A feasibility study is an analysis of how successfully a project can be completed according to economic, technological, legal and scheduling factors. If you are a project manager, it is likely that you will be tasked with conducting a feasibility study. It is important that you take into account the various costs and resources associated with your project. In order to ensure that you have conducted a complete and thorough analysis, see our tips on how to conduct a feasibility study below.
Step 1: Conduct Market Research
The first step to completing a feasibility study is to conduct market research. Before you can consider the success of the project, you must understand the intended audience. Your marketing is arguably the most important part of the business. Analyzing your business’s industry will be a great help of determining your potential for success. Studying the competition and recent market trends can help make your feasibility study much more successful.
Step 2: Assess Your Project Needs
Once you have an overall market analysis prepared, you can start to focus on the project at hand. First, you will need to determine the resources necessary to complete it. If you are opening a new storefront location, for example, you will have to account for space, additional merchandise and staff. Then, you can begin to allocate capital to specific aspects of the project. Once you have an idea of the project necessities in mind, you can better determine its probability of success.
Step 3: Develop A Project Timeline
Another essential step to conducting a feasibility study is creating a schedule. After you have determined the scale of the project and the specific resources you will need to acquire, setting up a timeline is the key to success. You will need project deadlines for set up and infrastructure like hosted VoIP, but also operation like sales. Having an idea of how long various aspects of the project will take is one of the most important parts of a feasibility study.
Step 4: Identify A Legal Structure
Depending upon the scale of your project, you may also have to establish a legal structure. The organizational structure of your project will help appoint authority and responsibility to your workers and contractors. The legal aspect is particularly important for this assignment. Your resources may require specific contracts and agreements. If you want to conduct a thorough feasibility study, the legal aspect of your project is very important to take into consideration.
Step 5: Determine Projected Income
Finally, the next part of the feasibility study you must complete is the projected income. This number will be determined through your market research and your expected expenses. It is important to consider any business project as an investment. Whether you are trading forex or starting a local business, revenue targets will determine your business spending. Having a clear idea of how much you can expect to earn from this project will be a key aspect of your feasibility study.
Following these five steps to complete your feasibility study will ensure a complete and detailed report. Identifying the projected income, legal structure, and necessary resources is essential to understanding if your project is possible. Test this out for yourself and see how these steps can improve your next feasibility study.
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