Got the right people, resources, and technology you need to launch a new project? Want to ensure your product meets regulatory standards under the law before hitting the shelves? And of course – the most critical question of them all – will a proposed business get you the returns you’re hoping for?
Luckily, you can find all the answers you need in a feasibility report. Join me as I explore the key components of a feasibility study and how you can make one! To get you started, we offer a pre-standardized template you can download & customize to your needs!
What is a Feasibility Study?
A Feasibility Study is a data-driven, systematic evaluation of the viability of a new project, business plan, or other organized initiative. It provides a preliminary analysis, technical assessment, commercial evaluation, financial projections, as well as a careful consideration of alternative business models.
Project professionals or investors read feasibility reports during the initial planning stage to guide them through the most critical decision of the planning process: Is your idea worth pursuing or not?
Why Feasibility Studies Matter!
Only with a better understanding of your market conditions, financial liabilities & prospects, operational needs and technical requirements, can you make a more informed decision on whether to give a project the green signal, tweak around it, or simply drop the idea.
In this way, a feasibility study stops you from making resource-draining mistakes by evaluating the viability & practicality of a decision beforehand. For example, selling solar cars sounds like a great idea in theory, but if there is no charging infrastructure in cities where you intend to supply – it simply won’t be practical for people to buy your product (or for you to sell it!).
Before we get to our pre-standardized template, let’s try to get a more clear sense of what we are dealing with here…
What Does ‘Feasibility’ Mean?
For a project to come through in the real world, there are many factors to consider, from fiscal viability to compliance with relevant laws. Feasibility then, is best understood as the measure of how likely a project is to succeed in light of those factors.
For that reason, it’s best to look at a feasibility report as a combination of multiple reports merged into one. Each report looks at the idea of feasibility from a unique angle. In our template, we cover the following core types of ‘feasibilities’:
- Financial: Identify potential funding sources & develop detailed budget plans.
- Operational: Understand how the technologies, equipment, raw materials, and other resources needed to see things through.our project aligns with existing internal operations & the strategic goals of your business.
- Market: Know who your target buyer and main competitors are.
- Technical: Assess if you have
- Legal: Navigate your way through applicable laws, industry standards, licensing requirements & contractual terms applicable to your project.
Who Conducts a Feasibility Study?
Running a feasibility study takes time, energy, and of course, skill. It is usually conducted in-house by a senior member of the project team.
But if you lack the expertise, you can hire a trained consultant to do the job for you. Ensure consultants have access to the right data, contact details of key stakeholders & partners, as well as any relevant documentation they need to analyze the project’s feasibility.
When do I need one?
Naturally, you want to know if something is doable before you start, well, doing it. By that logic, feasibility studies are mostly scheduled during the initial planning stages of the project. Best before investing time & capital into the proposed venture.
That said, there is no hard-and-fast rule here. You can also run a feasibility study mid-project to assess external risks or disruptions in ongoing projects. Or during close-out, to figure out if a project is worth extending.
You don’t need one if…
- Feasibility is already well-established.
- You’ve successfully executed a similar project in the past.
- Competitors are achieving measurable success with a comparable initiative.
- Proposed change or investment is too minor to justify a full study.
- Time constraints outweigh the potential value of conducting the study.
- You’re confident in the idea’s feasibility, and the study would only reaffirm your assumptions.
- The project is simple, low-risk, and unlikely to have major long-term implications.
- A similar feasibility assessment was completed by your team within the last three years.
What We Bring to The Table
At WordLayout, we know that every second of your time matters. That’s why, we developed a quick & handy resource so you can develop a Feasibility Report, and fast. With critical components such as —financials, operational plans, staffing needs, and more — neatly organized for you, you spend less time on layout and more on making strategic choices.
Our template can be applied to different business models, projects & teams across industries, highlighting its universal appeal for project management professionals and business evaluators.
Target Users? Our template is ideal for project managers, sponsors, and stakeholders who want to assess the practicability of a project.
Some user-friendly features of our pre-made template:
- 100% free-of-cost & print ready
- A fillable title page (space for adding project, company, and consultant details)
- A built-in Table of Contents
- Dedicated sections assessing various elements like market conditions, financial viability, and technical requirements
- Writing tips and guidelines are included with each section
- Adjustable text (section headings & subheadings)
- Adjustable font style, size & color
- Organizes information for a thorough and logically connected analysis.
- Available in multiple formats (WORD, PDF, Google Docs).
