market research feasibility analysis

What is a Feasibility Study and How to Conduct It? (+ Examples)

Appinio Research · 26.09.2023 · 28min read

Are you ready to turn your project or business idea into a concrete reality but unsure about its feasibility? Whether you're a seasoned entrepreneur or a first-time project manager, understanding the intricate process of conducting a feasibility study is vital for making informed decisions and maximizing your chances of success.

This guide will equip you with the knowledge and tools to navigate the complexities of market, technical, financial, and operational feasibility studies. By the end, you'll have a clear roadmap to confidently assess, plan, and execute your project.

What is a Feasibility Study?

A feasibility study is a systematic and comprehensive analysis of a proposed project or business idea to assess its viability and potential for success. It involves evaluating various aspects such as market demand, technical feasibility, financial viability, and operational capabilities. The primary goal of a feasibility study is to provide you with valuable insights and data to make informed decisions about whether to proceed with the project.

Why is a Feasibility Study Important?

Conducting a feasibility study is a critical step in the planning process for any project or business. It helps you:

• Minimize Risks: By identifying potential challenges and obstacles early on, you can develop strategies to mitigate risks.
• Optimize Resource Allocation: A feasibility study helps you allocate your resources more efficiently, including time and money.
• Enhance Decision-Making: Armed with data and insights, you can make well-informed decisions about pursuing the project or exploring alternative options.
• Attract Stakeholders: Potential investors, lenders, and partners often require a feasibility study to assess the project's credibility and potential return on investment.

Now that you understand the importance of feasibility studies, let's explore the various types and dive deeper into each aspect.

Types of Feasibility Studies

Feasibility studies come in various forms, each designed to assess different aspects of a project's viability. Let's delve into the four primary types of feasibility studies in more detail:

1. Market Feasibility Study

Market feasibility studies are conducted to determine whether there is a demand for a product or service in a specific market or industry. This type of study focuses on understanding customer needs, market trends, and the competitive landscape. Here are the key elements of a market feasibility study:

• Market Research and Analysis: Comprehensive research is conducted to gather market size, growth potential , and customer behavior data. This includes both primary research (surveys, interviews) and secondary research (existing reports, data).
• Target Audience Identification: Identifying the ideal customer base by segmenting the market based on demographics, psychographics, and behavior. Understanding your target audience is crucial for tailoring your product or service.
• Competitive Analysis : Assessing the competition within the market, including identifying direct and indirect competitors, their strengths, weaknesses, and market share .
• Demand and Supply Assessment: Analyzing the balance between the demand for the product or service and its supply. This helps determine whether there is room for a new entrant in the market.

2. Technical Feasibility Study

Technical feasibility studies evaluate whether the project can be developed and implemented from a technical standpoint. This assessment focuses on the project's design, technical requirements, and resource availability. Here's what it entails:

• Project Design and Technical Requirements: Defining the technical specifications of the project, including hardware, software, and any specialized equipment. This phase outlines the technical aspects required for project execution.
• Technology Assessment: Evaluating the chosen technology's suitability for the project and assessing its scalability and compatibility with existing systems.
• Resource Evaluation: Assessing the availability of essential resources such as personnel, materials, and suppliers to ensure the project's technical requirements can be met.
• Risk Analysis: Identifying potential technical risks, challenges, and obstacles that may arise during project development. Developing risk mitigation strategies is a critical part of technical feasibility.

3. Financial Feasibility Study

Financial feasibility studies aim to determine whether the project is financially viable and sustainable in the long run. This type of study involves estimating costs, projecting revenue, and conducting financial analyses. Key components include:

• Cost Estimation: Calculating both initial and ongoing costs associated with the project, including capital expenditures, operational expenses, and contingency funds.
• Revenue Projections: Forecasting the income the project is expected to generate, considering sales, pricing strategies, market demand, and potential revenue streams.
• Investment Analysis: Evaluating the return on investment (ROI), payback period, and potential risks associated with financing the project.
• Financial Viability Assessment: Analyzing the project's profitability, cash flow, and financial stability to ensure it can meet its financial obligations and sustain operations.

4. Operational Feasibility Study

Operational feasibility studies assess whether the project can be effectively implemented within the organization's existing operational framework. This study considers processes, resource planning, scalability, and operational risks. Key elements include:

• Process and Workflow Assessment: Analyzing how the project integrates with current processes and workflows, identifying potential bottlenecks, and optimizing operations.
• Resource Planning: Determining the human, physical, and technological resources required for successful project execution and identifying resource gaps.
• Scalability Evaluation: Assessing the project's ability to adapt and expand to meet changing demands and growth opportunities, including capacity planning and growth strategies.
• Operational Risks Analysis: Identifying potential operational challenges and developing strategies to mitigate them, ensuring smooth project implementation.

Each type of feasibility study serves a specific purpose in evaluating different facets of your project, collectively providing a comprehensive assessment of its viability and potential for success.

How to Prepare for a Feasibility Study?

Before you dive into the nitty-gritty details of conducting a feasibility study, it's essential to prepare thoroughly. Proper preparation will set the stage for a successful and insightful study. In this section, we'll explore the main steps involved in preparing for a feasibility study.

1. Identify the Project or Idea

Identifying and defining your project or business idea is the foundational step in the feasibility study process. This initial phase is critical because it helps you clarify your objectives and set the direction for the study.

• Problem Identification: Start by pinpointing the problem or need your project addresses. What pain point does it solve for your target audience?
• Project Definition: Clearly define your project or business idea. What are its core components, features, or offerings?
• Goals and Objectives: Establish specific goals and objectives for your project. What do you aim to achieve in the short and long term?
• Alignment with Vision: Ensure your project aligns with your overall vision and mission. How does it fit into your larger strategic plan?

Remember, the more precisely you can articulate your project or idea at this stage, the easier it will be to conduct a focused and effective feasibility study.

2. Assemble a Feasibility Study Team

Once you've defined your project, the next step is to assemble a competent and diverse feasibility study team. Your team's expertise will play a crucial role in conducting a thorough assessment of your project's viability.

• Identify Key Roles: Determine the essential roles required for your feasibility study. These typically include experts in areas such as market research, finance, technology, and operations.
• Select Team Members: Choose team members with the relevant skills and experience to fulfill these roles effectively. Look for individuals who have successfully conducted feasibility studies in the past.
• Collaboration and Communication: Foster a collaborative environment within your team. Effective communication is essential to ensure everyone is aligned on objectives and timelines.
• Project Manager: Designate a project manager responsible for coordinating the study, tracking progress, and meeting deadlines.
• External Consultants: In some cases, you may need to engage external consultants or specialists with niche expertise to provide valuable insights.

Having the right people on your team will help you collect accurate data, analyze findings comprehensively, and make well-informed decisions based on the study's outcomes.

3. Set Clear Objectives and Scope

Before you begin the feasibility study, it's crucial to establish clear and well-defined objectives. These objectives will guide your research and analysis efforts throughout the study.

Steps to Set Clear Objectives and Scope:

• Objective Clarity: Define the specific goals you aim to achieve through the feasibility study. What questions do you want to answer, and what decisions will the study inform?
• Scope Definition: Determine the boundaries of your study. What aspects of the project will be included, and what will be excluded? Clarify any limitations.
• Resource Allocation: Assess the resources needed for the study, including time, budget, and personnel. Ensure that you allocate resources appropriately based on the scope and objectives.
• Timeline: Establish a realistic timeline for the feasibility study. Identify key milestones and deadlines for completing different phases of the study.

Clear objectives and a well-defined scope will help you stay focused and avoid scope creep during the study. They also provide a basis for measuring the study's success against its intended outcomes.

4. Gather Initial Information

Before you delve into extensive research and data collection, start by gathering any existing information and documents related to your project or industry. This initial step will help you understand the current landscape and identify gaps in your knowledge.

• Document Review: Review any existing project documentation, market research reports, business plans, or relevant industry studies.
• Competitor Analysis: Gather information about your competitors, including their products, pricing, market share, and strategies.
• Regulatory and Compliance Documents: If applicable, collect information on industry regulations, permits, licenses, and compliance requirements.
• Market Trends: Stay informed about current market trends, consumer preferences, and emerging technologies that may impact your project.
• Stakeholder Interviews: Consider conducting initial interviews with key stakeholders, including potential customers, suppliers, and industry experts, to gather insights and feedback.

By starting with a strong foundation of existing knowledge, you'll be better prepared to identify gaps that require further investigation during the feasibility study. This proactive approach ensures that your study is comprehensive and well-informed from the outset.

How to Conduct a Market Feasibility Study?

The market feasibility study is a crucial component of your overall feasibility analysis. It focuses on assessing the potential demand for your product or service, understanding your target audience, analyzing your competition, and evaluating supply and demand dynamics within your chosen market.

Market Research and Analysis

Market research is the foundation of your market feasibility study. It involves gathering and analyzing data to gain insights into market trends, customer preferences, and the overall business landscape.

• Data Collection: Utilize various methods such as surveys, interviews, questionnaires, and secondary research to collect data about the market. This data may include market size, growth rates, and historical trends.
• Market Segmentation: Divide the market into segments based on factors such as demographics, psychographics , geography, and behavior. This segmentation helps you identify specific target markets .
• Customer Needs Analysis: Understand the needs, preferences, and pain points of potential customers . Determine how your product or service can address these needs effectively.
• Market Trends: Stay updated on current market trends, emerging technologies, and industry innovations that could impact your project.
• SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to identify internal and external factors that may affect your market entry strategy.

In today's dynamic market landscape, gathering precise data for your market feasibility study is paramount. Appinio offers a versatile platform that enables you to swiftly collect valuable market insights from a diverse audience.

With Appinio, you can employ surveys, questionnaires, and in-depth analyses to refine your understanding of market trends, customer preferences, and competition.

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Target Audience Identification

Knowing your target audience is essential for tailoring your product or service to meet their specific needs and preferences.

• Demographic Analysis: Define the age, gender, income level, education, and other demographic characteristics of your ideal customers.
• Psychographic Profiling: Understand the psychographics of your target audience, including their lifestyle, values, interests, and buying behavior.
• Market Segmentation: Refine your target audience by segmenting it further based on shared characteristics and behaviors.
• Needs and Pain Points: Identify your target audience's unique needs, challenges, and pain points that your product or service can address.
• Competitor's Customers: Analyze the customer base of your competitors to identify potential opportunities for capturing market share.

Competitive Analysis

Competitive analysis helps you understand the strengths and weaknesses of your competitors, positioning your project strategically within the market.

• Competitor Identification: Identify direct and indirect competitors within your industry or market niche.
• Competitive Advantage: Determine the unique selling points (USPs) that set your project apart from competitors. What value can you offer that others cannot?
• SWOT Analysis for Competitors: Conduct a SWOT analysis for each competitor to assess their strengths, weaknesses, opportunities, and threats.
• Market Share Assessment: Analyze each competitor's market share and market penetration strategies.
• Pricing Strategies: Investigate the pricing strategies employed by competitors and consider how your pricing strategy will compare.

Leveraging the power of data collection and analysis is essential in gaining a competitive edge. With Appinio , you can efficiently gather critical insights about your competitors, their strengths, and weaknesses. Seamlessly integrate these findings into your market feasibility study, empowering your project with a strategic advantage.

Demand and Supply Assessment

Understanding supply and demand dynamics is crucial for gauging market sustainability and potential challenges.

• Market Demand Analysis: Estimate the current and future demand for your product or service. Consider factors like seasonality and trends.
• Supply Evaluation: Assess the availability of resources, suppliers, and distribution channels required to meet the expected demand.
• Market Saturation: Determine whether the market is saturated with similar offerings and how this might affect your project.
• Demand Forecasting: Use historical data and market trends to make informed projections about future demand.
• Scalability: Consider the scalability of your project to meet increased demand or potential fluctuations.

A comprehensive market feasibility study will give you valuable insights into your potential customer base, market dynamics, and competitive landscape. This information will be pivotal in shaping your project's direction and strategy.

How to Conduct a Technical Feasibility Study?

The technical feasibility study assesses the practicality of implementing your project from a technical standpoint. It involves evaluating the project's design, technical requirements, technological feasibility, resource availability, and risk analysis. Let's delve into each aspect in more detail.

1. Project Design and Technical Requirements

The project design and technical requirements are the foundation of your technical feasibility study. This phase involves defining the technical specifications and infrastructure needed to execute your project successfully.

• Technical Specifications: Clearly define the technical specifications of your project, including hardware, software, and any specialized equipment.
• Infrastructure Planning: Determine the physical infrastructure requirements, such as facilities, utilities, and transportation logistics.
• Development Workflow: Outline the workflow and processes required to design, develop, and implement the project.
• Prototyping: Consider creating prototypes or proof-of-concept models to test and validate the technical aspects of your project.

2. Technology Assessment

A critical aspect of the technical feasibility study is assessing the technology required for your project and ensuring it aligns with your goals.

• Technology Suitability: Evaluate the suitability of the chosen technology for your project. Is it the right fit, or are there better alternatives?
• Scalability and Compatibility: Assess whether the chosen technology can scale as your project grows and whether it is compatible with existing systems or software.
• Security Measures: Consider cybersecurity and data protection measures to safeguard sensitive information.
• Technical Expertise: Ensure your team or external partners possess the technical expertise to implement and maintain the technology.

3. Resource Evaluation

Resource evaluation involves assessing the availability of the essential resources required to execute your project successfully. These resources include personnel, materials, and suppliers.

• Human Resources: Evaluate whether you have access to skilled personnel or if additional hiring or training is necessary.
• Material Resources: Identify the materials and supplies needed for your project and assess their availability and costs.
• Supplier Relationships: Establish relationships with reliable suppliers and consistently assess their ability to meet your resource requirements.

4. Risk Analysis

Risk analysis is a critical component of the technical feasibility study, as it helps you anticipate and mitigate potential technical challenges and setbacks.

• Identify Risks: Identify potential technical risks, such as hardware or software failures, technical skill gaps, or unforeseen technical obstacles.
• Risk Mitigation Strategies: Develop strategies to mitigate identified risks, including contingency plans and resource allocation for risk management.
• Cost Estimation for Risk Mitigation: Assess the potential costs associated with managing technical risks and incorporate them into your project budget.

By conducting a thorough technical feasibility study, you can ensure that your project is technically viable and well-prepared to overcome technical challenges. This assessment will also guide decision-making regarding technology choices, resource allocation, and risk management strategies.

How to Conduct a Financial Feasibility Study?

The financial feasibility study is a critical aspect of your overall feasibility analysis. It focuses on assessing the financial viability of your project by estimating costs, projecting revenue, conducting investment analysis, and evaluating the overall financial health of your project. Let's delve into each aspect in more detail.

1. Cost Estimation

Cost estimation is the process of calculating the expenses associated with planning, developing, and implementing your project. This involves identifying both initial and ongoing costs.

• Initial Costs: Calculate the upfront expenses required to initiate the project, including capital expenditures, equipment purchases, and any development costs.
• Operational Costs: Estimate the ongoing operating expenses, such as salaries, utilities, rent, marketing, and maintenance.
• Contingency Funds: Allocate funds for unexpected expenses or contingencies to account for unforeseen challenges.
• Depreciation: Consider the depreciation of assets over time, as it impacts your financial statements.

2. Revenue Projections

Revenue projections involve forecasting the income your project is expected to generate over a specific period. Accurate revenue projections are crucial for assessing the project's financial viability.

• Sales Forecasts: Estimate your product or service sales based on market demand, pricing strategies, and potential growth.
• Pricing Strategy: Determine your pricing strategy, considering factors like competition, market conditions, and customer willingness to pay.
• Market Penetration: Analyze how quickly you can capture market share and increase sales over time.
• Seasonal Variations: Account for any seasonal fluctuations in revenue that may impact your cash flow.

3. Investment Analysis

Investment analysis involves evaluating the potential return on investment (ROI) and assessing the attractiveness of your project to potential investors or stakeholders.

• Return on Investment (ROI): Calculate the expected ROI by comparing the project's net gains against the initial investment.
• Payback Period: Determine how long it will take for the project to generate sufficient revenue to cover its initial costs.
• Risk Assessment: Consider the level of risk associated with the project and whether it aligns with investors' risk tolerance.
• Sensitivity Analysis: Perform sensitivity analysis to understand how changes in key variables, such as sales or costs, affect the investment's profitability.

4. Financial Viability Assessment

A financial viability assessment evaluates the project's ability to sustain itself financially in the long term. It considers factors such as profitability, cash flow, and financial stability.

• Profitability Analysis: Assess whether the project is expected to generate profits over its lifespan.
• Cash Flow Management: Analyze the project's cash flow to ensure it can cover operating expenses, debt payments, and other financial obligations.
• Break-Even Analysis: Determine the point at which the project's revenue covers all costs, resulting in neither profit nor loss.
• Financial Ratios: Calculate key financial ratios, such as debt-to-equity ratio and return on equity, to evaluate the project's financial health.

By conducting a comprehensive financial feasibility study, you can gain a clear understanding of the project's financial prospects and make informed decisions regarding its viability and potential for success.

How to Conduct an Operational Feasibility Study?

The operational feasibility study assesses whether your project can be implemented effectively within your organization's operational framework. It involves evaluating processes, resource planning, scalability, and analyzing potential operational risks.

1. Process and Workflow Assessment

The process and workflow assessment examines how the project integrates with existing processes and workflows within your organization.

• Process Mapping: Map out current processes and workflows to identify areas of integration and potential bottlenecks.
• Workflow Efficiency: Assess the efficiency and effectiveness of existing workflows and identify opportunities for improvement.
• Change Management: Consider the project's impact on employees and plan for change management strategies to ensure a smooth transition.

2. Resource Planning

Resource planning involves determining the human, physical, and technological resources needed to execute the project successfully.

• Human Resources: Assess the availability of skilled personnel and consider whether additional hiring or training is necessary.
• Physical Resources: Identify the physical infrastructure, equipment, and materials required for the project.
• Technology and Tools: Ensure that the necessary technology and tools are available and up to date to support project implementation.

3. Scalability Evaluation

Scalability evaluation assesses whether the project can adapt and expand to meet changing demands and growth opportunities.

• Scalability Factors: Identify factors impacting scalability, such as market growth, customer demand, and technological advancements.
• Capacity Planning: Plan for the scalability of resources, including personnel, infrastructure, and technology.
• Growth Strategies: Develop strategies for scaling the project, such as geographic expansion, product diversification, or increasing production capacity.

4. Operational Risk Analysis

Operational risk analysis involves identifying potential operational challenges and developing mitigation strategies.

• Risk Identification: Identify operational risks that could disrupt project implementation or ongoing operations.
• Risk Mitigation: Develop risk mitigation plans and contingency strategies to address potential challenges.
• Testing and Simulation: Consider conducting simulations or testing to evaluate how the project performs under various operational scenarios.
• Monitoring and Adaptation: Implement monitoring and feedback mechanisms to detect and address operational issues as they arise.

Conducting a thorough operational feasibility study ensures that your project aligns with your organization's capabilities, processes, and resources. This assessment will help you plan for a successful implementation and minimize operational disruptions.

How to Write a Feasibility Study?

The feasibility study report is the culmination of your feasibility analysis. It provides a structured and comprehensive document outlining your study's findings, conclusions, and recommendations. Let's explore the key components of the feasibility study report.

1. Structure and Components

The structure of your feasibility study report should be well-organized and easy to navigate. It typically includes the following components:

• Executive Summary: A concise summary of the study's key findings, conclusions, and recommendations.
• Introduction: An overview of the project, the objectives of the study, and a brief outline of what the report covers.
• Methodology: A description of the research methods , data sources, and analytical techniques used in the study.
• Market Feasibility Study: Detailed information on market research, target audience, competitive analysis, and demand-supply assessment.
• Technical Feasibility Study: Insights into project design, technical requirements, technology assessment, resource evaluation, and risk analysis.
• Financial Feasibility Study: Comprehensive information on cost estimation, revenue projections, investment analysis, and financial viability assessment.
• Operational Feasibility Study: Details on process and workflow assessment, resource planning, scalability evaluation, and operational risks analysis.
• Conclusion: A summary of key findings and conclusions drawn from the study.

Recommendations: Clear and actionable recommendations based on the study's findings.

2. Write the Feasibility Study Report

When writing the feasibility study report, it's essential to maintain clarity, conciseness, and objectivity. Use clear language and provide sufficient detail to support your conclusions and recommendations.

• Be Objective: Present findings and conclusions impartially, based on data and analysis.
• Use Visuals: Incorporate charts, graphs, and tables to illustrate key points and make the report more accessible.
• Cite Sources: Properly cite all data sources and references used in the study.
• Include Appendices: Attach any supplementary information, data, or documents in appendices for reference.

3. Present Findings and Recommendations

When presenting your findings and recommendations, consider your target audience. Tailor your presentation to the needs and interests of stakeholders, whether they are investors, executives, or decision-makers.

• Highlight Key Takeaways: Summarize the most critical findings and recommendations upfront.
• Use Visual Aids: Create a visually engaging presentation with slides, charts, and infographics.
• Address Questions: Be prepared to answer questions and provide additional context during the presentation.
• Provide Supporting Data: Back up your findings and recommendations with data from the feasibility study.

4. Review and Validation

Before finalizing the feasibility study report, conducting a thorough review and validation process is crucial. This ensures the accuracy and credibility of the report.

• Peer Review: Have colleagues or subject matter experts review the report for accuracy and completeness.
• Data Validation: Double-check data sources and calculations to ensure they are accurate.
• Cross-Functional Review: Involve team members from different disciplines to provide diverse perspectives.
• Stakeholder Input: Seek input from key stakeholders to validate findings and recommendations.

By following a structured approach to creating your feasibility study report, you can effectively communicate the results of your analysis, support informed decision-making, and increase the likelihood of project success.

