A feasibility study is written to present a problem or opportunity to be studied to determine if the proposed solution or business is viable. It includes the analysis of the current situation, requirement description as well as the evaluation of all alternative solution and the course of action. Feasibility study can be applied to any kind of project so that you will determine if the project will be implemented successfully. Likewise, feasibility study is important in business planning because you will know if your prospect business will be profitable or not.
The following are elements of successful feasibility study:
- Executive Summary. It contains the overview of the project so that investor will be able to know the proposed solution or project without reading the entire documents.
- Problem Definition. This section will state the problem intended to solve as well the short description of the proposed solution or opportunity.
- Current Analysis. It contains the understanding of the current system or product being implemented.
- Requirements. It provides the requirements needed of the proposed solution.
- Methods or Approach. It provides the methods or approach to be used in your study.
- Cost. Discuss the budget of your proposed solution. It includes the sales forecast and profitability as well as cost benefit analysis.
- Evaluation. Evaluates the solution being proposed.