•FEASIBILITY STUDY - It is an evaluation and
analysis of the potential of the proposed project
which is based on extensive investigation and
research to give full comfort to the decisions
•FEASIBILITY ANALYSIS – It is a process by which
feasibility is measured.
CONDUCTING A FEASIBILITY STUDY
Too often, we launch new ideas without
thinking through what our market is
Preparing a feasibility study will help you
determine if there is sufficient demand for
the product or service AND can the product
or service be provided on a profitable OR
BEFORE YOU BEGIN WE SHOULD THINK
ABOUT THE FOLLOWING QUESTIONS
What defined market am I trying to reach?
What specific companies/organizations are
servicing this market?
Are they successful?
What is their market share?
Is the market saturated or wide open?
What is the size of the market?
Is it growing?
Is it stable, volatile, trendy?
How can you reach this market?
How are competitors currently reaching the
What do customers expect from this type
of product or service?
What are the business models of
What core competencies must the
product or service have?
What are “customers” willing to pay for
this service or product?
What is your competitive advantage?
A market assessment may be conducted to help
determine the viability of a proposed product in
The assessment will help you identify
opportunities in the market or market segment
If no opportunities are found, then you don’t have
to continue on with the feasibility study.
If opportunities are found, the market assessment
can give focus and direction to the “big idea”.
OVERVIEW OF FEASIBILITY STUDY
Description of the project
WHY DO A FEASIBILITY STUDY ?
Gives focus to the project
Surfaces new opportunities
Enhances the probability of success by
addressing factors early that could affect the
Provides quality information for decision
Helps in securing funding
Helps to increase investment in idea
FOUR TEST FOR FEASIBILITY
FINANCIAL ANALYSIS TOOLS
•BREAK EVEN ANALYSIS
•PAYBACK PERIOD ANALYSIS
•CASH FLOW ANALYSIS
•NET PRESENT VALUE
•RETURN ON INVESTMENT ANALYSIS