Feasibility Study Examples

Let's dive into some real-world examples to truly grasp the concept and application of feasibility studies. These examples will illustrate how various types of projects and businesses undergo the feasibility assessment process to ensure their viability and success.

Example 1: Local Restaurant

Imagine you're passionate about opening a new restaurant in a bustling urban area. Before investing significant capital, you'd want to conduct a thorough feasibility study. Here's how it might unfold:

• Market Feasibility: You research the local dining scene, identify target demographics, and assess the demand for your cuisine. Market surveys reveal potential competitors, dining preferences, and pricing expectations.
• Technical Feasibility: You design the restaurant layout, plan the kitchen setup, and assess the technical requirements for equipment and facilities. You consider factors like kitchen efficiency, safety regulations, and adherence to health codes.
• Financial Feasibility: You estimate the initial costs for leasing or purchasing a space, kitchen equipment, staff hiring, and marketing. Revenue projections are based on expected foot traffic, menu pricing, and seasonal variations.
• Operational Feasibility: You create kitchen and service operations workflow diagrams, considering staff roles and responsibilities. Resource planning includes hiring chefs, waitstaff, and kitchen personnel. Scalability is evaluated for potential expansion or franchising.
• Risk Analysis: Potential operational risks are identified, such as food safety concerns, labor shortages, or location-specific challenges. Risk mitigation strategies involve staff training, quality control measures, and contingency plans for unexpected events.

Example 2: Software Development Project

Now, let's explore the feasibility study process for a software development project, such as building a mobile app:

• Market Feasibility: You analyze the mobile app market, identify your target audience, and assess the demand for a solution in a specific niche. You gather user feedback and conduct competitor analysis to understand the competitive landscape.
• Technical Feasibility: You define the technical requirements for the app, considering platforms (iOS, Android), development tools, and potential integrations with third-party services. You evaluate the feasibility of implementing specific features.
• Financial Feasibility: You estimate the development costs, including hiring developers, designers, and ongoing maintenance expenses. Revenue projections are based on app pricing, potential in-app purchases, and advertising revenue.
• Operational Feasibility: You map out the development workflow, detailing the phases from concept to deployment. Resource planning includes hiring developers with the necessary skills, setting up development environments, and establishing a testing framework.
• Risk Analysis: Potential risks like scope creep, technical challenges, or market saturation are assessed. Mitigation strategies involve setting clear project milestones, conducting thorough testing, and having contingency plans for technical glitches.

These examples demonstrate the versatility of feasibility studies across diverse projects. Whatever type of venture or endeavor you want to embark on, a well-structured feasibility study guides you toward informed decisions and increased project success.

In conclusion, conducting a feasibility study is a crucial step in your project's journey. It helps you assess the viability and potential risks, providing a solid foundation for informed decision-making. Remember, a well-executed feasibility study not only enables you to identify challenges but also uncovers opportunities that can lead to your project's success.

By thoroughly examining market trends, technical requirements, financial aspects, and operational considerations, you are better prepared to embark on your project confidently. With this guide, you've gained the knowledge and tools needed to navigate the intricate terrain of feasibility studies.

How to Conduct a Feasibility Study in Minutes?

Speed and precision are paramount for feasibility studies, and Appinio delivers just that. As a real-time market research platform, Appinio empowers you to seamlessly conduct your market research in a matter of minutes, putting actionable insights at your fingertips.

Here's why Appinio stands out as the go-to tool for feasibility studies:

• Rapid Insights: Appinio's intuitive platform ensures that anyone, regardless of their research background, can effortlessly navigate and conduct research, saving valuable time and resources.
• Lightning-Fast Responses: With an average field time of under 23 minutes for 1,000 respondents, Appinio ensures that you get the answers you need when you need them, making it ideal for time-sensitive feasibility studies.
• Global Reach: Appinio's extensive reach spans over 90 countries, allowing you to define the perfect target group from a pool of 1,200+ characteristics and gather insights from diverse markets.

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A market research feasibility study is a critical step in making informed business decisions. It’s a comprehensive analysis that provides invaluable insights into the potential success of a business endeavor.

A detailed market feasibility study in marketing offers a solid foundation for understanding the potential success of a new venture. The venture might be a product, service, or expansion.

This blog post explores the 4 key elements that comprise a market research feasibility study. It will equip you with the tools to navigate these critical decisions.

Definition of a Market Research Feasibility Study

A market research feasibility study is an integral part of a feasibility study akin to a blueprint for success. It’s a step-by-step evaluation of the potential of a new business venture.

The importance of a market feasibility study isn’t a mere formality but an essential step towards avoiding risks and maximizing success in the long term.

Imagine you’re considering opening a new restaurant. Market research would look into the proposed project’s location, target market, competition, and financial projections. This ensures you’re not just opening a restaurant but one poised for success.

The 4 key elements that comprise a market research analysis are similar to those seen in other types of feasibility studies. It includes market analysis, technical analysis, financial analysis, and risk analysis. Each element works in hand with others to provide a sustainable business adventure.

Let us take a broader overview of each element:

Key Element 1: Market Analysis

Understanding the market is similar to understanding the battlefield before entering a war. Market analysis is an important component of market research. It involves a careful examination of various aspects of your feasibility study marketing strategy. Then, it provides you with a clear sales projection , crucial to the success of your business idea.

Market Size

This entails determining the total addressable market, i.e., the total demand for your product or service. For example, you have to look for customers in the fitness market if you want to launch a new type of fitness tracker.

Demography means studying your target customer’s info like age, where they live, and how much they earn. It’s super important when starting a new business. For example, if you’re opening a trendy skate shop, knowing if many young skaters are in the area helps you plan right. It’s like having a secret weapon for your business!

Market Trends

Markets are dynamic, and trends can make or break a business. For example, suppose you’re considering a foray into the electric vehicle industry. In that case, understanding the current shift toward sustainable transportation is crucial.

Competition Analysis

Knowing your competitors is like understanding the strategies of opposing forces. It’s about identifying who you’re up against, their strengths and weaknesses. Let’s say you’re planning a new e-commerce platform; competitive assessment of giants like Amazon and eBay is essential.

Key Element 2: Technical Analysis

Technical analysis is the engine under the hood of your venture. It’s about ensuring you have the necessary resources, capabilities, and technology to make your business concept a reality.

Production Capacity

Production capacity involves assessing how much you can produce or deliver. For instance, understanding your brewing capacity per batch is vital if you’re planning to start a craft brewery.

Resource Assessment

Do you have access to the required materials, labor, and equipment? This step ensures that you’re not just ideating but capable of executing. In the case of a software startup, having a skilled development team and necessary software licenses are crucial resources.

Technology Evaluation

Depending on your industry, technology can be a game-changer. Consider a scenario where you’re venturing into the field of renewable energy. Assessing the latest solar panel technology and its efficiency would be a key aspect of the technical analysis.

Key Element 3: Financial Analysis

This is where dreams meet numbers. Financial analysis is the bedrock of any feasibility study.

Cost Assessment

Cost assessment is about understanding what it takes to start the venture. This includes initial investments, operation costs, and more. If you’re planning a boutique hotel, this would involve expenses like construction, interior design, and staff recruitment.

Revenue Projections

How do you plan to make money? Revenue projections involve estimating income streams. If you’re developing a software-as-a-service (SaaS) product, you’d project subscription-based revenue.

Profit Index Analysis

Profit index analysis is the heart of financial analysis. Are you going to make a profit, and if so, when? For instance, considering a food delivery service, you’d factor in expenses like food sourcing, logistics, and marketing costs against potential earnings.

Essential Element 4: Risk Analysis

In business, as in life, risks are inevitable. Identifying and mitigating risk is a critical aspect of any market research study.

Risk Identification

This involves identifying potential obstacles, challenges, or uncertainties that could hinder the success of your venture. For example, a risk might include charging infrastructure if you plan to launch a new line of electric cars.

Risk Assessment

Once identified, risk assessment on the potential impact and likelihood of occurrence should follow. In our electric car example, the effect of limited charging infrastructure on sales and market penetration would be a critical assessment.

Risk Mitigation Strategies

What are you going to do about these risks? This step involves developing plans and strategies to minimize the impact of identified threats in your product lines. This might include partnerships with charging infrastructure providers or innovative solutions like swappable batteries.

Differences Between Marketing Feasibility Study, Marketing Plan, and Business Plan

Marketing feasibility, marketing plan, and business plan have several similarities. However, there are clear differences between these business strategies.

Marketing Feasibility

Market Feasibility is like doing your homework before starting a business. It’s all about finding out if there’s a real need for what you want to offer.

The component of a marketing feasibility study includes feasibility study market analysis, customer demographics, competition assessment, and financial projections.

For instance, if you’re into starting a tutoring service, you’d want to know if enough students seek help in your area.

Marketing Plan

Marketing Plan is your game plan for promoting your business. It’s like making a strategy for how you’ll let people know about your awesome products or services.

The component of your marketing plan includes market analysis, target audience identification, competitive analysis, marketing tactics, budget allocation, and performance metrics.

Let’s say you’re launching a cool app; your marketing plan might involve social media ads. You can also use influencers and maybe even some fun launch events.

Business Plan

Business Plan is like the master plan for your whole business. It’s like a roadmap that covers everything about your business. It covers details from what you’re selling to how you’ll make money and even how you’ll grow in the future.

The components of a business plan include an executive summary , target market, and operation structure. Other notable elements are marketing strategies, financial projections, and the long-term goals of your business.

If you’re considering starting a small bakery, your business plan would have information about your menu and location. Other information will include budget and how you’ll stand out from other bakeries.

However, these plans work together to ensure your business idea is strong and ready to shine.

Reasons to Hire a Research Firm for Your Market Research Feasibility Study

Market research feasibility is the most critical type of Feasibility Analysis . This is because it directly impacts the success of any business venture.

As a startup entrepreneur, having a perfect result might step beyond due to associated market experience and technology requirements. Expert market research firms remove these worries and allow you to focus on other aspects of the business.

One standout market research firm you can hire in the UAE and Dubai markets is Researchers. Hiring firms like Researchers offers you the following:

Access to Advanced Tools

Research firms have cutting-edge technology and computation tools. These technical resources may not be readily available in-house, leading to more refined and accurate results.

Industry Knowledge

Specialized research firms often have deep industry expertise. This experience enables them to understand market terms and trends that may not be apparent to a generalist.

Privacy and Security

Professional research firms prioritize privacy and have robust data security measures to safeguard sensitive information.

Benchmarking and Comparison

Research firms can provide benchmarking against industry standards and competitors, giving you a clearer understanding of your position in the market.

Global Reach

If your market extends beyond borders, research firms with international capabilities can offer insights into global markets. This insight can help you make strategic decisions with a great ROI on your time and money.

In business ventures, knowledge truly is power. A marketing feasibility study equips you with the insights needed to navigate the complexities of a new endeavor. Let’s recap why each component is crucial:

• Market Analysis: It’s about understanding your battlefield. Knowing your demography, market size, trends, and competition provides a solid foundation for your venture.
• Technical Analysis: This ensures you have the capabilities and resources to turn your concept into reality. It’s the engine that drives your business forward.
• Financial Analysis: Dreams meet reality here. It’s where you assess the costs and project revenues and determine if your venture will be financially viable.
• Risk Analysis: Business is not without its risks. Identifying, assessing, and mitigating these risks sets successful ventures apart from the rest.

So, take this knowledge and implement it in your own ventures. A well-conducted market research can determine between a venture that dips and one that soars.

As you embark on your business journey, remember that a well-informed choice today can lead to a thriving venture tomorrow. Hire expert research firms like Researchers for an optimal result.

• Azhar Siddique
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How to conduct a feasibility study: Templates and examples

Conducting a feasibility study is an important step in successful project management. By evaluating the viability of a proposed project, a feasibility study helps you identify potential challenges and opportunities, ensuring you make informed decisions. In this guide, we’ll walk you through how to conduct a feasibility study with practical templates and real-world examples, designed for project managers seeking to optimize their project planning process.

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 hand, 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? 

Benefits of conducting a feasibility study

There are several key benefits to conducting a feasibility study before launching a new project:

Confirms market opportunities and the target market before investing significant resources

Identifies potential issues and risks early on

Provides in-depth data for better decision making on the proposed project's viability

Creates documentation on expected costs and benefits, including financial analysis

Obtains stakeholder buy-in by demonstrating due diligence

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 assessment. 

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 analysis?

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 disadvantages of your proposed initiative

Provide more information before making a go-or-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 analysis 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'll run a feasibility study to confirm that the project is possible with the tools and resources you have at your disposal. 

Types of feasibility studies

There are five main types of feasibility studies: technical feasibility, financial feasibility, market feasibility (or market fit), operational feasibility, and legal feasibility. Most comprehensive feasibility studies will include an assessment of all five of these areas.

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) and 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, a 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. 

Legal feasibility

A legal feasibility analysis assesses whether the proposed project complies with all relevant legal requirements and regulations. This includes examining legal and regulatory barriers, necessary permits, licenses, or certifications, potential legal liabilities or risks, and intellectual property considerations. The legal feasibility study ensures that the project can be completed without running afoul of any laws or incurring undue legal exposure for the organization.

Feasibility assessment 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. 

The essential elements of a feasibility study are: 

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 evaluates 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 the market by a certain date but won’t be available for several months after that, 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 go. 

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.

Feasibility study examples

To better understand the concepts behind feasibility assessments, here are two hypothetical examples demonstrating how these studies can be applied in real-world scenarios.

Example 1: New product development

A consumer goods company is considering launching a new product line. Before investing in new product development, they conduct a feasibility study to assess the proposed project.

The feasibility study includes:

Market research to gauge consumer interest, assess competitor offerings, and estimate potential market share for the target market.

Technological considerations, including R&D requirements, production processes, and any necessary patents or certifications.

In-depth financial analysis projects sales volumes, revenue, costs, and profitability over a multi-year period.

Evaluation of organizational readiness, including the skills of the current management team and staff to bring the new product to market.

Assessment of legal feasibility to ensure compliance with regulations and identify any potential liability issues.

The comprehensive feasibility study identifies a promising market opportunity for the new business venture. The company decides to proceed with the new project, using the feasibility report as a template for their business development process. The study helps secure funding from key decision-makers, setting this start-up product initiative up for success.

Example 2: Real estate development deal

A property developer is evaluating the feasibility of purchasing land for a new residential community. They commission a feasibility study to determine the viability of this real estate development project.

The feasibility assessment covers:

Detailed analysis of the local housing market, including demand drivers, comparable properties, pricing, and absorption rates.

Site planning to assess the property's capacity, constraints, and technological considerations.

In-depth review of legal feasibility, including zoning, permitting, environmental regulations, and other potential legal hurdles.

Financial analysis modeling various development scenarios and estimating returns on investment.

Creation of an opening day balance sheet projecting the assets, liabilities, and equity for the proposed project.

Sensitivity analysis to evaluate the impact of changes in key assumptions on the project's scope and profitability.

The feasibility study concludes that while the real estate start-up is viable, it carries significant risk. Based on these findings, the developer makes an informed decision to move forward, but with a revised project's scope and a phased approach to mitigate risk. The comprehensive feasibility analysis proves critical in guiding this major investment decision.

Which phase of the project management process involves feasibility studies?

Feasibility studies are a key part of the project initiation and planning phases. They are typically conducted after a project has been conceptualized but before significant resources are invested in detailed planning and execution.

The purpose of a feasibility assessment is to objectively evaluate the viability of a proposed project, considering factors such as technical feasibility, market demand, financial costs and benefits, legal requirements, and organizational readiness. By thoroughly assessing these aspects, a feasibility study helps project stakeholders make an informed go-or-no-go decision.

While feasibility studies are a critical tool in the early stages of project management, they differ from other planning documents like project charters, business cases, and business plans. Here's a closer look at these key differences:

Feasibility study vs. project charter

A project charter is a relatively informal document to pitch your project to stakeholders. Think of the charter as an elevator pitch for your project objectives, scope, and responsibilities. Typically, your project sponsor or executive stakeholders review 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 involve more senior stakeholders. 

After your business case is approved by relevant stakeholders, you'll 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 outlining 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.

Achieve project success with Asana

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What is a Market Feasibility Study?

Fahad Usmani, PMP

May 19, 2024

A market feasibility analysis is a part of a feasibility study that analyzes the market to determine whether there is sufficient demand for your product or service. It involves evaluating various factors (e.g., market size, growth potential, competition, target audience, and regulatory environment). 

By gathering and analyzing relevant data, businesses can make informed decisions about the feasibility of their proposed endeavor.

In a market feasibility study, you can ask the following questions:

• Who are my competitors?
• What is driving the demand?
• What is the supply chain for the intended product?
• How will you set the price for your product?
• What pricing model will you adopt?
• Will the model be flexible or rigid? 
• What are the effects of the exchange rate, inflation, demographics, population increase, and urban-rural migration on price forecast?
• Is the price dependent on an international benchmark (e.g., crude oil)?
• What is the market history?
• What is the market forecast?

Elements of Market Feasibility Analysis

A market feasibility study has the following key elements:

• Understanding the Requirements: Prepare the list of key stakeholders and group the clients. If the client is the general public, then group them to collect their requirements. This exercise will ensure that businesses understand the requirements and that they will get approval for their ideas because it already includes the stakeholders’ and clients’ concerns.
• Trend Analysis: Businesses must understand the market trend before launching any product or service. For example, if the market is saturated, then there is no point in launching a similar product or service, as it will only waste resources. This analysis can help businesses find gaps in requirements, market demographics, spending habits, consumption patterns, etc.
• Competitor Analysis: This is the key component of market feasibility analysis. If the business intends to penetrate an existing or saturated market, this analysis provides information to take the necessary actions. Businesses can identify the gaps between the competitor and their product and improve their offering.

Importance of Market Feasibility Studies

• Risk Management: Conducting a market feasibility study can help identify risks and challenges early, thus allowing businesses to manage them before investing their time and resources.
• Understanding Market Demand: By studying consumer preferences, behaviors, and trends, businesses can gain a deeper understanding of market demand. This insight will allow them to tailor their offerings to effectively meet their audience’s needs.
• Resource Allocation: A market feasibility study provides valuable data that can guide resource allocation decisions. Accurate market insights are essential for efficient resource management, whether it involves determining the optimal marketing channels or forecasting sales projections.
• Attracting Investors: Investors are more likely to support a proposal that has undergone market analysis. A robust feasibility study shows that the business has researched the market and understands the business opportunity, which fills investors with confidence.

How to Conduct a Market Feasibility Study

You can follow these steps to conduct your market feasibility study:

• Define the Objective: Define the objectives of your market feasibility study. Are you assessing the viability of a new product, entering a new market, or expanding an existing business?
• Gather Data: Collect relevant data through primary and secondary research methods. Primary research involves gathering firsthand information through surveys, interviews, or focus groups, while secondary research involves analyzing existing data from sources (e.g., industry reports, market studies, and government publications).
• Conduct Market Analysis: Analyze the target market’s size, growth potential, and dynamics. Identify trends, demographics, and consumer preferences that may impact your business.
• Conduct Competitive Analysis: Assess the competitive landscape by identifying direct and indirect competitors. Analyze their strengths and weaknesses, then evaluate their market position and strategies.
• Determine Your Target Audience: Define your target audience and understand their needs, preferences, and purchasing behaviors. This information will help you tailor your marketing strategies and product offerings to effectively engage and attract customers.
• Develop Financial Projections: Based on your market research findings, develop realistic financial projections. This includes estimating sales volumes, pricing strategies, revenue forecasts, and cost projections to assess your endeavor’s potential profitability.

Launching a new product or service in a market is costly and requires a lot of effort. Therefore, conducting a market feasibility study is vital before entering the market. This analysis assesses your endeavor’s viability in the market and provides insights that can shape your business strategy and increase your chances of success.

I am Mohammad Fahad Usmani, B.E. PMP, PMI-RMP. I have been blogging on project management topics since 2011. To date, thousands of professionals have passed the PMP exam using my resources.

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How to conduct a feasibility study: Template and examples

Opportunities are everywhere. Some opportunities are small and don’t require many resources. Others are massive and need further analysis and evaluation.

One of your key responsibilities as a product manager is to evaluate the potential success of those opportunities before investing significant money, time, and resources. A feasibility study, also known as a feasibility assessment or feasibility analysis, is a critical tool that can help product managers determine whether a product idea or opportunity is viable, feasible, and profitable.

So, what is a feasibility analysis? Why should product managers use it? And how do you conduct one?

What is a feasibility study?

A feasibility study is a systematic analysis and evaluation of a product opportunity’s potential to succeed. It aims to determine whether a proposed opportunity is financially and technically viable, operationally feasible, and commercially profitable.

A feasibility study typically includes an assessment of a wide range of factors, including the technical requirements of the product, resources needed to develop and launch the product, the potential market gap and demand, the competitive landscape, and economic and financial viability.

Based on the analysis’s findings, the product manager and their product team can decide whether to proceed with the product opportunity, modify its scope, or pursue another opportunity and solve a different problem.

Conducting a feasibility study helps PMs ensure that resources are invested in opportunities that have a high likelihood of success and align with the overall objectives and goals of the product strategy .

What are feasibility analyses used for?

Feasibility studies are particularly useful when introducing entirely new products or verticals. Product managers can use the results of a feasibility study to:

• Assess the technical feasibility of a product opportunity — Evaluate whether the proposed product idea or opportunity can be developed with the available technology, tools, resources, and expertise
• Determine a project’s financial viability — By analyzing the costs of development, manufacturing, and distribution, a feasibility study helps you determine whether your product is financially viable and can generate a positive return on investment (ROI)
• Evaluate customer demand and the competitive landscape — Assessing the potential market size, target audience, and competitive landscape for the product opportunity can inform decisions about the overall product positioning, marketing strategies, and pricing
• Identify potential risks and challenges — Identify potential obstacles or challenges that could impact the success of the identified opportunity, such as regulatory hurdles, operational and legal issues, and technical limitations
• Refine the product concept — The insights gained from a feasibility study can help you refine the product’s concept, make necessary modifications to the scope, and ultimately create a better product that is more likely to succeed in the market and meet users’ expectations

How to conduct a feasibility study

The activities involved in conducting a feasibility study differ from one organization to another. Also, the threshold, expectations, and deliverables change from role to role.

