PROJECT FEASIBILITY STUDY recorded discussion

Summary

This script delves into the critical process of conducting a feasibility study for new business projects. It outlines the importance of evaluating a project's potential for success and overcoming obstacles before initiation. The study assesses technical, economic, legal, operational, and scheduling feasibility, providing essential information for informed decision-making. It highlights the benefits of a feasibility study in saving time and resources, enhancing project success, and aiding in strategic planning.

Takeaways

• 📈 A feasibility study is crucial for evaluating a project's potential for success and identifying potential obstacles before beginning.
• 🔍 It provides a comprehensive analysis from start to finish, aiding in informed decision-making for managers and stakeholders.
• 💡 Feasibility studies are conducted before any project planning to determine if a project is likely to succeed and to form strategies to overcome challenges.
• 💼 Managers consider resources and financial requirements when assessing a project's feasibility, which helps in attracting investors.
• 📋 The study presents the pros and cons, saving the company time and money by confirming the project's worth before implementation.
• 🤔 It answers key questions about resource availability, required tools, teams, and the project's return on investment (ROI).
• 🛠️ Technical feasibility focuses on the project's technical needs and how to meet them, including necessary tools or software.
• 💰 Economic feasibility outlines costs, expected revenue, profits, and ROI, determining the financial benefits and project worth.
• 🏛️ Legal feasibility addresses legal requirements such as permits or licenses, ensuring compliance benefits the company.
• 🔄 Operational feasibility considers how the organization will adapt to the project and serves its goals, including staffing and scheduling.
• 🗓️ Scheduling sets the project timeline, expectations for milestones, and strategies to overcome delays.
• 📝 A feasibility study is not a business plan; it precedes it, determining the viability of a venture before a business plan for growth and sustainability is developed.

Q & A

What is the primary purpose of a feasibility study in the context of a business project?

The primary purpose of a feasibility study in the context of a business project is to evaluate the project from start to finish, determine its potential for success, and identify potential obstacles before the project begins.

Why is it important for a business to conduct a feasibility study before launching a new project?

It is important for a business to conduct a feasibility study before launching a new project to ensure that the project is likely to succeed, to save money and time by confirming the project's worth, and to provide valuable information for decision-making.

What are the key components that a feasibility study evaluates for a project?

A feasibility study evaluates key components such as technical feasibility, economic feasibility, legal feasibility, operational feasibility, and scheduling.

How does a feasibility study help in determining the technical feasibility of a project?

A feasibility study helps in determining the technical feasibility of a project by focusing on the project's technical needs and assessing how a company can meet those needs, including the availability of required tools or software.

What financial aspects does the economic feasibility section of a feasibility study cover?

The economic feasibility section covers detailed information about project spending, expected revenue, projected profits, and the company's return on investment to determine the financial benefits and worth of a project.

What legal considerations are addressed in a feasibility study?

A feasibility study addresses legal considerations such as permits or licenses, defining legal requirements, and confirming whether compliance with legal requirements will benefit the company overall.

How does a feasibility study assist in understanding the operational aspects of a project?

A feasibility study assists in understanding the operational aspects of a project by considering how the organization will adapt to the project, the resources needed, and how the project serves the organization's goals.

What is the role of scheduling in a feasibility study?

Scheduling in a feasibility study sets the timeline for the project, addresses time constraints, and outlines strategies to overcome delays, including expectations for milestones or goals.

How does a feasibility study differ from a business plan?

A feasibility study is conducted prior to a business plan to determine the viability and profitability of a venture, while a business plan is developed after the venture is created, focusing on growth and sustainability strategies.

What are the potential benefits of conducting a feasibility study for a company?

The potential benefits of conducting a feasibility study include improving the project team's idea, identifying new opportunities, providing valuable information for decision-making, narrowing business alternatives, enhancing the success rate by evaluating multiple parameters, and identifying reasons not to proceed.

What are the typical contents of a feasibility study?

The typical contents of a feasibility study include an executive summary, description of the product or service, technology considerations, market analysis, organizational structure, schedule, and financial projections.

