Technical feasibility template

This includes the expenses for manufacturing the product, along with paying any debts taken for production and continuing regular business operations. If the projected income is more than the overall cost of production, then you can proceed to the next step of the feasibility study.

A market survey helps determine the realistic revenues the project is likely to earn. The market study has to be in-depth and includes various steps like:. Comparing similar offerings: Identify the pros and cons of each product on your list.

Estimating the scope of expansion: Determine if the market offers expansion opportunities for launching new products or services down the line. See if there is an opportunity to expand to nearby markets based on the feedback from the survey respondents.

Based on the market survey results, you can decide whether the project is feasible to generate the predicted revenues. If the survey results are positive, you can move on to the next step of the feasibility study. A business plan explains the project in detail. It outlines the raw material requirements and the planned product launch schedule and has a step-by-step plan on the expected costs at each step of the project and how to manage them.

The critical elements of the business plan include:. The day-one project balance sheet lists the liabilities and assets of the project on launch day before it starts generating revenue.

Make sure to include the following:. In this step, you compare the data you compiled in the previous steps to determine if the project is still feasible. The review provides a clear picture of the overall risks and costs. It helps decide whether it is technically feasible to commence work on the project. Here are three questions to ask during the final review stage:.

Does the feasibility study determine whether the project guarantees the minimum expected ROI? Do the potential rewards income, market share, scope of growth outbalance the risks monetary investment, energy, time?

Moreover, any increase in the time needed to complete a project can result in cost overruns. The scheduling feasibility looks at the time needed to complete the major activities and the project itself, as well as possible constraints which might cause delays. A feasibility study can be conducted in seven basic steps. A brief explanation of each step is given below. When conducting a feasibility study, you should conduct a preliminary analysis.

This would include an outline of your plan. You should look at unserved needs that can be catered for; such as a market where demand might be greater than the supply.

You also need to determine the hurdles and if they are too big to overcome. These might include; costs, marketing constraints, etc. A projected income statement looks at what income the project is likely to earn and then analyze the costs to determine profitability of the project.

Such a research might consider demographics, competitor analysis, value of market and the expected share of the market that you can capture. Once the groundwork for the aforementioned steps are complete, you can plan business organization and operations. This should be a thorough and not a superficial process. You will have to account for everything from start-up costs to cost of equipment, cost of manpower, overheads, real estate and inputs, etc.

An opening day balance sheet estimates assets and liabilities. You will require listing costs and financing, as well as consider cost of land acquired, cost of building and equipment. Furthermore, you will require assessing your your financing for accounts receivable and assets. Note: A more substantive risk assessment will be conducted for the business case. These other considerations could relate to physical plant and installations, environment, infrastructure, and technical, political, legal, organizational or social factors, which may be derived from assumptions and constraints discussed in the preliminary project plan, and pertain to the project being able to attain its objectives.

Summarize the key findings of the option assessment. Identify which options will carry forward into the analysis phase and the business case. Each section contains abbreviated instructions, shown in italics, which can be removed once your document is finalized.

Tables are also provided as a suggested layout for some of the information required Update the table of contents by right-clicking and selecting Update Field, then Update entire table Delete this page when the feasibility report is complete.

Our free Feasibility Study template helps you to get started quickly with your own feasibility study. The executive summary provides an overview of the content contained in the feasibility study document. Many people write this section after the rest of the document is completed. This section is important in that it provides a higher level summary of the detail contained within the rest of the document.

Remember to remove the green instructional portion of the Feasibility Study Template before making your document final. One key factor for this slowing growth rate is the shift in the marketplace to purchasing chocolates and confections online.

While ABC maintains a web site, it is not capable of hosting an e-commerce platform for online sales. The chocolate and confections marketplace is healthy and shows a continued growth trajectory over the next five to ten years. The purpose of this section is to provide detailed descriptions of exactly what the organization is considering so this information can be applied to the following sections of the document.

ABC is considering a move to create and provide an online platform from which to sell its existing product line. Until now ABC has only sold its products from its chain of brick and mortar facilities and has been limited to sales within the geographical regions where its stores reside.

By doing so, ABC has not been able to capitalize on the growing trend of online sales within the chocolate and confections marketplace. By offering its products through an online platform, ABC can market its products to an entirely new market, increase revenue and growth projections, and allow customers to purchase our products from the convenience of their own homes.

Online sales will include only current products and any changes to this product line must be considered outside of the purpose of this document.

This section of the feasibility study should explain any considerations the organization must make with regards to technology. Many new initiatives rely on technology to manage or monitor various business functions. New technology may be developed internally or contracted through a service provider and always result in costs which must be weighed in determining the path forward. Upgraded technological capability will be required for ABC to move toward offering an online marketplace from which customers may purchase our products.

Customers demand a simple and easy way by which to conduct online transactions and it is imperative that all transactions are conducted in a secure manner. While ABC maintains a web site with product lists and descriptions, it does not currently allow for purchasing to be done online.