what is the difference between thesis and feasibility study

What is the Difference Between Feasibility Study And Thesis?

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What is the Difference Between Possible And Plausible?

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A feasibility study assesses the practicality of a project, while a thesis is a formal academic document presenting research findings.

A feasibility study is a systematic analysis that evaluates the practicality and potential of a proposed project or venture. It aims to determine if a project is technically, financially, and operationally feasible . The purpose of a feasibility study is to provide data and analysis to assist in decision-making and determine the viability of a project. It consists of components such as market analysis , financial projections , technical assessment , and risk assessment .

A thesis is a scholarly work submitted by a student to support their candidature for an academic degree . It is a document that presents original research and findings on a particular topic or problem. The purpose of a thesis is to contribute new knowledge and advance understanding in a specific field . It typically includes components such as an introduction , literature review , research methodology , results , discussion , and conclusion .

What is a Feasibility Study?

A feasibility study is a systematic analysis and evaluation of the potential success of a proposed project or business venture. It aims to determine whether the project is technically, financially, and operationally viable. The primary purpose of a feasibility study is to provide objective data and information to stakeholders to help them make informed decisions about pursuing or abandoning the project.

Key characteristics of a feasibility study:

• Objective Assessment: A feasibility study involves a thorough and impartial assessment of the project’s potential, considering various factors such as market demand, technical requirements, financial feasibility, and legal and regulatory considerations.
• Data Collection and Analysis: It involves gathering relevant data and information through research, surveys, interviews, and other methods. The collected data is then analyzed to assess the project’s viability and identify potential risks and challenges.
• Identification of Alternatives: A feasibility study explores different scenarios and alternative approaches to achieving the project’s objectives. It considers different options, technologies, designs, and strategies to determine the most feasible and optimal solution.
• Risk Assessment: The study identifies and evaluates potential risks and uncertainties associated with the project. This includes market risks, technical risks, financial risks, legal and regulatory risks, and any other factors that may impact the project’s success.
• Financial Analysis: A feasibility study includes a comprehensive financial analysis to assess the project’s financial feasibility. This involves estimating costs, projecting revenues, analyzing cash flows, and calculating financial indicators such as return on investment (ROI) and payback period.
• Recommendations: Based on the findings of the study, recommendations are provided to stakeholders regarding the project’s viability and the best course of action. This may include proceeding with the project, modifying the scope or approach, or abandoning the project entirely.

A feasibility study serves as a critical tool for decision-making, helping stakeholders assess the practicality and potential success of a project before committing significant resources.

The purpose of a feasibility study is to assess the viability and potential success of a project or business venture. It is conducted before any significant resources are invested to determine if the project is achievable and if it aligns with the organization’s goals and objectives.

The main goal of a feasibility study is to provide decision-makers with reliable and objective information to make informed choices. It helps identify potential risks, challenges, and obstacles that may arise during the implementation of the project. By analyzing various factors such as market demand, technical feasibility, financial viability, and legal and regulatory requirements, a feasibility study determines the likelihood of project success.

In addition to understanding the purpose of a feasibility study, it is important to mention its role in validating the project idea and gaining a clear understanding of the project’s objectives and scope. It assists in identifying the necessary resources, including funding, personnel, and technology requirements. The study also evaluates potential alternatives and recommends the most suitable option based on a thorough analysis of the available data.

By conducting a feasibility study, organizations can avoid unnecessary costs, delays, and potential failures. It helps in minimizing risks and maximizing the chances of project success. Ultimately, the purpose of a feasibility study is to provide a comprehensive evaluation of a project’s potential, enabling decision-makers to make well-informed choices and move forward with confidence .

The importance of a feasibility study cannot be overstated. It has been a crucial part of project planning and decision-making for many years. Its origins can be traced back to the early 20th century when engineers and economists started conducting studies to evaluate the practicality and profitability of infrastructure projects.

Over time, the concept of the feasibility study expanded to various industries and sectors, becoming an essential tool for organizations worldwide. Today, it continues to play a vital role in project management and strategic planning, helping organizations make informed decisions and achieve successful outcomes.

What are the Components of a Feasibility Study? The components of a feasibility study are:

• Introduction: This section provides an overview of the project or idea being considered and outlines the purpose of the feasibility study.
• Market Analysis: This component involves conducting research on the target market to assess demand, competition, and potential barriers to entry.
• Technical Feasibility: This aspect evaluates the project’s technical requirements, including the availability of resources, equipment, and technology.
• Financial Analysis: A thorough financial analysis is conducted to determine the project’s profitability, return on investment, and potential risks.
• Legal and Regulatory Considerations: This component examines the legal and regulatory requirements that must be met to ensure compliance with laws and regulations.
• Operational Plan: The operational plan outlines the day-to-day activities required to implement and manage the project successfully.
• Risk Assessment: This component identifies and evaluates potential risks and challenges associated with the project and proposes strategies to mitigate them.
• Conclusion: The conclusion summarizes the findings of the feasibility study and makes a recommendation on whether to proceed with the project or not.

What is a Thesis?