For a general set of guidelines to help you get started, here are some basic steps to conduct and report a feasibility study for major product opportunities or features.

1. Clearly define the opportunity

Imagine your user base is facing a significant problem that your product doesn’t solve. This is an opportunity. Define the opportunity clearly, support it with data, talk to your stakeholders to understand the opportunity space, and use it to define the objective.

2. Define the objective and scope

Each opportunity should be coupled with a business objective and should align with your product strategy.

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Determine and clearly communicate the business goals and objectives of the opportunity. Align those objectives with company leaders to make sure everyone is on the same page. Lastly, define the scope of what you plan to build.

3. Conduct market and user research

Now that you have everyone on the same page and the objective and scope of the opportunity clearly defined, gather data and insights on the target market.

Include elements like the total addressable market (TAM) , growth potential, competitors’ insights, and deep insight into users’ problems and preferences collected through techniques like interviews, surveys, observation studies, contextual inquiries, and focus groups.

4. Analyze technical feasibility

Suppose your market and user research have validated the problem you are trying to solve. The next step should be to, alongside your engineers, assess the technical resources and expertise needed to launch the product to the market.

Dig deeper into the proposed solution and try to comprehend the technical limitations and estimated time required for the product to be in your users’ hands.

5. Assess financial viability

If your company hasa product pricing team, work closely with them to determine the willingness to pay (WTP) and devise a monetization strategy for the new feature.

Conduct a comprehensive financial analysis, including the total cost of development, revenue streams, and the expected return on investment (ROI) based on the agreed-upon monetization strategy.

6. Evaluate potential risks

Now that you have almost a complete picture, identify the risks associated with building and launching the opportunity. Risks may include things like regulatory hurdles, technical limitations, and any operational risks.

7. Decide, prepare, and share

Based on the steps above, you should end up with a report that can help you decide whether to pursue the opportunity or not. Either way, prepare your findings, including any recommended modifications to the product scope, and present your final findings and recommendations to your stakeholders.

Make sure to prepare an executive summary for your C-suite; they will be the most critical stakeholders and the decision-makers at the end of the meeting.

Feasibility study example

Imagine you’re a product manager at a digital software company that specializes in building project management tools.

Your team has identified a potential opportunity to expand the product offering by developing a new AI-based feature that can automatically prioritize tasks for users based on their deadlines, workload, and importance.

To assess the viability of this opportunity, you can conduct a feasibility study. Here’s how you might approach it according to the process described above:

• Clearly define the opportunity — In this case, the opportunity is the development of an AI-based task prioritization feature within the existing project management software
• Define the objective and scope — The business objective is to increase user productivity and satisfaction by providing an intelligent task prioritization system. The scope includes the integration of the AI-based feature within the existing software, as well as any necessary training for users to understand and use the feature effectively
• Conduct market and user research — Investigate the demand for AI-driven task prioritization among your target audience. Collect data on competitors who may already be offering similar features and determine the unique selling points of your proposed solution. Conduct user research through interviews, surveys, and focus groups to understand users’ pain points regarding task prioritization and gauge their interest in the proposed feature
• Analyze technical feasibility — Collaborate with your engineering team to assess the technical requirements and challenges of developing the AI-based feature. Determine whether your team has the necessary expertise to implement the feature and estimate the time and resources required for its development
• Assess financial viability — Work with your pricing team to estimate the costs associated with developing, launching, and maintaining the AI-based feature. Analyze the potential revenue streams and calculate the expected ROI based on various pricing models and user adoption rates
• Evaluate potential risks — Identify any risks associated with the development and implementation of the AI-based feature, such as data privacy concerns, potential biases in the AI algorithm, or the impact on the existing product’s performance
• Decide, prepare, and share — Based on your analysis, determine whether the AI-based task prioritization feature is a viable opportunity for your company. Prepare a comprehensive report detailing your findings and recommendations, including any necessary modifications to the product scope or implementation plan. Present your findings to your stakeholders and be prepared to discuss and defend your recommendations

Feasibility study template

The following feasibility study template is designed to help you evaluate the feasibility of a product opportunity and provide a comprehensive report to inform decision-making and guide the development process.

Remember that each study will be unique to your product and market, so you may need to adjust the template to fit your specific needs.

• Briefly describe the product opportunity or feature you’re evaluating
• Explain the problem it aims to solve or the value it will bring to users
• Define the business goals and objectives for the opportunity
• Outline the scope of the product or feature, including any key components or functionality
• Summarize the findings from your market research, including data on the target market, competitors, and unique selling points
• Highlight insights from user research, such as user pain points, preferences, and potential adoption rates
• Detail the technical requirements and challenges for developing the product or feature
• Estimate the resources and expertise needed for implementation, including any necessary software, hardware, or skills
• Provide an overview of the costs associated with the development, launch, and maintenance of the product or feature
• Outline potential revenue streams and calculate the expected ROI based on various pricing models and user adoption rates
• Identify any potential risks or challenges associated with the development, implementation, or market adoption of the product or feature
• Discuss how these risks could impact the success of the opportunity and any potential mitigation strategies
• Based on your analysis, recommend whether to proceed with the opportunity, modify the scope, or explore other alternatives
• Provide a rationale for your recommendation, supported by data and insights from your research
• Summarize the key findings and recommendations from your feasibility study in a concise, easily digestible format for your stakeholders

Overcoming stakeholder management challenges

The ultimate challenge that faces most product managers when conducting a feasibility study is managing stakeholders .

Stakeholders may interfere with your analysis, jumping to conclude that your proposed product or feature won’t work and deeming it a waste of resources. They may even try to prioritize your backlog for you.

Here are some tips to help you deal with even the most difficult stakeholders during a feasibility study:

• Use hard data to make your point — Never defend your opinion based on your assumptions. Always show them data and evidence based on your user research and market analysis
• Learn to say no — You are the voice of customers, and you know their issues and how to monetize them. Don’t be afraid to say no and defend your team’s work as a product manager
• Build stakeholder buy-in early on — Engage stakeholders from the beginning of the feasibility study process by involving them in discussions and seeking their input. This helps create a sense of ownership and ensures that their concerns and insights are considered throughout the study
• Provide regular updates and maintain transparency — Keep stakeholders informed about the progress of the feasibility study by providing regular updates and sharing key findings. This transparency can help build trust, foster collaboration, and prevent misunderstandings or misaligned expectations
• Leverage stakeholder expertise — Recognize and utilize the unique expertise and knowledge that stakeholders bring to the table. By involving them in specific aspects of the feasibility study where their skills and experience can add value, you can strengthen the study’s outcomes and foster a more collaborative working relationship

Final thoughts

A feasibility study is a critical tool to use right after you identify a significant opportunity. It helps you evaluate the potential success of the opportunity, analyze and identify potential challenges, gaps, and risks in the opportunity, and provides a data-driven approach in the market insights to make an informed decision.

By conducting a feasibility study, product teams can determine whether a product idea is profitable, viable, feasible, and thus worth investing resources into. It is a crucial step in the product development process and when considering investments in significant initiatives such as launching a completely new product or vertical.

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What Is a Marketing Feasibility Study?

How to write a market feasibility study, how to identify potential customers, clients, and contract sources, how a market feasibility study differs from a marketing plan, frequently asked questions (faqs).

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Market feasibility studies are documents that help businesses assess their likelihood of success. These studies include an analysis of the industry, competitors, and more.

Key Takeaways

• A market feasibility study helps businesses set expectations and plans.
• A good market feasibility study assesses the market environment while also identifying potential customers and other sources of revenue.
• Unlike marketing plans, which aim to make your business look as good as possible, market feasibility studies should be an objective assessment.

Market feasibility studies should include a description of the industry, current market analysis, competition, anticipated future market potential, potential sources of revenue, and sales projections.

Industry Description

Give a brief description (one or two paragraphs) of the industry your business is in, according to the U.S. Department of Labor. Determining your industry is essential for receiving government contracts,  attracting investors , and for receiving grants if you form a nonprofit.

For example, Fictitious Business Example (FBE) is being established to produce and provide quality industrial first aid kits to the U.S. Government and both private and public companies to improve worker safety on the job. FBE's services are classified under the U.S. Department of Labor Standard Industrial Classification (SIC) as SIC Code 5047 and classified as being in the "Medical, Dental, and Hospital Equipment and Supplies" industry. Your company's SIC can be found on OSHA's SIC search tool .

Current Market Analysis

This section of a market feasibility study describes the current market for your product or service. If you are offering something so unique that there are few market statistics, you can either use related industry information or conduct your own independent study. Several ways to conduct your research for new ideas include polling internet forums, sending out questionnaires addressed to targeted consumer groups or the general population, and even customer surveys.

Any solid evidence you have that there is a demand (or market) for your product or services will help you sell your idea. It is particularly important if you are marketing something unique or within a small, specialized market.

You need to show that your ideas are novel because you have found a niche and not because there is no existing market for the idea.

A good source for finding out what is selling (and what is not) is the Department of Labor. Industries showing employee growth is often a good indicator of an industry's overall stability, and massive layoffs indicate fewer business opportunities. Where there is a demand for something, there should be correlating employment growth, the number of new companies being formed, or in the industry's overall combined revenue.

Competition

If you are planning only to serve a local market, start by identifying every competitor within a 50-mile radius. List each competitor by location and distance from you, as well as their distances from each other. You should closely examine all competing businesses that are within 15 miles of your location. Consider their locations, business hours, and how long they have been in business. These things can help you determine how hard it will be to establish a similar business in the same geographic area.

You should also make a note of any similar businesses in your area that have recently gone out of business. There may be a reason such as poor location, high taxes, operating restrictions, or not enough demand for the product or service in that area to sustain a business. Researching local competitor information can tell you two things: what works now and what has not worked for other businesses.

If you are planning to sell your products or services on a larger scale through franchise development or internet sales, you need to look beyond the local competition. To find smaller competition, use a search engine to find businesses by keywords related to your industry. The return will show you companies selling similar products that are ranking high in search engine results and possibly getting more business.

Visit their websites to see what they are selling and what they are not selling.

If you are not sure what keywords relate to your industry, use free, online keyword search tools to help you know what most people are searching for in your related field.

Anticipated Future Market Potential

This section should include a narrative description, as well as attached spreadsheets, graphs, or tables showing trends, statistics, or projections. There are no surefire ways to tell if an industry will have measurable growth in the future, but you can make logical and reasonable predictions based on trends, past growth, and the current markets.

It is critical in this section that your projections are fact-based as much as possible. Every business takes risks; the key is to minimize those risks by carefully studying already successful companies. Rather than targeting the entire industry, try to isolate similar businesses and study what they are doing, how they are doing it, and their financial track record.

Potential Sources of Revenue

You can obtain a lot of information by visiting company websites and looking over product lines. Look for discontinued products or services and high-priced items. Somewhere in between these two things are probably the most stable long-term items. Discontinued means consumers no longer demand the product, while high-priced items may indicate a fad.

Since big companies spend big bucks on market research, take advantage of their money spent and public information. For example, if you are trying to crack the pet market, look at PetSmart and Petco. Examine the new product lines or services they are offering; chances are good that they spent millions researching industry trends to develop new product ideas.

Look for press releases about businesses in your industry. Press releases are an advertisement, but they also often tell why a company is branching out, closing a division, or changing its product line. They have already done the research for you, so do not hesitate to take clues from other businesses.

Sales Projections

Sales projections can be a challenge for any new business owner because there is little or no track record to support how fast you will grow or what products or services will sell best. Sales projections should factor in how much time and money will be invested in the business and the markets you will be targeting.

For example, if you get your product in the door at Walmart or Target, your sales are more likely to grow faster than if you sell your product in local mom-and-pop stores.

That's why it is important that you write a market feasibility study first. Your market study will help you decide where to sell your product or services and what products and services are most likely to generate the most revenue. 

If you have an internet-based business, you should estimate the total traffic (number of visitors) to your website each month, project anticipated site traffic volume over time, use traffic projections to estimate the average number of sales per every 10,000 visits to your site, and calculate the average amount of each sale.

The more traffic you can drive to your site, the more opportunities you have for making a sale—and it helps to have good search engine optimization (SEO) skills. This is important for all internet businesses because, as your site becomes more popular, you can project an increase in sales. A good rule of thumb is to summarize sales projections in the content but attach a spreadsheet showing actual numbers based on sales projections.

This component of your small business market feasibility study should be descriptive. Your potential customers, clients, and contract sources should include a list of current customers, clients, and contracts, as well as possible new or renewed contracts. Make a note of any sales lead that may generate new customers or clients, a list of government contracting agencies—with a brief description of what type of contracts they solicit and how they pertain to your industry—and a list of market types you currently target or intend to target, such as senior citizens, working mothers, organizations, specialty retailers, etc.

Depending on the nature of your business, it may not be possible to associate specific amounts of revenue with a particular market, but you can at least try to estimate the percentage of total revenue expected from each source. For example, if you plan to sell products to five specialty stores, list each store you plan to sell to, and total overall revenue for the specialty stores, rather than an amount for each individual store.

Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses, and they look at how things work, if they will work, and if there are potential problems. Feasibility studies are assessment tools, not just reports to try and sell your business to investors. They should consider both the pros and cons and analyze a variety of potential business scenarios.

A marketing plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations, and is intended to be implemented. Think of market feasibility studies as a logistical study, and a marketing plan as a specific, planned course of action to take.

What is the importance of the market feasibility study?

Market feasibility studies give you a more realistic sense of whether or not your business can survive. Marketing efforts, pitch decks, and similar documents will always highlight your company's best potential. A market feasibility study helps you gauge your probability of success after reviewing all of the issues and competitors.

What are the main parts of a market feasibility study?

The main parts of a market feasibility study are the executive summary , the description of the product or service, the technology considerations, the product or service marketplace, the identification of a specific market, the marketing strategy, the organization structure, the schedule, and the final projections.

Bureau of Labor Statistics. " Industries at a Glance ."

Department of Labor. " Description for 5047: Medical, Dental, and Hospital Equipment and Supplies ."

Department of Labor. " Standard Industrial Classification (SIC) Manual ."

Bureau of Labor Statistics. " Employment Projections ."

Google. " Search Engine Optimization (SEO) Starter Guide ."

Iowa State University. " What Is a Feasibility Study? "

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What Is a Feasibility Study? How to Conduct One for Your Project

Why is a feasibility study so important in project management? For one, the feasibility study or feasibility analysis is the foundation upon which your project plan resides. That’s because the feasibility analysis determines the viability of your project. Now that you know the importance, read on to learn what you need to know about feasibility studies.

What Is a Feasibility Study?

A feasibility study is simply an assessment of the practicality of a proposed project plan or method. This is done by analyzing technical, economic, legal, operational and time feasibility factors. Just as the name implies, you’re asking, “Is this feasible?” For example, do you have or can you create the technology that accomplishes what you propose? Do you have the people, tools and resources necessary? And, will the project get you the ROI you expect?

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Feasibility study template

Use this free Feasibility Study Template for Word to manage your projects better.

What’s the Importance of a Feasibility Study?

A project feasibility study should be done during the project management life cycle after the business case has been completed. So, that’s the “what” and the “when” but how about the “why?” Why is it important to conduct a feasibility study?

An effective feasibility study points a project in the right direction by helping decision-makers have a holistic view of the potential benefits, disadvantages, barriers and constraints that could affect its outcome. The main purpose of a feasibility study is to determine whether the project can be not only viable but also beneficial from a technical, financial, legal and market standpoint.

What Is Included in a Feasibility Study Report?

The findings of your project feasibility study are compiled in a feasibility report that usually includes the following elements.

• Executive summary
• Description of product/service
• Technology considerations
• Product/service marketplace
• Marketing strategy
• Organization/staffing
• Financial projections
• Findings and recommendations

Free Feasibility Study Template

Use this free feasibility study template for Word to begin your own feasibility study. It has all the fundamental sections for you to get started, and it’s flexible enough to adapt to your specific needs. Download yours today.

Types of Feasibility Study

There are many things to consider when determining project feasibility, and there are different types of feasibility studies you might conduct to assess your project from different perspectives.

Pre-Feasibility Study

A pre-feasibility study, as its name suggests, it’s a process that’s undertaken before the feasibility study. It involves decision-makers and subject matter experts who will prioritize different project ideas or approaches to quickly determine whether the project has fundamental technical, financial, operational or any other evident flaws. If the project proposal is sound, a proper feasibility study will follow.

Technical Feasibility Study

A technical feasibility study consists in determining if your organization has the technical resources and expertise to meet the project requirements . A technical study focuses on assessing whether your organization has the necessary capabilities that are needed to execute a project, such as the production capacity, facility needs, raw materials, supply chain and other inputs. In addition to these production inputs, you should also consider other factors such as regulatory compliance requirements or standards for your products or services.

Economic Feasibility Study

Also called financial feasibility study, this type of study allows you to determine whether a project is financially feasible. Economic feasibility studies require the following steps:

• Before you can start your project, you’ll need to determine the seed capital, working capital and any other capital requirements, such as contingency capital. To do this, you’ll need to estimate what types of resources will be needed for the execution of your project, such as raw materials, equipment and labor.
• Once you’ve determined what project resources are needed, you should use a cost breakdown structure to identify all your project costs.
• Identify potential sources of funding such as loans or investments from angel investors or venture capitalists.
• Estimate the expected revenue, profit margin and return on investment of your project by conducting a cost-benefit analysis , or by using business forecasting techniques such as linear programming to estimate different future outcomes under different levels of production, demand and sales.
• Estimate your project’s break-even point.
• Conduct a financial benchmark analysis with industrial averages and specific competitors in your industry.
• Use pro forma cash flow statements, financial statements, balance sheets and other financial projection documents.

Legal Feasibility Study

Your project must meet legal requirements including laws and regulations that apply to all activities and deliverables in your project scope . In addition, think about the most favorable legal structure for your organization and its investors. Each business legal structure has advantages and disadvantages when it comes to liability for business owners, such as limited liability companies (LLCs) or corporations, which reduce the liability for each business partner.

Market Feasibility Study

A market feasibility study determines whether your project has the potential to succeed in the market. To do so, you’ll need to analyze the following factors:

• Industry overview: Assess your industry, such as year-over-year growth, identify key direct and indirect competitors, availability of supplies and any other trends that might affect the future of the industry and your project.
• SWOT analysis: A SWOT analysis allows organizations to determine how competitive an organization can be by examining its strengths, weaknesses and the opportunities and threats of the market. Strengths are the operational capabilities or competitive advantages that allow an organization to outperform its competitors such as lower costs, faster production or intellectual property. Weaknesses are areas where your business might be outperformed by competitors. Opportunities are external, such as an underserved market, an increased demand for your products or favorable economic conditions. Threats are also external factors that might affect your ability to do well in the market such as new competitors, substitute products and new technologies.
• Market research: The main purpose of market research is to determine whether it’s possible for your organization to enter the market or if there are barriers to entry or constraints that might affect your ability to compete. Consider variables such as pricing, your unique value proposition, customer demand, new technologies, market trends and any other factors that affect how your business will serve your customers. Use market research techniques to identify your target market, create buyer personas, assess the competitiveness of your niche and gauge customer demand, among other things.

7 Steps to Do a Feasibility Study

If you’re ready to do your own feasibility study, follow these 7 steps. You can use this free feasibility study template to help you get started.

1. Conduct a Preliminary Analysis

Begin by outlining your project plan . You should focus on an unserved need, a market where the demand is greater than the supply and whether the product or service has a distinct advantage. Then, determine if the feasibility factors are too high to clear (i.e. too expensive, unable to effectively market, etc.).

2. Prepare a Projected Income Statement

This step requires working backward. Start with what you expect the income from the project to be and then what project funding is needed to achieve that goal. This is the foundation of an income statement. Factor in what services are required and how much they’ll cost and any adjustments to revenues, such as reimbursements, etc.

Related: Free Project Management Templates

3. Conduct a Market Survey or Perform Market Research

This step is key to the success of your feasibility study, so make your market analysis as thorough as possible. It’s so important that if your organization doesn’t have the resources to do a proper one, then it is advantageous to hire an outside firm to do so.

Market research will give you the clearest picture of the revenues and return on investment you can realistically expect from the project. Some things to consider are the geographic influence on the market, demographics, analyzing competitors, the value of the market and what your share will be and if the market is open to expansion (that is, in response to your offer).

4. Plan Business Organization and Operations

Once the groundwork of the previous steps has been laid, it’s time to set up the organization and operations of the planned project to meet its technical, operational, economic and legal feasibility factors. This isn’t a superficial, broad-stroke endeavor. It should be thorough and include start-up costs, fixed investments and operating costs. These costs address things such as equipment, merchandising methods, real estate, personnel, supply availability, overhead, etc.

5. Prepare an Opening Day Balance Sheet

This includes an estimate of the assets and liabilities, one that should be as accurate as possible. To do this, create a list that includes items, sources, costs and available financing. Liabilities to consider are such things as leasing or purchasing land, buildings and equipment, financing for assets and accounts receivables.

6. Review and Analyze All Data

All of these steps are important, but the review and analysis are especially important to ensure that everything is as it should be and that nothing requires changing or tweaking. Take a moment to look over your work one last time.

Reexamine your previous steps, such as the income statement, and compare them with your expenses and liabilities. Is it still realistic? This is also the time to think about risk and come up with any contingency plans .

