Study of Feasibility Report of A New Venture

STUDY OF FEASIBILITY REPORT OF A NEW VENTURE:
 Operational
 Financial
 Legal
 Economic Viability
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Feasibility study
Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of the
existing business or proposed venture, opportunities and threats as presented by the environment,
the resources required to carry through, and ultimately the prospects for success. In its simplest
term, the two criteria to judge feasibility are cost required and value to be attained. As such, a
well-designed feasibility study should provide a historical background of the business or project,
description of the product or service, accounting statements, details of the operations and
management, marketing research and policies, financial data, legal requirements and tax
obligations. Generally, feasibility studies precede technical development and project
implementation.
Five common factors (TELOS):-
Technology and system feasibility:-
The assessment is based on an outline design of system requirements in terms of Input,

Processes, Output, Fields, Programs, and Procedures. This can be quantified in terms of volumes
of data, trends, frequency of updating, etc. in order to estimate whether the new system will
perform adequately or not. Technological feasibility is carried out to determine whether the
company has the capability, in terms of software, hardware, personnel and expertise, to handle
the completion of the project when writing a feasibility report, the following should be taken to
consideration:
* A brief description of the business
* The part of the business being examined
* The human and economic factor
* The possible solutions to the problems

At this level, the concern is whether the proposal is both technically and legally feasible
(assuming moderate cost). For example, some automobiles contain parts connected within small
spaces, where most 11-year-old girls (with small hands) could reach between the parts to adjust
(or check) the assemblage of components. However, in regions with child labor laws which
prohibit employment of 11-year-old children in such jobs, the task might not be legally feasible.
Economic feasibility:-
Economic analysis is the most frequently used method for evaluating the effectiveness of a new
system. More commonly known as cost/benefit analysis, the procedure is to determine the
benefits and savings that are expected from a candidate system and compare them with costs. If
benefits outweigh costs, then the decision is made to design and implement the system. An
entrepreneur must accurately weigh the cost versus benefits before taking an action.
Cost-based study: It is important to identify cost and benefit factors, which can be categorized as
follows: 1. Development costs; and 2. Operating costs. This is an analysis of the costs to be
incurred in the system and the benefits derivable out of the system.
Time-based study: This is an analysis of the time required to achieve a return on investments.
The future value of a project is also a factor.
[edit] Legal feasibility
Determines whether the proposed system conflicts with legal requirements, e.g. a data processing
system must comply with the local Data Protection Acts .
[edit] Operational feasibility
Operational feasibility is a measure of how well a proposed system solves the problems, and
takes advantage of the opportunities identified during scope definition and how it satisfies the
requirements identified in the requirements analysis phase of system development.[4]
[edit] Schedule feasibility
A project will fail if it takes too long to be completed before it is useful. Typically this means
estimating how long the system will take to develop, and if it can be completed in a given time
period using some methods like payback period. Schedule feasibility is a measure of how
reasonable the project timetable is. Given our technical expertise, are the project deadlines
reasonable? Some projects are initiated with specific deadlines. You need to determine whether
the deadlines are mandatory or desirable
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Other feasibility factors
[edit] Market and real estate feasibility
Market Feasibility Study typically involves testing geographic locations for a real estate
development project, and usually involves parcels of real estate land. Developers often conduct
market studies to determine the best location within a jurisdiction, and to test alternative land
uses for given parcels. Jurisdictions often require developers to complete feasibility studies
before they will approve a permit application for retail, commercial, industrial, manufacturing,
housing, office or mixed-use project. Market Feasibility takes into account the importance of the
business in the selected area.
[edit] Resource feasibility
This involves questions such as how much time is available to build the new system, when it can
be built, whether it interferes with normal business operations, type and amount of resources
required, dependencies,
[edit] Cultural feasibility
In this stage, the project's alternatives are evaluated for their impact on the local and general
culture. For example, environmental factors need to be considered and these factors are to be
well known. Further an enterprise's own culture can clash with the results of the project.
[edit] Financial feasibility
In case of a new project,financial viability can be judged on the following parameters:
 Total estimated cost of the project

 Financing of the project in terms of its capital structure, debt equity ratio and promoter's share
of total cost
 Existing investment by the promoter in any other business
 Projected cash flow and profitability

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STUDY OF FEASIBILITY REPORT OF A NEW VENTURE:

Five common factors (TELOS):-

Technology and system feasibility:-

The assessment is based on an outline design of system requirements in terms of Input,

* A brief description of the business

* The part of the business being examined

* The human and economic factor

* The possible solutions to the problems

[edit] Legal feasibility

[edit] Operational feasibility

[edit] Schedule feasibility

[edit] Resource feasibility

[edit] Cultural feasibility

[edit] Financial feasibility

In case of a new project,financial viability can be judged on the following parameters:

 Total estimated cost of the project

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