Why conduct a feasibility study before making an investment decision?
- To anticipate project outcomes before committing time and money to a business idea that may not work in practice
- To identify new possibilities, opportunities or solutions, which you might have not considered before
- To decide whether to expand to a specific region or foreign country, or when considering to introduce a new product
- To add credibility to your application for funding by a private investor or landing institution
What will your feasibility study include?
Technical skills and resources necessary for the project to succeed (capacity of hardware and software, employees’ skills, licences, etc.).
Costs and benefits associated with the project, to determine potential profit or loss, compare different scenarios, etc.
The laws and regulations that could affect the project (data protection, environmental laws, certifications, permits, etc.).
Operational capabilities, work facilities, day-to-day operations, milestones, recruitment needs, staff training needs, etc.
The local and broader markets for your products, including potential marketing and distribution channels.
The project budget and sources of funding, broken down by functional area, location, product or service, etc.