How Do You Write A Business Feasibility Study?

1. Describe the project.
2. Outline the potential solutions resulting from the project.
3. List the criteria for evaluating these solutions.
4. State which solution is most feasible for the project.
5. Make a conclusion statement.

What is an example of a feasibility study?

For example, an automobile prototype is a tool for the feasibility study, an experiment on rats to develop a new medicine is a procedure of feasibility analysis, checking the configuration and features before purchasing a laptop resembles feasibility tests.

What are the 3 parts of feasibility study?

• Executive Summary.
• Description of the Product/Service.
• Technology Considerations.
• Product/ Service Marketplace.
• Identification of the Specific Market.
• Marketing Strategy.
• Organizational Structure.
• Schedule.

What are the contents of a feasibility study?

A feasibility report is a paper that examines a proposed solution and evaluates whether it is possible, given certain constraints. It includes six sections: introduction, background information, requirements, evaluation, conclusions, and finally, the recommendation or final opinion section .

How do you write an introduction for a feasibility study?

1. Create an outline. First, create an outline of every variable that could influence the feasibility of your project. ...
2. Write the projected income statement. ...
3. Perform market research. ...
4. Plan organization and operations. ...
5. Create the opening day balance sheet. ...
6. Analyze your data. ...
7. Make a final decision.

What are four types of feasibility?

• Technical Feasibility. This assessment focuses on the technical resources available to the organization. ...
• Economic Feasibility. ...
• Legal Feasibility. ...
• Operational Feasibility. ...
• Scheduling Feasibility.

When should feasibility study be used?

When to do a study? The importance of a feasibility study is based upon the organization’s desire to “get it right ,” before committing business resources, time and budget. A feasibility study might uncover new ideas that may completely change a project’s scope.

What is the most important part of feasibility study?

Market research studies 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.

What is the difference between a business plan and feasibility study?

The feasibility study helps determine whether an idea or business is a viable option. ... A feasibility study is filled with calculations, analysis and estimated projections while a business plan is made up of mostly tactics and strategies to be implemented in other to grow the business.”

How much should I pay for a feasibility study?

Full-blown feasibility studies typically cost no more than 1% to 1.5% of an FEC’s total cost , and tell you whether you should proceed and how to make the most of the money you’ll spend on the FEC’s development.

Who should prepare a feasibility study?

The intended owner of business or services may conduct the feasibility study but that will depends on his/her skills in this area. At times the owner may lack the necessary expertise for completing the study or may be completely ignorant about it or simply do not have the skills.

How long does a feasibility study take?

Expect a feasibility study to take about 60 to 90 days . Unless the market is very hot, don’t tie up much money, if any, in sales agreements for the land during this time period. Be sure any agreements you sign include a reimbursement of your deposit should you elect not to pursue the project.

What are the main objectives of feasibility study?

The main objective of a feasibility study is to determine whether or not a certain plan of action is likely to produce the anticipated result —that is, whether or not it will work, and whether or not it is worth doing economically.

Why is it important to make a feasibility study before putting up a business?

Feasibility studies help project managers determine the viability of a project or business venture by identifying the factors that can lead to its success . The study also shows the potential return on investment and any risks to the success of the venture.

What should prepare a business plan?

• Executive summary. Briefly tell your reader what your company is and why it will be successful. ...
• Company description. ...
• Market analysis. ...
• Organization and management. ...
• Service or product line. ...
• Marketing and sales. ...
• Funding request. ...
• Financial projections.

Who shall prepare a business plan?

The person or persons responsible for implementing the plan should be heavily involved in its development . Some people hire consultants or have employees draft the plan. If you’re going to be accountable for the decisions that will be based on the plan, then you need to be involved in its development.