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.