A thesis is a research document written by students pursuing higher education , usually at the undergraduate or postgraduate level. It is a comprehensive and in-depth study that presents original research and analysis on a specific topic within a particular field of study. The purpose of a thesis is to contribute new knowledge, insights, or theories to the existing body of knowledge in the chosen field.

Key characteristics of a thesis:

• Original research: A thesis involves conducting original research, which may include collecting and analyzing data, performing experiments, or reviewing existing literature to develop new insights or theories.
• Thesis statement: A thesis typically begins with a clear and concise thesis statement that outlines the main argument or research question that the study aims to address.
• Structure: A thesis follows a specific structure, including an introduction, literature review, methodology, results or findings, discussion, and conclusion. The structure may vary depending on the academic institution and field of study.
• Length: A thesis is usually longer than a feasibility study and can span anywhere from tens to hundreds of pages, depending on the research scope and requirements.
• Evaluation and defense: After completing the thesis, students may be required to defend their research before a panel of academic experts who assess the quality, validity, and contribution of the study.
• Academic contribution: A thesis aims to contribute to the academic community’s understanding of a particular subject by adding new knowledge, challenging existing theories, or proposing innovative approaches.

A thesis is a research document that demonstrates a student’s ability to conduct independent research, contribute to their field of study, and present their findings in a scholarly manner.

The purpose of a thesis is to present an original and well-researched argument on a specific topic. What is the Purpose of a Thesis? A thesis aims to contribute new knowledge and insights to a particular field of study. It is typically written as a requirement for an academic degree, such as a master’s or a doctorate.

The purpose of a thesis is to demonstrate the author’s in-depth understanding of the subject matter and their ability to critically analyze and evaluate existing research. What is the Purpose of a Thesis? It allows them to showcase their expertise and showcase their ability to conduct independent research.

A thesis is not merely a summary of existing knowledge but rather a unique contribution to the field. What is the Purpose of a Thesis? It should present a clear and focused research question or hypothesis and provide evidence to support or refute it. The purpose of a thesis is to advance knowledge and understanding in a particular area of study.

In addition to the purpose, a thesis typically consists of several components, including an introduction, literature review, methodology, results, analysis, and conclusion. These sections work together to present a comprehensive and coherent argument.

The purpose of a thesis is to demonstrate the author’s ability to conduct rigorous research, critically analyze information, and contribute new knowledge to their field of study. What is the Purpose of a Thesis?

The components of a thesis are:

• Introduction: This section provides an overview of the research topic and presents the research question or objective. It describes what are the components of a thesis.
• Literature Review: Here, the existing literature and previous studies relevant to the research topic are reviewed and analyzed to provide a theoretical framework and context for the research. This is one of the key components of a thesis.
• Methodology: This section outlines the methodology and research design used to collect and analyze data. It includes information on the research approach, data collection methods, and data analysis techniques. Methodology is an important component of a thesis.
• Results: The results section presents the findings of the research. It includes data, statistics , and any graphical representations that support the research question or objective. Results are significant components of a thesis.
• Discussion: In this section, the results are interpreted and analyzed in relation to the research question or objective. It also includes a critical evaluation of the findings and their implications. Discussion is another crucial component of a thesis.
• Conclusion: The conclusion summarizes the main findings of the thesis, discusses their significance, and suggests areas for further research. Conclusion is one of the key components that complete a thesis.

Key Differences between Feasibility Study and Thesis

The key differences between a feasibility study and a thesis encompass various aspects. Firstly, the purpose of a feasibility study is to evaluate the viability of a project, while a thesis aims to contribute to existing knowledge in a field. Secondly, the scope of a feasibility study is focused on a specific project, whereas a thesis covers a broader research area.

The methodology differs between a feasibility study and a thesis. Feasibility studies rely on market analysis , financial analysis , and risk assessment , while the methodology in a thesis involves data collection , experimental design , and analysis . Furthermore, the timeframe for completing a feasibility study is relatively shorter compared to a thesis, as feasibility studies are usually conducted before project implementation.

Lastly, the audience for a feasibility study consists of stakeholders and decision-makers involved in the project, while a thesis is typically aimed at the academic community and experts in the field.

“During a feasibility study, the main purpose is to assess the viability and potential success of a proposed project or course of action. The primary objective is to determine whether the project is achievable, profitable, and beneficial. This is accomplished by analyzing various aspects such as market demand, financial feasibility, technical feasibility, and organizational feasibility.

The purpose of conducting a feasibility study is to provide decision-makers with valuable information and insights to make informed choices. It helps identify potential risks, challenges, and opportunities associated with the project. By evaluating the project’s feasibility, decision-makers can determine whether to proceed with the project or explore alternative options.

During a feasibility study, the main purpose is to gather in-depth information, analyze data, and present findings in a comprehensive manner. The focus is on providing a clear understanding of the project’s feasibility and the likelihood of achieving the desired outcomes. Through a thorough assessment of the project’s purpose, decision-makers can make informed decisions based on facts and figures rather than assumptions or uncertainties.”

