A feasible study takes all the relevant factors of a project into consideration; analysis of the economic, technical, legal and scheduling factors is made to ascertain the probability of completing the project successfully.
The aim- the assessment of the project to verify its practicality aims to objectively and rationally discover the strengths and weaknesses of an existing business or a proposed move, the opportunities and threats present in the environment, the resources required, and eventually the possibility of success.
The purpose- The principal function of feasible study is to determine if the project should continue or not. … Another important purpose is to help planners focus on the project and taper the possibilities.
A well-designed feasibility study provides
- historical background of the business or project
- 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.
Taking all this into account, the feasibility study constitutes research projects that determine whether to go ahead with the business or with another idea, based on which business plans are designed and executed.
Importance- The importance of a feasibility study is based on organizational desire where the decision to invest time, energy and resources is verified prior to the final move. A feasibility study might expose new ideas that could entirely alter a project’s scope. It is recommended in the best of interests, to conduct feasibility study in advance, rather than to jump in, stuck somewhere and then regret realizing that the project won’t work any further.
Conducting a feasibility study is always advantageous to the project as it gives you and other stakeholders a clear picture helping in designing a business plan.
Below are some key benefits of conducting a feasibility study:
- Recognize the amount of funding needed to get the business up and running
- Identifies new opportunities
- Provides valuable information for a “go/no-go” decision
- Narrows the business alternatives
- Identifies a valid reason to undertake the project
- Enhances the success rate by evaluating multiple parameters like cost-effectiveness.
- Aids decision-making on the project
- Identifies potential obstacles that may impede its operations
Hence, most reputed organizations opt for a Feasibility Study even for a single move. Developed countries like UAE, hire consultants for conducting feasible studies for a project to ensure long term benefits. Read more here to know about feasibility study in Dubai.