Feasibility study reportis an analysis of the ability to complete a project successfully,
taking into account legal, economic, technological, scheduling and
other factors. Rather than just diving into a project and hoping
for the best, a feasibility study allows project managers to
investigate the possible negative and positive outcomes of a
project before investing too much time and money.
Feasibility studies aim to objectively and rationally uncover the
strengths and weaknesses of the existing business or proposed
venture, opportunities and threats as presented by the environment,
the resources required to carry through, and ultimately the
prospects for success.
The Components of Feasibility Study Report
2.1 Description of the Business:The product or services to be
offered and how they delivered.
2.2 Market Feasibility: Includes a description of the industry,
current market, anticipated future market potential, competition,
sales projections, potential buyers, etc.
2.3 Technical Feasibility: Details how you will deliver a product
or service. Include materials, labor, transportation, where your
business will be located, technology needed, etc.
2.4 Financial Feasibility: Projects how much start-up capital is
needed, sources of capital, returns on investment, etc.
2.5 Organizational Feasibility: Defines the legal and corporate
structure of the business
2.6 Conclusions: Discusses how the business can succeed. Be honest
in your assessment because investors won’t just look at your
conclusions they will also look at the data and will question your
conclusions if they are unrealistic.
The Instruction of Feasibility Study Report
3.1 Begin the feasibility study report by describing the scope of
the proposed project studied.
3.2 Define the project's goals and objectives.
3.3 Detail the resources that will be required for the project.
3.4 Discuss the financial aspects of the proposed project.
3.5 List the project's advantages and disadvantages.
3.6 Define the costs and benefits of the proposed project.
3.7 Prepare an executive summary and table of contents.
The Significance of Feasibility Study Report
4.1 List in detail all the things you need to make the business
4.2 Identify logistical and other business-related problems and
4.3 Develop marketing strategies to convince a bank or investor
that your business is worth considering as an investment; and
4.4 Serve as a solid foundation for developing your business plan.
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