FEASIBILITY ANALYSIS ENTREPRENUERSHIP

The feasibility analysis is designed to determine whether or not, given the project environment, a project will be successful.A feasibility analysis may be conducted for a project with an emphasis on financial viability, environmental integrity, cultural acceptability, or political practicability. It is a determination as to the likelihood of success.

Feasibility analyses are used to present an approach or a series of alternatives and to offer decision-making guidance based on the climate in which the project will evolve. They often defend a single or primary approach, incorporating extensive forecasts on the project’s development, as well as its evolution after implementation. Because a feasibility analysis may focus on one or many aspects of a project, it may be a very short (one- to two-page) or long (multivolume) document. In any case, it generally begins with an executive summary and a description of the project outputs in their as-built condition.

The sources for content in a feasibility analysis come through extensive research, discussion, and assessment and may incorporate the use of advanced computer modeling to determine the long-term impact of a project on the environment around it. Other feasibility analyses may be rooted only in anecdotal evidence as provided by those who have worked on similar efforts or those who will ultimately be affected by the project’s outcome.

Executive Summary/Project Goal Overview or description of the impact of the project on its environment and the potential for success (or failure) based on the analysis. This may also include brief mention of the alternatives considered and their relative viability Project Description Anticipated As-Built Condition This section is a description of the project as envisioned, including magnitude, location, community impact, and market change.

Financial This section describes the financial climate in which the project will be developed and in which it will be implemented. This may include assessments of the relative magnitude of the project within the overall organizational budget and the potential drain on available resources. Physical Environment A feasibility analysis should include a description of the environment surrounding the project, including the physical locations for development and implementation. Societal/Cultural Environment Descriptions of the culture and society in and around the project community are another aspect to a feasibility analysis. This may include an emphasis on those social and cultural issues that will be directly affected by project development and implementation.

Market Analysis The market analysis includes an assessment of the potential market for the project or its outputs, including (but not limited to) the financial buying power of the market, interest in or demand for the project, and the life span of the market’s potential members. Forecasts Predictions regarding sales, returns, and buying trends related to the project and its outputs are included in the forecasting section. Ideally, the forecast includes the timing of the market entry and the relative impact of early or late entry into the marketplace. Competitive Environment The competitive environment section contains information on other organizations capable of conducting the project and/or producing its deliverables (or their equivalent). This may also incorporate some assessment of how potentially fickle the market may be about the project or its deliverables. Risk Major risks should be considered in any feasibility analysis. They include those that could radically alter any or all of the assumptions on which the feasibility assessment is based and the potential market impact if those risks come to pass.