Outlines

00:00

📈 Project Feasibility: The Key to Success

This paragraph introduces the concept of project feasibility and its importance in the early stages of project planning. It explains that feasibility studies are conducted to evaluate the potential for success and to identify and strategize around potential obstacles. The study helps managers and stakeholders make informed decisions by presenting the pros and cons of a project. It also addresses various types of feasibility, including technical, economic, legal, and operational, which are crucial for assessing a project's overall viability. The paragraph emphasizes the benefits of feasibility studies in saving time and money, confirming project worth, and enhancing the chances of project success by analyzing data from multiple sources.

05:03

🔍 Conducting a Feasibility Study: Steps and Benefits

The second paragraph delves into the process of conducting a feasibility study, outlining the steps involved and the benefits derived from such an analysis. It starts with forming a preliminary analysis to define the project's parameters and identifying its advantages and disadvantages. The paragraph then discusses the importance of outlining finances, including expected income, operational costs, and investment needs. Market research is highlighted as a critical component, with strategies to understand customer needs and market conditions. Organizing the project structure, including resources, human needs, and technological requirements, is also emphasized. The paragraph concludes with the assessment of results to ensure all project objectives have been addressed and data is sufficient for decision-making, distinguishing the feasibility study from a business plan and its role in determining the viability of a business venture before investment.

10:03

🛠️ Project Implementation: Organization and Assessment

The final paragraph focuses on the organizational aspects of project implementation, discussing the creation of an organizational chart for clarity and the identification of challenges and obstacles. It covers the assessment of legal challenges and compliance strategies, as well as the implementation of team strategies and talents. The paragraph also touches on the importance of assessing results to ensure the project meets its objectives and provides enough data for decision-making. It differentiates between a feasibility study and a business plan, with the former determining the viability of an idea before investment and the latter focusing on growth and sustainability strategies post-venture creation. The feasibility study's role in providing calculations, analysis, and projections is contrasted with the business plan's focus on tactics and strategies for business growth.

Keywords

💡Feasibility

Feasibility refers to the practicality and likelihood of success for a project. It is a core concept in the video, as it underpins the entire process of evaluating whether a project should proceed. The script mentions that a feasibility study can help determine if a project is likely to succeed and how to overcome potential obstacles, which is essential for managers and stakeholders to make informed decisions.

💡Project Feasibility Study

A project feasibility study is a systematic analysis conducted to assess the potential for success of a project. It is a critical step before any significant investment is made. The script explains that this study evaluates a project from start to finish, providing insights that can help in making strategic decisions about the project's future.

💡Technical Feasibility

Technical feasibility is one of the five types of feasibility discussed in the script. It focuses on whether the technical requirements of a project can be met. The script uses it to illustrate the need for tools or software that a company might not currently possess and how a feasibility study can help determine the project's viability from a technical standpoint.

💡Economic Feasibility

Economic feasibility pertains to the cost-effectiveness and financial viability of a project. The script explains that this type of feasibility provides detailed information about project spending, expected revenue, projected profits, and the company's return on investment, which helps determine the financial benefits and worth of a project.

💡Legal Feasibility

Legal feasibility addresses the legal requirements and implications of a project. The script mentions that a feasibility study should define legal requirements such as permits or licenses and confirm whether compliance with these requirements will benefit the company overall.

💡Operational Feasibility

Operational feasibility is concerned with how an organization will adapt to and support a project. The script indicates that this includes considerations of additional personnel needs and how the project aligns with the organization's goals, which is essential for understanding the project's impact on the company's operations.

💡Scheduling

Scheduling in the context of a feasibility study involves setting a timeline for the project and expectations for milestones or goals. The script discusses how scheduling addresses time constraints and strategies to overcome delays, which is crucial for project planning and execution.

💡Return on Investment (ROI)

Return on investment is a financial metric used to evaluate the efficiency of an investment. The script explains that a feasibility study outlines the financial benefits of a project to determine its worth, including the expected ROI, which is a key factor in assessing the financial viability of a project.

💡Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market. The script describes how market research is used in a feasibility study to identify current market conditions, competition, and potential demand for a product or service, which is vital for understanding the project's market potential.

💡Stakeholders

Stakeholders are individuals or groups with an interest or concern in the project's outcome. The script mentions that feasibility studies provide information for stakeholders to make informed decisions about the project, highlighting the importance of their involvement in the decision-making process.

💡Business Plan

A business plan is a strategic document that outlines how a business intends to achieve its goals. The script differentiates a business plan from a feasibility study by stating that a feasibility study is conducted prior to a business plan to determine the viability of a venture, while a business plan is developed afterward to guide the growth and sustainability of the business.

