Feasibility Study Consultant 2023-2024 has been a busy time with the completion of three feasibility studies. The latest study was for a Friendship Centre’s business venture with the other two covering food sovereignty and a 3-story performance arts facility construction and ongoing operation.
Typical Feasibility Study Sections include:
A feasibility study typically consists of the following sections:
- Executive Summary: A brief overview of the entire feasibility study, highlighting the key findings and recommendations.
- Introduction: An introduction to the project or business idea being evaluated, including its background and objectives.
- Description of the Business Concept: A detailed description of the business concept or project, including its products or services, target market, and unique selling points.
- Market Analysis: An examination of the target market, including its size, trends, competition, and potential demand for the proposed product or service.
- Technical Feasibility: An assessment of the technical requirements and capabilities needed to implement the project, including technology, equipment, and infrastructure.
- Financial Analysis: A comprehensive financial evaluation, including cost estimates, revenue projections, cash flow analysis, and return on investment (ROI).
- Organizational and Management Feasibility: An evaluation of the organizational structure, management team, and human resource requirements needed to execute the project successfully.
- Legal and Regulatory Considerations: A review of the legal and regulatory factors that may impact the project, including permits, licenses, and compliance requirements.
- Risk Analysis: An analysis of potential risks and challenges associated with the project, along with proposed risk mitigation strategies.
- Conclusion and Recommendations: A summary of the findings and recommendations based on the feasibility study, including a decision on whether to proceed with the project.
The scope of a feasibility study is contingent on what is being studied and the budget for that study.
The typical price range for a feasibility study is between $14,000 and $200,000. With such a wide margin in prices in important to know that the research component likely has the largest influence of the study’s cost.
CASE 1: Imagine a proposal for a new community centre that requires $20,000,000 in financing and an additional $1,000,000 in annual operating costs.
Let’s ignore the fact that the feasibility study will also examine how realistic those $20,000,000 and $1,000,000 numbers are. Such a study would likely require 10-15 focus groups, multiple public community consultations, a survey, and more.
What gets presented to, and ask of the community would come from consultations with architects, engineers, community centre usage experts, the community’s elected and appointed public servants, and other groups.
Depending on complexity, the above process my be repeated one or two more times.
At some point, the “what will this thing be” needs to be determined (and even then, there might be one or two versions) and that “thing” will then be analyzed for feasibility.
CASE 2: A community not-for-profit is eligible for $100,000 in seed funding, but, in order to have access to that money, they need to present a business plan and feasibility study on their business idea.
The feasibility study have 15 in-depth interviews with potential strategic partners and stakeholders, a focus group, case studies, and so on. There are no engineers, architects, environmental assessments, and other outside parties to coordinate. Operating costs are limited to one employee and some shared space costs.
From the two scenarios, can you point to the $200,000 study and the $12,000 study?
Below is a page export of a 60 page feasibility study.
The market analysis section of a feasibility study typically includes the following components:
- Market Size and Potential: An assessment of the overall size of the target market in terms of potential customers or organizations, as well as the growth potential of the market in the foreseeable future.
- Market Trends: Analysis of the current trends in the market, including consumer preferences, purchasing behavior, and industry developments that may impact the proposed project or business idea.
- Competitive Analysis: Evaluation of existing and potential competitors in the market, including their strengths, weaknesses, market share, pricing strategies, and product/service offerings.
- Target Market Segmentation: Identification and segmentation of the target market into specific groups based on demographic, geographic, psychographic, or behavioral characteristics.
- Customer Needs and Preferences: Understanding the needs, preferences, and pain points of the target customers, and how the proposed project or business idea addresses these aspects.
- Demand Analysis: Assessment of the potential demand for the proposed product or service within the target market, considering factors such as price sensitivity and willingness to adopt new offerings.
- Regulatory and Industry Factors: Consideration of any industry regulations, standards, or market-specific requirements that may impact the market entry or operations of the proposed project.
- SWOT Analysis: Examination of the strengths, weaknesses, opportunities, and threats related to entering the target market with the proposed project or business idea.
Pricing
Feasibility study costs start at $14,000 which would be for a simple business proposal and the primary research and analysis required. Because of the scope a business can have, and the required research and analysis, feasibility studies have no upper cost limit.
Please call or email to discuss your needs and pricing: (403) 991-8863 e-mail: info@feasibilityfirst.ca