A feasibility study can mitigate risks if conducted as one of the first steps before leaping into a venture, a relationship, a project, a job or a change.
Why would an individual or company research feasibility?
The following simple definitions are a great start for building the case for investing time, money, resources and talent…
- “The quality of being doable” (wordnetweb.princeton.edu)
- “Doable, possible, achievable, workable” (en.wiktionary.org/wiki)
- “A determination that a process, design, procedure, or plan can be successfully accomplished in the required time frame.”thequalityportal.com/glossary/f.htm
What are the elements for a successful feasibility study?
There are six basic elements for determine feasibility…
- Identify Market/Customer Needs.
- What are the past, present and future needs of the market or client base?
- What are the services or products they have used, are currently using or would like to use?
2. Identify the Present Benefits and Results.
- What are the benefits that the products or services will bring?
- What results will the market or client base receive from this product or service?
3. Identify the Future Benefits and Results.
- What are the future needs of this endeavor to ensure sustained success?
- What will it take to ensure that these needs are met?
4. Identify the Resources, Costs, Investments.
- What will it cost to deliver the product or service?
- What resources are available to support this endeavor?
- What are the other investments that are required to make this effort possible?
5. Identify the Alternative Source of Supply or Service, A.K.A. competitive analysis.
- What sources are currently providing this product or service?
- How customer friendly are these current competitors?
- What are the current challenges that the alternative sources of supply are encountering?
6. Identify the Strategy and Financial Plan.
- What is the purpose of this endeavor?
- What is the vision and mission of this venture?
- What are the values required to support this product or service?
- What are the financial projections for a successful venture?
A feasibility study is not an exercise to delay to the start of a project or change. It is an investment in time, money, and resources to ensure that thoughtful business and life decisions are made. The ultimate benefits and results – leaping into deep water and finding that when you leap you can and will swim and sustain success.