A feasibility study is a research project that seeks to identify any potential problems that might be encountered by a future project or business venture, work out if these problems can be overcome (and if so, how), and ultimately determine if the project or venture is viable. The embedded PDF looks more closely at the aims of a feasibility study.
For more information relating to business success, visit the Ahmed Dahab Dailymotion page. There are several major types of feasibility study and several other types that do not fall under this category.
One of the most common types of feasibility study is the technical feasibility study. This is most often used in engineering projects, reviewing the various technical requirements of a project and identifying all the different aspects, including structural and civil.
The capabilities of the available human resources and technologies are also considered, although the key areas of focus of a technical feasibility study are the software and hardware required. This type of study will also look at the projected timescale for completing the project and whether the available resources will make this timescale possible.
An economic feasibility study is designed to forecast as accurately as possible the length of time it will take for a new project to begin to break even financially. In this way, an economic feasibility study can be compared to a cost/benefit analysis. An overview of a cost/benefit analysis can be found in the short video attachment.
An economic feasibility study identifies how long a project will take to start generating economic benefits, and they can be used even in the case of non-profit ventures. Regardless of whether making a profit is the aim, any project needs to cover its costs, so this type of study is important to discover how long it will take before these costs are recovered.
For profit-making ventures, economic feasibility studies can project further into the future and look at not only how much capital will be required to complete the project, but also when to expect returns to start being generated.
An environmental feasibility study looks at the impact of any new project or venture on the environment. This could be because one of the aims of the project is environmental protection, because the project managers or business owners wish to operate a sustainable, responsible business, or simply to ensure compliance with environmental regulations.
Environmental feasibility studies will not only look at the impact of a project on the environment, but also at the cost of compliance with regulations such as acquiring relevant permits, approvals or licenses and the timescales involved with acquiring these.
A legal feasibility study focuses on meeting the legal requirements for implementing the project in question. This type of study identifies any areas where approval may be needed and looks at the viability, cost and timescale involved in gaining any required permits, approvals, licenses or other legal paperwork. This type of study can also cover a project’s ethical aspects, such as environmental friendliness.
A social feasibility study explores the impact of a project on society and of society on the project. For example, this type of study might look at how ambient social structure in the area will affect the number of qualified employees that may be available, or the compatibility of local residents with the project.
The infographic attachment looks at the six key components of a feasibility study, which apply to all categories.