How to Conduct a Feasibility Study - Project Management Training

Summary

This video provides a comprehensive guide on conducting a feasibility study, which assesses the practicality of a proposed project. It outlines the importance of the study after developing a business case and details essential steps, including preliminary analysis, market surveys, and financial projections. The video emphasizes best practices such as leveraging existing tools and engaging stakeholders. Finally, it highlights the structure of a feasibility report, which includes findings and recommendations on technology, market strategy, and organizational needs. This resource is valuable for anyone looking to evaluate the viability of their business opportunities.

Takeaways

• 😀 A feasibility study assesses the practicality of a proposed plan or method.
• 😀 It aims to determine if a project is viable by examining technology, resources, and potential ROI.
• 😀 Feasibility studies are conducted during the project lifecycle, typically after the business case is developed.
• 😀 The study involves a preliminary analysis of the business case to identify key factors for success.
• 😀 Preparing a projected income statement is crucial to understanding potential revenue streams.
• 😀 Conducting a market survey helps determine if there is demand for the product or service.
• 😀 It's essential to outline the business plan, including organizational structure and staffing needs.
• 😀 An opening-day balance sheet estimates expenses and revenues to evaluate ROI.
• 😀 Best practices include using templates, involving stakeholders, and conducting thorough market research.
• 😀 A feasibility report should provide an executive summary, product description, market analysis, and recommendations.

Q & A

What is a feasibility study?

A feasibility study is an assessment of the practicality of a proposed plan or method, determining if a project is viable.

When is a feasibility study conducted in relation to a project?

A feasibility study is conducted during the project lifecycle and after the business case has been outlined.

What are some key questions that arise during a feasibility study?

Key questions include whether the necessary technology can be created, if there are adequate resources available, and if the expected return on investment (ROI) can be achieved.

What steps are involved in conducting a feasibility study?

The steps include conducting a preliminary analysis, preparing a projected income statement, conducting a market survey, planning the business organization and operations, and preparing an opening-day balance sheet.

Why is a market survey important in a feasibility study?

A market survey helps determine if there is demand for the product or service and if customers are willing to use it.

What is the purpose of preparing a projected income statement?

A projected income statement outlines potential income streams and helps identify how the project will generate revenue.

What best practices should be followed during a feasibility study?

Best practices include using existing templates and tools, involving appropriate stakeholders, conducting thorough market research, and ensuring credible data collection.

What should be included in a feasibility report?

A feasibility report should include an executive summary, description of the business opportunity, technology considerations, marketing strategy, organizational structure, schedule with milestones, and financial projections.

What are the potential recommendations that can come from a feasibility study?

Recommendations may include whether to build or buy technology, marketing strategies for the target market, staffing decisions, and financial recommendations.

How can project management software assist with conducting a feasibility study?

Project management software can provide tools and templates that facilitate the organization, analysis, and presentation of data during a feasibility study.