To learn more about similar project management concepts and documents, explore our library of Project Management templates here! Our Word and Excel templates offer structured formats for organizing your financial plans, task schedules, and resource allocation.
What’s Included?
Our template is built around these core elements:
- Executive Summary
- Project Details – Description, Objectives, Scope
- Methodology
- Market Analysis
- Technical Feasibility
- Financial Feasibility
- Legal & Regulatory Feasibility
- Environmental & Social Feasibility
- Organizational Structure
- Human Resource Requirements
- Scheduling Feasibility – Timelines, Milestones
- Risks and Contingencies
- Summary of Findings
Executive Summary
Although it appears at the beginning, this section is often written last—and for good reason. As a high-level summary of your Feasibility Study, it draws upon insights from other sections, so writing it after ensures a more accurate and compelling view.
The executive summary is your chance to make a good first impression. As a concise snapshot of the project’s viability, it covers key areas such as projected financials, key milestones, relevant market research, operational requirements, and technical viability.
Play on the most critical factors that influence your project’s feasibility (in a negative or positive way). Remember, if you don’t quickly convince investors, stakeholders, or decision-makers that your idea can be executed in the real world, they might lose interest in your project altogether.
Project Description
Use this section of the template to create a high-level snapshot of your project. Figuring out answers to the following is a good place to start:
- What is the nature of the project? Construction, software, marketing, etc.
- Why was the project necessary? Include the background context of your project. You can refer to a particular industry challenge you want to meet or a long-term growth strategy you are pursuing.
- What are you hoping to achieve? Show how your expected outcomes will help you achieve your strategic goals as a company.
Objectives
Jumping straight into a feasibility analysis without knowing your ultimate goal is like a road trip without a destination. That’s why you need an overarching aim to guide you through the research & evaluation process.
Create a list of reasons why you are conducting a feasibility study in the first place. For example, you may be conducting one:
- To study market conditions
- To assess operational, financial or technical viability
- To estimate risks identify challenges
- To determine organizational fit
Market Analysis
Before you invest a huge chunk of your time & money on a new project, you need to take a step back and analyze the market you are catering to. Not surprisingly. Market research is the bread & butter of business development as it helps you find your niche and create more insightful business plans.
For example, if you are a manufacturer, what you intend to make, does it fill an unmet need, is the market able to support competition and can you manufacture a quality product on time and within budget? A well-performed market analysis will help you answer these questions.
As for me, I always run a market analysis by following these steps (not necessarily in this order).…
- Evaluate key factors like pricing, your unique value proposition, and customer demand.
- Stay updated on new technologies and current market trends.
- Consider all elements that influence how your business will meet customer needs.
- Use market research to clearly define your target audience.
- Create detailed buyer personas to better understand customer behavior.
- Analyze how competitive your niche is and where your business stands.
- Measure customer demand and identify potential gaps in the market.
- Add other relevant insights to shape your business strategy effectively.
S.W.O.T Analysis
The next section of our feasibility study template is the SWOT analysis. From global market research reports to individual self-assessments, a SWOT analysis is a versatile framework used to implement a big change or launch a new initiative. Use this space to run a basic SWOT analysis of your proposed idea or venture by identifying your:
- Strengths: What does your business excel at? Identify the qualities that give you a clear advantage over competitors, such as a strong organizational culture, loyal customers, or a patented technology.
- Weaknesses: Acknowledge internal challenges like declining brand recognition, high turnover, debt, or limited staffing. Being honest about your vulnerabilities helps create a roadmap for improvement.
- Opportunities: Look for favorable external conditions—emerging trends, technologies, or market shifts—that you can leverage to grow and innovate.
- Threats: Consider outside factors that could hinder your operations, such as regulatory barriers, political instability, supply chain issues, or economic downturns.
Whether you are assessing a closed project or a new product idea – a SWOT analysis helps you organize your thoughts & insights for a well-rounded perspective on what challenges & external conditions you’ll face once you enter the market!
To create a more detailed SWOT analysis, you can use our 100% free, preformatted SWOT analysis templates available in Word & PowerPoint, or accessible via Google Slides for cloud-based editing & collaboration!
Target Market
Once your market research is done, it’s time to put that knowledge to work by building an ideal customer profile. This helps you figure out who you’re really trying to reach and how to speak their language. You might do this by surveying potential customers, reviewing industry studies, or hosting interviews and focus groups to hear directly from your audience.
