When you’re considering taking on a major new initiative for your business, it’s important to conduct research into how viable your project will be. A feasibility study report for a project can help you understand how likely it is for your initiative to succeed and what challenges you may encounter along the way.
Establish Your Goal for Feasibility Report Writing
Before you begin your feasibility report, it’s critical to identify a clear goal. What do you hope to learn from this study, and why are you conducting it in the first place? Examples of why you may need to conduct a feasibility report include:
- Hiring a new employee for your business
- Creating a website for your company
- Launching a new product or service
- Implementing a different process for an important business task
- Changing a service provider or business partner
Delve into your goal so it’s clear what you want to uncover. For example, if you’re thinking of launching a new product for your business, you will want to know what competitive products are available on the market and how likely your customers are to purchase this product.
Provide an Executive Summary
Your feasibility report introduction offers a brief overview of what takes place in the full report. This is the first section of the feasibility study, but it is often written last in the process. This is because you need to have a complete understanding of the report before you can summarize it.
Your executive summary should include information on the major requirement your business is looking to fulfill, what possible solutions exist, the evaluation criteria you’re using and the conclusion you've reached.
Describe Business Needs
Your feasibility report should outline the main problem your business is trying to solve. This is the need you want to fulfill with the new initiative. Provide background details and context for this need. For example, if you’re considering creating a website for your company, you may want to consider exploring:
- Why you need the website
- What the websites of your competitors look like
- How you plan on creating the website
- What information the website will contain
- How your website will help your sales process
Offer Possible Solutions
After citing the problem, it’s time to provide specific solutions to your problem. Outline the different ways that your business can meet its needs. For example, if you are considering hiring a new employee and want to make sure that it is a viable business decision, your feasibility report solutions may include:
- Hiring a permanent, full-time employee
- Hiring a contract employee
- Hiring a freelancer for specific tasks only
Assess Feasibility From Different Angles
Your feasibility study needs to evaluate the solutions you have proposed from several different angles. This will help you determine which solution is best to undertake at this time. Feasibility report ideas to investigate include:
- Market feasibility: What are the current market conditions? What trends are favorable for your business, and what could cause complications? What kind of competition are you facing, and what is your sales potential?
- Technical feasibility: What machinery, hardware, software or other logistical items do you need to consider for your initiative? Do you need to make purchases, or can you rent/borrow them?
- Operational feasibility: Do you have the internal resources to complete your project, or do you need to hire additional personnel? Do you need to discuss the project with additional stakeholders such as board members or investors?
- Financial feasibility: What will the initiative cost, and what will be your return? Can you afford this initiative at this time?
Be sure to explore the feasibility for each solution you have proposed from these multiple angles to gain a comprehensive assessment of how successful your project will be.
Provide Recommendations and Conclusions
End your report by providing your recommendation of which solution is the best choice. Support your conclusion with facts from your study and avoid making guesses where possible. It’s important to consider the risks, challenges and obstacles in addition to the opportunities and advantages to carrying out your initiative.
Anam Ahmed is a Toronto-based writer and editor with over a decade of experience helping small businesses and entrepreneurs reach new heights. She has experience ghostwriting and editing business books, especially those in the "For Dummies" series, in addition to writing and editing web content for the brand. Anam works as a marketing strategist and copywriter, collaborating with everyone from Fortune 500 companies to start-ups, lifestyle bloggers to professional athletes. As a small business owner herself, she is well-versed in what it takes to run and market a small business. Anam earned an M.A. from the University of Toronto and a B.A.H. from Queen's University. Learn more at www.anamahmed.ca.