The methodology is an important component when conducting a feasibility study or a thesis. It outlines the specific procedures and techniques that will be used to gather data and analyze information. Here is a table summarizing the key elements of the methodology:

Pro-tip: When conducting a feasibility study or thesis, it is essential to carefully plan and document the methodology to ensure the validity and reliability of the research findings. This will contribute to the overall quality and credibility of the study.

When it comes to the timeframe, there are several steps involved in both a feasibility study and a thesis:

• Gathering data: It is essential to allocate a specific time period to collect all the necessary information and data relevant to the study or research.
• Conducting research: This step involves analyzing the collected data, reviewing existing literature, and conducting any experiments or surveys as required. The timeframe for this phase can vary depending on the breadth and depth of the study.
• Analysis and interpretation: Once the data has been collected, it needs to be analyzed and interpreted to draw meaningful conclusions. This process often requires careful consideration and may take a considerable amount of time.
• Writing and documentation: This step involves organizing the findings, structuring the report or thesis, and documenting all the research work. It’s crucial to allocate sufficient time for writing and proper editing .
• Review and revisions: After completion, it is necessary to review the entire study or thesis and make revisions and improvements as required. This process may involve seeking feedback from supervisors or peers, which can also impact the timeframe.
• Final submission : The final step involves submitting the feasibility study or thesis within a specified timeframe, adhering to the guidelines and requirements set by the institution or organization.

When considering the timeframe for a feasibility study or thesis, it is crucial to take into account factors such as the complexity of the research, availability of resources, and any specific deadlines or milestones that need to be met.

The concept of conducting feasibility studies dates back to ancient civilizations such as Ancient Egypt and Mesopotamia. These civilizations used feasibility studies to assess the viability of various projects, such as constructing monumental structures or initiating trade routes.

The timeframe for these studies involved meticulous planning, gathering information from relevant experts, and evaluating potential risks and benefits. Even today, the practice of conducting feasibility studies continues to be an integral part of decision-making processes in various industries and sectors.

The audience is a crucial aspect to consider when comparing a feasibility study and a thesis. The table below illustrates the differences in terms of audience between these two types of research:

Considering these differences in audience, it is essential to tailor the content and language of both a feasibility study and a thesis accordingly. Adapting to the intended audience ensures that the research findings are effectively communicated and properly serve their purpose.

To improve the audience’s understanding, it is essential to use clear and concise language and eliminate jargon or technical terms. Presenting the information in a visually appealing manner, such as through graphs or charts, can also enhance clarity and comprehension.

Keeping the target audience in mind throughout the research process will contribute to creating a more impactful feasibility study or thesis. By considering the audience’s needs and expectations, researchers can effectively convey their findings and contribute to their respective fields.

Frequently Asked Questions

A feasibility study and a thesis serve different purposes and focus on different aspects. A feasibility study is a detailed analysis that assesses the practicality of a project, considering factors such as financial returns, environmental impact, and community reaction. On the other hand, a thesis contributes to human knowledge by exploring new areas, proving or disproving theories, and asking new questions.

A feasibility study typically includes a detailed analysis of critical aspects such as return on investment, environmental impact, and community reaction. It also assesses the availability of financial resources and necessary technology. A cash flow analysis and risk assessment are conducted, and a contingency plan is prepared in case the project is found to be infeasible. The study concludes with a feasibility study report, presenting the findings and recommendations.

A thesis expands human knowledge by exploring unexplored areas, proving or disproving theories, and asking new questions. It can extend existing knowledge by seeking to measure or prove certain phenomena. By conducting thorough research and presenting findings, a thesis adds to the body of knowledge within a particular field or subject.

A feasibility study provides several benefits. It helps project managers make informed decisions and prevent them from entering into risky business ventures. It helps companies determine the viability of a new business or product line, identify obstacles and competition, and convince investors and bankers to invest in the project. Additionally, a feasibility study allows the management team to prepare an alternative plan in case the original project is found to be infeasible.

A feasibility study focuses on assessing the practicality of a project, considering factors such as financial returns, environmental impact, and community reaction. On the other hand, a viability study assesses how well a business can withstand risks and continue to operate. While a feasibility study determines if a project can be done sensibly, a viability study evaluates the ability of a business to survive in the face of risks.

A feasibility study helps project managers make informed decisions by providing them with a detailed analysis of critical aspects such as financial returns, environmental impact, and community reaction. It also identifies potential issues and problems that may arise during the execution of the project. By considering these factors, project managers can assess the practicality of the project and make well-informed decisions regarding its implementation.

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What is a Feasibility Study and its Importance?

This blog talks about how a study that assesses the potential success of a proposed project. Let’s dive in to learn how to conduct this study and comprehend what determines the viability of a project. It will help you understand how the Feasibility Study evaluates the necessity of a project in terms of legal aspects. Read more!