Using our template, identify specific customer segments you will be catering to. For each segment, you will need to jot down the following details:
- Demographics
- Customer Needs
- Buying Behaviour
- Market Reach
Market Growth Forecast
Markets are not static. As consumer behaviours change and new technologies replace old ones, markets evolve too.
Use this section of our template to understand how your market will change in size or value over a specific period. Analyze historical data & study market trends to predict future market performance, including demand, supply, and pricing.
Using our template, identify both the overall market size and your company’s share in it.
Market Size Vs. Market Share – What’s the Difference?
Market size refers to the total revenue that all companies in a specific industry generate within a set timeframe. It’s a broad, industry-wide figure.
For example, consider the global coffee shop industry, which generates approximately $165 billion annually.
Now, within that market, Starbucks—a leading player—accounts for about 10% of total sales.
That means Starbucks’ market share is 10% of $165 billion = $16.5 billion.
Market share then can be defined as the percentage of total industry sales captured by a particular company over a specific period (usually one year).
Technical Feasibility
No project can succeed if there’s a mismatch between what you want to achieve and what you can. For example, if your service model requires 24/7 customer support, but you only have enough staff to cover 12 hours a day, your project isn’t technically feasible.
Use this space to determine if you have the necessary capabilities & systems to execute a project, such as:
- The right technical knowledge
- Adequate production capacity
- Facilities, infrastructure, or equipment
- Raw materials
- Effective supply chain processes to produce and deliver your product to the market, including warehousing and retail distribution.
Financial Feasibility
Money is to business what fuel is to cars. Use this section of the template to determine the known costs and expected benefits associated with a project before allocating resources. Without this section, decision makers will have no way of understanding the economic benefits your project will drive.
Project Budget
For PM professionals & stakeholders, a budget helps you track how much money is being spent, for what, and at what points in the project’s lifecycle. A typical budget covers any costs likely to be incurred during a project’s life cycle, such as:
- Hiring labor, subcontractors, and vendors
- Procuring materials such as office equipment, raw materials, and machinery
- Buying software licenses and regulatory permits
- Paying for utilities, office space, and administrative overheads
Use this section to break down the resources you need to carry out your project successfully. Be sure to account for all required services, their associated costs, and any expected adjustments to income, such as reimbursements or funding offsets.
You will also use this section to identify your funding sources. All in all, this section is designed to assess the financial viability of your project by offering realistic and well-supported cost projections.
Financial Projection
One of the most important aspects of financial management is creating and tracking accurate project financials. Thankfully, you have a dedicated space here to project your finances over a set period.
We offer a built-in table so you can easily organize your financial projections simply by adding the following values:
- projected revenue,
- operating costs
- net profit
- ROI
What’s RoI?
In the business world, RoI – is a % value used to find out how profitable a new business idea is. By comparing the net profit to the initial investment cost, you can better judge if an investment is worth it in the long run. For example, manufacturers may review a feasibility study to decide if a plant expansion will pay off in increased revenue.
Here’s the formula for Calculating RoI:
ROI = (Net Profit / Investment Cost) × 100
Break-Even Analysis
In business, success is when your financial return exceeds the cost. For nonprofits, success may be measured in other ways. The truth is, if things go to plan – your business should hit a point when your revenues exactly cover your total costs — meaning no profit, no loss. This point is called the Break-Even Point (BEP).
Use this part of the template to estimate your BEP. Then, based on this estimate, a profit margin and financial forecasts will be analyzed to determine if there’s economic feasibility. This is critical for assessing how financially sustainable your project is.
In our template, you can project your BEP for three different types of costs:
- Fixed Cost: Costs that don’t change with output (e.g., rent, salaries).
- Variable Cost per Unit: Costs that change with production (e.g., raw materials, commissions
- % Based Variable Cost
Here’s what a filled-out BE Analysis looks like for a car manufacturing company:
Break-Even Cost Table – Car Manufacturing Company
| Fixed Costs | Variable Costs/Unit | % Based Costs | |||
|---|---|---|---|---|---|
| Factory Rent | $500,000 | Raw Materials | $12,000 | Sales Commission | 5% |
| Equipment Leasing | $150,000 | Labor per Unit | $3,000 | Credit Card Fees | 2% |
| Insurance & Licenses | $50,000 | Electricity & Utilities | $400 | ||
| Salaried Staff | $300,000 | Packaging & Shipping | $200 | ||
| Marketing Campaigns | $100,000 | Quality Inspection | $150 | ||
| Depreciation | $200,000 | Misc. Consumables | $100 | ||
| Total Fixed | $1,300,000 | Total/Unit | $15,850 | Total % Based | 7% |
Operational Feasibility
While technical feasibility tells you if an organization can execute a project in terms of tools & technologies, operational feasibility takes a broader approach to understanding whether a project can be effectively implemented within your existing operations, internal workflows, human resources, supply chains, and stakeholder expectations.