7. Make a Go/No-Go Decision

You’re now at the point to make a decision about whether or not the project is feasible. That sounds simple, but all the previous steps lead to this decision-making moment. A couple of other things to consider before making that binary choice are whether the commitment is worth the time, effort and money and whether it aligns with the organization’s strategic goals and long-term aspirations.

Feasibility Study Examples

Here are some simple feasibility study examples so you have a better idea of what a feasibility study is used for in different industries.

Construction Feasibility Study

For this construction feasibility study example, let’s imagine a large construction company that’s interested in starting a new project in the near future to generate profits.

• Pre-Feasibility Study: The first step is to conduct a preliminary feasibility study. It can be as simple as a meeting where decision-makers will prioritize projects and discuss different project ideas to determine which poses a bigger financial benefit for the organization.
• Technical Feasibility Study: Now it’s time to estimate what resources are needed to execute the construction project, such as raw materials, equipment and labor. If there’s work that can’t be executed by the company with its current resources, a subcontractor will be hired to fill the gap.
• Economic Feasibility Study: Once the construction project management team has established what materials, equipment and labor are needed, they can estimate costs. Cost estimators use information from past projects, construction drawings and documents such as a bill of quantities to come up with an accurate cost estimate. Then, based on this estimate, a profit margin and financial forecasts will be analyzed to determine if there’s economic feasibility.
• Legal Feasibility Study: Now the company needs to identify all potential regulations, building codes and laws that might affect the project. They’ll need to ask for approval from the local government so that they can begin the construction project .
• Market Feasibility Study: Market feasibility will be determined depending on the nature of the project. For this feasibility example, let’s assume a residential construction project will be built. To gauge market potential, they’ll need to analyze variables such as the average income of the households in the city, crime rate, population density and any trends in state migration.

Manufacturing Feasibility Study

Another industry that uses feasibility studies is manufacturing. It’s a test run of the steps in the manufacturing production cycle to ensure the process is designed properly. Let’s take a look at what a manufacturing feasibility study example would look like.

• Feasibility Study: The first step is to look at various ideas and decide which is the best one to pursue. You don’t want to get started and have to stop. That’s a waste of time, money and effort. Look at what you intend to manufacture, does it fill an unserved need, is the market able to support competition and can you manufacture a quality product on time and within your budget?
• Financial Feasibility Study: Find out if your estimated income from the sale of this product is going to cover your costs, both direct and indirect costs. Work backward from the income you expect to make and the expenses you’ll spend for labor, materials and production to determine if the manufacturing of this product is financially feasible.
• Market Feasibility Study: You’ve already determined that there’s a need that’s not being served, but now it’s time to dig deeper to get realistic projections of revenue. You’ll want to define your target demographic, analyze the competitive landscape, determine the total market volume and what your market share will be and estimate what market expansion opportunities there are.
• Technical Feasibility Study: This is where you’ll explore the production , such as what resources you’ll need to produce your product. These findings will inform your financial feasibility study as well as labor, material, equipment, etc., costs have to be within your budget. You’ll also figure out the processes you’ll use to produce and deliver your product to the market, including warehousing and retail distribution.

There could be other feasibility studies you’ll have to make depending on the product and the market, but these are the essential ones that all manufacturers have to look at before they can make an educated decision as to whether to go forward or abandon the idea.

Best Practices for a Feasibility Study

• Use project management software like ProjectManager to organize your data and work efficiently and effectively
• Use templates or any data and technology that gives you leverage
• Involve the appropriate stakeholders to get their feedback
• Use market research to further your data collection
• Do your homework and ask questions to make sure your data is solid

If your project is feasible, then the real work begins. ProjectManager helps you plan more efficiently. Our online Gantt chart organizes tasks, sets deadlines, adds priority and links dependent tasks to avoid delays. But unlike other Gantt software, we calculate the critical path for you and set a baseline to measure project variance once you move into the execution phase.

Watch a Video on Feasibility Studies

There are many steps and aspects to a project feasibility study. If you want yours to be accurate and forecast correctly whether your project is doable, then you need to have a clear understanding of all its moving parts.

Jennifer Bridges, PMP, is an expert on all aspects of project management and leads this free training video to help you get a firm handle on the subject.

Here’s a screenshot for your reference!

Pro tip: When completing a feasibility study, it’s always good to have a contingency plan that you test to make sure it’s a viable alternative.

ProjectManager Improves Your Feasibility Study

A feasibility study is a project, so get yourself a project management software that can help you execute it. ProjectManager is an award-winning software that can help you manage your feasibility study through every phase.

Once you have a plan for your feasibility study, upload that task list to our software and all your work is populated in our online Gantt chart. Now you can assign tasks to team members, add costs, create timelines, collect all the market research and attach notes at the task level. This gives people a plan to work off of, and a collaborative platform to collect ideas and comments.

If you decide to implement the project, you already have it started in our software, which can now help you monitor and report on its progress. Try it for yourself with this free 30-day trial.

Transcription

Today we’re talking about How to Conduct A Feasibility Study, but first of all, I want to start with clarifying what a feasibility study is.

Feasibility Analysis Definition

Basically, it’s an assessment of the practicality of a proposed plan or method. Basically, we’ll want to want to know, is this feasible. Some of the questions that may generate this or we can hear people asking are, “Do we have or can we create the technology to do this? Do we have the people resource who can produce this and will we get our ROI, our Return On Investment?”

When to Do a Feasibility Study

So when do we do the feasibility study? So it’s done during a project lifecycle and it’s done after the business case because the business case outlines what we’re proposing. Is it a product or service that we’re proposing?

So why do we do this? The reason we do this is that we need to determine the factors that will make the business opportunity a success.

How to Conduct a Feasibility Study

Well, let’s talk about a few steps that we do in order to conduct the feasibility study.

Well, first of all, we conduct a preliminary analysis of what all’s involved in the business case and what we’re analyzing and what we’re trying to determine is feasible.

Then we prepare a projected income statement. We need to know what are the income streams, how are we gonna make money on this. Where’s the revenue coming from? We also need to conduct a market survey.

We need to know, is this a demand? Is there a market for this? Are customers willing to use this product or use this service?

The fourth one is to plan the business organization and operations. What is the structure, what kind of resources do we need? What kind of staffing requirements do we have?

We also want to prepare an opening day balance sheet. What are the…how again, what are the expenses, what’s the revenue and to ensure that being able to determine if we’re gonna make our ROI.

So we want to review and analyze all of the data that we have and with that, we’re going to determine, we’re going to make a go, no-go decision. Meaning, are we going to do this project or this business opportunity or not.

Well, here are some of the best practices to use during your feasibility study.

One is to use templates, tools and surveys that exist today. The great news is, data is becoming more and more prevalent. There are all kinds of technologies. There are groups that they do nothing but research. Things that we can leverage today.

We want to involve the appropriate stakeholders to ensure that input is being considered from the different people involved.

We also want to use again the market research to ensure we’re bringing in good, reliable data.

Do your homework, meaning act like is if this is your project, if it’s your money. So do your homework and do it well and make sure you give credible data.

What Is a Feasibility Report?

So ultimately in the end what we’re doing is, we’re producing and we’re providing a feasibility report. So in that report, think of this is like a template.

So what you’re gonna do is give it an executive summary of the business opportunity that you’re evaluating and the description of the product or the service.

You want to look at different technology considerations. Is it technology that you’re going to use? Are you going to build the technology?

What kind of product and service marketplace and being able again, to identify the specific market you’re going to be targeting? Also, what is the marketing strategy you’re going to use to target the marketplace?

And also what’s the organizational structure? What are the staffing requirements? What people do you need to deliver the product or service and even support it?

So also we want to know the schedule to be able to have the milestones to ensure that as we’re building things, that as we’re spending money that we’re beginning to bring in income to pay and knowing when we’re going to start recuperating some of the funding. Again, which also ties into the financial projections.

Ultimately in this report, you’re going to provide the findings and the recommendations.

Again, we’ll probably talk about technology. Are you going to build it? Are you going to buy it? What are the marketing strategies for the specific marketplace organization? You may have some recommendations for whether you’re going to insource the staff, maybe you are going to outsource some staff and what that looks like and also financial recommendation.

If you’ve been looking for an all-in-one tool that can help with your feasibility study, consider ProjectManager. We offer five project views and countless features that make it seamless to plan projects, organize tasks and stay connected with your team. See what our software can do for you by taking this free 30-day trial.

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11.3 Conducting a Feasibility Analysis

Learning objectives.

By the end of this section, you will be able to:

• Describe the purpose of a feasibility analysis
• Describe and develop the parts of a feasibility analysis
• Understand how to apply feasibility outcomes to a new venture

As the name suggests, a feasibility analysis is designed to assess whether your entrepreneurial endeavor is, in fact, feasible or possible. By evaluating your management team, assessing the market for your concept, estimating financial viability, and identifying potential pitfalls, you can make an informed choice about the achievability of your entrepreneurial endeavor. A feasibility analysis is largely numbers driven and can be far more in depth than a business plan (discussed in The Business Plan ). It ultimately tests the viability of an idea, a project, or a new business. A feasibility study may become the basis for the business plan, which outlines the action steps necessary to take a proposal from ideation to realization. A feasibility study allows a business to address where and how it will operate, its competition, possible hurdles, and the funding needed to begin. The business plan then provides a framework that sets out a map for following through and executing on the entrepreneurial vision.

Organizational Feasibility Analysis

Organizational feasibility aims to assess the prowess of management and sufficiency of resources to bring a product or idea to market Figure 11.12 . The company should evaluate the ability of its management team on areas of interest and execution. Typical measures of management prowess include assessing the founders’ passion for the business idea along with industry expertise, educational background, and professional experience. Founders should be honest in their self-assessment of ranking these areas.

Resource sufficiency pertains to nonfinancial resources that the venture will need to move forward successfully and aims to assess whether an entrepreneur has a sufficient amount of such resources. The organization should critically rank its abilities in six to twelve types of such critical nonfinancial resources, such as availability of office space, quality of the labor pool, possibility of obtaining intellectual property protections (if applicable), willingness of high-quality employees to join the company, and likelihood of forming favorable strategic partnerships. If the analysis reveals that critical resources are lacking, the venture may not be possible as currently planned. 46

Financial Feasibility Analysis

A financial analysis seeks to project revenue and expenses (forecasts come later in the full business plan); project a financial narrative; and estimate project costs, valuations, and cash flow projections Figure 11.13 .

The financial analysis may typically include these items:

• A twelve-month profit and loss projection
• A three- or four-year profit-and-loss projection
• A cash-flow projection
• A projected balance sheet
• A breakeven calculation

The financial analysis should estimate the sales or revenue that you expect the business to generate. A number of different formulas and methods are available for calculating sales estimates. You can use industry or association data to estimate the sales of your potential new business. You can search for similar businesses in similar locations to gauge how your business might perform compared with similar performances by competitors. One commonly used equation for a sales model multiplies the number of target customers by the average revenue per customer to establish a sales projection:

Another critical part of planning for new business owners is to understand the breakeven point , which is the level of operations that results in exactly enough revenue to cover costs (see Entrepreneurial Finance and Accounting for an in-depth discussion on calculating breakeven points and the breakdown of cost types). It yields neither a profit nor a loss. To calculate the breakeven point, you must first understand the two types of costs: fixed and variable. Fixed costs are expenses that do not vary based on the amount of sales. Rent is one example, but most of a business’s other costs operate in this manner as well. While some costs vary from month to month, costs are described as variable only if they will increase if the company sells even one more item. Costs such as insurance, wages, and office supplies are typically considered fixed costs. Variable costs fluctuate with the level of sales revenue and include items such as raw materials, purchases to be sold, and direct labor. With this information, you can calculate your breakeven point—the sales level at which your business has neither a profit nor a loss. 47 Projections should be more than just numbers: include an explanation of the underlying assumptions used to estimate the venture’s income and expenses.

Projected cash flow outlines preliminary expenses, operating expenses, and reserves—in essence, how much you need before starting your company. You want to determine when you expect to receive cash and when you have to write a check for expenses. Your cash flow is designed to show if your working capital is adequate. A balance sheet shows assets and liabilities, necessary for reporting and financial management. When liabilities are subtracted from assets, the remainder is owners’ equity. The financial concepts and statements introduced here are discussed fully in Entrepreneurial Finance and Accounting .

Market Feasibility Analysis

A market analysis enables you to define competitors and quantify target customers and/or users in the market within your chosen industry by analyzing the overall interest in the product or service within the industry by its target market Figure 11.14 . You can define a market in terms of size, structure, growth prospects, trends, and sales potential. This information allows you to better position your company in competing for market share. After you’ve determined the overall size of the market, you can define your target market, which leads to a total available market (TAM) , that is, the number of potential users within your business’s sphere of influence. This market can be segmented by geography, customer attributes, or product-oriented segments. From the TAM, you can further distill the portion of that target market that will be attracted to your business. This market segment is known as a serviceable available market (SAM) .

Projecting market share can be a subjective estimate, based not only on an analysis of the market but also on pricing, promotional, and distribution strategies. As is the case for revenue, you will have a number of different forecasts and tools available at your disposal. Other items you may include in a market analysis are a complete competitive review, historical market performance, changes to supply and demand, and projected growth in demand over time.

Are You Ready?

You’ve been hired by a leading hotel chain to determine the market and financial potential for the development of a mixed-use property that will include a full-service hotel in downtown Orlando, located at 425 East Central Boulevard, in Orlando, Florida. The specific address is important so you can pinpoint existing competitors and overall suitability of the site. Using the information given, conduct a market analysis that can be part of a larger feasibility study.

Work It Out

Location feasibility.

You’re considering opening a boutique clothing store in downtown Atlanta. You’ve read news reports about how downtown Atlanta and the city itself are growing and undergoing changes from previous decades. With new development taking place there, you’re not sure whether such a venture is viable. Outline what steps you would need to take to conduct a feasibility study to determine whether downtown Atlanta is the right location for your planned clothing store.

Applying Feasibility Outcomes

After conducting a feasibility analysis, you must determine whether to proceed with the venture. One technique that is commonly used in project management is known as a go-or-no-go decision . This tool allows a team to decide if criteria have been met to move forward on a project. Criteria on which to base a decision are established and tracked over time. You can develop criteria for each section of the feasibility analysis to determine whether to proceed and evaluate those criteria as either “go” or “no go,” using that assessment to make a final determination of the overall concept feasibility. Determine whether you are comfortable proceeding with the present management team, whether you can “go” forward with existing nonfinancial resources, whether the projected financial outlook is worth proceeding, and make a determination on the market and industry. If satisfied that enough “go” criteria are met, you would likely then proceed to developing your strategy in the form of a business plan.

What Can You Do?

Love beyond walls.

When Terence Lester saw a homeless man living behind an abandoned, dilapidated building, he asked the man if he could take him to a shelter. The man scoffed, replying that Lester should sleep in a shelter. So he did—and he saw the problem through the homeless man’s perspective. The shelter was crowded and smelly. You couldn’t get much sleep, because others would try to steal your meager belongings. The dilapidated building provided isolation away from others, but quiet and security in its own way that the shelter could not. This experience led Lester to voluntarily live as a homeless person for a few weeks. His journey led him to create Love Beyond Walls (www.lovebeyondwalls.org), an organization that aids the homeless, among other causes. Lester didn’t conduct a formal feasibility study, but he did so informally by walking in his intended customers’ shoes—literally. A feasibility study of homelessness in a particular area could yield surprising findings that might lead to social entrepreneurial pursuits.

• What is a social cause you think could benefit from a formal feasibility study around a potential entrepreneurial solution?
• 46 Ulrich Kaiser. “A primer in Entrepreneurship – Chapter 3 Feasibility analysis” University of Zurich Institute for Strategy and Business Economics . n.d. https://docplayer.net/7775267-A-primer-in-entrepreneurship-chapter-3-feasibility-analysis.html
• 47 In a preliminary financial model and business plan, startup costs should be allocated, as they are intended for one-time investments in development; pre-launch costs and other necessary expenses will not carry over once the product/solution has launched.

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• Authors: Michael Laverty, Chris Littel
• Publisher/website: OpenStax
• Book title: Entrepreneurship
• Publication date: Jan 16, 2020
• Location: Houston, Texas
• Book URL: https://openstax.org/books/entrepreneurship/pages/1-introduction
• Section URL: https://openstax.org/books/entrepreneurship/pages/11-3-conducting-a-feasibility-analysis

© Jan 4, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

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How to Do a Feasibility Study: To Build, or Not To Build?

Is the juice worth the squeeze? A rigorous feasibility analysis can rescue you from investing resources into a product that shouldn't—or can't —be developed. Here's how to do it, step-by-step.

Let’s play a game. How many cool product ideas can you come up with in a day? 10? 20? My record was 32. But, let’s be honest, having a cool idea is not equivalent to building a successful product.

As product managers who struggle to build and grow products every day, we know about this very well.

But does this mean that we should automatically discard all of our ideas? Of course not. Instead, you should analyze the potential risks and problems related to that proposed project and focus on the ones that are likely to succeed. Enter: the feasibility study.

What is a Feasibility Study?

In product management, a feasibility study, or "feasibility analysis," is the process of reviewing a product idea and understanding your company’s/team’s ability to build that product and make it a success in the market. You will also have a preliminary idea of the different risks and challenges you are likely to face when working on that product.

You would usually evaluate your product from different points of view and ask yourself these questions:

• Are we able to build the technology required for this product to work?
• What does the unit economics for it look like? Would the idea be profitable?
• Are there any legal and compliance limitations that we need to take into consideration?
• Will the market actually like our product and buy it?

By conducting a wide variety of studies, you will eventually have answers to most of these questions and have a more or less solid idea of whether building that product is worth the trouble.

Why Do You Need to Do a Feasibility Study Before Giving Your Product Idea the Green Light?

Let me be brutally honest. A good product idea is barely responsible for 20% of your success. The remaining 80% depends on your ability to build and grow it.

Most of the time, if you apply your critical thinking and study that idea, you will find that the product you envision requires a technology that does not exist yet or you will have to enter a fiercely competitive market.

So, the billion-dollar idea that came to your mind last week is worth nothing unless a project feasibility study confirms that it’s something doable.

The First Draft Of Your Business Plan Will Probably Suck

I want to talk a bit about business plans. There’s a common misconception among founders that the business plan they have just drafted is perfect, and they are automatically bound to success by following it (and no proper feasibility study is needed).

Yes, a well-drafted business plan will definitely increase your likelihood of success. But let’s not forget that whatever you create is simply the first draft. From my experience, you will end up revising it at least a couple of times based on the knowledge you gain about your users and the market.

So, to speed things up for you and make these revisions as early as possible, you have no choice but to conduct a full-scale feasibility study.

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A Step-by-Step Guide to Conducting a Feasibility Analysis

Yes, at first glance, a feasibility analysis might look like a massive undertaking. However, let’s not forget that everything included in it is research that you might have already done (as part of your regular process) or plan to do anyway.

So, let’s see what each phase of this analysis is about and how you can conduct it.

Phase 1: Preliminary Analysis & Project Scope Definition

Our first step would be to document the idea and clearly define what it is about. My go-to platform for doing this is Craft.io (but you can use any other tool like Google Docs, Powerpoint, etc).

I’ll be using Craft.io's idea management module for this, as it facilitates collaboration with other stakeholders.

Let’s start by creating a new idea in the app by clicking on “+Create” > “Idea.”

The idea we want to explore involves building an app that will help companies track and manage their ecological footprint. Let’s call it the EcoFriendly Insights Platform and add relevant information to the idea we created.

First off, we will need an executive summary of what it is.

The point of preliminary analysis is to have a high-level view of the product idea and decide whether it is worth spending time and resources on the full-scale study.

To help our stakeholders with their decision-making, we will add a short SWOT analysis to it.

The final element required for this phase is the scope definition—a high-level explanation of product functionality and expected results. Let’s add that to the idea, too.

As we have all the necessary information ready, we’ll set the prioritization method to RICE (this is what I mainly use for startup idea evaluation) and send the idea link to our stakeholders.

The next steps would be for your stakeholders to review the idea, add comments, and set the RICE scores. Based on all of this, you (along with your leadership) will then decide whether to give this idea a green light or not.

Phase 2: Market Feasibility Analysis (or Market Research)

That’s right. To understand the probability of your product successfully entering your market and growing in it, you will need to conduct a good ol’ market analysis and understand the marketing strategy in your project plan.

Now, let’s tackle each element in your market survey one by one:

Market Size

We’ll need to use public data sources like data.org to understand the number of SMBs in our target market (US and UK in this case). This number will give us the TAM ( total addressable market )—500,000.

Based on the same source, we find that the SAM (Serviceable Available Market) is 200,000 SMBs.

Next, we aim to get 5% of the market (a standard goal in the industry) in the first 3 years. So, our SOM (Serviceable Obtainable Market) is 10,000.

Finally, through a series of interviews, we know that the average SMB is ready to pay $500 - $2,000 a year for sustainability solutions—converting our SOM in the arena of $5m - $20m.

Customer Needs

We’ll conduct a series of interviews and surveys by attending relevant trade shows and using specialized tools like Respondent.io to find the right people to talk to.

With the help of these interviews, we will understand the following:

• Who our users are and what are the realities they're living in?
• What are the alternative solutions they are using and where are they falling short?
• What are the minimal requirements in terms of functionality for a sustainable product?
• Which platforms do they use in their day-to-day operations that need to integrate with our tool?

We can then gather and analyze all of this data and create our user persona (including their demographics). However, for the feasibility study, the entire persona is not necessary. You can create a short summary that covers the most important learnings from your users.

From the imaginary interviews we have done, we find out that the main problem is that SMBs understand that they need to work on their sustainability to comply with local regulations and improve their reputation, but they have no idea where to start.

Competitor Analysis

Finally, we need to admit that there is no real blue ocean market out there and you will almost certainly have competitors to deal with. So, we’ll need to understand who they are as well.

