What is a Feasibility Study and Why is it Important?
In any project or endeavor, there are things to think about and things to really consider before you push through with it. Otherwise, you are just going to be in such a mess. For instance, is the project you are planning to undertake doable? Are the ideas in your head practical and worth the investment? All these things are important to find out if you don’t want to waste a lot of time and money. A feasibility study is done to answer these questions and more.
Under project management is doing a feasibility study, which aims to determine a project is feasible to even begin. This is a well-designed study which includes different information such as the background, details regarding the product or service, its operations, legal requirements, as well as data regarding the financial side of the project, and any tax obligations. There are projects that may seem incredibly doable at first because emotions tend to get the best of us. The role of a feasibility study is to make sure that it was indeed a good idea and not just a waste of time.
There are benefits to conducting a feasibility study before jumping into any project. Here are some of those benefits:
· Identifies the pros and cons. A project is ought to have some pros and cons. And one way to figure out If it’s going to be a good idea is by conducting a study on it. It would help identify all the reasons whether to proceed with the project or not.
· Helps in making decisions regarding the project. There are a lot of things needed to be decided upon especially when a project is huge, so conducting a feasibility study will indeed aid in decision making.
· Aids in clarity and gives the team some focus. A feasibility study gives a clear direction to the team on which areas they should focus on.
· Identifies valid reasons whether the project is a good investment. Before proceeding, there should always be valid reasons whether the project has the potential for success.
· Provides the right information about the project. Feasibility studies provide details regarding the project and not just through observations.
· Assesses available resources. The study helps assess whether the resources you have will be enough to cover all the expenses for the project.
· Estimates of the resources needed. It is also a great tool to estimate whether there will be additional costs and how much more will be needed.
· Analyzes whether there is actual demand. Probably one of the most important things it’s meant for, the study will state whether the project has real demand from your target market. There is no use to start something if there is no demand for it.
· Helps validate the timeline. A project has a timeline and a feasibility study scrutinizes whether a certain timetable given or suggested is plausible. Most projects go through delays because of unforeseen circumstances, and this study helps validate that.