This document discusses the purpose and process of conducting a feasibility study for a new project. It defines a feasibility study as an analysis of the viability of an idea through a disciplined, documented process. The document outlines why feasibility studies are important, including determining if a system meets client objectives and identifying factors that could affect the project. It also describes the typical steps involved, such as conducting market research and preparing financial projections. Finally, it discusses different types of feasibility studies and their advantages, such as providing a structured approach and basis for funding decisions.
2. WHAT IS FEASIBILITY STUDY
• A feasibility study is an analysis of the viability of an idea through a disciplined and document process of
thinking through the idea from its logical beginning to its logical end.
• Feasibility study is carried out in order to access the viability of anew project.
• It is primary and most important thing in development of a project.
3. IMPORTANCE OF FEASIBILITY STUDY
• Determines whether the system meets objectives of client or not.
• Determine strength and limitation of system before developing it.
• Provides quality documentation of the proposed system.
• Study all the factors that may affect the system before and after developing it.
• Provides quality information about the system.
4. WHY DO A FEASIBILITY STUDY?
• Gives focus to the project.
• Narrows alternatives.
• Surfaces new opportunities.
• Enhances the probability of success by addressing factors early that
could affect the project.
• Provides quality information for decision making.
• Helps in securing funding.
• Helps to increase investment in idea.
5. STEPS FOR A FEASIBILITY STUDY
• Conduct a preliminary analysis
• Prepare a projected income statement
• Conduct a market survey, or perform market research
• Plan business organization and operations
• Prepare an opening day balance sheet
• Review and analyze all data
• Make a go/no-go decision
7. ADVANTAGES OF FEASIBILITY STUDY
• Structured approaches to new projects.
• Finding alternative solutions.
• Reduction in the number of possible projects.
• Identification of reasons which speak against a project.
• Development of the basics for the later implementation of the project.
• Basis for the decision of possible investors for an investment in the project.