Feasibility describes the process of conducting a thorough analysis of the projects and initiatives before they are put into practice. For a project or initiative to be successful, it is essential that it is not only sustainable but also has an impact. For this reason, feasibility analyses can provide a suitable way to determine the future of the project and the benefits it will provide.

In addition to all this, the project to be prepared may also bring about losses as much as the profits. Therefore, the feasibility analysis conducted before the project is implemented allows for the creation of a possible loss scenario. Thus, a rapid solution process can be created in potential crises that may arise during the later stages of the project.

How is a Feasibility Report Prepared?

The feasibility analysis to be conducted before the initiative or project work presents many data. Listing the data that emerges in an orderly manner will greatly facilitate the workflow. The prepared feasibility report enables you to create an analysis of the profits and losses of your project, as well as the sustainability rate. Processing the data obtained is also very important. The predictions created from each research result need to be incorporated into the report in the best possible way. Thus, the advantages and disadvantages created by the project can be reflected in a more visible manner in the report.

Before preparing a feasibility report, you need to gather clear information about your initiative and project. While analyzing the returns of the project; the effects of the company on this project and the opportunities that will ensure its realization should also be defined. After determining the compatibility of the company and investors with the project initially, the level of sustainability that can continue in the future should also be projected. If you are an entrepreneur, you should include data that allows you to anticipate your investor's future plans regarding your project in your report.

If you are working on a new project as a company; in addition to the budget you will allocate for the project, you should also add many factors to your analysis, such as the technological opportunities you will provide, service elements, marketing strategies, and departmental qualifications. Likewise, conducting a competitor analysis for your project and initiative is very important as well. Being able to obtain data from the results of similar works that your competitors have previously published will greatly facilitate your profit and loss analysis for your project.

What are the Types of Feasibility?

Feasibility types are divided into 5 elements: legal, economic, operational, technical, and temporal. When the types are examined in detail;
● Legal Feasibility: An analysis that defines the legal aspect of the project or initiative you will create. It measures the compliance according to the laws your project is subject to and reveals potential obstacles.
● Economic Feasibility: Covers the process of budget and cost analysis of the project. For entrepreneurs, investors' analyses can also be included in this feasibility.
● Operational Feasibility: The process of analyzing the needs that may arise for your project and initiative. This analysis seeks to answer the question of "how" to address potential crises or needs that may arise.
● Technical Feasibility: Analyzes the technical aspects of the project and prepares forecasts for potential future issues.
● Temporal Feasibility: This process analyzes all the time that should be allocated for the project and initiative. In addition to the planning, preparation, and implementation of the project, a temporal framework of the processes that will operate afterwards is also created.

How is Feasibility Prepared?

When conducting a feasibility study, a comprehensive research process must be followed. The most crucial stage in generating a comprehensive report is the research phase. Every step, from the market where your initiative and project will be presented to the technical aspects that will affect your development, should be analyzed down to the finest detail and a report should be generated from the forecasts.

The size of the market where your project will be presented and the work of competitors is very important research topics. In addition to all this, financial resources, technological developments, and the design of administrative departments are also essential factors that will allow the project to be implemented. If you plan to launch an entrepreneurial or startup project, conducting investor research is considered the first and most important step.

In addition to the advantages that will be obtained later in the project, it is also crucial to conduct a loss analysis. Your prepared project might exceed your budget, or there may be a possibility of receiving an unfavorable response from the market you are presenting. Therefore, as a result of the research you will undertake before the project, you can obtain competitor analysis data and generate potential profit analyses.

When is Feasibility Conducted?

Feasibility studies should be conducted in the phase following the idea of the project. You must have a feasibility report in hand before making investments for the project and initiative. Thanks to this report, you will be completely aware of your investment and conscious of potential profits and losses.

Why is Feasibility Conducted?

Feasibility studies are a process of analysis conducted to ensure the sustainability of your project. Through this analysis, you can create a foresight report about the future of your project. This foresight report will be obtained as a result of in-depth research and market analysis. Thus, due to its high accuracy, the project will not be exposed to risks. Determining the advantages and disadvantages your project will provide allows you to have a smoother work process.

How is Feasibility Study Conducted?