From my experience, the quickest way to understand your competitors is to do the following:

• Interview their users and see what they like and hate about the competitor's product.
• Sign up for their platform and list the different features and Jobs to be Done they cover (you will then create a table comparing them to your product as well as to other competitors' products).
• Look at their G2 or TrustPilot reviews. Again, you will find loads of interesting feedback from users there.
• Run SEMRush or Ahrefs on their website to see their primary acquisition channels.

Based on all of this, you will prepare your competitor profiles and understand where your product stands in the market.

Again, add the summary and not the entire doc for the feasibility analysis.

As a result, we will have something that looks like this:

I have still kept the document in an Idea state, but you can also turn it into an agile epic at this point.

Phase 3: Technical Feasibility Analysis

Even if the market looks promising and you have a good idea of how you can handle competition, there’s another major factor that you need to consider— can you even build it?

Technical feasibility is usually about these two aspects:

• The existence of the necessary technology to solve that problem. You can’t build a Dyson sphere even if you have the smartest minds out there working with you.
• Your ability to hire and finance the creation of a new technology. Technically, you could go to Mars if you were willing to out-rocketship Elon Musk. But could you finance that project? My money says no.

There’s also the time constraint. If it takes you 10+ years to build something, the chances are high that the market will change drastically by then and your product will not be able to enter it.

To conduct a technical feasibility analysis, you will need to ask your engineering team (or external engineers if you don’t have a team yet) to analyze your requirements and come up with a high-level technical solution.

Here’s how we will handle it with Craft.io.

As it is not us but a different stakeholder conducting this research, we will need to create a “task” under our idea and assign it to them.

We will then open the dependencies tab of our idea and select it.

With the dependency added, we will not consider our feasibility analysis done until our tech team closes its dependent task and gives us the tech evaluation results.

Regarding the results themselves, they will usually look something like this.

Based on these technological considerations, we can see that our product is not really complex and we have the necessary technical resources to develop it.

Phase 4: Financial Feasibility Analysis (or Economic Feasibility)

The next phase of our feasibility study is about your potential costs and revenue. Here, you will need to get an answer to the million-dollar question of any business—is my business idea profitable?

There are two sides to this analysis—overall financials and unit economics.

For the first item, we will need the help of our finance, HR, engineering, and marketing/sales teams as we will need to figure out the total cost of development (including salaries), infrastructure costs, and the projected revenue for the next couple of years.

It means that, in Craft.io, we will need to create a couple more dependencies and assign them to each team. The result will look something like this in our idea document.

Here, we have the summary from the projected income statement, data from our balance sheet, financial projections, cash flow, liability calculation, return on investment calculation, and other high-level financial metrics and forecasts.

Regarding the second element of the financials analysis, we will need to determine a single customer's profitability and understand the LTV/CAC ratio. To ensure sustainable scaling, the goal is to have a lifetime value at least three times larger than the cost of acquisition.

Here’s what the unit economics analysis would look like.

Our new project idea looks promising from a financial standpoint. The initial costs are not small, but the unit economics are looking good.

Author's Tip

Be careful with these numbers! They are rough estimates, and your actual financials are unlikely to be this rosy.

Phase 5: Operational Feasibility Analysis with Your Project Management Team

Sometimes, the potential risks that your product can face are not related to the market or the tech under its hood. Instead, they rest on your operational capabilities, organizational structure, and processes.

For instance, you might not have the customer support capacity to serve your clients' needs and, as a result, end up with massive churn.

Therefore, operational feasibility is another aspect that you should pay attention to. This is something to discuss with your project managers as well as the team leads from all divisions.

To organize this properly, you can create a leadership team in Craft.io and assign the task/dependency for Operational Feasibility to them. We do this by opening Settings > Team Manager > Invite

We’ll then rename the default team name to “leadership team.”

After creating the task and selecting the leadership team as the assignee, everyone in that team will get the notification, open the task, and start working on it collaboratively.

The result of this collaboration should look something like this:

Based on this assessment, we see that there are team members of certain professions that we need to hire, which is an operational risk considering the time and effort needed to source that talent.

We also lack proper CX capacity and would need to expand our support team.

Both are serious staffing risks (and have a strong impact on the go/no-go decision) that we need to consider when evaluating our new product idea.

Phase 6: Security and Legal Feasibility

Finally, we need to make sure that our product is compliant with all relevant security standards and government regulations. The types of standards and laws to comply with will depend on the nature of your product as well as the countries where you will operate.

For instance, if you want to get customers from the EU, you have no choice but to comply with GDPR’s legal requirements. From my experience collaborating with the legal and security experts in my company, it is a better option to make the entire product compliant with GDPR and any other major regulation (e.g. HIPAA for medical data or CalOPPA for California residents).

This phase also includes the risk assessment of legal consequences and preparing a contingency plan in case our business case or idea faces serious legal challenges during its lifecycle.

This way, you will rid yourself of the extra hassle of offering your product in different ways to different markets. Plus, compliance with these rules for the worldwide audience will give you an extra reputation boost as you position yourself as a security-first company.

More Articles

Product strategy: what it is, and how to nail it, the top 10 ux design trends of 2024, 13 brainstorming techniques every product manager needs to know, bonus phase : ai feasibility analysis.

As a person working with AI products, I cannot omit this step. This is especially important considering the immense popularity of AI solutions for products and the fact that you will most likely end up using AI, too.

You might think that AI model development feasibility analysis should be part of the technical feasibility phase. That’s logical, but no.

AI is a completely different world and the risks associated with it are different from tech risks.

For instance, before starting to build a model, you need to be sure that you can gather the right training data (and in the right amount). If you can’t find quality training data, then what are you going to train your model with?

There’s also the risk of your models behaving unethically (or even being racist). Just read the latest news on Google Gemini ’s ethically bizarre behavior .

The Feasibility Report: Your Final Deliverable

Your final deliverable is the Feasibility Analysis Report. It’s simply a single document that has combined the information from all of the phases described in this article. There is nothing special here; simply add all of the summary analyses from all of your teams to a file and call it a day.

You can keep it in the form of a Craft.io idea or convert it into a PDF file.

Alternatively, if you have the time, you can create a PowerPoint/Slides presentation where you mention the most important pieces of information from each phase. You can show this during a feasibility analysis meeting to your key decision-makers and send them the full PDF later for their review. This way, you can make sure that they are making informed decisions for that new business idea.

Avoid Building Unrealistic Products

Product managers have a mindset of “everything is possible.” That’s great, and you should definitely keep thinking that way. However, you should also acknowledge that some product ideas are highly risky and are not worth the effort.

So, to let you use your precious time on something that has a real potential for success, a feasibility analysis should be a requirement for all of your product ideas. (At least, the ones you're actually serious about.)

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• Market Research Company Blog

What is a Feasibility Study?

by George Kuhn

Posted at: 4/16/2018 2:37 PM

Feasibility studies come in all shapes and sizes. They can be completed for a new product, new service, new concept, or new location. In many cases it combines both primary and secondary data together to provide the sponsoring client answers.

A feasibility study is a type of market research which analyzes the success or failure of a new product, service, concept, or location. It uses several components of market research including both primary and secondary data to analyze and predict the outcome of the new concept. Feasibility studies are often completed for:

(1) New product development

(2) New service launches

(3) New business concepts

(4) New business locations or an expansion to a new market

Commercial lenders often require a feasibility study to acquire financing for a concept. The intent of the feasibility study is to eliminate the risk and chance of failure in the investment. Drive Research partners with banks and credit unions to complete these feasibility studies to address this.

Need a feasibility study? Here is the process, components, and benefits of working with a feasibility study company.

What is the 7-Step Process for a Feasibility Study?

Our feasibility studies are built on a task-oriented step-by-step approach. We follow an exclusive roadmap to successful market research from start-to-finish with our clients. Drive Research works as a true consultant to analyze the market, understand the competition, and make estimates around interest, appeal, and demand of users.

The final report explains the potential successes and barriers of a new product, service, or location coming to market through an independent and objective lens. Recommendations to increase appeal and demand are also included in the report. These assist with improving operations, marketing, and strategy around the new concept.

Here are the 7 steps:

• Full proposal
• Kickoff meeting
• Setup and design
• Comprehensive report

What are the 3 Core Components of a Feasibility Study?

Component 1: Demographic and Trends Analysis

Our team analyzes demographic trends of populations, age, genders, incomes, household sizes, consumer expenditures, and other vital data from our proprietary software. A market area can be pinpointed to a radius around a site, counties, and even Census Tracts. This helps a client understand potential size and profiles a pool of audiences to attract.

Component 2: Competitive Assessment

This is a comprehensive overview of up to 5 key competitors in the market. It reviews their strengths, weaknesses, service offerings, products, differentiators, and other factors that would impact the success or failure of a new market entrant.

Component 3: Market Survey

This is an online survey targeted to current and potential users or visitors to the location. This includes 15 questions and lasts 3 to 5 minutes. The survey will cover interest in the location, appeal, likelihood to use, demand, and other key objectives which will impact the feasibility of the concept.

How Much Does a Feasibility Study Cost?

This depends on a number of factors including which components are chosen, the scope, and the timeline. A feasibility study company will work with your organization to create a scope which meets the needs of your budget. Most feasibility studies fall in the $5,000 to $15,000 range, however this is highly dependent on your type of business and your needs. The fees may vary (less or more).

Why Work With Drive Research?

Responsiveness

We eat, sleep, and live market research. To accelerate insights, we prioritize communication. Our team follows-up with clients immediately, pushes the status quo for turn-around time, and creates a new definition for fast. We put in the extra time that other market research firms do not (because we enjoy it).

We invest in our employees, our company, our culture, our clients, and the community. We want our staff to grow personally and professionally while also helping our clients' organizations grow. Our give-back program donates a portion of revenues for each project, which also helps grow our community. Everybody wins.

Perspective

Market research focuses on others' perspectives, opinions, and beliefs. We employ the same strategy with our market research clients. We center our entire business model around you. We walk in your shoes from research design to analysis, through recommendations. We answer your questions before you ask.

After all, it is our name. Drive Research is more than just data-driven strategies. Drive relates to our passion for our work, flexibility in our work environment and with client projects, and the impact and ROI our market research generates. We ask more from our market research, you should too. We believe in better.

Contact Our Feasibility Study Company

Drive Research is a market research company located outside of Syracuse, NY. We work with a variety of clients and industries across the country to assist with both qualitative and quantitative market research needs.

Contact us via email at [email protected] or call us at 315-303-2040.

Categories: Feasibility Studies

Need help with your project? Get in touch with Drive Research.

