Feasibility Study Report

24 October 2010

A feasibility study report is the second piece of documentation that is created after the idea of the project is conceived. The purpose of this next step is to see if what has been thought up is practical and economically feasible, in a real world situation.  Not everything that looks good on paper can make the transition to the real world.

Inside a feasibility study report will be many important items that will determine if a project should go forward, be dropped, or be redesigned. The first element that has to be exposed is who the target audience is. Just because there is a need does not mean the idea is a good business venture. A good example is the need for children around the world to have footwear. There is definitely a need, but the reason these children go barefoot is because of a lack of funds by their parents. Making shoes for these children is a worthy cause, but a bad business venture since the target audience cannot afford to make the necessary purchase.

Also included in a feasibility study report should answer the question if the target audience really want the deliverable that the project will create. This can be like the creation of a paint that lasts 40 years. This sounds great but the price could be twice as high as paint that lasts 20 years. Most Americans only own their homes for 5 years, so a paint job that lasts 40 years would not benefit most home owners. This again would not be a sound investment.

Within a feasibility study report should also reflect how receptive the off target market is to the deliverable. In many cases, the audience that is originally targeted is not where the deliverable is best received. Each factor should have several variables explored so the biggest picture is made with this study.

The fewer the limitations that are included in a feasibility study report, the better chances of finding a receptive audience. This will make the project have a greater chance of being accepted and the authorization to be given for the project to proceed to the planning stage.