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A Feasibility Study is a crucial assessment that is during Project Management conducted to determine the viability and potential success of a project. By thoroughly examining such factors, stakeholders can make informed decisions regarding the project’s feasibility. Apart from the technical and financial considerations, this study ensures a project’s compliance with relevant laws, regulations and industry standards. To give you a better overview, this blog will talk about the multiple aspects associated with this. So, let’s dive in to comprehend the significance of a Feasibility Study. After reading this blog, stakeholders can make well-informed decisions that enhance the chances of a project’s success.

Table of Contents 

1) Feasibility Study - An overview

2) Importance of a Feasibility Study 

3)  Types of Feasibility Studies

4) What is included in a Feasibility Study report?

5) Examples of a Feasibility Study

6) Seven steps to do a Feasibility Study

7) Conclusion

Feasibility Study - An overview

A Feasibility Study is an initial investigation into the potential benefits and viability of a project or endeavour. An impartial appraisal that looks at a project's technical, financial, legal, and environmental elements is what this study provides.

Importance of a Feasibility Study

A Feasibility Study may reveal novel concepts that fundamentally alter the Scope of a Project. Feasibility Studies are of the greatest importance in the decision-making process when it comes to projects, businesses, and investments. They are mostly structured assessments that are focused on various aspects of a proposed project`s Feasibility. The following are some of its advantages:

a) Increases the focus of project teams 

b) Finds fresh opportunities 

c) Gives important information to help make a "go/no-go" choice. 

d) Reduces the number of available business options 

e) Finds a good cause to start the project

f) Increases the success rate through the assessment of several factors 

g)  Assists in making project decisions 

h) Identifies grounds for not moving forward

Types of Feasibility Studies

There are several types of Feasibility Studies, each aimed at a particular objective, and together, they provide a complete assessment of the project's worthiness. Let's delve into five distinct types of Feasibility Studies:

Technical Feasibility Study

A technical Feasibility Study aims to verify whether the organisation is eligible to use its technical in-house resources and expertise to perform successfully. This assessment involves scrutinising various aspects, including the following:

a) Production capacity: Does the company have the resource base to produce that number of products and services for the customers? 

b) Facility needs: Will today’s facilities fulfil the standards required, or will new facilities be constructed?

c) Raw materials and supply chain: Are there enough purchases, and have the organisation maintained a supply chain?

d) Regulatory compliance: Does the Project Execution follow the relevant guidelines and professionals bear the relevant certifications to meet the requirements and the industry standards?

Economic Feasibility Study 

It is a financial Feasibility Study that primarily examines the project's financial viability. The economic Feasibility Study typically involves several steps:

a) Determining capital requirements: Calculate funding collection, overhead, and other capital.

b) Cost breakdown: Determining and listing all the project costs including the purchase of materials, hardware, labour, and overheard costs are too.

c) Funding sources: Trying out a variety of possible solutions like banks, stakes, or grants.

d) Revenue projection: By using prediction tools such as a cost-benefit analysis or business forecasting to get the level of income, return on investment and profit margin.

e) Financial analysis: Projecting the performance of the Project based on means that are related to a financial analysis and are characterised by the utilisation of such things as cash flow statements, balance sheets and financial projections.

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Operational Feasibility Study

An operational Feasibility Study looks at how effectively a product will meet its needs. It also talks about how easy it will be to use and maintain once it is in place. In addition, this study enumerates the necessity of evaluating a product's utility and the response and suggestions of  application development team. Scheduling Feasibility Study

Proposed project schedules and deadlines are the main subject of a scheduling a Feasibility Study. This evaluation concerns how long team members will need to complete the project. It also highly impacts the business because if the programme isn't finished on time, the planned result might not be realised.Acquire the necessary skills to effectively deliver projects by signing up for our Project Management Office Fundamentals Training now! 

What is included in a Feasibility Study report? 

You should make a Feasibility Study report before starting a project. This way you can analyse if your business idea is really viable and will bring you success. When you conduct this study, you would have to consider lots of factors such as if the people are going to buy your product or service, how much competition is out there, if the company can afford it and so on. 

The Feasibility Study must include things like how much technology and resources you need and how much you can hope to earn from your investment. The results of this study are put together in a report, which usually includes the following sections:

a) Executive summary

b) Approach to marketing

c) Organisation/staffing

Examples of a Feasibility Study

Feasibility Study has helped decide if big ideas can work. Here are two examples:

University Science Building Upgrade

This example is about a university that wanted to upgrade its old science building from the 1970s. They thought it was outdated and needed a change. To implement this, they evaluated different options and determined how much they would approximately cost. Some people were worried about the project being too expensive or its potential to causeissues in the community. The study also analysed what technology the new building would  require, and how effectively it would help students, and also, if it would attract more students.

Along with this, they looked at the financial aspect too, as to how they would sponsor for it and if they would make more money from having additional students. The study showed that the project could work, so they went ahead with the upgrade.

High-speed Rail Project

This example  is timed when the Washington State Department of Transportation wanted to see if they could build a fast train connecting Vancouver, Seattle, and Portland. To initiate this, they first focused on how to make decisions about the project in the future.

They discussed it with several people and groups to ensure everyone was okay with the plan. Later, they looked at how to pay for it and thought it would cost between $24 billion and $42 billion. They would get money from the government and maybe from loans and investors.

