How to Do a Feasibility Study Report

The feasibility study report is a crucial document that needs to be precise and detailed.

Once a feasibility study has been conducted, the feasibility study report (FSR) must be prepared. In general, business, industry, government agencies and the nonprofit sector conduct feasibility studies to determine whether a particular project or undertaking is realistic and practical. Hence, the importance of the FSR; those making the final decision must be armed with the best information available. Since you are responsible for the report, you do not want to make a recommendation that proves to be wrong after the project is under way.

Things You'll Need

• Feasibility study data

Instructions

1. 

   Begin by describing the scope of the proposed project studied.

   Begin the FSR by describing the problem, project or program that has been studied and addressed. You and/or your team have already answered the general and specific questions concerning the proposed project and you have gathered and assembled the data. Be sure to spell out the nature of the proposed project in detail so everyone reading the report will have a clear understanding of what is at stake.

2. 

   Define the project's goals and objectives.

   Delineate the objectives and goals of the proposed project including the major results it must attain to be an effective and necessary investment of resources and personnel. You want to make sure everyone understands the purpose of the project and any ramifications.

3. 

   Detail the resources that will be required for the project.

   Describe in detail the resources, including equipment, funding, personnel and other resources that will be necessary to make the project viable.

4. 

   Discuss the financial aspects of the proposed project.

   Discuss and analyze the financial aspects of the project as considered in the feasibility study and show how they meet or do not meet the recognized goals and practical requirements of the project. Here you can discuss the economic advantages or disadvantages of the project.

5. 

   List the project's advantages and disadvantages.

   Include a thorough explanation of what the project's benefits and advantages are -- if there are any -- and outline in detail the circumstances that need to be in place to comply with the previously delineated objectives. Again, at this juncture, you need to be precise and careful in your descriptions and explanations.

6. 

   Define the costs/benefits of the proposed project.

   Define the economics of the proposed project from a cost/benefit analysis standpoint. If it is a viable project, demonstrate how the costs and investment in the proposed project will result in benefits that will make the project worthy of the time, effort and commitment necessary to see it through. Take into consideration the life cycle of the project when analyzing the cost/benefits. Additionally, cover in detail the funding sources the project will require and a realistic schedule to bring the project to a conclusion, if the report calls for it to move forward.

7. 

   Prepare an executive summary and table of contents.

   Assemble an executive summary to be included at the beginning of the FSR as well as a table of contents.

References

• State of California: Feasibility Study Report
• Feasibility Project: Steps of Business Feasibility Study
• Feasibility Project: Framework of Feasibility Study
• Feasibility Project: Business Feasibility Checklist

Resources

• Feasibility Project: Project Feasibility Study