BUSINESS PLAN

FEASBILITY STUDY
 WHAT IS A FEASIBILITY STUDY
An analysis of the marketplace to determine if it is economically practical
and desirable to develop a particular project. Contrast with a market
analysis, which merely identifies whether a defined market or trade area
desires what you propose to build. A market study determines demand for
the real estate development.

A feasibility study determines whether that demand is willing to pay what

the project will cost, plus a profit. (McGraw-Hill, 2007)
A feasibility study is an analysis of how successfully a project can be
completed, accounting for all factors that affect it: economic, technological,
legal and scheduling factors. Project managers use feasibility studies to
determine potential positive and negative outcomes before investing
considerable time and capital into it.
 IMPORTANCE OF FEASIBILITY STUDY
Is an effective way to safeguard against wastage of investment resources.

Assist in the development of project documentation: business case,

execution plan, strategic brief

Determine other legal/statutory approvals needed

Analyze the budget relative to the client requirements

Assess the potential to re-use any existing facilities

Assess any and all site information provided by the client

 Include site appraisals, including geotechnical studies, assessment of any site
contamination, availability of services, uses of adjoining land, easements and
restrictive covenants, environmental impacts, etc.

Assess operational and maintenance issues

Appraise servicing strategies

Address programming considerations

Address procurement options

Overall, establish whether the project is viable

Help identify feasible options

 A good market analysis or feasibility study is necessary in order to
determine the business concepts feasibility. This information
provides the basis for the market section of the business plan
(Bangs 200; Hoagland & Williamson 200, Truitt 2002; Thompson
2003b)
 A feasibility study must contain clear supporting evidence for its
recommendations.
Strength of recommendations can be weighed against the study
ability to demonstrate the continuity that exists between the
research analysis and proposed business model.
Business feasibility study is heavily dependent on the market
research and analysis.
BUSINESS FEASIBILITY STUDY
For the purpose of understanding the structure of a business
feasibility study, the following represents the framework of the
Dimension od Business viability (Thompson 2003c; Thompson
2003a):
Market Viability
Technical Viability
Business Model Viability
Economic and financial model viability
Exit strategy viability
MARKET VIABILITY
TECHNICAL VIABILITY