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What is in a Feasibility Study Report

July 1 2010

In a feasibility study report, the economic viability of a project or business can be examined. This is a tool that is used by project managers to identify any possible problems with their business proposals. This important step in the decision making process on whether a business proposition is economically feasible to make an investment in should be done. This is done generally during the development of a business plan.

A cost analysis of the logistics involved is one of the factors a feasibility study report will bring to light for the reviewers. With all parts of a plan, there are options. This report should examine all possible avenues with advantages and disadvantages on each item that is discussed. This includes the transportation costs, the renting of property of needed, the location of the business or where the product is to be sold.

The objectives of the business case will also be objectively looked at in a feasibility study report. In some cases what sounds like a great money making venture turns out to be a dude. This can be exposed in this report if the survey is conducted properly with no hidden agenda being put forth the data collector.

Part of every feasibility study report there is the market analysis and research into how much if any the region is saturated or covered by a competitor. If competition is present, then the economic factor of whether is a viable business venture has to be explored. It is like what Wal-Mart did when they ventured into smaller markets. They knew there was completion but they also knew they would be able to squeeze out this competition by offering lower prices. This is a tactic that only large companies can venture into. Most smaller business cannot operate at a loss or with small profits and sustain the business. Large one can and do all the time.

The employment factor should also be a part of the feasibility study report. If the area is depressed then labor will be inexpensive and numerous, but the consumers might not be able to afford your product.  Places with lower unemployment generally have a consumer base with disposable income. The margin of profit compared to the expenses of employing personal there has to be figured so a realistic number can be visualized.

The feasibility study report will be the major determining factor whether a business case is approved or denied by upper management. It has to be proven in this report that a revenue stream can be made and it is worth the time and effort of the company do invest in it or denial is assured.