Feasibility Study
(Techno-Economic Feasibility Study)

What is a Feasibility Study?

The initiative’s promoters must evaluate the viability of a proposal or business idea before investing. The primary goal of a feasibility study or feasibility analysis is to establish whether or not the project will be successful. Feasibility studies are carried out to determine whether the business idea is worthwhile to pursue, what is the market for the product and service, what will be the costs associated, what will be the legal requirements to operate or run that business, what value it adds to the consumer, what kind of risks are included, what will be the ROI for that project, will it be a success or failure, etc.

Investors who want to invest in a certain company conduct project feasibility studies. Also, businesses that are considering offering an innovative product or service and want to evaluate the viability of the venture.

Why is a Feasibility Study required?

A feasibility study seeks to identify the advantages and disadvantages of a proposed or existing business venture rationally and objectively, looks for possibilities and challenges as well as the strengths and limitations of the proposed or existing business venture that may exist in the surrounding environment. It outlines the resources that must be used and, eventually, the value that the organization will produce. It aids in project right-sizing to enable the optimal utilization of resources and increase the value a business can produce. You can set clear targets for your business idea by doing feasibility studies. It will detail the steps that must be performed to accomplish those objectives.

A feasibility study can also be called a techno-economic feasibility study or techno-economic feasibility assessment which involves analyzing and assessing:

• Technical factors: Includes evaluating the level of technical know-how required to operate the business, as well as the cost of materials, the need for manpower, transportation needs, the location of the firm, etc. Determining the project’s technical viability involves analysing all the aforementioned information.
• Regulatory factors: Evaluation of the legal and regulatory environment surrounding the proposed business venture or project. laws defining the proposed project idea, international and domestic government rules, compliance requirements, etc. To avoid unanticipated obstacles in the project’s implementation, it is crucial to understand the legal issues that need to be addressed.
• Commercial & Economic factors: Assessing the project’s financial viability requires factoring out the predicted return on investment and the estimated costs of implementation. SWOT analysis, market analysis, social cost-benefit analysis, calculating ROI, and estimating costs are some of the tools used to evaluate a project’s economic viability. It entails a feasibility analysis of the market and industry.
• Socio-cultural factors: By implementing this business idea, it seeks to assess the financial gains to the population. It takes into account examining the demography of the area where the product or company is to be marketed. It is often referred to as a social feasibility analysis.
• Time Factors: Estimating the time needed to develop the product or service and determining if it can be finished in a specific time frame. The project’s timeline’s viability is gauged by its temporal feasibility.

Being a Feasibility Study Expert, we have a great deal of experience conducting these studies and have a considerable measure of exposure to the capital markets, shipping, and maritime industries. You can view some of our qualifications for feasibility studies on the page below.