In a general sense, conducting feasibility requires a comprehensive study that considers all aspects of the business. A feasibility study is created by analyzing strengths, weaknesses, opportunities, and threats to determine whether the desired project is beneficial for the long-term success of the company. Additionally, with the help of a feasibility study, investors can evaluate the results in the report and predict whether the implemented project has investment value. A feasibility study requires highly active research. Therefore, while conducting a feasibility study, efforts are made to gather all potential useful information during the research activities. This information is processed and communicated in a structured and purposeful manner. As mentioned, the details considered in feasibility studies are of utmost importance. Because this work is not only carried out at the beginning of the project, the analysis also includes all processes related to the project considered in terms of applicability as a measurement method. This also directly affects the decision to implement or not implement the idea. This study is carried out to prevent any potential risks that may arise during the application process and the outcomes that can be obtained at the end.

In feasibility, the greatest importance is placed on the reporting of this activity. In order to accurately and consistently measure the profitability of an idea, the feasibility study must be reported correctly. For this reason, organizations that do not have facilities or individuals to carry out such studies in their ecosystem often receive support from companies conducting case studies. These firms offer services such as feasibility consultancy, investment consultancy, financial consultancy under various names. Large consulting firms usually have a feasibility department.

Market conditions must also be closely monitored in feasibility studies, and updates must be followed. When preparing a feasibility report, the topics covered in the sector research process can be examined under two headings: products and services. The report should include specific information and explanations about the produced product or provided service. One of the key points of feasibility research is the use of numbers. During the research process, a list of raw materials or production equipment needed to start production should be compiled. After the numerical procedure, the descriptive process, which is the next step, should commence. The marketing phase of a service or product should be planned to generate profit. Questions such as who the competitors will be after production, what the estimated sales price of the product is, and whether the product can compete in the market constitute the backbone of industrial research.

What are the Advantages of Conducting Feasibility Studies?

Many advantages can be obtained through feasibility studies;
● First of all, you can obtain significant data regarding the future of your project.
● You will identify the intervention methods for potential crises that may occur during the project period beforehand.
● By conducting competitor analysis, you can anticipate how successful you will be in the market.
● With financial analysis, you can optimally adjust your budget and investment ratio.
● You can identify elements needed during the project and start preparing for them in advance.
● By being aware of your gains and losses, you can manage a sustainable project process.

How are Feasibility Studies Classified?

Feasibility studies progress according to the conducted analysis processes. These processes;
● A broad evaluation must be made for the market where your project will be presented.
● A legal assessment must be made for the legal processes covered by the project.
● There should be a technical assessment process for adequate resource analysis.
● An economic evaluation study should be conducted for the supply of resources and the management of other processes.
● As a result of the economic evaluation conducted, financial analysis should be carried out to determine the budget and investment amount.
● Together with risk assessment, certain forecasts included in profit and loss analyses should be added to the report.
● A comprehensive report should be prepared with all the obtained data, and a decision about the continuity of the project should be made.

What Does a Feasibility Report Include?

A feasibility report includes the results of the research and analyses conducted. These analyses encompass the scope of the project and the necessary studies for it to be sustainable. The report generally includes; legal processes, economic evaluation, market and competitor analysis results, forecasts regarding the future of the project, necessary resources, measures against potential crises, and profit and loss analyses.

What is a Feasibility Study?

A feasibility study is another counterpart of feasibility studies. The definition of a feasibility study includes comprehensive studies prepared before a project or initiative. These studies include profit-loss analysis and forecasts regarding the project's future.

What are the Types of Feasibility?

Thanks to different types of feasibility, different points in operation can be regularly addressed, making the analysis easier. For this reason, there are 5 different types of feasibility. If the field studied requires more specific evaluations, more area-specific analyses can be obtained by utilizing these types. In this context, we can list the types of feasibility as follows:

Technical Feasibility

Technical feasibility is a study focused on the resources that an organization can utilize. It can be used to measure the capacity of the technical resources of the project and whether it meets the needs. The adaptation of ideas presented by the technical team to the business process is determined by technical feasibility. The transformation of suitable ideas into a workable system is also performed as a technical feasibility study. Moreover, this type of research can be applied to all technical details such as technology, software, hardware, energy, etc.

