Importance of Feasibility Study
We will always focus on the main things but forget about important things. When we want to purchase something from the shop we will check when we can go, how to go etc. But fail to check if it is first possible to even go. This is what we will discuss in the importance of feasibility study. Every project plan must be followed only by a possibility study.
We will discuss the feasibility study, its importance in this blog and welcome you to join our PMP certification course to deep dive into further details with real-time examples.
Definition Feasibility Study
You must know what a feasibility study is before we explain its importance. The very moment we define it you will understand the importance of feasibility study.
Without delaying further let us explain. A feasibility study means the possibility check. The possibility of executing a project. It is to identify the potential risks that prevent the progress of the project. Further, it is the study carried out at the very first stage of any project development to know if the project idea is viable to proceed or not. Several factors affect the project's success and hence you must conduct this study first. However, in detail let me explain all the important reasons to conduct a feasibility study on project management.
Important Facts of Feasibility Study
1. Accounting statements
2. Financial details
3. The historical background of the project must be provided in detail
4. Legal requirements
5. Marketing research policies
6. Operations management details
7. Product or service description
8. Tax obligations
PMP online training will focus on each topic in-depth to provide you with the best method to carry out the feasibility study.
Top 4 Reasons To Do a Feasibility Study
1. Get a broader view
Executing a project is not a simple task. It is a huge responsibility of everyone in the project. Especially the chief responsibility of a project manager. Having said that, it is important to understand the opportunity and threat in starting and completing a project. One must take a broader look considering every single factor in mind and thus it goes without saying the importance of feasibility study.
Let me explain with an example – Checking if people are available for completing a project is not a broader view. But the big picture is whether they are capable of doing it, will they be able to present till the end, is there a backup plan for the absence of any resources, etc is the ideal way and that is why a feasibility study is vital.
2. Easy to make a plan
With the help of the bigger picture, you can list down all risks and prospects at the beginning of the project. Thus planning becomes simple. In case you fail to make the study, then you may have to rework your plan. Planning is crucial and a foolproof plan will help all the team members to stick to it and work with a flow. Thus understand the importance of feasibility study and do not skip.
3. Execution becomes straightforward
Devising a proper plan is one part of the project, but the execution is the key to successful project completion. When you finish the feasibility study, in the beginning, you can make a proper plan and that is to pave way for execution. Execution will involve cost, time, and resources so it becomes feasible to utilize all after a proper study of the project viability and complete the project economically surpassing client expectation.
4. Get ready with an alternative
In the event of something goes wrong due to any uncertainty, then a detailed feasibility study done will spontaneously allow the PM to make an alternate plan. This will save cost and time. If there is no awareness of the possibilities, then everyone must get on to the board to start from scratch. That is why the importance of feasibility study is greatly emphasized in every PMP certification online course to train all PMs in one platform.
Let me once again explain with an example – For instance, let us take the pandemic Covid19 which is a usual occurrence and cannot be predicted as well. In such times business needs to deliver to customers to keep their ROI intact. Therefore, always a feasibility study must have a plan B to complete work that is already started. Here most of the companies managed to complete the task by utilizing a remote working model. Companies that were not equipped for this crisis management went on loss.
Therefore, it is mandatory to go with a feasibility study and start planning any project.
Steps Involved in Conducting a Feasibility Study
Now that we have understood the importance of a feasibility study we will give a gist on how to conduct this study effectively.
1. Start with a preliminary analysis
2. Make an income statement
3. With the help of the market, survey learns the ups and downs in the project results
4. Plan operations and business organization
5. Get ready with a balance sheet
6. Review all the data
7. Finally, make the decision – Feasible / Not feasible
These are simple steps that will let you start the project with confidence. Involve the team and key stakeholders when carrying out the study to have a broader view of the project. Spend time in this step and you will not regret it at any in the project plan, execution, and delivery.
How to Overcome Challenges In The Feasibility Study?
Yes, we agree with your concern what if the feasibility study itself has challenges, then how to manage the situation. The main challenges will include a lack of knowledge which can be corrected with proper PMP certification training. The training program will just not talk about concepts but will deep dive and explain with real-life scenarios.
Get ready to register today and get benefitted from a lifetime with a PMP online training course with StarAgile.