The study showed that the train could bring lots of good things like better jobs and less traffic. They started looking into this in 2016 and finished the study in 2020. They then shared the report with the government.

Seven steps to do a Feasibility Study

As Feasibility Study is a crucial step in determining a potential of a project, it involves a substantial period of time and resources. ALet’s take you through some of the steps involved in the following points:

1) Do a preliminary analysis and define the scope of the study

Before going through a Feasibility Study, it is wise that you do just one small check. The time and resources involved in Feasibility Studies may be burdensome; hence, it is imperative to determine if it is worth it as early as possible.

Through this form, one can establish whether the study holds awarding potential and who else should be involved on a higher level. You further this stage by answering questions like what you might win, what pitfalls you will face, and what you need for the success of the project.

2) Prepare a projected income statement

First, while doing a Feasibility Study, you should obtain the income statement projection. In this, the statement calculates earnings and expenditures in subsequent one-year amounts. It is made up of the sum of what you will surely get and the cost you will need to cover.

Smaller businesses tend to need marketing strategies to grow into bigger companies. These facts are extremely important because they help business owners make smart decisions regarding the stage of the business.

3) Carry out market research

Market research is of paramount importance or, naturally, it will be of no use when developing the Feasibility Study. Primarily, it operates to ascertain the viability of the project. This point tells you time, which gives you knowledge of the current market state: Who your customers are, who your competitors are, how big the market is, and how many of it you could have. One way of doing this market research is by asking people questions, referring to experts, and checking very broad social media and other public info to find out what's going on.

4) Organisation and operations plan

Once you've figured out how the market behaves and the scope of your organisation, you can draft the setup of your plan. The detailed work plan for the project will provide the answer to how it will work in a practical form. It tests three aspects of your project, like whether it can be run, whether it is cost-effective, whether it complies with the law, and whether the technology fits.

This is to help you comprehend everything you can do and what you may require to get this project going, for example, the equipment, the materials to start the project, additional costs, and if you need to hire or train people. If you need to, you may make that change if the information you have brought is enough.

5) Calculate and prepare the initial balance of expected revenue and expenses

In this step, you must be expert in handling things from the financial part. You’ll make estimates on how much you may initially spend starting up your project, and then how much your project could make and spend based on that estimate. Among the many issues involved are such as the amount of money you are receiving from your customers, money you owe to others and assets that you own. 

Fixed costs, such as variable costs that will change based on the number of goods you produce, and equipment costs also need to be factored in money you may borrow or pay for land and service other companies. Keeping this in mind, you should also consider your business’ off seasons and how much risk you are willing to take. These calculations save a lot of time and effort and can be used to answer the most difficult questions of Feasibility.

6) Review and analyse all data

After going through all the steps, it's crucial to do a thorough review and analysis. This helps ensure that everything is in order and there's nothing that needs adjusting. Take a moment to carefully look back at your work, including the income statement, and compare it with your expenses and debts. Ask yourself: Does everything still seem realistic?

This is also the perfect opportunity to consider any risks that might come up and create contingency plans to handle them. By doing this, you'll be better prepared for any unexpected challenges that may arise.

7) Make a go/No-go decision

Now, it's time to decide if the project can work. This might seem simple, but all the work you've done so far leads up to this moment of decision-making. Before making the final call, there are a few more things to think about. First, consider if the project is worth the time, effort, and money you'll be putting into it. Is the commitment worth it?

Secondly, think about whether the project fits with what your organisation wants to achieve in the long run. Does it align with the organisation’s strategic goals and plans? These factors are essential to consider before making your decision.

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Conclusion 

You are now more familiar with how a well-executed Feasibility Study is a cornerstone of informed decision-making in Project Management and business ventures. It acts as a critical guide, helping organisations assess the practicality and viability of their initiatives, ultimately minimising risks and increasing the likelihood of success. 

Frequently Asked Questions

Employers value skills like analysis, problem-solving, attention to detail, and communication in Feasibility Study specialists. They need to be good at crunching numbers, finding solutions, and explaining complex ideas clearly.

Many industries need expertise in Feasibility Studies, like Construction, Healthcare, Tech, and more. It helps decide if projects are doable.

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What is a feasibility study: step-by-step guide.

Key takeaways

• A feasibility study is an essential analytical tool that evaluates the viability of a proposed project on multiple fronts, such as financials, technical requirements, and market demand.
• Conducted during the project initiation phase, this type of study serves as an early checkpoint to identify potential roadblocks and assess risks.
• Feasibility studies act as the first line of defense against project failure, saving time, money, and resources.

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What is a feasibility study?

A feasibility study is an analytical tool used to evaluate the practicality of a proposed project or business idea. It assesses various factors such as financial viability, technical requirements, legal constraints, and market demand. The study aims to answer the question “Are the goals of this project realistically attainable?” by examining data, studies, and other relevant information.

A feasibility study is a crucial step to take before diving into any project and is generally performed during the project initiation phase of project management . It helps identify potential roadblocks, assess risks, and estimate resource allocation; skipping this step can lead to project failure, wasted resources, and financial losses.

