FEASIBILITY STUDY MODULE 1

HOW TO WRITE FEASIBILITY STUDY

Whether you are preparing to start your own business or you want to implement a new
project to improve your business, there are a few professional strategies you can use to
ensure success, one of which includes conducting a feasibility study. By reviewing the
necessary components and preparation required to write a feasibility study, you can
create one that contributes to a successful business venture.

In this module, we define feasibility studies, review why they are important, outline some
key components included in a feasibility study and provide you with the steps you need to
learn how to write your own.

WHAT IS A FEASIBILITY STUDY?

A feasibility study is a report that aims to determine the practicality, strengths and
weaknesses of a proposed project, existing system or corporation as a whole. Further,
feasibility studies also help professionals do the following:

 Plan a course of events to complete the project

 Identify the challenges that could arise
 List potential solutions that would come about as a result of the
project

Two distinct components summarize all of these factors: Desired values to achieve and the
cost required to carry out the venture.

WHY IS A FEASIBILITY STUDY IMPORTANT?

Feasibility studies are important because they encourage professionals to consider all of
the factors that go into a project or business start-up. These include areas such as
background, project summary, description of operations, market research and legal and
financial documents.

Furthermore, a well-written feasibility study can help project leaders gain the approval
they need to complete the project. By analyzing each of these areas and preparing a plan
of action, professionals can have the best chance of creating a successful project that
benefits the corporation or broader society.
KEY COMPONENTS OF A FEASIBILITY STUDY

A feasibility study gathers essential company information and encourages investors,

company officials or other company employees to support a project. Here are some key
components of a feasibility study to consider including in your own:

 Title page
 Table of Contents
 Executive summary
 Market feasibility
 Technical Feasibility
 Financial Feasibility
 Organizational Feasibility
 Conclusion
 Appendix and reference pages

TITLE PAGE

The title page is the first part of the feasibility study that your reader sees. You should use
a clear title that provides some insights into your project. A good example is ” Feasibility
Study for Cultivating Unified Goals Across Departments.

Your title page should also include the names of the project leader and project members
along with their job titles. You might consider including the date the project is set to start
and estimated date for completion to provide more context about your time frame to the
reader.

TABLE OF CONTENTS

The table of contents aims to provide the reader with easy access to any section within the
report. Complete your table of contents after you finish the report to make sure the page
numbers coincide with the section titles. Usually, your word processor has a table of
contents feature that makes creating this component quick and efficient.

EXECUTIVE SUMMARY

The executive summary should be the first major component of your feasibility study. In
this section, you should include an introduction to the project, its purpose, desired
solutions and an overview of the sources you used to support the legitimacy of the report.
MARKET FEASIBILITY

The market feasibility portion of your report provides the reader with insightful
information about company statistics, market research and the future outlook for the
company. Start by summarizing your company's industry. Discuss its history, current
practices and trends along with future projections for the industry as a whole.

Then you can start narrowing your focus to discuss how your company fits within this
industry. List your top competitors, your primary sources of revenue, sales figures and
potential niche areas you could pursue to expand your customer base.

The market feasibility section helps your reader gain more of an understanding of your
company, what it has to offer and how your feasibility project could benefit its growth.

TECHNICAL FEASIBILITY

The technical feasibility section outlines several operational factors that influence the
success of your business. Discuss your company's location, materials needed to create the
products or services you offer, the manufacturing process, quality assurance facilities and
necessary transportation to ship your products to retail locations.

The technical feasibility section provides your reader with a detailed understanding of
which factors maintain your business so you can continue delivering top-tier products and
services to your customer base. Additionally, this section helps support the credibility of
your financial feasibility section.

FINANCIAL FEASIBILITY

The financial feasibility section outlines all aspects of your company's finances to the
reader. In this section, you should include information about your investors, current
revenue, assets and liabilities as well as total annual revenue from the previous year. You
should also include a cost-benefit evaluation that helps support your business needs.

