Lesson 7

• The project feasibility study is a document containing a detailed description of the project, followed by a set of different feasibility areas.
• Project Feasibility Study are aspects of the project that will drive the success or failure of the project
• What are the steps to a project feasibility study?

  
  

  1. Description of the project
  2. Market Feasibility
  3. Technical Feasibility
  4. Financial/ Economic Feasibility
  5. Organizational/Managerial Feasibility
•  A project description must include a detailed description of the project scope and what the project will do and how it will do it.
• Technical Feasibility answers the questions:

  Is it even possible to create this product/service?

  Do you have the necessary expertise or technical resources (hardware/software)?

  Does the project rely on 3rd party products that do not already exist?
• Market Feasibility answers the questions:

  
  

  Does anybody want this product or service?

  Will anybody use it?

  Is there a similar product/service currently available that will prevent project success?
• Financial or Economic Feasibility answers the questions:

  · How many resources will I need?

  · How long will it take to create this product/service?

  · What additional resources does the project need (cars, software licenses, hardware)?

  · A high-level budget is essential in order to determine project feasibility.

   
• Organizational/Managerial Feasibility

  It requires matching skillsets to individuals in order to ensure you have the correct expertise in order to actually do the project. This may introduce other project features; for example, outsourcing, which brings with its additional operational overhead.
• Feasibility Plan


  Determines the issues related to a business and helps decide if the business has the possibility of succeeding
• Feasibility research 


  It is essential because you want to make sure your business can be successful before putting time and money into something that is not even possible.
• Feasibility Plan

  Its main purpose is to determine if the company will be at least able to meet the operating expenses.
• market research

  the gathering of important data to determine if the customer's needs and preferences will be met.
• Competitive Analysis

  It analyzes competitors and determines their strengths and weaknesses.
• Organizational Competence


  an advantage that helps differentiate a business from its competitors.
• Organizational Competence


  vital for an entrepreneur to learn how members of the team can contribute to each competency to help them reach business goals.
• Financial Analysis


  Determines the viability and profitability of a company. During this phase, an entrepreneur wants to determine the level of start-up costs. Start-up costs include general expenses, land, equipment, and any other cost to start a business.
• Benefits of a feasibility study

  1. Examining the strengths and weaknesses of a proposed idea.
  2. Uncovering opportunities and threats in the market
  3. Discovering the type of resources necessary to proceed
  4. Identifying potential pitfalls for a new venture
• Market Feasibility


  Is there a market for my idea? This may include looking at the demand for your products or services, why people would purchase your item over the competitors, your target audience, and how you plan to market yourself.
• Commercial feasibility

  · How much money is needed to begin?

  · What type of fixed and variable costs will you have?

  · What type of price point can you set for your products or services?

  · How much do you project to make?

  · What is the return on investment?

  · How much money do you need to cover living expenses?

  · Are there any adverse economic situations to think about?
• What are the other considerations in a feasibility study components

  • legal and regulatory
  • skills
  • schedules
• Legal and Regulatory


  You certainly don't want to break any laws bringing your new idea to fruition. You may need to consult someone who can advise you on the legal requirements and regulatory matters you need to pay special attention to, such as insurance for employees and business taxes.
• Skills 


   You may have a vision of a great idea, but do you have the entrepreneurial and business skills to take your vision from a concept to a fully functioning (and successful) business? Additionally, what type of people do you have at your disposal to assist you with the success of your business?

   
• Schedules 


  It includes timelines for project completion. If an idea is going to take a long time to get off the ground, this section can help you potentially restructure your idea to simplify the process, or generate a new idea for a piece that provides a better fit.