Feasibility study is questioning our self: Will the idea work and

should u proceed with it? A feasibility study looks at the viability of the
idea. Feasibility studies address things like where and how the business
will operate. They provide in-depth details about the business to
determine if and how it can succeed, and serve as a valuable tool for
developing a winning business plan. Before beginning the business plan
feasibility helps in identifying how, where and whom to sell the product or
service.
A well designed feasibility study should provide a historical
background of the business or project, a description of the product or
service,

accounting

statements,

details

of

the

operations

and

management, marketing research and policies, financial data, legal

requirements and tax obligations. Generally, feasibility studies precede
technical development and project implementation.
Feasibility studies aim to objectively and rationally uncover the
strengths and weaknesses of an existing business or proposed venture,
opportunities and threats present in the environment, the resources
required to carry through, and ultimately the prospects for success. A
feasible business venture is one where the business will generate
adequate cash-flow and profits, withstand the risks it will encounter,
remain viable in the long-term and meet the goals of the founders. The
venture can be either a start-up business, the purchase of an existing
business, an expansion of current business operations or a new enterprise
for an existing business.

Benefits of Feasibility study:

Gives focus to the project and outline alternatives.

Narrows business alternatives

Identifies new opportunities through the investigative process.

Identifies reasons not to proceed.

Enhances the probability of success by addressing and mitigating

factors early on that could affect the project.

Provides quality information for decision making.

Provides documentation that the business venture was thoroughly

investigated.

Helps in securing funding from lending institutions and other

monetary sources.

Helps to attract equity investment

Types of Feasibility study:

1. Technology and system feasibility: The assessment is based on
an outline design of system requirements, to determine whether the
company has the technical expertise to handle completion of the
project
2. Legal Feasibility: Determines whether the proposed system
conflicts with legal requirements
3. Operational Feasibility: Operational feasibility is a measure of
how well a proposed system solves the problems, and takes
advantage of the opportunities identified during scope definition and
how it satisfies the requirements identified in the requirements
analysis phase of system development
4. Economic Feasibility: The purpose of the economic feasibility
assessment is to determine the positive economic benefits to the
organization that the proposed system will provide. It includes
quantification and identification of all the benefits expected. This
assessment typically involves a cost/ benefits analysis.
5. Technical Feasibility: The technical feasibility assessment is
focused on gaining an understanding of the present technical
resources of the organization and their applicability to the expected
needs of the proposed system
6. Financial Feasibility: It deals with full details of the assets, rate of
conversion

to

cash-liquidity,

project

funding

potential

and

repayment terms.
7. Schedule Feasibility: A project will fail if it takes too long to be
completed before it is useful. Typically this means estimating how
long the system will take to develop, and if it can be completed in a
given time period using some methods like payback period.

Schedule feasibility is a measure of how reasonable the project

timetable is made.
8. Market Feasibility: This is one of the most important sections of
the feasibility study as it examines the marketability of the product
or services and convinces readers that there is a potential market
for the product or services. If a significant market for the product or
services cannot be established, then there is no project.
9. Resource Feasibility: This involves questions such as how much
time is available to build the new system, when it can be built,
whether it interferes with normal business operations, type and
amount of resources required, dependencies, and developmental
procedures with company revenue prospectus
10.
Cultural Feasibility: In this stage, the project's alternatives
are evaluated for their impact on the local and general culture.
Feasibility study is an analysis of the viability of an idea. The feasibility
study focuses on helping answer the essential question of should we
proceed

with the

proposed project

idea?

Whenever a

project

is

undertaken, it should be essential to implement the project either it is

feasible or not. . After all the determination of the feasibility it has to be
said that the feasibility test of the project is sound and the project must be
taken.