A feasibility study is like a business plan in that it outlines the overall opportunity and allows for an educated decision about whether to move forward or not. As such the feasibility study is the ‘business plan’ for a land or property.
Every feasibility study, regardless of industry, requires:
- A problem definition;
- A study of opportunities and threats; and, most of all,
- Assessment of viability for success from a financial standpoint.
If a project does not generate profit in the long run, it frustrates an organisation’s finances. A feasibility study prevents this from happening.
Activities conducted during feasibility studies tend to be generic across private and public sectors. This is regardless of the type of project.