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Choisir Langue / Choose Language Market Research and Feasibility Studies Feasibility Study Blueprint for Project Success & Beyond Discover the power of feasibility studies and learn how to create a strong project blueprint. Explore the steps, examples, and benefits of feasibility studies. Imagine investing time, effort, and capital into a project only to realize it's rotten with flaws and limitations. The consequences can be detrimental, ranging from financial setbacks to damaged reputations. Enter the feasibility study — an indispensable tool to evaluate your project and any risks. A feasibility study helps plan flawless products and services and address limitations early. In this blueprint, we explore the power of feasibility studies and unveil the steps for creating one. We'll guide you through the principles and best practices and show you examples. Let's jump right in. What is a feasibility study? A feasibility study looks at a project’s potential before spending resources. Consider it a detective’s investigation that uncovers potential problems you could face and if it’s worth it. The key parts of a feasibility study include: Analyzing the project's technical needs Checking if it makes financial sense Identifying risks and challenges And considering any legal or rule-related factors Let’s say your new business venture is to open a gym. Here; a feasibility study would involve the following: Examining the location Estimating the initial investment required Analyzing the target market Assessing competition It'd also consider factors like zoning regulations, environmental impact, and potential risks. When do you need a feasibility study? A feasibility study happens before starting work on a project to assess its viability. However, let’s first focus on situations outside of project management where a feasibility study comes into play. Entrepreneurs use feasibility studies to decide if their new business or product ideas are realistic and can be done. These studies are also called business plans in this setting. In construction, a feasibility study is a part of valuing the practicality of projects. They use it to identify  resources needed vs. available , the overall cost, and return on investment (ROI). Feasibility studies are also common in market entry strategies. Here they study market conditions, competition, and user stories. In these scenarios, they can also fulfill the role of an investment proposal tool or a  plan of action  to guide ventures later. When do you need a feasibility study in project management? In project management, you should do the feasibility study after pitching the project but before starting. ‎In project management, feasibility studies help highlight whether the project aligns with the business’s  goals . It also helps them to see if they can accomplish the goals within the given constraints. In Agile project management, feasibility studies may differ, but the purpose remains the same. For  Agile  feasibility studies, the focus is more concentrated and lightweight than in traditional methodologies. They are carried out before the initial project iteration and then done as the project progresses. However, in certain projects and situations, a feasibility study isn’t necessary. These are: If the project is of a trivial or mundane nature. When the project has extensive research and validity behind it. What benefits are there with a feasibility study? Other than the stated advantage of clarity before tackling a project, this study has many other benefits. Let's explore these advantages a little deeper. Risk reduction:  Feasibility studies help spot potential risks and challenges early on. Efficient use of resources:  Doing a feasibility study lets managers see how they might use resources. And whether the resources needed would be made available. They can then plan the resource allocation (once the ball gets rolling). Smart decision-making:  This research can give you the knowledge you need to make wise project choices in the future. Financial planning:  Feasibility studies help managers ‌estimate costs, predict income, and check ROI. Meeting rules:  Feasibility studies look at a project's legal and compliance aspects (often overlooked). Doing this early instead of at a product launch can save countless headaches. It helps gain support from important stakeholders:  Showing them a well-thought-out plan will help you to gain their confidence and set their expectations early. 4 types of feasibility studies Feasibility studies come in 4 different types, each geared at helping you know what you are getting into. ‎Let's explore the four main types. Financial feasibility A financial feasibility study determines whether a project is financially viable and can make enough profit. It looks at the costs, revenues, and financial implications of the whole project. Let's look at an example financial feasibility study for a new Italian restaurant. It’d center around the costs of ingredients, rent, equipment, and employee salaries and compare them to projected profit. Market feasibility Market feasibility studies assess the potential market demand and acceptance for a product or service. They examine market size, customer preferences, competition, and market trends. For instance, a market feasibility study for the restaurant might analyze the demand for similar cuisine. They could study consumer preferences for Italian dishes and preferred pricing. Doing this will also help the restaurant avoid overstocking products (ingredients) because they can anticipate the level of demand. Technical feasibility Technical feasibility studies determine the likelihood of success from a technical perspective. They assess factors like available technology, required resources, and technical expertise. Let’s continue with the restaurant example and see how the technical study looks. The study will check if launching the restaurant is possible within the specified timeframe. It will also check if the necessary stoves are available and if the head chef has the required cooking skills. Operational feasibility Operational feasibility determines whether businesses can implement the project within themselves. It examines available resources, required skills, and existing infrastructure. Let’s imagine the restaurant is planning to introduce a delivery service. The study would assess if the restaurant has enough staff for delivery (or would outsource it) and if the kitchen can handle additional orders. It can also check if the planned POS system can integrate with the delivery platform. Conduct a feasibility study in 8 steps Next up, let’s look at how to conduct a complete feasibility study. We’ve broken down the general process into eight steps, which you can apply across most industries. 1. Gather the data (pre-analysis) Gathering relevant data and information is a prerequisite for a successful feasibility study. Here, you focus on collecting the necessary facts and details to analyze and use in the study later. Focus on data that applies to the four types of feasibility studies and gather the information you need for each of those. You can gather primary data by conducting firsthand surveys, interviews, or observations. You can also get secondary data from existing sources like reports, databases, or industry publications. Using both sources gives you a more comprehensive understanding of the project's feasibility. 2. Conduct market analysis Now let’s go over the bases you need to cover for a market analysis: Explore market aspects such as size, trends, customer preferences, and competition. Examine current market statistics to understand the potential demand for your product or service. Evaluate the competitive landscape to identify existing players and their strategies. ‎For your market feasibility study to be successful, your product or service should be competitive. Your business should also be able to match ‌current market demand (or scale to meet them). 3. Evaluate technical feasibility Next, assess the technical feasibility of the project requirements and constraints. Consider factors such as: Available technology Then specify if the required infrastructure and tools are in place or if more is needed. Ask questions like, what impact does missing a few staff have on output and sales? How much downtime can you afford because of technical problems? Also, use this study to examine potential solutions if needed. For example, can you afford another hire if you don’t have enough staff? How long will it take? Is there a way to avoid delays? Can upskilling a few staff help? 4. Perform financial analysis Next, evaluate the projected costs, potential revenue streams, and ROI. Then compare ‌the above against funding sources, timeline, and budget. 5. Assess legal and regulatory factors Next, evaluate the legal and regulatory aspects that may impact your project's feasibility. Consider compliance requirements, permits, licenses, and any potential legal obstacles. Try to find reliable outside sources if the need arises to help you do this. It would be a shame if your product or service goes to market only to fail because of poor compliance. 6. Analyze environmental and social impacts In this step, you should check the environmental and social impact of your proposed business. ‎Think about the project’s influence on environmental regulations and corporate social responsibility. Consider things like resource usage, garbage control and their effect on the public. 7. Identify and evaluate risks Next, we identify, evaluate, and plan for potential risks and challenges. Why do a risk analysis in a feasibility study? The answer is that sometimes risks can be too big to take (and cause project failure). 8. Summarize findings and recommendations Finally, it's time to summarize and give recommendations. Make the summary concise, as you might use it to give insights to stakeholders and decision-makers. Let’s use our Italian restaurant example again and assume you conducted a feasibility study. After all the evaluations, you found a high demand for the proposed cuisine. The necessary resources and expertise are available, and the financial projections indicate profitability. However, you did identify the risk of stiff competition in the local area. Based on this, you recommend that the restaurant strategize ways to differentiate itself from competitors. Examples of feasibility studies Let’s explore a couple of examples to show you the power of the feasibility study. Marketing feasibility study We will illustrate a situation where a firm plans to introduce a new type of product to the market. To assess  technical feasibility , they analyze factors like software tools and hardware infrastructure. For  operational feasibility , they determine if they can execute the marketing plan. They check factors like experienced staff availability,  capacity , and potential operational challenges. In the  financial study , the company would analyze projected costs and potential revenue streams. They consider production, marketing, and ad costs and assess the expected ROI. For the  market study , they research the audience, trends, and competitors. Software development feasibility study Let us shift our focus and contemplate an alternative situation. This organization makes new software for task management and want to know if their new app is a good idea. In the  technical analysis , they evaluate if they possess the necessary software engineers, coding dialects, and software applications. For  operational feasibility , they think about staff training, the potential impact on existing systems, and ease of integration. In the  financial study , they analyze costs such as hiring programmers and ongoing maintenance. They also assess potential revenue streams like software licensing fees or subscriptions. For the  market study , they research the target market and the competitors. Motion helps with feasibility studies Motion is a project management tool that can boost the effectiveness and precision of your feasibility assessment. The app can help you construct an organized timeline for your studies. With a clear timeline, you can better analyze and plot out the feasibility of the project before doing it. ‎Motion has color-coded tasks and events to track the progress of your feasibility study. It can also manage and track the progress of various tasks and subtasks in your feasibility study. ‎Motion's collaboration features can help coordinate work among team members. It can also share calendars, schedule meetings, and allocate resources for you. It also has time-blocking features to allocate dedicated time for focused work, analysis, and research. Sign up now for your  7-day free trial  of Motion. Related articles What Are Long-Term Goals? (+50 Examples & Tips to Achieve Them) 6 Best AI Calendar Assistants for Easy Organization How to Use a Progress Tracker to Deliver Successful Projects Put motion to the test., tech and media companies are talking about motion. Steps to conduct a market feasibility analysis Metheus Consultancy Are you considering launching a new business or introducing a new product or service to the market? One of the most critical things to do is understanding the market. Over 40% of startups around the world are failing because of the wrong ideas gained about the market. Which is why conducting a market feasibility analysis is a critical step in determining the viability of your idea. In our last blog, we briefly discussed “The importance of market feasibility analysis in market expansion” . And now we’ll go through how to do a feasibility analysis. A market feasibility analysis is a comprehensive process that involves researching and analyzing various factors related to the market, demand, supply, and external factors that impact your business. By conducting a market feasibility analysis, you can gain a better understanding of the market and make informed decisions about your business strategy. Let’s look at the steps of conducting a market feasibility analysis: 1. Understand the Market To make informed decisions about your business and increase your chances of success, gaining a comprehensive understanding of the market and determining whether there is a need for your product or service is critical. To understand the market, there are some topics to consider: Define the Industry, Market, and Business: Start by clearly defining the industry, market, and business you are analyzing. This will help you focus your research efforts and ensure that you are collecting relevant data. Identify the Characteristics of Your Target Market: This includes researching the market and analyzing data to determine factors such as market size, demographics, consumer behavior, and trends. You can gather this information through market research techniques such as surveys, interviews, and focus groups. You can also use market data businesses, national information or statistics agencies, and other resources related to the sector you’ve chosen. Research the Market: Conduct research on the overall market to determine its size, growth potential, and trends. This will give you an idea about the need for your product or service and the potential competition you may face. Analyze Data: Once you have gathered all the relevant data, it’s time to analyze it. Look for patterns, trends, and insights that can inform your business decisions. Identify any gaps in the market that your product or service can fill. Determine Market Need: Based on your research and analysis, determine whether there is a need for your product or service in the market. If there is no need, you may need to adjust your offering or look for a different market. Assess Competitors: Identify who your competitors are and assess their strengths, weaknesses, and market position. This will help you determine how to position your product or service and differentiate it from competitors. Identify Potential Customers: Determine who your potential customers are and how to reach them. Develop a customer profile that includes their characteristics, behavior patterns, and preferences. This will help you develop targeted marketing strategies that resonate with your target audience. 2. Understand the demand Conducting market research is the first step in understanding the demand for your product or service. This process involves several steps, starting with gaining a deep understanding of the market and the macroeconomic factors that may affect your business. These macroeconomic factors are the big-picture economic variables that impact an economy as a whole, such as inflation, interest rates, GDP, and employment rates. The second step is to discover who your competitors are. This involves analyzing the strengths and weaknesses of your competitors, their pricing and distribution strategies, and their marketing tactics. By understanding your competitors, you can identify opportunities for differentiation and develop strategies to compete effectively in the market. The final step in understanding the demand is to assess the potential size and growth of the market. This involves analyzing market trends, growth rates, and other factors that impact the size and growth of the market. You may evaluate whether or not there is a need for your product or service today and in the future by examining the potential size and growth of the market, as well as whether or not you can compete successfully in the market. 3. Estimate your supply capacity Estimating your supply capacity includes determining the resources you have available to produce and distribute your product or service. The steps you need to follow to estimate your capacity is: Assessing your current capacity: This includes analysing your current inventory levels, production capacity, and distribution channels. By understanding your current capacity, you can determine whether you have the resources necessary to meet the demands of your target market. For example, if you manufacture a physical product, you need to assess whether you have enough raw materials, manufacturing equipment, and labor to meet your production goals. On the other hand, for businesses that offer software or other digital products, assessing your current capacity may involve evaluating your server capacity, bandwidth, and other technical resources necessary to deliver your offering. Determining your competitive advantage: To effectively compete in the market, you need to determine your competitive advantage, which could be a unique feature of your product or service or a specific target market that you are serving. By understanding your competitive advantage, you can develop a strategy that differentiates your business from the competition and positions you for success. Assessing the cost of production and potential profit margins: Once you have determined your supply capacity and competitive advantage, you need to assess the cost of producing and distributing your product or service. This includes analyzing the cost of materials, labor, overhead, and other expenses associated with producing and delivering your offering. You can estimate your prospective profit margins and ensure that you are pricing your product or service competitively by analysing your cost structure. 4. Analyzing demand and supply factors This step involves assessing the external factors that impact your business and its target market(s), such as changes in technology, shifts in the economy, political and regulatory changes, and social and cultural trends. To understand all factors included the steps to follow include: Understanding the regulatory landscape: Regulations can vary widely by industry and jurisdiction and can have a significant impact on the viability and profitability of a business. For example, certain industries may require permits or licenses to operate, or they may be subject to environmental regulations or safety standards. Identifying potential risks and challenges: Risks can include financial risks, such as high production costs or limited access to capital, or operational risks, such as supply chain disruptions or unexpected competition. By identifying potential risks and challenges, businesses can develop contingency plans to mitigate these risks and ensure the long-term viability of their business. 5. Plan and test your strategy After understanding the market, demand, and supply capacity, the next step is to plan and test your strategy. This involves developing a targeted marketing strategy that resonates with your customers and positions your business as a viable solution to their needs. It also includes assessing your competitive advantages, determining pricing and distribution strategies, and identifying marketing tactics that will best reach your target audience. The strategy planning process is critical, as it helps businesses make informed decisions about their offerings and set a course for success. By mapping out a business plan, you can identify potential barriers to entry and develop contingency plans to mitigate risks. It should include how much it costs to operate, how much you anticipate selling, who would buy your product or service and why. Additionally, testing your strategy is crucial for assessing the viability of your business idea or product in a real-world setting. This can be done through market testing, such as pilot programs or focus groups, to gather feedback from potential customers and identify areas for improvement. By testing your strategy, you can refine your approach and better understand the potential success of your business idea. It involves a systematic approach that considers various factors such as market demand, supply capacity, competition, regulatory environment, and potential risks and challenges. By following the steps outlined in this blog, you can create a comprehensive business strategy that will increase your chances of success. Remember to continuously evaluate and adjust your strategy as your business evolves and external factors change. Metheus Consultancy’s experienced consultants can assist you perform market research, analyse demand and supply aspects, estimate supply capacity, and design a sound business plan. Reach out to us now to find out how we can help you reach your business goals! Written by Metheus Consultancy Text to speech The 4 essential components of a market feasibility study Frequently, a company undertakes a feasibility study when it’s looking to introduce a new business, product, or service or grow its operations. A feasibility study is intended to evaluate the viability of an undertaking in order to establish whether or not it will possibly succeed.  Through undertaking market feasibility studies, businesses can better validate their idea from ideation to fruition. This is where market research companies in Uganda such as Researchtec, come into play. We can help businesses study the market to establish if the available demand is sufficient enough to warrant the launch of a new business. In terms of technicalities, a market feasibility study can do more than just evaluate the viability and likelihood of success for your business. It can also reveal the evidence required to bar you from starting a risky project, identify potential pitfalls or just study the nature of the competition you are likely to face.  In order to undertake an effective feasibility study, there are some elements that have to be incorporated. Below are the four essential components of a market feasibility study. 1. Stakeholder In-Depth Interviews (IDIs) A great place to start a market feasibility study is to engage any associated stakeholders. As professional market researchers in Uganda, we begin this process by organizing between 8 and 12 in-depth interviews with stakeholders who may include important personnel within or without the business as well as market experts.  With each interview running for an average of 25 minutes, close to 5 hours worth of advice and insights will be at the market researcher’s disposal thereafter.  As expert African market researchers, we use this opportunity to better acquaint ourselves with the project and its objectives. Moreover, seeking and incorporating advice from stakeholders can be a guaranteed way to win their favour and approval in the initial phases which can later be drawn upon when their support is required. 2. Demographic Evaluation and Trend Analysis Understanding your potential target market beforehand you launch a new product or service could be the critical decision that saves you from launching a failing product or business. With 1 in 2 businesses failing globally due to a lack of market need, understanding your potential target market is invaluable. Through conducting secondary research, Researchtec can help you identify your target market and its demographic structure such as age, gender, consumption patterns, spending habits and income among others that would affect the project’s feasibility. As professional market researchers in Uganda, we are able to study to similarly study industry and market trends that are driving the industry or are likely to influence your market so you don’t second guess who your customers really are. 3. Quantitative Survey Whereas our Research Analysts may use secondary data for our demographic and trend analysis, the quantitative survey will solely be hinged on primary data that will be gathered from your clientele and target population. As part of the feasibility study, we will partake in formulating a survey aimed mainly at finding out the existing and anticipated uptake as well as the extent to which the new venture will impact the market. Not every market research company in Uganda will be able to pull this particular process off effectively, as it requires a very nuanced understanding of Consumer Profiling. The survey, at this point, can be conducted in various ways including online or via telephone where the former is cheaper, faster and produces quantifiable data. The most effective online surveys range between 5 and 30 questions, running for an estimated maximum duration of 7 minutes to avoid leaving the respondents feeling drained.  If undertaking your consumer profiling in Uganda, your chosen market research agency in Uganda should then be able to take the findings from the survey, examine them, detect themes, make deductions and use the information to direct the strategy.  4. Competitive Assessment This is the last essential and core ingredient of undertaking a market feasibility study. If you are looking to penetrate an existing market in Uganda, there will be businesses already existing and operating in the market whose potential impact on your entry as a new competitor, must be scrutinized.  A market feasibility study in Uganda must therefore include a thorough study of the competition to ascertain the influence they could have on your venture and also identify existing gaps in the industry that could potentially be exploited to gain a competitive advantage. Secondary data as well as mystery shopping are some of the methods that can be used to obtain information required to carry out competitive analysis in Uganda. Mystery shopping and personal visits to rivals may also come in handy in instances where the information required may not be readily accessible to the public via secondary sources. Whereas the 4 essential components of a market feasibility are applicable to any business regardless of the industry or objectives for conducting the feasibility, it is pertinent that you choose the best market research company in Uganda and Africa, to tailor these components to meet your individual needs. A market feasibility study is a useful tool that all businesses need to utilize when venturing into new territories to avoid incurring losses and minimize the risk of failure. It avails you with reliable information and insights to make evidence-backed and informed decisions. Whatever Your Market Research Needs are in Uganda, We Can Help. Call or Visit Today for a Consultation! Let Our Experts Give You the Information You Need. Talk to Uganda’s Expert Market Researchers Today. Related Blogs What is a Feasibility Study, and How Can Surveys Help? Survey Tips What is a Feasibility Study? Feasibility studies are designed to answer a very simple question: Is this idea feasible? While simple on the surface, finding an answer to that question often involves considerable investigative energy into many different areas. From existing competitors to financial options to technical and production considerations, there are dozens of factors affecting the feasibility of any new venture. In this guide we’ll explore the appropriate times to run a feasibility study, what your final report on your findings should include, who’s best suited to run a this analysis, and how surveys can help you answer some of the most pressing feasibility questions. The Right Time to Conduct a Feasibility Study Regardless of your confidence in your new product or your brilliant idea, it’s always a good idea to investigate its real world feasibility before you invest too much time or money. All new businesses should conduct a feasibility study before starting production and/or going to market, and most established companies conduct them in advance of new product launches. These types of reports can also offer the hard data necessary to make hard decisions about the future direction of a company or product. If you have internal disagreement about the next steps for your marketing, development, or expansion, a feasibility study can settle it with unbiased information. Ready to Factor in Feasibility? When You Don’t Need a Feasibility Study In order to save money and time, and often to simply go to market faster, entrepreneurs may choose to forego running a feasibility study. This can pay off with being the first into an emerging market, or it can backfire if a new company encounters unexpected obstacles. Some common reasons that you might want to bypass this type of exploration: Founders or entrepreneurs know the new venture is feasible based on their own experience or on a similar business model that is currently successful. You’re still confident in the results from your most recent study and don’t think there have been enough changes to warrant a new one. The costs in both money and time prohibit completing a full feasibility analysis. Key Components of a Feasibility Study A feasibility study can cover a wide variety of topics that might have an impact on your new venture, but most fall into one or more of these categories. Do you have proprietary technology on which your launch depends? Might new technology emerge that would affect your product? Consider existing and future economic conditions that might impact your market’s ability or willingness to purchase your product or service, along with any sources of initial cash flow. This is where to investigate existing patents, copyrights, or other restrictions that might affect your idea. Do you need a store front? Employees? Letterhead? Make note of the costs of all your operating costs. If you need to release your product at a particular time of year, or before an event, make sure to take these restrictions into account. Marketability Marketability is an extremely broad category that could include: Competitors Level of demand Unoccupied niches Target markets, including specific demographics and purchasing habits Physical vs. online marketing How to Get Data Resulting from a Feasibility Study By far the quickest way to get going is to hire a consultant to run the study from start to finish and report on their findings. While tempting, this option is probably out of the question for all but the best-funded startups. You’ll also need to include the costs of the feasibility report itself in your economic factors, and doing so might push businesses that were just barely profitable in their early stages into the red. On the other hand, if you barrel forward without data you risk losing initial capital investments. Many investors will also refuse to entertain your proposals without this type of information, so it may be a non-negotiable expense. The good news is that with secondary market research data widely available and lots of handy survey templates like this one out there, you can do a lot of the leg work yourself and reduce the overhead while still getting great feasibility data. Using Surveys in a Feasibility Study to Understand Your Marketability You need to reach out to your target market to learn as much as possible about the people who you hope are going to be paying for your product or service, and surveys are by far the best way to do this. Running a survey of your potential customers might even reveal dissatisfaction with particular products or features that you could exploit, changing your feasibility prospects from questionable to positive. Sample Format for a Feasibility Study Report Once you have your data, you need to collect it into an easy-to-ready, digestible document that clearly demonstrates how your idea will some day rule the world (or is at least initially doable). Feasibility study reports should include at least these sections, though you may need to add additional details to cover your particular niche or idea: Executive Summary The high level points and overview of the data you’ll be exploring later. Cover all the most important details, because lots of readers won’t get beyond this part. Defining Your Idea Here’s where you go into detail about your product, service, company, app, or whatever you’re investigating. Differentiating factors and unique value proposition belong here, as do any existing hurdles like products with similar names or functionality. Market Analysis All your primary and secondary survey data goes on display in this section, from competitive analysis to buyer behavior to market segmentation. The existence of strong markets is vital to your success, so many reports spend a lot of time on this section. Profitability and Operating Costs If you can estimate when you’ll likely be turning a profit, do so in this section. You should also include details about what it will cost to run your operation on a day to day basis, and what sort of margins you can expect in the short, medium, and long terms. Conclusions and Recommendations So…is it feasible? Pull all your data together to answer the big question. Example Questions from a Feasibility Survey If you were investigating the feasibility of a new wireless security camera, you might ask different segments of your audience questions like these to clarify their buying habits and position yourself in the market. Is a Feasibility Study…Feasible? Tackling a full blown feasibility study can feel daunting, but once you’ve invested the time for designing, collecting, analyzing, and reporting on all the data it can perform a wide variety of functions in a growing business. Whether it’s a presentation to venture capital firms, writing a professional business plan, or guiding your early marketing efforts, this data will be invaluable. Take the time to do it right, and feasibility studies will become not just feasible, but maybe even enjoyable. See all blog posts > AI , Alchemer Pulse , Customer Experience , Customer Feedback AI , Alchemer Pulse , Press Release , Product News Alchemer Digital , Customer Emotion & Sentiment See it in Action Privacy Overview Strictly Necessary Cookies 3rd Party Cookies This website uses cookies so that we can provide you with the best user experience possible. 