Legal Feasibility

Legal feasibility studies are conducted to determine whether the implemented project is contrary to any legislation. All details directly or indirectly related to the project are investigated and evaluated within the framework of the relevant legislation. Sections that do not meet the conditions specified in the law will be reviewed, developed, and made compliant with the legislation. For instance, if you want to conduct an email marketing campaign on your e-commerce site, you are obliged to conduct this project according to the laws related to the protection of personal data, marketing, communication, and similar topics. The fulfillment of this obligation is determined by legal feasibility.

Timing Feasibility

Timing feasibility, examined from a planning perspective, is considered one of the most important types of work. Because it assists in evaluating and analyzing the project in terms of success. The first outcome of this feasibility study is the project's completion time. Knowing how long it will take for the organization to achieve its goals is essential to obtain the best benefits. The program's feasibility means that the project must be completed before the specified deadline. A project is only considered successful if it is completed within the specified time. Therefore, time estimates are made with a margin for error considering both pros and cons. The profit threshold is defined for projects that cannot be measured as a success on their own. The balance point is critical for mostly financial projects. It refers to the period when the costs and revenues of the project reach the same level. Investments start to generate profits after the initial point is reached. Just like the project's deadline, the time to start production is also determined based on the feasibility of timing.

Operational Feasibility

Focusing on usability, operational feasibility is a study analyzed after the completion of the project. This method is used to predict the potential outcomes of a project that will be completed. The final evaluation criterion is whether the project meets the firm's needs. The extent of the overlap between the project goal and the planned destination can be assessed through the profitability of the activity. While operational feasibility deals with how and to what extent the needs arising after the implementation of the plan will be met, temporal feasibility deals with all possible dimensions of time until the continuation of the plan or project is implemented.

Economic Feasibility

Also known as financial feasibility, economic feasibility is a type of study that includes financial data, as observed from its name. A cost-effectiveness analysis must be conducted for each project to ensure financial stability. This analysis is only possible with the help of a financial benefit table. This method determines not only the size of the resource needed for the project but also how reasonable it is to allocate the resources. The task of economic feasibility is also to determine the established costs and the revenue obtained from these costs. Since the project idea is addressed solely from a financial perspective, it allows for an independent and objective evaluation. Thus, potential benefits and losses can be continuously evaluated.

What are the Stages of Conducting Feasibility Studies?

Before conducting feasibility studies, proper planning and following these steps are of great importance. Therefore, initial market monitoring is necessary to closely track potential cost increases, sales situations, and the current status of markets. The next step is to conduct a general assessment of the business and determine how the most suitable ideas can be implemented by presenting respectful ideas to the criteria. As a result of financial evaluation and investment reviews conducted in this stage, the institution's profit-loss situations are examined. After this, a technological review is initiated to determine how the ideas and projects related to machinery, equipment, and technological tools will progress. Finally, in feasibility studies where legal evaluations are made, an advantage-disadvantage table is created by examining the regulations and directives to which the project is subject.

What are the 3 Steps to Consider When Conducting Feasibility Studies?

There are many points to consider when preparing feasibility reports and conducting feasibility studies:
1. The most crucial aspect is entering the information accurately and correctly. The data is the most critical factor that determines where the processes will go from point A to point B, serving as the foundational keystone for all processes. Therefore, one of the significant points for feasibility studies is the correct processing of this data and preventing possible errors, inaccuracies, and misunderstandings.
2. Another essential aspect is that while conducting feasibility activities, market research should be done broadly and in detail to increase the scope of analyses. As a result of meticulously conducted market research, many significant insights can be gathered simultaneously, allowing the studies to be addressed comprehensively. In this respect, we can observe the great importance of external research in feasibility studies in general. In this market research, not only should sample projects and plans be examined, but financial values, legal updates, and other technical details should also be closely monitored from a broader perspective.
3. Pre-analysis and preliminary feasibility studies are among the necessary steps to ensure the proper progression of planning and the orderly emergence of feasibility reports. The aim of pre-analysis is to evaluate the existing data and reach new data. In this way, increasing the information pool allows the study to become multi-faceted.

Meanwhile, when preparing a feasibility report, the obtained data should be processed correctly. Important forecasts that will affect the future of the project must be created with this data. Because any errors made may cause a disruption in the project's progression.

Similarly, financial information included in the project should also be smoothly transmitted. Due to possible budget errors, results such as the failure to provide an essential resource can arise. As a result of all evaluations, profitable ideas referred to as "feasible" are obtained.

You can check our page for more information about Feasibility Consultancy.