets businesses know where in actuality the deviations occurred and what were their reasons and causes.
This assessment is extremely vital for businesses to move ahead and adjust their positioning.