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Feasibility studies involve assessing technical, economic, and operational factors to determine if the proposed product can be effectively developed, manufactured, and marketed. A systematic and thorough approach to feasibility studies enables organizations to assess risks, identify opportunities, and refine their product concepts before proceeding to the next stages of product development. What is the Product Commercialization Process?   Product commercialization refers to the process of introducing a new product or service into the market and making it available for sale to consumers. It involves all the activities and strategies that transform an idea, concept, or prototype into a marketable product. Commercialization is a crucial step in the product development cycle and involves various stages, including market research, product design and development, manufacturing, marketing, and sales. Five key steps in the commercialization process: Engineering Capitalizing Read more about Product Commercialization Steps of the Feasibility Study Process By following these six steps - defining study objectives and scope, gathering and analyzing data, conducting technical feasibility analysis, economic feasibility analysis, operational feasibility analysis, and risk assessment and mitigation - businesses can make informed decisions and optimize their chances of successful product development and commercialization.  Step 1: Define the Study Objectives and Scope The first step in conducting feasibility studies is to clearly define the objectives and scope of the study. Identify the specific areas that need to be evaluated, such as technical feasibility, market potential, cost analysis, regulatory requirements, or any other relevant factors. Establishing a well-defined scope ensures that the study focuses on the critical aspects necessary for making informed decisions. Step 2: Gather and Analyze Data In this step, gather relevant data and information from various sources to support the feasibility analysis. Conduct market research to assess customer needs, preferences, and demand for the proposed product. Collect technical data to evaluate the feasibility of design, manufacturing processes, and sourcing of materials or components. Consider economic factors such as production costs, pricing, and potential revenue streams. Analyze the gathered data to identify potential challenges, opportunities, and key success factors. Step 3: Technical Feasibility Analysis Evaluate the technical feasibility of the product concept in this step. Assess whether the proposed design can be developed, manufactured, and assembled within the desired specifications and requirements. Consider factors such as product complexity, technological capabilities, resource availability, and potential technical risks. Identify any potential technical hurdles and determine if solutions can be implemented to overcome them. Step 4: Economic Feasibility Analysis Perform an economic feasibility analysis to assess the financial viability of the product concept. Evaluate the production costs, including manufacturing, labor, raw materials, and overhead expenses. Consider pricing strategies, projected sales volumes, and expected revenue streams. Conduct a cost-benefit analysis to determine the potential return on investment (ROI) and payback period. Identify any potential cost-saving measures or opportunities for increasing profitability. Step 5: Operational Feasibility Analysis In this step, evaluate the operational feasibility of the product concept. Assess the capabilities and capacity of the existing infrastructure, equipment, and production processes to accommodate the proposed product. Consider factors such as production timelines, scalability, supply chain management, and distribution channels. Identify any operational constraints or potential bottlenecks and determine if they can be effectively addressed. Step 6: Risk Assessment and Mitigation The final step involves conducting a comprehensive risk assessment and developing strategies to mitigate potential risks. Identify and analyze the risks associated with the product concept, such as technological risks, market risks, regulatory risks, or financial risks. Develop contingency plans and risk mitigation strategies to minimize the impact of potential risks. This step ensures that potential obstacles are identified and addressed proactively, increasing the likelihood of successful product commercialization. Understanding the importance of the Product Commercialization Process Review all the impactful steps in the Product Commercialization Process Ready to Begin your Product Commercialization Project?  Let's start the Product Commercialization Conversation No matter the challenge, our team possesses the expertise in the engineering disciplines and technologies you need to bring your vision to life.  Impossible Challenge? Try Us. Imagine  your  Impact:   Stay up-to date- with the latest insights and trends we're watching. Add your email address below and sign up for a Monthly Summary of our most impactful posts! Related Articles Applied research & development six essential steps for product commercialization, nurturing innovation: six steps of product development in product commercialization, the six steps of reverse engineering in product commercialization. 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You get complete due diligence on the complexity of all risks and opportunities before committing resources.  Join the organizations who have already found success Market feasibility study services and capabilities A NewtonX market feasibility study enables you to make an informed decision about entering a new B2B market. Your custom findings help you understand the competitive landscape, regulatory environment, demand, current and future valuation, growth potential, and profitability. Types of market feasibility studies As part of your market opportunity analysis and research strategy , NewtonX experts will determine the best types of market feasibility analysis for your business. This includes elements like: Assess the level of demand within a target market Determine growth potential using market sizing exercises Identify industry trends that affect market entry – positively or negatively.  Consider legal implications Spotlight and mitigate any other risks Identify full potential of the new product, audience or market Importance of performing a market feasibility study There are two main reasons for initiating a market feasibility study: To assess the viability of a product in a specific market. To develop a robust go-to-market strategy for a new product entering into a previously untapped market.  Without solid market feasibility analysis, you’re going in blind. Nobody wants to waste investment and effort in entering a new market that doesn’t deliver enough opportunity. Having a market feasibility study research partner means that you don’t need to worry about the complexities of the market, finding the right professional minds, language barriers, and navigating cultural considerations. Our NewtonX Knowledge Graph custom recruits from 1.1 billion professionals, in 140 industries across the globe. This gives you the 100% verified data you need to develop successful market entry strategies that align with your objectives and resources.  Competitive intelligence (CI) research Competitive landscape analysis Market entry research Go-to-market planning Product research Persona research Market feasibility analysis to deliver both scale and specificity Our technology reaches across 140+ industries to give you the scale of a panel combined with the depth of an expert network. Cryptocurrency specialists advising on hedge fund projects  Advertising professionals overseeing brand spend Reddit users that visit Reddit for NSFW content IT decision-makers evaluating cloud software services NewtonX helps industry innovators turn inquiry into impact. How we located North America’s most elite real estate agents to glean critical home buying market insights How NewtonX scouted 5,000 life insurance professionals for product-market fit How NewtonX helped a top financial services company enter the US fleet industry market Want to see how newtonx can help you, what is a market feasibility study. Product and Service Viability A market feasibility study is a comprehensive analysis that assesses the viability and potential success of a proposed product, service, or business in a specific market. The study involves analyzing the target market, considering economic factors like costs and returns, evaluating technical and operational feasibility, addressing legal and regulatory considerations, conducting a risk analysis, and performing a SWOT analysis. Gathering consumer feedback through surveys and interviews is essential, as is developing financial projections. The study concludes with recommendations based on a balanced assessment of opportunities, risks, and financial considerations, guiding decision-makers on whether to proceed, modify, or abandon the business idea. What are the benefits of a market feasibility study? A market feasibility study is a crucial step in the business planning process, offering a comprehensive understanding of the potential market for a product or service. This strategic analysis involves assessing economic viability, identifying risks, and providing valuable insights to guide decision-making. Here are key benefits that make market feasibility studies an indispensable tool for businesses: Comprehensive Market Understanding Gain insights into the target market, understanding customer needs and preferences to tailor products or services effectively. Economic Feasibility Assessment Evaluate the economic viability of the venture by anticipating costs, projecting revenues, and assessing potential returns on investment. Risk Identification Identify potential obstacles and risks, enabling proactive development of strategies to mitigate challenges. Strategic Planning Tool Serve as a strategic planning tool, providing valuable data for informed decision-making. Risk Mitigation Minimize risks, maximize opportunities, and reduce the likelihood of costly mistakes. Increased Success Probability Enhance the overall chances of a successful market entry through informed decision-making. What are the four types of feasibility? Evaluating Viability The four feasibility areas—technical, financial, market, and operational—are crucial aspects in evaluating the viability of a project or business initiative. Technical Feasibility: Assesses whether the proposed project can be successfully implemented using existing technology and infrastructure. It considers the availability of necessary technology, expertise, and knowledge to accomplish the project’s goals. Financial Feasibility: Involves a thorough examination of the project’s economic aspects. This includes assessing potential costs and benefits, calculating return on investment (ROI), and determining the overall financial viability of the project. Market Feasibility: Evaluate the project’s potential within the existing market. It involves analyzing customer needs, demand, competition, and market trends to determine whether there is a viable opportunity for the proposed project. Operational Feasibility: Focuses on assessing how well the proposed project aligns with current business operations and processes. It considers the practicality of project implementation and ensures alignment with organizational objectives. By delving into these four key areas, stakeholders gain a comprehensive understanding of the project’s feasibility, enabling well-informed decision-making in the planning and execution phases. When to perform a market feasibility study? Before Making Significant Investments A market feasibility study is a strategic tool that should be conducted at specific junctures in the business development process. It is particularly crucial when contemplating the introduction of a new product or service or entering a new market. Conducting a market feasibility study at the early stages of conceptualization allows businesses to evaluate the viability and potential success of their ideas. It is advisable to initiate a market feasibility study before making significant investments or allocating resources to ensure that there is a demand for the proposed offering. If there are changes in market conditions, consumer preferences, or regulatory landscapes, it’s also an opportune time to revisit and update existing feasibility studies. In essence, the timing for a market feasibility study aligns with pivotal decision points in a business’s growth trajectory, offering valuable insights to inform strategic planning and minimize risks. What are the factors of a market feasibility study? A market feasibility study involves a comprehensive examination of various factors and components to provide a thorough understanding of the market landscape. Each of these components contributes to a holistic understanding of the market feasibility, guiding businesses in making informed decisions and increasing the likelihood of success. Key elements include: Market Analysis Assess the current market conditions, size, and trends. Understand the demand for the product or service and identify potential competitors. Target Audience Define and profile the target audience. Understand their preferences, needs, and behaviors to tailor offerings effectively. Regulatory Environment Examine the regulatory landscape to understand legal requirements, permits, and any potential hurdles that may affect market entry. Economic Factors Evaluate economic conditions, including GDP growth, inflation rates, and overall economic stability that may impact business operations. Technical Feasibility Analyze the technological requirements and advancements needed for the product or service, ensuring alignment with industry standards. Operational Feasibility Assess the practicality of implementing the business plan, considering logistics, resources, and operational processes. Financial Analysis Conduct a thorough financial analysis, including cost projections, revenue forecasts, and return on investment (ROI) calculations. Risk Assessment Identify potential risks and challenges, both internal and external, and develop strategies to mitigate or address them. Competitor Analysis Understand the competitive landscape by analyzing existing competitors, their strengths, weaknesses, and market positioning. SWOT Analysis Perform a SWOT analysis to evaluate internal strengths and weaknesses, as well as external opportunities and threats. Feasibility Recommendations Provide conclusive recommendations based on the findings, indicating the feasibility and viability of entering the target market. B2B Market Research Methods for Better Decision Making The best B2B market research methods depend on the business problem you are trying to solve. These four types of market research each deliver specific benefits, and each has drawbacks. Understanding these will help you Product-market fit research: How to do market size analysis How to do market size analysis for product market fit. Market-Sizing Questions: Frameworks for Estimating Market Demand Asking market-sizing questions is part of the process of estimating the potential size of a market for a product or service. This information is vital in your go-to-market planning. Take it from the world’s leading companies. Newtonx’s platform gives us continued confidence that we’re sourcing the highest quality data to drive critical business decisions., i was really excited when we found newtonx. their custom recruiting has genuinely been a game changer for us in terms of data quality. not only do i have much greater trust in the data, but the variation in the data means i can more easily provide actionable direction for our product and marketing teams without finding myself rationalizing away bad data., got your next question in mind. NewtonX is the only B2B research company that connects researchers with the exact professionals required to solve any problem. Privacy Overview Strictly Necessary Cookies This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful. Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings. If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again. Why Does My Healthcare Project Need a Feasibility Study? We have written several times in the past few years about the components of a financial feasibility study or a market study for healthcare organizations like hospitals and long-term care facilities. But we haven’t spent too much time discussing, “Why do I need a feasibility study report?”, or “Why do I need a market analysis or market research report?” In this post, we will discuss the need for, and use of, these tools for a proposed healthcare business venture, especially one based on new ideas. In this Article … Will My Idea Work? What are the Potential Risks? Will my Projected Income Statement Support Debt Financing? What about Equity Financing? Resource Planning in a Feasibility Study Decision Making in the Long Term Will my Idea Work? There is a shortage of physician dermatologists so one option was to encourage primary care physicians (PCPs) to contract with Physician Assistants (PAs). The PAs, specializing in dermatology, would perform assessments and obtain biopsies that would be sent to the central pathology laboratory. This required preliminary analysis of the clinical and economic benefit to appropriate stakeholders like PCPs and PAs, to institute a service in their offices. This market research had to take place before even considering the operational feasibility of the increase in pathology specimens. If there were no initial indications that the suggested components of this type of service would interest the intermediate stakeholders, the idea would likely not work. What are the Potential Risks? Technical feasibility . Is your particular project based on new technology that has had limited visibility to the target market? Is the new project a viable alternative to existing technology, e.g., saving costs or increasing clinical success? Is it a new clinical service that is dependent on regulatory and/or payor approval? Operational feasibility . Does your proposed project depend on finding appropriate facilities and/or specialized staff? Will you be able to find capable project management for the business venture? Are there external constraints like zoning laws that affect your proposed plan? Legal and professional feasibility . What about legal risks such as professional or civil liability – or even criminal exposure.? The landscape is littered with new products and services that did not work out as advertised, including healthcare products and services. Theranos, Inc. claimed its blood tests could diagnose cancer and other diseases from just a few drops of blood. The CEO and COO have pleaded guilty to federal wire fraud. Some new products don’t meet the tests of medical necessity or clinical effectiveness. Providers who bill federal healthcare programs face federal false claims actions. As US attorney Jacqueline Romero said about a recent case in the Eastern District of Pennsylvania, “Before billing Medicare, providers must conduct their own due diligence, including reviewing applicable coverage determinations; they cannot blindly rely on the advice of device manufacturers, distributors, or billing companies,” Will my Projected Income Statement Support Debt Financing? What about Equity Financing? Borrowing against the equity in a personal asset like a home (or a college fund?). When borrowing from yourself, it may seem like you don’t need the bells and whistles of a project feasibility study. But that can be when you need it most. Be at least as rigorous of yourself as you would be if it was your brother-in-law or sister-in-law coming to you with their latest “sure-fire” investment opportunity. Equity financing can be available via private equity or venture capital firms . Venture capitalists are typically looking to fund start-up companies with good growth prospects. Private equity firms are looking for companies with mature businesses. In either case, managers will be very interested in your feasibility analysis and financial projections. They also become your business partners in the short or long term. Resource Planning in a Feasibility Study What is your target market ; how are you projecting the number of your potential customers? Who pays for your product or service? Is it something covered by federal or private health plans , and if so, how much do they pay? staff and benefits , rent or lease payments , supplies and equipment , purchased services such as billing and legal, taxes and insurance , and interest on loans, to name just a few. Setting out your assumptions will enable you to compile a preliminary analysis of the economic feasibility of your new service in the form of an income and expense statement A second important financial projection is a cash flow statement . This schedule can show how fast any initial investments by any source will be used in the business and when you are projecting to break even on a cash basis. Decision Making in the Long Term It is one thing to estimate the amount of space your business will require. It is another to actually look at space which may be close, but not exactly what you are looking for. You may find staff member salaries are markedly different from what you proposed. You may find good deals on supplies or equipment you did not expect. Your initial marketing strategies may be much more successful than you planned, and you have to expand hours of operation to keep your customers satisfied. Your project feasibility study does not guarantee your project’s success. However, it can go a long way towards identifying mitigation strategies and satisfying relevant stakeholders. It can help you enunciate key benefits for your product or service, and make sure the money spent is a good use of all the resources, including your sweat equity, invested in it! When you need proven expertise and performance Jim hook, mph. Mr. James D. Hook has over 30 years of healthcare executive management and consulting experience in medical groups, hospitals, IPA’s, MSO’s, and other healthcare organizations. 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Your expert advice has helped us prevent long-lasting mistakes with lasting consequences. Get expert advice in your inbox for free. Are you a human? Email This field is for validation purposes and should be left unchanged. Speak with a certified HIPAA expert for free Feasibility Study Ai generator. A feasibility study is a comprehensive analysis that evaluates the viability of a proposed project. It examines technical feasibility, financial cost, legal requirements, and market demand to determine if the project is worth pursuing. This process, including components like the Financial Feasibility Report , Feasibility Analysis , and Business Feasibility Report , helps organizations make informed decisions, allocate resources effectively, and mitigate risks before committing to significant investments. What Is a Feasibility Study? A feasibility study is an analysis used to assess the practicality and potential success of a proposed project or plan. It evaluates factors like cost, technical requirements, market demand, and potential obstacles to determine if the project is worth pursuing. Examples of Feasibility Study 1. Restaurant Feasibility Study Objective: Opening a new restaurant. The feasibility study for opening a new restaurant revealed a high demand for casual dining in the target area. The proposed location has prime high foot traffic, making it an ideal spot for attracting customers. Financial projections show that the restaurant can break even within one year. Additionally, the area has an adequate workforce and reliable suppliers, ensuring smooth operations. All necessary permits can be obtained within three months, allowing for a timely launch. 2. Technology Startup Feasibility Study Objective: Launching a mobile app startup. The feasibility study for launching a mobile app startup indicated strong user demand for the app’s unique features. A prototype can be developed within six months, requiring $500,000 in seed funding. The competitive landscape is favorable, with few direct competitors. Key risks, such as data security and market saturation, have been addressed in the planning process, ensuring a robust market entry strategy. 3. Non-Profit Organization Feasibility Study Objective: Environmental conservation non-profit. The feasibility study for starting an environmental conservation non-profit highlighted a significant need for conservation efforts in the region. Multiple grant opportunities are available to support funding. The proposed organizational structure is clear and well-defined. The non-profit’s programs align with community needs, promising a positive environmental impact. This alignment strengthens the case for support and engagement from local stakeholders. 4. Manufacturing Plant Feasibility Study Objective: Opening a new manufacturing plant. The feasibility study for opening a new manufacturing plant identified a suitable site with excellent transportation links. The initial investment required is $5 million. The region offers an adequate supply of skilled labor, ensuring efficient operations. The supply chain for necessary materials is reliable, and the project’s environmental impact is minimal, meeting regulatory standards and community expectations. 5. Hospital Expansion Feasibility Study Objective: Expanding a hospital facility. The feasibility study for expanding a hospital facility showed increased regional demand for healthcare services. Suitable adjacent land is available for the expansion. The construction cost is estimated at $10 million, and the expansion would result in a 50% increase in patient capacity. All plans comply with existing regulations, ensuring a smooth approval process and enhanced healthcare provision for the community. 6. Renewable Energy Project Feasibility Study Objective: Solar farm installation. The feasibility study for installing a solar farm indicated high solar irradiance in the proposed location, making it ideal for solar energy production. The project requires an $8 million investment, with a projected payback period of 10 years. Government incentives are available to support the project financially. The solar farm promises a positive environmental impact and has strong community support, enhancing its feasibility. 7. Retail Store Feasibility Study Objective: Opening a new retail store. The feasibility study for opening a new retail store found strong demand for the proposed products. The chosen location is prime with high traffic, ideal for attracting customers. Startup costs are estimated at $1 million, with projected annual revenue of $3 million. Favorable lease terms further enhance the financial feasibility of the project, indicating a promising return on investment. 8. Online Education Platform Feasibility Study Objective: Launching an online education platform. The feasibility study for launching an online education platform highlighted a growing demand for online learning solutions. The platform can be developed in six months with an initial investment of $300,000. Revenue will be generated through subscriptions and ads. The platform’s competitive edge lies in its unique courses and expert instructors, making it well-positioned to capture a significant market share. Feasibility Study Example for Small Business Objective: opening a boutique coffee shop. Business Idea: The aim is to open a boutique coffee shop in a bustling neighborhood, offering high-quality coffee, artisanal pastries, and a cozy atmosphere. 1. Market Analysis: Demand: Research shows a growing trend for specialty coffee and unique coffee shop experiences in the area. Target Audience: Young professionals, students, and local residents who appreciate quality and ambiance. Competition: Several coffee shops are present, but none offer the same combination of high-quality coffee and artisanal pastries in a boutique setting. 2. Location Analysis: Site: A vacant storefront on a busy street near offices, a university, and residential areas. Foot Traffic: High foot traffic, especially during morning and lunch hours, ensures a steady stream of potential customers. Rent: Affordable rental terms negotiated for a three-year lease, providing financial stability during the startup phase. 3. Financial Feasibility Report: Startup Costs: Estimated at $100,000, covering renovations, equipment, initial inventory, and marketing. Funding: Combination of personal savings, a small business loan, and potential investment from family members. Monthly revenue: $20,000 Monthly expenses: $15,000 Break-even: Within 10 months 4. Technical Feasibility: Suppliers: Agreements with local roasters and bakers ensure a steady supply of high-quality coffee beans and pastries. Equipment: Sourcing reliable coffee machines, grinders, and other necessary equipment from reputable suppliers. Staffing: Hiring experienced baristas and a small team of support staff. 5. Legal and Regulatory Feasibility: Permits: Required health and safety permits can be obtained within two months. Compliance: The business will comply with local health codes, zoning laws, and labor regulations. 6. Risk Analysis: Market Risks: Potential market saturation mitigated by the unique boutique concept. Financial Risks: Conservative financial planning and a contingency fund of $10,000 for unexpected expenses. Operational Risks: Staff training and robust operational procedures to ensure consistent quality and service. Feasibility Study in Software Engineering A feasibility study in software engineering assesses the practicality of a proposed software project. It helps determine whether the project is technically, economically, and operationally viable. Here are the essential steps and considerations for conducting a feasibility study in software engineering: 1. Preliminary Analysis Project Goals: Define the primary objectives and goals of the software project. Stakeholder Needs: Identify the needs and requirements of stakeholders. Initial Feasibility: Assess if the project idea is viable at a high level. 2. Define the Scope Objectives: Clearly state the objectives of the feasibility study. Requirements: Define the functional and non-functional requirements. Constraints: Identify constraints such as time, budget, and technology. 3. Technical Feasibility Assess the technical aspects to ensure the project can be developed with the current technology and resources: Technology Stack: Evaluate the technology stack required for development (programming languages, frameworks, tools). Skill Set: Assess the availability of the required skill sets within the team. System Requirements: Determine hardware and software requirements. Technical Challenges: Identify potential technical challenges and solutions. 4. Economic Feasibility Evaluate the financial aspects to ensure the project is economically viable: Cost Estimation: Estimate the development, testing, deployment, and maintenance costs. Budget: Compare the estimated costs against the available budget. ROI: Calculate the expected return on investment (ROI). Cost-Benefit Analysis: Perform a cost-benefit analysis to justify the investment. 5. Operational Feasibility Examine the operational aspects to ensure the project can be integrated and used effectively: User Impact: Assess how the software will impact end-users and business operations. Training Requirements: Determine the training needs for users and support staff. Process Changes: Identify changes required in existing processes and workflows. Support and Maintenance: Plan for ongoing support and maintenance. 6. Schedule Feasibility Determine if the project can be completed within the required timeframe: Timeline: Develop a preliminary project timeline with key milestones. Resource Allocation: Assess the availability of resources to meet the timeline. Critical Path: Identify the critical path and potential bottlenecks. 7. Legal and Regulatory Feasibility Ensure the project complies with relevant laws and regulations: Compliance: Check for compliance with industry standards and regulations. Data Security: Assess data security and privacy requirements. Intellectual Property: Verify intellectual property rights and licensing requirements. 8. Risk Assessment Identify and evaluate potential risks that could impact the project: Risk Identification: List potential risks, including technical, financial, operational, and legal risks. Risk Analysis: Analyze the likelihood and impact of each risk. Mitigation Strategies: Develop strategies to mitigate identified risks. 9. Prepare a Feasibility Report Compile the findings into a comprehensive feasibility report: Executive Summary: Summarize the key findings and recommendations. Detailed Analysis: Include detailed findings from technical, economic, operational, and risk assessments. Recommendations: Provide clear recommendations based on the study. 10. Decision-Making Present the feasibility report to stakeholders and decision-makers: Approval: Seek approval to proceed with the project. Modifications: Suggest modifications or additional research if necessary. Rejection: Recommend rejecting the project if it is deemed unfeasible. Feasibility Study objectives Examples Objective: Assess the viability of opening a new retail store in a suburban shopping center. Key Areas: Market demand, competitive analysis, financial projections, and location suitability. Objective: Determine the feasibility of launching a tech startup focused on AI-powered education tools. Key Areas: Technical feasibility, market potential, funding requirements, and risk assessment. Objective: Evaluate the feasibility of expanding an existing restaurant chain to a new city. Key Areas: Market analysis, site selection, operational logistics, and financial projections. Objective: Assess the feasibility of establishing a new manufacturing plant for eco-friendly packaging. Key Areas: Location analysis, cost estimation, workforce availability, and environmental impact. Objective: Determine the feasibility of creating a non-profit focused on mental health awareness. Key Areas: Community need, funding sources, organizational structure, and program development. Objective: Evaluate the feasibility of a wind farm installation in a rural area. Key Areas: Site suitability, environmental impact, financial viability, and regulatory compliance. Objective: Assess the viability of building a new healthcare facility in an underserved region. Key Areas: Community health needs, site selection, cost analysis, and staffing requirements. Objective: Determine the feasibility of launching an online education platform for professional development. Key Areas: Market demand, platform development, funding needs, and competitive landscape. Objective: Evaluate the feasibility of starting an organic farm. Key Areas: Soil quality, market demand for organic produce, cost estimation, and operational planning. Objective: Assess the feasibility of developing a new tourist attraction in a historic area. Key Areas: Market appeal, site development, financial projections, and regulatory compliance. Importance of a Feasibility Study A feasibility study is crucial for any business or project because it provides a comprehensive analysis of the viability of a proposed initiative. Here are key reasons highlighting its importance: 1. Risk Assessment and Mitigation Identify Potential Risks: A feasibility study helps in identifying potential risks and challenges that might arise during the project. Develop Mitigation Strategies: By understanding these risks early, you can develop strategies to mitigate them, increasing the chances of project success. 