Feasibility Studies

A feasibility study is solely a tool on which to base a decision whether or not you should proceed with a proposed idea. Some examples where feasibility studies would be employed are:

Development of a new business

Development of a new product

Business wishing to raise substantial finance

Businesses wishing to diversify

Businesses wishing to change anything of a substantial nature

Prior to any new activity, management will ask,

Is it feasible to do this

Is it worth doing

What will be the benefits of doing this, if any, and

How much will it cost

What should we expect in return for our efforts and

How long will we have to wait

A Feasibility Study will examine elements relating to the proposed plan that will include the following information:

Suppliers, sourcing & logistics

Finance and Insurance requirements, availability & forecasts

Legal & administrative requirements

Marketing strategies

Available and target markets

Competitor activity

Staff levels, capacities & education & training

Premise, plant & equipment serviceability & suitability

Patents, trademarks & copyrights

Environmental, economic, demographic & technological impact analysis

Recommendations

Authors Comment: Don't confuse this type of report to a business plan. They look alike but are very different in outcome. This report could be to determine if an additional business is worth doing. The new business would have to have its own plan determining mission, expected profitability and how long it will take to reach a desired level. A new business may not even be feasible, so yes, they are quite different.

Costs & Assistance

The cost is variable and the parameters could be from a few thousand dollars or more. Quotes are usually called prior to commencement. A quote would include:

Commencement date

Estimated completion date

Payment methods and price, and

a detailed brief of contents.

State and Federal government departments are prepared to assist with the cost of a feasibility study, should you meet the criteria set down by the department.

Most lending authorities require a feasibility study prior to lending. It is for that reason financiers are also happy to assist with payment. It is essential you call for quotes before proceeding. Click here for more on business