Feasibility studies represent one of the many intricacies of project planning . Understanding the other requirements of this crucial step can give you a well-rounded view of how to set your project up for success.

Steps to conduct a feasibility study

Successfully executing a project hinges on thorough planning and risk assessment. Following this step-by-step guide for conducting a feasibility study will help you meticulously evaluate the viability of your project from the outset.

Step 1: Conduct preliminary analysis

This is where you take a good, hard look at your project to determine whether it’s worth pursuing. At this stage, you should also decide if a more detailed feasibility study is necessary.

A few key criteria usually come into play during this initial assessment. First, consider a general sense of the market demand for your project, the resources you have at your disposal, and some ballpark figures for initial costs. If it’s difficult to get clear estimates, it may be worthwhile to invest additional time and resources in a more comprehensive feasibility study. If no significant roadblocks pop up in this preliminary analysis, then you have the green light to proceed.

Some project management software includes useful features that can help you efficiently collect and organize all this data. These features can be very helpful in decision-making, especially when you’re looking at multiple variables.

Step 2: Create a projected income statement

This vital component of the feasibility study involves forecasting the income, expenses, and profitability associated with the proposed project. The projected income statement is akin to peering into a financial crystal ball to see how the numbers might align.

There are several approaches you can take to assess a project’s financial impact. Historical data and industry benchmarks, for example, can serve as reliable guides. These projections are important for assessing financial feasibility and making informed decisions.

The significance of these forecasts cannot be overstated — they help stakeholders understand the project’s potential ROI and ultimately make the go/no-go decision for the project.

Step 3: Survey the market

The market survey stage involves rolling up your sleeves to gather valuable data and insights about your target market(s) and audience(s). Think of it as your project’s reconnaissance mission: You’re scouting the terrain to understand what you’re getting into.

To start, you’ll want to learn your customers’ preferences to see if your project will fulfill a need or solve a problem they currently face. For example, a software company’s research might reveal customer demand for a new feature that aligns with the project’s goals.

Also consider if your project is timely and whether it will make a significant impact now or in the near future, depending on emerging market trends. It may be useful to conduct competitor research as well; knowing what and who you’re up against can help stakeholders decide whether you should move forward with the project and, if so, how you will approach it.

Surveys and interviews are ideal for firsthand quantitative and qualitative data. However, don’t underestimate the power of existing market reports. This preexisting data can offer a broad market landscape view, helping you make data-driven decisions. You can also leverage other research and data collection methods, such as focus groups and publicly available databases like Statista and the U.S. Census Bureau .

Step 4: Review and analyze the data

With all of the necessary information in hand, use tools like a SWOT analysis to evaluate the project’s strengths, weaknesses, opportunities, and threats. A risk assessment is another go-to method that can help you identify potential pitfalls that could derail your project.

At this point in the feasibility study, weigh key metrics and indicators like projected ROI, milestone dates, market penetration rates, and possible vulnerabilities. These gauges, when reviewed in tandem, paint a broader picture of your project’s viability and value.

Step 5: Determine the next steps

Use your research-backed analysis to decide whether the project you’ve proposed is the best way to address the problems it intends to address. If the metrics are favorable and the risks are manageable, you should feel confident advancing to the planning phase. Too many red flags, however, may mean you need to go back to the drawing board.

Here’s a little tech tip to make this decision easier: Many project management software dashboards can compile your key metrics and findings neatly in one visual package. It’s like having a project feasibility snapshot right at your fingertips, which makes it much easier for stakeholders to understand important data and make informed decisions.

Types of feasibility studies

There are different types of feasibility studies that each focus on a unique aspect of projects and project planning . By understanding the nuances of each, you’ll become better equipped to make well-informed decisions, mitigate risks, and ultimately steer your project toward success.

Technical feasibility

Technical feasibility digs into the nuts and bolts of the project. You’re looking at what kind of technology you’ll need, whether it’s available, and if it can be integrated into your current systems. It’s like checking if you have all the ingredients you need before cooking a specific recipe.

Economic feasibility

This study is all about the money — how much the project will cost and what kinds of economic or profitability benefits it will bring forth. With an economic feasibility study, you’re most often doing a cost-benefit analysis to see if the financials add up in your favor. It’s like weighing the pros and cons but in dollar signs. 

Legal feasibility

This is your legal checkpoint. You’re looking at any laws or regulations that might create risks or restrict your project. This feasibility study could also involve checking compliance with industry-specific or regional regulations.

Operational feasibility

An operational feasibility study will help you see how the project fits into your current operations and operational goals and resources. After completing this type of study, you should know if your project will require new workflows and if your team can handle project tasks alongside their current workloads.

This study also evaluates whether the organization has the expertise to accomplish all project goals.

Scheduling feasibility

This feasibility study is all about time. You’re considering how long the project will take and whether you can afford any delays. Gantt charts , a feature commonly found in project management software, can be convenient in this type of study.