The financial feasibility section aims to convince the reader to either invest their support,
funds or both into the proposed project by showing them the costs needed to maintain
business operations.

ORGANIZATIONAL FEASIBILITY
The organizational feasibility section demonstrates your company's legal and ethical
practices to the reader. This section should include an outline of the general structure of
your company, such as branch locations or departments.

You might want to include a small bio for each of your founders or board members. You
can also benefit from highlighting the HR procedures that your company uses to maintain
ethical and legal responsibility toward employees, as well as motivational methods you
use to instill productivity in the workplace.

The organizational feasibility section helps the reader determine whether your company's
current practices complement or support the proposed project.

CONCLUSION

The conclusion is the last written section of your report before your appendix and
reference pages. This section summarizes each of the previous sections. You should end
the conclusion by highlighting one or more recommendations to motivate further action
on the topic. You can make these recommendations into a separate section if they require
more than a few sentences of explanation.

APPENDIX AND REFERENCE PAGES

An appendix is an optional section, but it's usually beneficial for the reader of the report.
This section includes any information that the reader might find useful but which is not
directly relevant to the other topics discussed in your report. Regardless of whether or not
you choose to include an appendix section, you should include references.

A reference section can have one or more pages depending on the number of sources you
used to create your report. You can use company documents, scholarly articles related to
your industry, or any additional documents you wrote during the project's completion. Be
sure to use citations that adhere to the style guide you are using.

HOW TO WRITE A FEASIBILITY STUDY

Here is a step-by-step guide to help you write your own feasibility study:

1. Describe the project.

2. Outline the potential solutions resulting from the project.
3. List the criteria for evaluating these solutions.
 4. State which solution is most feasible for the project.
5. Make a conclusion statement

1. DESCRIBE THE PROJECT

The first part of a feasibility study includes a description of the project you want to
complete. You should highlight its purpose and main components that influence its
success. For example, "This project aims to use department education and best HR practices
to ensure the successful integration of new employees with the upcoming merger."

2. OUTLINE THE POTENTIAL SOLUTIONS RESULTING FROM THE PROJECT.

Secondly, talk with your team to create some possible solutions that could result from the
project. This can help you later on in the process when you try to determine which solution
provides the most benefits.

For example:

 “Enhanced company productivity”

 “Positive workplace culture"
 “Satisfaction of new and existing employees alike"
 “Improved HR strategies and overall department"

3. LIST THE CRITERIA FOR EVALUATING THESE SOLUTIONS

Thirdly, write out a list of rules for you and your team to accurately assess these solutions.
Consider criteria such as the potential for revenue, increased productivity, better
communication across departments, expansion of a product line or customer satisfaction.

For example:

 “Number of new employees joining the branch during the merger”

 “Current state of the HR department and practices used”
 “Current workplace culture and employee optimism”
 “Projected revenue gained as a result of the merger”

4. STATE WHICH SOLUTION IS MOST FEASIBLE FOR THE PROJECT

Fourthly, after deliberating with your team, make a statement about the solution to which
you want to guide your project. Make sure you include an explanation for why you want to
achieve this solution above the other options you discussed.
For example, "Based on the potential solutions offered by this merger project, we have decided
that the most feasible solution for both the project and the future of our company is improved
HR strategies and overall department. This is because the basis of our success now and in the
future relies on the talented onboarding efforts of our HR team.”

5. MAKE A CONCLUSION STATEMENT

Lastly, the concluding statement helps you summarize your main points. You should start
by reiterating the statement made in your project description that defines it and your
reasoning for starting the project. Then, restate which solution you primarily want to
achieve through the project's completion and explain why you want this solution to hold
more significance than the other solutions.

For example, "The goal of this project is to give our HR department the resources they need to
coordinate a successful merger. We have chosen improved HR strategies and overall
department as the most feasible solution because our HR department serves as a fundamental
structure to other solutions, such as increased productivity, positive workplace culture and job
satisfaction among our employees”.