Highlights

A feasibility study is essential for evaluating a project's potential for success and overcoming obstacles before it begins.

It helps managers and stakeholders make informed decisions about a project's viability.

A project's feasibility is determined by studying its various elements before any planning steps are taken.

Feasibility studies can identify obstacles and form strategies to overcome them, attracting investors.

Managers consider available resources and financial requirements when assessing a project's feasibility.

Feasibility studies are crucial for launching new products, expanding locations, or undertaking impactful activities.

They present the pros and cons of a project, making potential problems known before implementation.

Studies may save the company money and time by confirming the project's worth and likelihood of success.

Feasibility studies answer questions about resource availability, tools needed, and return on investment.

They help project managers and stakeholders understand all aspects of project feasibility and find solutions to potential problems.

Feasibility studies analyze technical, economic, legal, operational, and scheduling aspects of a project.

Technical feasibility focuses on the project's technical needs and how to meet them.

Economic feasibility outlines financial benefits and the project's worth.

Legal feasibility addresses legal requirements and compliance benefits for the company.

Operational feasibility considers how the organization will adapt to the project and its goals.

Scheduling feasibility sets the project timeline and expectations for milestones or goals.

A feasibility study is crucial for making informed decisions before committing resources, time, or budget.

It can uncover new ideas that could change a project's goal, making it best to determine these in advance.

Key benefits of a feasibility study include improving the project team's idea, identifying opportunities, and aiding decision-making.

A feasibility study provides valuable information for a go or no-go decision and narrows business alternatives.

It enhances the success rate by evaluating multiple parameters and identifying reasons not to proceed.

The contents of a feasibility study include an executive summary, product/service description, market analysis, and financial projections.

Creating a feasibility study involves preliminary analysis, outlining finances, market research, project structuring, and results assessment.

A feasibility study is distinct from a business plan, focusing on idea viability before investment, rather than growth strategies.

