Feasibility Study

Feasibility Study

12 November 2010

The feasibility study is the second step in the creation of a project. This is after the idea of the project is originally conceived. Once this is done, the viability of the deliverable must be determined.

An idea is just an idea until there is a target audience located that will purchase the deliverable at a high enough cost for the producer to make a profit. In some cases, a profit is not all that is considered in the price a deliverable is sold at. Many businesses that have a unique product add what is called a price to value. This is where the value the product brings to the customer is added to the cost the manufacturer charges for providing the deliverable.

A feasibility study will give the manufacturer of the deliverable a clear picture of just what worth the market will place on their product. In some instances, the projected target audience is not the final one. Going into this kind of study, there are many variables. The target audience is just one of them. The proposed purpose or use of the deliverable could also change.

When conducting a feasibility study, the personnel should be ready to compensate for any findings that are uncovered. In some cases, one person’s junk is another’s gold mine. An example of this is in irregular clay pots that became malformed during production. Many manufacturers discarded them to the waste pile. Landscape designers saw an opportunity and have incorporated them into gardens as decorations. Today, the malformed clay pots sell more than their perfectly formed counterparts.

If you are beginning a feasibility study on a product, be ready for any possible variation to your presentation. This should include your target audience, the price the deliverable will be accepted at, along with its intended use. No one person can predict everything, so being prepared is more than just the Boy Scout motto; it is the correct way of conducting business in the competitive global environment we all live in today.