The Purpose of a Project Feasibility Study
The purpose behind a project feasibility study is to know the different variables involved with your business venture and how it will be accepted on the open market along with who will be the target audience.
In a projects lifecycle, the project feasibility study is the second document that is created following the business case. The purpose of this study is to determine the factors that will make the business opportunity that was presented in the business case a success.
Included in the project feasibility study will be the exploration of the main focus of the business opportunity along with the alternative paths it could follow. By collecting this data, management can then make an informed decision on which path should be pursued in order to create the most profitable revenue stream for the company.
To get a project feasibility study started, the use of a feasibility study template is the most efficient means to progressing this document so a final draft can then be implemented. The template will already have the document outlined with the appropriate sections created. It will also be in the most efficient order so following the document by the feasibility team can commence with little to no bottlenecks that might impede its progression.
The project feasibility study will explore the different markets where a target audience might be located. There should also be alternative target audiences and their location explored. Along with the target audience, other factors that need to be investigates is how acceptable the deliverable is to the propose target audience. There should be several different variations that can include size and color difference. This permits the best possible response so the right product can be produced for the right customers.
The project feasibility study also has to explore the price the target audience is willing to pay for the deliverable. If it is a great product that is in need, but overpriced, it will not be acceptable by the market and could fail.
These are just some of the factors that have to be considered when undertaking a project feasibility study. This importance of this document can never be underestimated since the success or failure of your project is riding on the results it discovers.