These visual timelines allow you to map out the entire project schedule, set milestones, and identify potential bottlenecks. You can also easily see if your project’s timeline is realistic or if you need to make adjustments to avoid delays.

Feasibility study examples

Feasibility studies add value to the project lifecycle across diverse industries. With each of these examples, the feasibility study is a critical preliminary step to identify potential roadblocks and assess the likelihood of project success.

Construction

A construction project feasibility study might focus on land evaluation, zoning laws, and material costs to determine if a new housing development is viable. In this example, the study helps avoid legal snags and ensure profitable land use.

A healthcare feasibility study may assess the demand for a new medical facility in a specific location by looking at factors like local population health statistics and existing healthcare infrastructure. This type of research helps determine whether a new facility would serve the community appropriately and utilize resources effectively.

Information technology

An IT feasibility study might analyze the technical requirements, cost, and market demand for a new software application to understand whether the development effort would offer a reasonable return on investment. This information helps project teams avoid sinking time and money into software that no one wants or needs.

Free feasibility study template

Download our feasibility study template for free:

Why are feasibility studies crucial in project management?

In project management, feasibility studies help you gauge whether your project is a go or a no-go, saving you time, money, and a lot of headaches in the long run. But it’s not just about giving your project a thumbs-up or down.

Feasibility studies are also invaluable for decision-making and risk assessment. They provide the data and insights you need to make informed choices. Whether it’s deciding on the project scope, budget, or timeline, these studies offer a comprehensive view of what you’re up against.

Plus, feasibility studies help you identify potential roadblocks and risks, allowing you to prepare effective contingency plans. Operating with a feasibility study as your project’s foundation is like giving your team both a roadmap and a weather forecast to help you better navigate your project journey.

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• Project planning |
• How to use a feasibility study in proje ...

How to use a feasibility study in project management

It can be exciting to run a large, complex project that has a huge potential impact on your organization. On the one hand, you’re driving real change. On the other, failure is intimidating. 

What is a feasibility study? 

A feasibility study—sometimes called a feasibility analysis or feasibility report—is a way to evaluate whether or not a project plan could be successful. A feasibility study evaluates the practicality of your project plan in order to judge whether or not you’re able to move forward with the project. 

It does so by answering two questions: 

Does our team have the required tools or resources to complete this project? 

Will there be a high enough return on investment to make the project worth pursuing? 

Feasibility studies are important for projects that represent significant investments for your business. Projects that also have a large potential impact on your presence in the market may also require a feasibility study. 

As the project manager , you may not be directly responsible for driving the feasibility study, but it’s important to know what these studies are. By understanding the different elements that go into a feasibility study, you can better support the team driving the feasibility study and ensure the best outcome for your project.

When should you conduct a feasibility study

A feasibility study should be conducted after the project has been pitched but before any work has actually started. The study is part of the project planning process. In fact, it’s often done in conjunction with a SWOT analysis or project risk assessment , depending on the specific project. 

Feasibility studies help: 

Confirm market opportunities before committing to a project

Narrow your business alternatives

Create documentation about the benefits and detriments of your proposed initiative

Provide more information before making a go/no go decision

You likely don’t need a feasibility study if:

You already know the project is feasible

You’ve run a similar project in the past

Your competitors are succeeding with a similar initiative in market

The project is small, straightforward, and has minimal long-term business impact

Your team ran a similar feasibility study within the past three years

One thing to keep in mind is that a feasibility study is not a project pitch. During a project pitch, you’re evaluating whether or not the project is a good idea for your company, and whether the goals of the project are in line with your overall strategic plan. Typically, once you’ve established that the project is a good idea, you’d then run a feasibility study to confirm the project is possible with the tools and resources you have at your disposal. 

Feasibility study vs. project charter

A project charter is a relatively informal document to pitch your project to stakeholders. Think of the charter like an elevator pitch of your project objectives, scope, and responsibilities. Typically, your project sponsor or executive stakeholders reviews the charter before ratifying the project. 

A feasibility study should be implemented after the project charter has been ratified. This isn’t a document to pitch whether or not the project is in line with your team’s goals—rather, it’s a way to ensure the project is something you and your team can accomplish. 

Feasibility study vs. business case

A business case is a more formalized version of the project charter. While you’d typically create a project charter for small or straightforward initiatives, you should create a business case if you are pitching a large, complex initiative that will make a major impact on the business. This longer, more formal document will also include financial information, and typically involves more senior stakeholders. 

After your business case is approved by relevant stakeholders, you’d then run a feasibility study to make sure the work is doable. If you find it isn’t, you might return to your executive stakeholders and request more resources, tools, or time in order to ensure your business case is feasible.

Feasibility study vs. business plan

A business plan is a formal document of your organization’s goals. You typically write a business plan when founding your company, or when your business is going through a significant shift. Your business plan informs a lot of other business decisions, including your three to five year strategic plan . 

As you implement your business and strategic plan, you’ll invest in individual projects. A feasibility study is a way to evaluate the practicality of any given individual project or initiative. 

