Before committing to a project, you will first want to analyze the risks and projections associated with it. In other words, you will want to find out whether a proposed project is truly viable and achievable. A feasibility study will help you determine and analyze the specific factors that will affect your project before you commit any time, resources, or budget.
How many times have you asked yourself “will this plan work?” before taking any action? A feasibility study is an in-depth analysis of the viability of a project. It’s an initial assessment that outlines the risks of an idea, to determine a project’s viability and success. For project managers, a feasibility study is a powerful tool that helps them figure out whether or not to commit to a project by analyzing the concept and the business case.
Before committing any resources, a feasibility study will help you determine the specific factors that will affect your projects, such as the technology involved, marketplace, strategy, schedule, and financial projections. By taking the time to conduct a feasibility project beforehand, you will not only be mitigating unnecessary risk but will also be analyzing different scenarios and identifying possible issues that could potentially hurt your success later down the road.
A feasibility study should be a part of every project cycle. Just as the name implies, you will be asking yourself, “Is this project feasible?”, and working from there.
Benefits of a Feasibility Study
Project managers know how helpful and important a feasibility study is. It’s a comprehensive and convenient tool that helps companies research and take action based on relevant information. What are some of the main benefits of conducting a feasibility study and why you should take the time to conduct one before undertaking any new projects?
Stakeholders benefit from it by gaining a clearer picture of the project.
Your team’s commitment improves by gaining a higher sense of focus.
They help to make well-grounded decisions and they are easily scalable, which means they can be applied to any kind of project
Project failure is minimized through logical assessment.
Analyzing the different options helps to simplify the decision-making process.
Steps To Conduct a Feasibility Study
What are the steps you need to consider when conducting a feasibility study? Let’s review.
1. Conduct a preliminary analysis. At this point, you need to outline your plan and it’s always a good idea to focus on any distinct advantages your project, product, or service has. Then, you need to identify whether or not there are any risks associated with it. For example, if it’s too expensive, or if there are simply too many competitors. Identify and analyze strengths and weaknesses, and make sure to make any necessary modifications to your plan when identifying issues.
2. Project scope. This section analyzes the business opportunity. Think of it as defining why this project should exist. You’re going to ask yourself “Who is this project for?”, “Is there a need for this idea?”, “Who are my competitors?”, etc.
3. Project requirements. This section should analyze and describe what you will need in order to complete your project; materials, resources, budget, and skills necessary for project completion.
4. Approach. This is where you detail how your project will approach your business case or your proposal. Examine alternatives and describe different courses of action. By analyzing these routes, you will determine whether or not your proposal is achievable and practical.
5. Perform market research. This step is crucial to your study because it gives you a clear picture of the revenue you can expect from the project. Consider geographics, demographics, competitors, and the value of the market.
6. Project evaluation. This is where you analyze the cost and projected income of the project. But keep in mind you also need to take into consideration the money you will spend by performing the project: labor fees, income streams, and any other necessary resource. After the total cost has been calculated, you’re then going to evaluate it by conducting a cost-benefit analysis.
7. Review the information. At this point, you’re going to reexamine your previous steps and determine if there’s something that needs to be adjusted. Next, set out your findings and review your feasibility study with all interested parties.
8. Make a decision. You now have enough information to make a decision. This is where you determine whether or not your project is feasible. A few aspects to consider before making the final decision is whether the idea is worth the overall effort and money as well as if it’s aligned with your company’s strategic long-term goals.
Use the Right Tools to Conduct Your Company’s Feasibility Studies
Before committing to projects, you first need to assess them. Feasibility studies are a fundamental tool for project managers, but gathering the information requires the right tools. If you want your feasibility studies to be accurate, you need to a clear understanding of all its moving parts. After all, being able to gather information and analyze your findings is what will help you determine whether or not your project is viable.
Instagantt, our project managementGantt chart software, helps you manage your entire project, from beginning to end. With gantt charts, you can create a plan, document information, and track all these different aspects over time. You can also communicate work and notify the right people along the way, making sure everyone is always informed.
