Why Conduct a Feasibility Study?

Knowing your potential customers and potential competitors is crucial when launching a new product or opening a business. The faith of your new endeavour will eventually be determined by how you respond to these fundamental concerns. It is best to carry out a feasibility study to achieve this. A business case's suggested solutions are identified and potential issues are suggested via a feasibility study. The feasibility assessment should include any hazards or threats to the venture's success that are inherently present.

If the expected results can be obtained, the feasibility study should give a clear recommendation as to whether you should proceed with this new venture.

SWOT Analysis

Albert S. Humphrey developed the SWOT analysis in the 1960s. The SWOT analysis's ease of understanding is one of its advantages. There are four quadrants that need to be completed, one for each of the venture's opportunities, threats, opportunities, and weaknesses. A SWOT analysis is a great supplement to a feasibility study since it looks at both internal and external threats that could compromise the viability of the venture.

The company's internal elements, often known as its strengths and weaknesses, are typically better understood by those who work there. Opportunities and risks are sometimes referred to as "external" elements because they often originate from outside the business.

When doing a SWOT analysis, begin with strengths and weaknesses. Some of those strengths could lead to opportunities, and some of those weaknesses could lead to threats (although opportunities and threats may be due to other external factors).

The TELOS model

When developing this document, we used the TELOS model to assist us take five aspects of feasibility into account. It's interesting to note that the Greek term for "end," "purpose," or "goal" is telos.

1. Technological Feasibility
2. Economic Feasibility
3. Legal Feasibility
4. Organizational Feasibility
5. Scheduling Feasibility

Technical Feasibility

Even if you have a fantastic idea for a product that would be extremely profitable, you still need to determine whether it can be created. Imagine that the strong suggestion in your business case was to accept Lynk and other digital currencies as payment for every product your company sells online. You would need to inquire about the following:

• Do we have any internal Lynk or other digital currency expertise?
• Can we locate a software company to undertake this work for us if we don't have these skills?
• What would it cost to hire a company to complete this task?li>
• How would we know which company would be the best fit for this job?
• Could the work start immediately? Are we to wait, instead?
• Would we need to spend money on training programs to provide existing personnel with new skills so they can maintain these new systems?

Economic Feasibility

In this section of the feasibility study, there are two primary questions that need to be addressed:

1. Are we able to afford to carry out this venture?
2. Will it be successful?

Here, it should be specified how much money is expected to be made from the venture's deliverables in the future.

Legal Feasibility

Checking for legal viability entails making sure you are not engaging in any obvious criminal conduct! It's more complicated than that, though; take into account any inconsistencies with previously signed contracts. Additionally, be careful not to violate any trademark or patent laws.

Operational Feasibility

The effectiveness of the proposed venture deliverables in addressing the problems and market opportunity identified in the business case will be evaluated in this section of the feasibility study. Operational viability also looks at how the venture's potential impact on your organization's current workforce.

Typically, you might think about:

• How effectively does the suggested remedy address the market opportunity?
• Are any updated company policies necessary?
• How do current departments suffer?
• Is training necessary?
• Exist any continuing maintenance or support fees?

Scheduling Feasibility

How quickly a product can be put on the market will frequently determine a venture's success. If the time required to complete the venture is too long, a really desirable venture might not be undertaken. The timetable of the venture may be examined as part of the feasibility study's consideration of the available time frame. The venture might not be feasible, though, if the schedule consumes too many resources for the business or cannot be completed in a reasonable amount of time.

Following the approval of a business case with a suggested solution, a feasibility study is a crucial next step. The decision-makers must approve a venture once the feasibility assessment suggests that it move forward. Following this, a venture charter is made outlining the venture's goals as well as the duties of its important participants. In the section after this one, we'll examine the venture charter.