4 elements of a feasibility analysis

There are four main elements that go into a feasibility study: technical feasibility, financial feasibility, market feasibility (or market fit), and operational feasibility. You may also see these referred to as the four types of feasibility studies, though most feasibility studies actually include a review of all four elements. 

Technical feasibility

A technical feasibility study reviews the technical resources available for your project. This study determines if you have the right equipment, enough equipment, and the right technical knowledge to complete your project objectives . For example, if your project plan proposes creating 50,000 products per month, but you can only produce 30,000 products per month in your factories, this project isn’t technically feasible. 

Financial feasibility

Financial feasibility describes whether or not your project is fiscally viable. A financial feasibility report includes a cost/benefit analysis of the project. It also forecasts an expected return on investment (ROI), as well as outlines any financial risks. The goal at the end of the financial feasibility study is to understand the economic benefits the project will drive. 

Market feasibility

The market feasibility study is an evaluation of how your team expects the project’s deliverables to perform in the market. This part of the report includes a market analysis, market competition breakdown, and sales projections. 

Operational feasibility

An operational feasibility study evaluates whether or not your organization is able to complete this project. This includes staffing requirements, organizational structure, and any applicable legal requirements. At the end of the operational feasibility study, your team will have a sense of whether or not you have the resources, skills, and competencies to complete this work. 

Feasibility study checklist

Most feasibility studies are structured in a similar way. These documents serve as an assessment of the practicality of a proposed business idea. Creating a clear feasibility study helps project stakeholders during the decision making process. 

A feasibility study contains: 

An executive summary describing the project’s overall viability

A description of the product or service being developed during this project

Any technical considerations , including technology, equipment, or staffing

The market survey , including a study of the current market and the marketing strategy 

The operational feasibility study , evaluating whether or not your team’s current organizational structure can support this initiative

The project timeline

Financial projections based on your financial feasibility report

6 steps to conduct a feasibility study

You likely won’t be conducting the feasibility study yourself, but you will probably be called on to provide insight and information. To conduct a feasibility study, hire a trained consultant or, if you have an in-house project management office (PMO) , ask if they take on this type of work. In general, here are the steps they’ll take to complete this work: 

1. Run a preliminary analysis

Creating a feasibility study is a time-intensive process. Before diving into the feasibility study, it’s important to evaluate the project for any obvious and insurmountable roadblocks. For example, if the project requires significantly more budget than your organization has available, you likely won’t be able to complete it. Similarly, if the project deliverables need to be live and in market by a certain date, but they won’t be available for several months after the fact, the project likely isn’t feasible either. These types of large-scale obstacles make a feasibility study unnecessary, because it’s clear the project is not viable. 

2. Evaluate financial feasibility

Think of the financial feasibility study as the projected income statement for the project. This part of the feasibility study clarifies the expected project income and outlines what your organization needs to invest—in terms of time and money—in order to hit the project objectives. 

During the financial feasibility study, take into account whether or not the project will impact your business's cash flow. Depending on the complexity of the initiative, your internal PMO or external consultant may want to work with your financial team to run a cost-benefit analysis of the project. 

3. Run a market assessment

The market assessment, or market feasibility study, is a chance to identify the demand in the market. This study offers a sense of expected revenue for the project, and any potential market risks you could run into. 

The market assessment, more than any other part of the feasibility study, is a chance to evaluate whether or not there’s an opportunity in the market. During this study, it’s critical to evaluate your competitor’s positions and analyze demographics to get a sense of how the project will do. 

4. Consider technical and operational feasibility

Even if the financials are looking good and the market is ready, this initiative may not be something your organization can support. To evaluate operational feasibility, consider any staffing or equipment requirements this project needs. What organizational resources—including time, money, and skills—are necessary in order for this project to succeed? 

Depending on the project, it may also be necessary to consider the legal impact of the initiative. For example, if the project involves developing a new patent for your product, you will need to involve your legal team and incorporate that requirement into the project plan. 

5. Review project points of vulnerability

At this stage, your internal PMO team or external consultant have looked at all four elements of your feasibility study—financials, market analysis, technical feasibility, and operational feasibility. Before running their recommendations by you and your stakeholders, they will review and analyze the data for any inconsistencies. This includes ensuring the income statement is in line with your market analysis. Similarly, now that they’ve run a technical feasibility study, are any liabilities too big of a red flag? (If so, create a contingency plan !) 

Depending on the complexity of your project, there won’t always be a clear answer. A feasibility analysis doesn’t provide a black and white decision for a complex problem. Rather, it helps you come to the table with the right questions—and answers—so you can make the best decision for your project and for your team. 

6. Propose a decision

The final step of the feasibility study is an executive summary touching on the main points and proposing a solution. 

Depending on the complexity and scope of the project, your internal PMO or external consultant may share the feasibility study with stakeholders or present it to the group in order to field any questions live. Either way, with the study in hand, your team now has the information you need to make an informed decision. 

Achieve project success with Asana

Done with your feasibility study? You’re ready to run a project! Set your project up for success by tracking your progress in a work management tool , like Asana. From the small stuff to the big picture, Asana organizes work so teams know what to do, why it matters, and how to get it done. 

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