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There are four main elements that go into a feasibility study: technical feasibility, financial feasibility, market feasibility (or market fit), and operational feasibility.
How to conduct a feasibility studyStep 1: Conduct the preliminary analysis.Step 2: Create a project scope outline.Step 3: Perform your market research.Step 4: Calculate the financial cost.Step 5: Review your research and present your findings to the project stakeholders.
Economics. The most important part of a feasibility study is the economics. Economics is the reason most projects are undertaken (with some exceptions for government and non-profit projects in which a cost benefit analysis is the primary tool).
For example, an automobile prototype is a tool for the feasibility study, an experiment on rats to develop a new medicine is a procedure of feasibility analysis, checking the configuration and features before purchasing a laptop resembles feasibility tests.
Define the project and alternative scenariosDescribe the type and quality of product(s) or service(s) to be marketed. Outline the general business model (i.e. how the business will make money). Include the technical processes including size, location, kind of inputs, etc.
Contents of a Feasibility ReportTechnology Considerations. Product/ Service Marketplace. Identification of the Specific Market. Marketing Strategy.
Define the project and alternative scenariosDescribe the type and quality of product(s) or service(s) to be marketed. Outline the general business model (i.e. how the business will make money). Include the technical processes including size, location, kind of inputs, etc.
Contents of a Feasibility StudyTechnology Considerations. Product or Service Marketplace. Identification of Specific Market.