What is the primary function of a feasibility study?

A feasibility study primarily serves to evaluate project viability. This process involves assessing various aspects of a project, including financial, technical, and operational factors, to determine whether the project can be successfully executed. By conducting a feasibility study, organizations can identify potential challenges, costs, and resources required, allowing decision-makers to make informed choices about pursuing or modifying the project.

In the context of project development, understanding viability is crucial because it lays the foundation for strategy and planning. If a project is deemed unviable, resources can be conserved and reallocated to more promising initiatives. This holistic evaluation helps to mitigate risks and increases the likelihood of success if the project is pursued.

While gathering market insights, designing a business model, and developing marketing strategies are important components of business planning, they serve different functions and are typically addressed after assessing feasibility. An effective feasibility study will often incorporate market research to inform its findings, but the core goal remains centered on determining whether moving forward with the project is realistic and advantageous.