Transcripts

when a business prepares to start a new

project it first determines the

project's feasibility

feasibility refers to whether or not a

project will be successful and how to

overcome potential obstacles for the

project conducting a feasibility study

can help you evaluate a project from

start to finish and make devastations

before the project begins

today we explain what feasibility means

and how feasibility studies provide

information for managers and

stakeholders to make informed decisions

about projects

a project feasibility study either means

whether the project is likely to succeed

in the first place

it is typically conducted before any

steps are taken to move forward with a

project including planning

it is one of the most important factors

in determining whether the project can

move forward

so a project feasibility is the study of

a project's various elements to

determine if it has the potential for

success

before a project begins a company can

evaluate the project's feasibility to

identify obstacles

form strategies to overcome them and

ultimately attract investors

managers consider their available

resources in financial requirements when

determining a project's feasibility

the feasibility of a project becomes

clear when a business plans to launch a

new product

expand its location or perform

activities that impacts the company and

its departments

so why are feasibility studies important

a feasibility study presents the pros

and cons of a project so managers and

stakeholders are aware of the project's

potential problems before its

implementation

the study may save the company money and

time by first confirming that the

project is worthwhile and can likely

reach a successful conclusion

feasibility studies answer questions

about the availability of resources

the tools teams need to complete the

project and the project's return on

investment

feasibility studies also help project

managers and stakeholders

for them to understand all aspects of

the project feasibility

for them to find potential problems

during the project's implementation

determine the viability of the project

determine alternative solutions to

obstacles

enhance project success by analyzing

data from multiple sources

and identify obstacles and challenges

so what does a visibility study analyze

feasibility studies analyze particular

areas the project affects in order to

consider its impacts across the entire

business

these studies analyze five types of

feasibility

first is technical feasibility

this focuses on the project's technical

needs and determines how a company can

meet those needs

for example a project may require tools

or software that a company doesn't

currently have

and the study can help them determine

whether the project permits the

investment

next is economic feasibility

this refers to cost and provides

detailed information about project

spending

expected revenue

projected profits and the company's

return on investment it outlines the

financial benefits of a project to

determine its worth

legal feasibility

this addresses the legal requirements of

the project such as permits or licenses

the feasibility study defines legal

requirements and confirms whether

compliance with legal requirements

will benefit the company overall

operational feasibility

operational aspects of the feasibility

study include references to how the

organization will adapt to the project

and how the project serves the

organization's goals invasion

for example

a feasibility study might that determine

a project will require additional

personnel so the company may launch a

hiring initiative

and scheduling

this sets the timeline for the project

and expectations for milestones or goals

it addresses time constraints and

strategies to overcome delays

the importance of a feasibility study is

based on organizational desire to get it

right before committing resources time

or budget

a feasibility study might uncover new

ideas that could completely change a

project's goal

it's best to make these determinations

in advance rather than to jump in and to

learn that the projects won't work

conducting a feasibility study is always

beneficial to the project as it gives

you and other stakeholders a clear

picture of the proposed project

so a feasibility study can help the

company answer the following questions

does the company possess the required

resources or technologies

and does the company proposal offer a

reasonable return versus risk from the

investment

so here are the key benefits

for conducting a feasibility study so it

improves the project team's idea

it identifies new opportunities

provide valuable information for a go or

no-go decision

narrows the business alternatives

identifies a valid reason to undertake

the project

it enhances the success rate by

evaluating multiple parameters

aids decision meeting on the project

and identifies reasons not to proceed

here are the contents of a feasibility

study

so we provide an executive summary or

you may call it as the

project summary

description of product or service

technology considerations project or

service marketplace identification of

specific market

marketing strategy organizational

structures schedule and financial

projections

so we will be discussing

each of these

later on

creating a feasibility study involves

compiling and analyzing various data

sources to form a complete understanding

of the project's scope

to conduct a feasibility study you can

complete the following actions

first form a preliminary analysis of the

project

before beginning a new endeavor it's

important to outline the parameters of

the project

the feasibility study identifies the

project's advantages and disadvantages

so you can form strategies to address

obstacles

this step allows you to determine the

project's feasibility concerning future

market growth competitors and sales

projections

next is outline the finances

this section defines the project's

expected income

operational costs and investment needed

to start or complete the project

try to address and define all costs and

expected revenue from the project

you can also identify the sources needed

to attract investors such as outlining

the plan to approach banks

private investors or venture capitalists

include the project's return on

investment to determine the financial

costs and how those costs may yield

profits

your financial profile may address

merchandising

personnel

supplies and overhead

next is research the market

identify current market conditions

including data on the competition and

their strategies

compile data to determine if there is a

market for your product or service and

define strategies to reach that market

consider sending surveys or forming

focus groups to better understand your

customers and their needs

you can perform a market study to

understand

potential sales

project timing

market share

market expansion support and geographic

influence

then organize the project structure

try to identify the resources that are

available now and needed in the future

defining project related needs for human

resources and explaining technological

requirements

provide estimates for the time you

expect the project to take and explain

the project's projected schedule

consider creating an organizational

chart so stakeholders and managers have

a clear vision of the project's

implementation and progress

organization relates to the discussion

of the project's challenges or obstacles

to identify solutions

legal challenges and plans to comply

with or offer alternative strategies

and methods to implement team strategies

and talents related to the project

next is assess the results

it may be a good idea to assess your

results to help ensure you've addressed

the objectives of the project and

provided enough data to make decisions

about the project's feasibility check

and recheck your data notes and

strategies

confirm that you've addressed all

feasibility types and decide whether you

need to make any additions before the

final decision

then finally make a final decision

the compilation of data determines the

visibility of the project

factor all the components to help ensure

the project will meet expectations and

have a successful conclusion

alternatively the study may indicate

that it's better to delay the start of

the project until conditions are

favorable

efficiency study is not the same thing

as a business plan

the feasibility study would be completed

prior to the business plan

the feasibility study helps determine

whether an idea or business is a viable

option

the business plan is developed after the

business opportunity is created

a feasibility study is carried out with

the aim of finding out the workability

and profitability of a business venture

before anything is invested in a new

business venture

a feasibility study is carried out to

know if the business venture is worth

the time effort and resources

feasibility study is filled with

calculations analysis and estimated

projections while a business plan is

made up of mostly tactics and strategies

to be implemented in order to grow the

business

while it may seem the feasibility study

is similar in many ways to the business

plan

it is important to keep in mind that the

feasibility study is developed prior to

the venture

a feasibility study can readily be

converted to a business plan

it's important to think of the business

plan in terms of growth and

sustainability and the feasibility study

in terms of idea viability