Feasibility Studies – Are you Paying It Enough Attention?
The term “feasibility studies” refers to the assessment of the practicality and suitability of a proposed project. It is designed to offer unbiased and unopinionated insights, helping businesses make better decisions. By delving into the strengths and weaknesses of a project, business leaders and executives can gain competitive advantages when making big decisions.
Feasibilities studies can vary depending on the type of business requiring the research, but generally, they will boil down to the cost and risk associated with a project, and the potential benefit and value gained by the project. Based on this information, a business can then make the decision whether to go ahead with the project, or not.
It is a part of business research and it’s something we value as part of our consultancy services here at Edward Drummond. The value of a well-defined feasibility study can be paramount in saving a business large sums of money and time – as well as helping stay at the cutting edge of new opportunities, potential competitors, and sector growth.
Getting Started with Feasibility Studies
The first step in getting started with feasibility studies is understanding what the business wants to achieve. Is the business wanting to understand something specific, such as competitor analysis, or is it focused more on starting the conversion and presenting ideas for further discussions?
Once a clear goal is outlined, projects and ideas can be created – with feasibility studies and other market research used to identify whether any proposed ideas are worth pursuing.
The use of specialist consultancy services and firms, means businesses are better positioned to end up with unbias and neutral insights. Often, it’s very hard for businesses to be truly unopinionated in their research, which defeats the benefits of such research for a project. When executives and businesses are so entrenched in their industry, it can be a refreshing advantage to leverage feasibility studies presented by an impartial party, that can offer a different perspective on something. Internal teams often all have agendas and perspectives, and often a neutral stance that presents clear insights and information for a problem or opportunity, can be exactly what a business needs to feel confident in their decision.
Here at Edward Drummond, we can help create and lead feasibility studies to help your business understand the macro and micro elements of a proposed project.
Benefits of a Feasibility Study
Feasibility studies present many benefits for business, including:
- Identify new opportunities early
- Identify potential problems and issues
- Support arguments and proposals or provide clear counter-arguments
- Provide ROI on big decisions
- Ties internal and external thinking to an agenda
- Prevents poor decision making
- Provides better predictions about what processes and resources are needed
- Helps introduce new discussions and ideas to explore
Within feasibility studies, a business may want to assess a certain type of area of business. For this, feasibility studies can often be broken down into 5 main categories:
Technical Feasibility – The technical ability of the business will have a defining impact on its ability to carry out an idea or project. This may identify clear gaps in talent or resources, helping create a visual illustration of what hires, or technology/equipment, would need to be acquired.
Being an executive search firm, this plays into our strengths, being agile and versatile in helping clients tap into top talent if needed. We can also help translate the distribution of top talent and where to find it, helping demonstrate the realities of the talent landscape in a given market.
Understanding the technical burden of a project is key in understanding whether the business is ready for such a venture or not.
Economic Feasibility – Some ideas and proposals may appear perfect in theory, but simply put too much financial strain on a business in reality. Exploring the true costs and economic implications of a business proposal, can help businesses understand whether it is a good idea or not.
If an idea gets the go-ahead, the economic feasibility study can be a useful resource in helping allocate budgets and becoming a cross-reference for keeping costs and project management under control.
Legal Feasibility – The legal implications of any idea must be factored into any business decision. Ideas that conflict laws of any kind are likely to cause issues and complications for a business. As a result, feasibility studies that delve into the legal landscape of an idea is certainly a worthwhile step.
This is particularly valuable when businesses are entering new markets or geographical locations, whereby they may not be familiar with certain laws or restrictions.
Operational Feasibility – Operational feasibility studies can help paint a vivid picture of the current operational output of a business. Assessing how a business currently operates and how it would need to operate for a new project or idea, may demonstrate how feasible it is, given the current state of the business.
If a business is entering a new market, understanding the operational needs of that market is paramount in setting everything up to ensure success.
The operational requirements of a new project may go well beyond the initial thoughts. Entering a new territory may require the business to adopt an operational model that differs from current locations. For example, the way customers in that location expect to communicate with a business may mean a relatively small idea becomes more complex as it may mean new customer service systems need to be included too. It is these kinds of details that must be understood as soon as possible to ensure business pursue ideas that will be successful, and drop ideas that present too many obstacles and issues.
Market Feasibility – Some ideas may tick all the boxes, until compared to competitors and what’s happening in the market. Market feasibility is focused on understanding current trends, historical competitors, new threats, buyers, as well as opportunities and gaps in the market.
This holistic approach to research ensures businesses are taking everything into consideration that may impact their proposed project.
Feasibility Studies and Edward Drummond
Feasibility studies help provide useful insights and often help spark important follow up questions and research into specifics, helping businesses create a natural flow of ideas and supporting evidence before decisions are made with confidence.
Sitting alongside our executive search and consultancy services, Edward Drummond can help your business gain clearer insights into big decisions and opportunities. If you’d like to learn more about us and how we work, please don’t hesitate to get in touch.
Learn more about our feasibility studies.