2. Financial Viability Cost-Benefit Analysis: It provides a detailed analysis of the costs involved and the potential benefits, helping to determine if the project is financially viable. Investment Decisions: Investors and stakeholders use the feasibility study to decide whether to invest in the project, as it provides a clear picture of potential returns on investment. 3. Resource Allocation Efficient Use of Resources: It helps in planning and allocating resources effectively, ensuring that the project does not exceed budget and is completed within the stipulated time frame. Identify Requirements: It identifies the resources required, such as manpower, technology, and materials, ensuring they are available when needed. 4. Market Analysis Understanding Market Demand: The study includes an analysis of market demand, competition, and target audience, ensuring there is a need for the product or service. Competitive Edge: By understanding the market dynamics, businesses can develop strategies to gain a competitive edge. Assess Operational Capabilities: It evaluates whether the organization has the operational capability to undertake the project, including staffing, technology, and processes. Streamline Processes: Identifies areas for improvement in operational processes, ensuring smooth project execution. 6. Strategic Planning Informed Decision-Making: Provides critical data that aids in making informed decisions regarding the project. Alignment with Goals: Ensures that the project aligns with the strategic goals and objectives of the organization. 7. Legal and Regulatory Compliance Identify Legal Requirements: It helps in understanding and complying with legal and regulatory requirements, avoiding potential legal issues. Regulatory Approval: Ensures that all necessary approvals and permits are obtained before project commencement. 8. Improves Project Success Rate Early Problem Detection: By identifying potential issues early, corrective actions can be taken before they become major problems. Enhances Credibility: A well-conducted feasibility study enhances the credibility of the project among stakeholders and investors. Types of Feasibility Study A feasibility study evaluates the potential success of a project by examining various factors. Here are the main types of feasibility studies: 1. Technical Feasibility Objective: Assess if the project is technically feasible with the available resources. Technology Assessment: Evaluate the technology required and whether it is available or needs to be developed. Technical Expertise: Determine if the team has the necessary technical skills or if additional training is needed. Equipment and Materials: Identify the equipment and materials needed and their availability. 2. Economic Feasibility Objective: Determine the financial viability of the project. Cost-Benefit Analysis: Compare the expected costs with the anticipated benefits. Financial Projections: Estimate initial investment, operational costs, and potential revenue. Funding Sources: Identify potential sources of funding, such as investors, loans, or grants. 3. Legal Feasibility Objective: Assess if the project complies with legal and regulatory requirements. Regulatory Requirements: Identify relevant regulations, standards, and compliance requirements. Permits and Licenses: Determine the necessary permits and licenses required for the project. Legal Risks: Evaluate potential legal risks and liabilities. 4. Operational Feasibility Objective: Evaluate if the organization can operate the project successfully. Operational Requirements: Identify the operational processes and procedures needed. Staffing Needs: Determine the human resources required and their availability. Workflow Efficiency: Assess the efficiency of current workflows and identify areas for improvement. 5. Market Feasibility Objective: Determine the project’s potential success in the market. Market Demand: Assess the demand for the product or service. Target Audience: Identify the target market and understand their needs and preferences. Competitive Analysis: Evaluate the competition and market trends. How to Conduct a Feasibility Study Conducting a feasibility study involves assessing the practicality and potential success of a proposed project. Here are the essential steps to conduct a thorough feasibility study: Project Alignment: Assess if the project aligns with organizational goals. Cost-Benefit Estimation: Estimate potential costs and benefits. Initial Obstacles: Identify any immediate obstacles or challenges. Objectives: Establish the objectives of the study. Evaluation Aspects: Determine the specific aspects to be evaluated. Boundaries: Set the boundaries for the study. 3. Conduct Market Research Target Market: Analyze the target market and customer demographics. Market Trends: Evaluate market trends and growth potential. Competitors: Assess competitors and their market share. 4. Financial Analysis Capital Investment: Estimate initial capital investment. Revenue and Expenses: Project revenue and expenses. Profitability: Calculate profitability and return on investment (ROI). Break-Even Analysis: Conduct a break-even analysis. 5. Technical Feasibility Technology and Equipment: Identify necessary technology and equipment. Technical Resources: Evaluate the availability and reliability of technical resources. Infrastructure: Determine if the current technical infrastructure can support the project. 6. Operational Feasibility Human Resources: Assess the required human resources and skillsets. Operational Processes: Evaluate operational processes and workflow. Operational Challenges: Identify potential operational challenges. 7. Legal and Regulatory Analysis Permits and Licenses: Identify necessary permits and licenses. Compliance: Ensure compliance with local, state, and federal regulations. Legal Obstacles: Assess any potential legal obstacles. Risk Analysis: Analyze internal and external risks. Risk Impact: Determine the likelihood and impact of each risk. Mitigation Strategies: Develop risk mitigation strategies. Executive Summary: Write an executive summary. Detailed Findings: Include detailed findings from each analysis. Recommendations: Provide recommendations and conclusions. Approval: Present the feasibility report to stakeholders and seek approval to proceed with the project. Rejection: Recommend rejecting the project if deemed unfeasible. FAQ’s Why conduct a feasibility study. To identify potential obstacles, assess project viability, and make informed decisions before investing significant time, effort, and resources into a project. What are the key components of a feasibility study? Market analysis, technical feasibility, financial analysis, legal considerations, and risk assessment are essential components. How long does a feasibility study take? The duration varies depending on the project’s complexity, ranging from a few weeks to several months. What is market analysis in a feasibility study? It examines the demand for a product or service, target audience, competition, and market trends. What is technical feasibility? It assesses whether the necessary technology, equipment, and expertise are available to complete the project successfully. What is financial analysis in a feasibility study? It evaluates the project’s cost, funding sources, potential revenue, and profitability. What are legal considerations in a feasibility study? They include compliance with laws, regulations, permits, and licenses required for the project. What is risk assessment in a feasibility study? It identifies potential risks, their impact, and strategies to mitigate them. Can a feasibility study guarantee project success? No, but it significantly reduces the risk of failure by providing a thorough analysis of potential challenges and solutions. How does a feasibility study impact decision-making? It provides critical insights and data, helping stakeholders make informed decisions about proceeding with, modifying, or abandoning a project. 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Techno-economic feasibility analysis of zero-emission trucks in urban and regional delivery use cases: a case study of Guangdong Province, China This Report is part of within WRI Ross Center for Sustainable Cities , and Clean Energy . Reach out to Lulu Xue for more information. Addressing the demand side, particularly the concerns of cost-conscious and less technology-savvy small- and medium-sized enterprises (SMEs), is critical for the future uptake of zero-emission trucks (ZETs).  To address the question, this study took Guangdong as an example and assessed the techno-economic feasibility of ZETs from 2022 to 2030 across 14 use cases, considering operational feasibility, purchase cost gaps between ZETs and diesel trucks, and total cost of ownership (TCO) parity years relative to diesel trucks. We identified the use cases with near-term ZET transition opportunities, and explored the roles played by technological development, policy incentives, operational improvements, and business models in advancing ZETs’ TCO (and purchase cost) parity years relative to diesel trucks. We also evaluated the applicability of this study’s conclusions to other Chinese regions. Primary Contacts Research Associate, Sustainable Transition Center, WRI China How You Can Help WRI relies on the generosity of donors like you to turn research into action. You can support our work by making a gift today or exploring other ways to give. Stay Informed World Resources Institute 10 G Street NE Suite 800 Washington DC 20002 +1 (202) 729-7600 © 2024 World Resources Institute Envision a world where everyone can enjoy clean air, walkable cities, vibrant landscapes, nutritious food and affordable energy. Your company is already operating in Germany and you would now like to export worldwide? KfW-Tenders Implementation Consulting, Feasibility Study for a Green Infrastructure Guarantee Facility Tender Notice Pakistan Marketing, Market Research Prequalification Jun 24, 2024 Country Pakistan Deadline Jul 17, 2024 Financing KfW Entwicklungsbank Reference Number BMZ202365120 Subject Feasibility Study for an Investment in a Green Infrastructure Guarantee Facility in Pakistan Project Measures:   The requested Feasibility Study (FS) is part of KfW`s standard due diligence process for new investments and shall support the internal decision making and structuring process.  The objective of the feasibility study is to conduct a detailed analysis and make recommendations to KfW on how the guarantee facility should be set up and to enable appraisal of the specific Financial Cooperation project in Pakistan. It is also intended that the guarantee facility will be accompanied by Technical Assistance with funds provided by the German Government. The consultant may provide more than one project concept and provide feedback on the advantages of each. The feasibility study shall assess the relevance and institutional and financial viability of the investment, specify the project concept and develop a concrete investment proposal. It is expected that the identified project approach is linked to ongoing initiatives and sector policies of the Pakistani government. Furthermore, it shall be well-aligned with the envisaged future Technical Assistance support and relevant donor activities. The requested services of the implementation consultant (IC) under this assignment are as follows: Sector analysis including engagement of other donors and target group analysis Supply and demand analysis for green infrastructure projects, considering potential expansion and the facility’s capacity to meet increasing demand Financial viability, sustainability and ability to attract additional funding sources for the guarantee facility Operational efficiency, transparency, and effectiveness, covering key processes like risk assessment, due diligence etc. Regulatory and legal compliance, identifying any challenges that may impact the facility’s operations Social, environmental and governance (ESG) management system review and impact of projects, incl. effects on emissions reduction, renewable energy, biodiversity, and community development as well as gender analysis Financing options proposal for project design, e.g. equity, subordinated loan, convertible loan Institutional assessment of partner, and definition of consultant services. 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Zacks #1 Rank Zacks Industry Rank Zacks Sector Rank Equity Research Mutual Funds Mutual Fund Screener ETF Screener Earnings Calendar Earnings Releases Earnings ESP Earnings ESP Filter Stock Screener Premium Screens Basic Screens Thematic Screens Research Wizard Personal Finance Money Management Retirement Planning Tax Information My Portfolio Create Portfolio Style Scores Testimonials Zacks.com Tutorial Services Overview Zacks Ultimate Zacks Investor Collection Zacks Premium Investor Services ETF Investor Home Run Investor Income Investor Stocks Under $10 Value Investor Top 10 Stocks Other Services Method for Trading Zacks Confidential Trading Services Black Box Trader Counterstrike Headline Trader Insider Trader Large-Cap Trader Options Trader Short Sell List Surprise Trader Alternative Energy You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK . If you do not, click Cancel. Image: Bigstock A Case for Tracking These 3 Refining & Marketing Stocks The Zacks Oil and Gas - Refining & Marketing industry will benefit from the tight balance between supply and demand for products. Even with the establishment of new refineries, global demand growth is expected to outpace the production of refined products. The global refining capacity, including new installations, and the demand for refined products remain finely balanced. In this favorable market environment, downstream firms such as Valero Energy ( VLO Quick Quote VLO - Free Report ) , Murphy USA ( MUSA Quick Quote MUSA - Free Report ) and PBF Energy ( PBF Quick Quote PBF - Free Report ) are well-positioned to sustain robust earnings and generate substantial long-term value for shareholders. Industry Overview The Zacks Oil and Gas - Refining & Marketing industry consists of companies involved in selling refined petroleum products (including heating oil, gasoline, jet fuel, residual oil, etc.) and a plethora of non-energy materials (like asphalt, road salt, clay and gypsum). Some companies also operate refined products’ terminals, storage facilities and transportation services. The primary activity of these firms involves buying crude/other feedstocks, and processing them into a wide variety of refined products. Refining margins are extremely volatile and generally reflect the state of petroleum product inventories, demand for refined products, imports, regional differences, and capacity utilization in the industry. Other major determinants of refining profitability are the light/heavy and sweet/sour spreads. Refiners are also prone to unplanned outages. 3 Trends Defining the Oil and Gas - Refining & Marketing Industry's Future Margins to Remain Robust: While Refining margins, though lower than the highs of 2022, remain robust. Crack spreads, reflecting the gap between refined product prices and crude oil, are still comfortably above historical norms, ensuring profitability for downstream operators. Global oil demand peaked in 2023, with another record year expected in 2024. The IEA forecasts a demand growth of 1.3 million barrels per day. Demand for gasoline, diesel, and jet fuel remains steady both domestically and in exports. Despite slow capacity expansions, global supply constraints persist. Refining margins are expected to remain strong in 2024.     Refiners Poised for Growth Amid Rising Product Demand: Recently, refiners have benefited from strong demand for gasoline and diesel, driven by strength in travel and mobility. According to the U.S. Energy Department, gasoline inventories are about 1% below the five-year average, and distillate stocks are 8% lower, indicating robust market utilization. This highlights significant usage of oil products. As economic activity remains resilient and Americans engage in travel, consumption of refined products is expected to gain momentum throughout 2024, benefiting refiners from increased driving and international travel trends. Supply-Chain Disruptions: Despite the relatively bullish energy landscape and improved demand environment, the industry has not been immune to supply-chain disruptions and cost inflation. Macro issues like higher transportation expenses, driver scarcity and labor shortages have limited refiners' ability to deliver volumes to their customers. What’s worse is that these headwinds across the system and the subsequent hit to profitability (due to difficulty in passing through the increased costs to clients) are expected to continue in the near future. Zacks Industry Rank Indicates Positive Outlook The Zacks Oil and Gas - Refining & Marketing is a 15-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #94, which places it in the top 38% of 250 Zacks industries. The group’s Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1. Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first. Industry Outperforms Sector But Lags S&P 500 The Zacks Oil and Gas - Refining & Marketing industry has fared better than the broader Zacks Oil – Energy sector over the past year but has underperformed the Zacks S&P 500 composite over the same period. The industry has gone up 26.1% over this period compared with the broader sector’s increase of 15.3%. Meanwhile, the S&P 500 has gained 27.4%. One-Year Price Performance Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses. On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 3.73X, significantly lower than the S&P 500’s 19.83X. However, it is above the sector’s trailing 12-month EV/EBITDA of 3.02X. Over the past five years, the industry has traded as high as 6.76X, as low as 1.84X, with a median of 3.72X, as the chart below shows. Trailing 12-Month Enterprise Value-to EBITDA (EV/EBITDA) Ratio (Past Five Years) 3 Stocks in Focus Valero Energy: San Antonio, TX-based Valero Energy is the largest independent refiner and marketer of petroleum products in the United States. The company has a refining capacity of 3.1 million barrels per day across 15 refineries located throughout the United States, Canada and the United Kingdom. VLO’s expected EPS growth rate for three to five years is currently 6%, which compares favorably with the industry's growth rate of 4.9%. Valero Energy beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.1%. Shares of the Zacks Rank #3 (Hold) company have gained 37.3% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here . Price and Consensus: VLO Murphy USA: It is a leading independent retailer of motor fuel and convenience merchandise in the United States. The proximity of Murphy USA’s fuel stations to Walmart supercenters helps the company leverage the strong and consistent traffic that these stores attract. MUSA’s acquisition of QuickChek Corporation — a family-owned food and beverage chain — is expected to help improve its offerings. The El Dorado, AR-based Murphy USA has a market capitalization of $9.8 billion. MUSA beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other. The company carries a Zacks Rank of 3. Shares of MUSA have gained 60.2% in a year. Price and Consensus: MUSA PBF Energy: PBF Energy has one of the most complex refining systems in the United States. As a result, the firm has the capacity to generate lighter and better grades of refined products. PBF’s daily processing capacity of 1,000,000 barrels of crude is higher than most of its peers. PBF, based in Parsippany, NJ, beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The firm has a market capitalization of $5.4 billion. The Zacks Rank #3 PBF’s shares have gained 10.1% in a year. Price and Consensus: PBF See More Zacks Research for These Tickers Normally $25 each - click below to receive one report free:. Valero Energy Corporation (VLO) - free report >> Murphy USA Inc. (MUSA) - free report >> PBF Energy Inc. (PBF) - free report >> Published in This file is used for Yahoo remarketing pixel add Due to inactivity, you will be signed out in approximately: Become a member today, It's free! Remember me Send my password E3 lithium details clearwater project pre-feasibility study. , The Market Online 2 days ago E3 Lithium (TSXV:ETL) has revealed results from a pre-feasibility study of its Clearwater Project in south-central Alberta The study outlines the project’s economic viability, environmental sustainability and long-term operational potential Other highlights include outlining initial production of 32,250 tons per year of lithium hydroxide monohydrate Shares of E3 Lithium are down 1.36 per cent to C$1.45 as of 12:37 am ET E3 Lithium (TSXV:ETL) has revealed results from a pre-feasibility study (PFS) of its Clearwater Project in south-central Alberta. The company stated in a news release that the study outlines the project’s economic viability, environmental sustainability and long-term operational potential. Additionally, the project reports Canada’s first lihtium-in-brine proven mineral reserve. “The Clearwater Project PFS outlines, for the first time, the viability of lithium from the brines in Alberta,” Chris Doornbos, CEO of E3 Lithium, said in a press release. “This report signifies a fundamental shift for E3 Lithium, setting us on a clear pathway to commercial development and positions the Clearwater Project and Bashaw District as a strategic lithium asset in Canada and North America.” Highlights of the study include: Initial production of 32,250 tons per year of lithium hydroxide monohydrate (LHM) A 50-year operating life that covers a portion of the Bradshaw district 1.29 million tons of LHM in proven and probable lithium mineral reserve from the total Bradshaw district of 18.4 million tons of LHM measured and indicated mineral resource in the Leduc Reservoir The project also boasts initial operating costs of $6,200 per ton of LHM that will provide for a long life and robust project fundamentals as well as sustainably produced lithium. The PFS indicates that process water for the operation will be sourced from recycling and make-up water from waste brine stream. E3 Lithium is focused on the commercial development of lithium extraction from brines contained in its mineral properties in Alberta. Shares of E3 Lithium Ltd. (TSXV:ETL) are down 1.36 per cent to C$1.45 as of 12:37 am ET. Join the discussion: Find out what everybody’s saying about this stock on the E3 Lithium Ltd. Bullboard investor discussion forum, and check out the rest of Stockhouse’s stock forums and message boards . The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here . Featured News Links High-grade gold potential in the world’s best mining jurisdiction, uranium explorer to commence drill program at clearwater west project in saskatchewan. Get the latest news and updates from Stockhouse on social media Follow STOCKHOUSE Today Featured Company Stockhousefeaturedcompany. International Lithium Corp. 404 COMMENTS What is a Feasibility Study and How to Conduct It? The market feasibility study is a crucial component of your overall feasibility analysis. It focuses on assessing the potential demand for your product or service, understanding your target audience, analyzing your competition, and evaluating supply and demand dynamics within your chosen market. Market Research and Analysis. Market research is ... How to Conduct Market Feasibility Research Key components of a market feasibility study are market analysis, organizational/technical analysis, and financial analysis. Steps to conducting a market feasibility study include defining the purpose of the study, conducting preliminary analysis, and performing market research. Challenges in conducting a study include relying on insufficient ... 4 Key Elements That Comprise a Market Research Feasibility Study The 4 key elements that comprise a market research analysis are similar to those seen in other types of feasibility studies. It includes market analysis, technical analysis, financial analysis, and risk analysis. Each element works in hand with others to provide a sustainable business adventure. Let us take a broader overview of each element: How to conduct a feasibility study: Templates and examples 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, a market competition breakdown, and sales projections. ... The feasibility study includes: Market research to gauge consumer interest, assess ... What is a Market Feasibility Study? A market feasibility analysis is a part of a feasibility study that analyzes the market to determine whether there is sufficient demand for your product or service. It involves evaluating various factors (e.g., market size, growth potential, competition, target audience, and regulatory environment). By gathering and analyzing relevant data ... 4 Key Components of a Market Research Feasibility Study Here are the 4 components of market research we suggest for any type of feasibility study. Although each can be contracted separately, the real value is cross-examining the data from each component to provide your organization with a comprehensive 360-degree view of the market research. How to conduct a feasibility study: Template and examples For a general set of guidelines to help you get started, here are some basic steps to conduct and report a feasibility study for major product opportunities or features. 1. Clearly define the opportunity. Imagine your user base is facing a significant problem that your product doesn't solve. This is an opportunity. What Is a Marketing Feasibility Study? A market feasibility study helps businesses set expectations and plans. A good market feasibility study assesses the market environment while also identifying potential customers and other sources of revenue. Unlike marketing plans, which aim to make your business look as good as possible, market feasibility studies should be an objective ... What Is a Feasibility Study? How to Conduct One for Your Project 3. Conduct a Market Survey or Perform Market Research. This step is key to the success of your feasibility study, so make your market analysis as thorough as possible. It's so important that if your organization doesn't have the resources to do a proper one, then it is advantageous to hire an outside firm to do so. Determining Market Feasibility for New Products Conducting a Market Feasibility Analysis for new products is a critical step in the product development process, sizing the potential market, and ultimately determining market feasibility. There are typically five components to a Feasibility Analysis: Technical, Economic, Legal, Operational, and Scheduling. This is often abbreviated TELOS. 11.3 Conducting a Feasibility Analysis Market Feasibility Analysis. A market analysis enables you to define competitors and quantify target customers and/or users in the market within your chosen industry by analyzing the overall interest in the product or service within the industry by its target market Figure 11.14. You can define a market in terms of size, structure, growth ... How to Do a Feasibility Study: To Build, or Not To Build? Phase 2: Market Feasibility Analysis (or Market Research) That's right. To understand the probability of your product successfully entering your market and growing in it, you will need to conduct a good ol' market analysis and understand the marketing strategy in your project plan. Now, let's tackle each element in your market survey one ... What is a Feasibility Study? A feasibility study is a type of market research which analyzes the success or failure of a new product, service, concept, or location. It uses several components of market research including both primary and secondary data to analyze and predict the outcome of the new concept. Feasibility studies are often completed for: Market Research and Feasibility Studies Market Research and feasibility studies explained . Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. ... 1.6 Marketing Feasibility study . Explanation . A feasibility study could be used to test a proposal for new system, which could be used ... MSA Feasibility Study Resources: Market Research Resources related to conducting an MSA 699 feasibility study. Market research data is critical to determining consumer interest, demand and purchasing behavior, and helps you gauge how receptive (in general) people will be to a product or service. Feasibility Study Blueprint: Steps, Examples, and Benefits For the market study, they research the target market and the competitors. Motion helps with feasibility studies. Motion is a project management tool that can boost the effectiveness and precision of your feasibility assessment. The app can help you construct an organized timeline for your studies. Steps to conduct a market feasibility analysis A market feasibility analysis is a comprehensive process that involves researching and analyzing various factors related to the market, demand, supply, and external factors that impact your business. ... Conducting market research is the first step in understanding the demand for your product or service. This process involves several steps ... The 4 essential components of a market feasibility study Below are the four essential components of a market feasibility study. 1. Stakeholder In-Depth Interviews (IDIs) A great place to start a market feasibility study is to engage any associated stakeholders. As professional market researchers in Uganda, we begin this process by organizing between 8 and 12 in-depth interviews with stakeholders who ... PDF Chapter 5: Conducting a Feasibility Study1 Chapter 5: Conducting a Feasibility Study1. This chapter provides a step-by-step overview of how to conduct a feasibility study and market research, including: • the difference between a feasibility study and a business plan; • major components of a feasibility study; • key market analysis, organizational, financial questions in your ... How to Conduct a Feasibility Study with a Survey Using Surveys in a Feasibility Study to Understand Your Marketability. You need to reach out to your target market to learn as much as possible about the people who you hope are going to be paying for your product or service, and surveys are by far the best way to do this. Running a survey of your potential customers might even reveal ... Feasibility Studies: 6 Essential Steps in Product Commercialization Step 1: Define the Study Objectives and Scope. The first step in conducting feasibility studies is to clearly define the objectives and scope of the study. Identify the specific areas that need to be evaluated, such as technical feasibility, market potential, cost analysis, regulatory requirements, or any other relevant factors. Market Feasibility Study A market feasibility study is a crucial step in the business planning process, offering a comprehensive understanding of the potential market for a product or service. This strategic analysis involves assessing economic viability, identifying risks, and providing valuable insights to guide decision-making. Here are key benefits that make market ... Why Does My Healthcare Project Need a Feasibility Study? This required preliminary analysis of the clinical and economic benefit to appropriate stakeholders like PCPs and PAs, to institute a service in their offices. This market research had to take place before even considering the operational feasibility of the increase in pathology specimens. Feasibility Study A feasibility study is a comprehensive analysis that evaluates the viability of a proposed project. It examines technical feasibility, financial cost, legal requirements, and market demand to determine if the project is worth pursuing. This process, including components like the Financial Feasibility Report, Feasibility Analysis, and Business Feasibility Report, helps organizations make ... Techno-economic feasibility analysis of zero-emission trucks in urban This study took Guangdong as an example and assessed the techno-economic feasibility of zero-emission trucks (ZETs) from 2022 to 2030 across 14 use cases, considering operational feasibility, purchase cost gaps between ZETs and diesel trucks, and total cost of ownership parity years relative to diesel trucks. Implementation Consulting, Feasibility Study for a Green Infrastructure The requested Feasibility Study (FS) is part of KfW`s standard due diligence process for new investments and shall support the internal decision making and structuring process. The objective of the feasibility study is to conduct a detailed analysis and make recommendations to KfW on how the guarantee facility should be set up and to enable ... A Case for Tracking These 3 Refining & Marketing Stocks Following a careful analysis of the Zacks Oil and Gas - Refining & Marketing industry, we advise focusing on companies like VLO, MUSA and PBF. A Case for Tracking These 3 Refining & Marketing ... Putting Data Centers in Space Could Reduce Their Carbon Footprint A European initiative that studies the feasibility of building data centers in space has found that the project could be economically viable while reducing the carbon footprint of the ... Mindspot Research: Determining Market Feasibility for New Products A Market Feasibility Analysis is a critical step for new products and services. Conducting a Market Feasibility Analysis for new products is a critical step in the product development process, sizing the potential market, and ultimately determining market feasibility. There are typically five components to a Feasibility Analysis: Technical, Economic, Legal, Operational, and Scheduling and it ... E3 Lithium details Clearwater Project pre-feasibility study E3 Lithium (TSXV:ETL) has revealed results from a pre-feasibility study (PFS) of its Clearwater Project in south-central Alberta. The company stated in a news release that the study outlines the project’s economic viability, environmental sustainability and long-term operational potential. essay homework paper phd project resume review study thesis