Operational needs can cover staffing requirements, organizational structure, start-up costs, fixed investments, and operating costs. equipment, merchandising methods, real estate, personnel, supply availability, overheads, and any applicable legal requirements.
By the end of this section, you will have a better sense of whether or not you have the resources, skills, and competencies to complete this work.
Legal & Regulatory Feasibility
As formal legal entities, companies can’t simply do what they want, without regard for the law. Whether you are launching a food product or building a new high-rise, you need to map out laws & regulations that apply to activities and deliverables falling within your project scope.
Here are some across-the-board examples:
Construction
Let’s say an organization wants to build a new office building in a specific location. A feasibility study might reveal that the organization’s ideal location isn’t zoned for that type of business. For those not aware, zoning laws are local laws across the U.S. that regulate how land can be used in different geographic areas.
Food Products
A food company wants to sell ready-to-eat salads across the U.S. Now, under the Food Safety Modernization Act, the company must comply with hazard analysis and preventive controls (HACCP principles). Not doing so can result in serious legal, financial, and reputational consequences.
Technology
Now, let’s imagine you developed a mobile app that collects personal data from users in California. Under the Consumer Privacy Act, you must provide a privacy policy, disclose data collection practices, and allow users to opt out. Failing to comply can lead to hefty fines and loss of consumer trust.
Licences & Certifications
To avoid legal troubles down the road, make sure you have the licenses, permits, and certifications you need for legally working on a project. This section of the template helps you assess whether these requirements can be realistically obtained, in light of local, state, and federal laws. For example, if a project involves developing a new patent, you will need to involve your legal team and incorporate that requirement into the project plan.
All in all, a well-done legal feasibility study ensures that the project can be completed without running afoul of any laws or incurring undue legal exposure for the organization.
Environment/Social Feasibility
In an increasingly eco-conscious world, governments require companies to conduct businesses in a way that respects environmental standards and upholds social ethics, including labor rights, community welfare, and fair governance.
For example, the ESR – or Environmental & Social Responsibility – principle has now found its way into California law with the Transparency in Supply Chains Act 2010, which requires large companies to disclose efforts to eliminate forced labor from their supply chains. Failure to comply can result in reputational damage, fines, and exclusion from commercial contracts.
Once you know which ESR rules apply to you – you can start using this section to gauge the impact of your proposed project on the environment and society. In particular, use the blank space to identify whether this impact is acceptable, manageable, or requires mitigation.
Organizational Structure
Use this space to describe the legal structure of your business. Identifying whether you intend to incorporate your business as a C or an S corporation, form a general or limited partnership, or if you’re a sole proprietor or limited liability company (LLC).
Remember, each business legal structure has advantages and disadvantages when it comes to liability for business owners, so the legal structure you choose will directly affect how much personal responsibility you, as owner, will have for the debts and legal obligations of your business.
HR Requirements
A successful project requires a team of dedicated professionals to power through each project phase & deliverable. Finding the right people to lead and manage your project is half the job done, so the next part of our feasibility study template is dedicated to HR. It will ensure HR departments make well-calculated hiring decisions.
For each project role, specify the following:
- Department (say, IT or Sales)
- Team (e.g., Design, Content, Data Entry teams)
- Role (App Developer or Technician)
- Number required (1 or more)
- Skills ( Research, Adobe, App Development, etc.)
Scheduling Feasibility
The schedule check is the final but the most essential step of our study template. It forecasts the time needed to complete each project phase or deliverable. Whether you’re developing a new product or undertaking a complex construction venture, you will need a clear and viable schedule to meet your targets on time.
Using our template, specify the start and end dates for every task, along with key milestones that mark significant progress points throughout your project’s life.
Remember, deadlines are the guiding stars of project management. That means, your success depends on all team members & stakeholders aligning with and adhering to the agreed timeframe.
Risks & Contingencies
Businesses operate in the real world, where uncertainty and risk are inevitable. Construction projects can be stalled by heavy floods, tech firms are attacked by hackers, and hotels catering to tourists can lose bookings during times of war.
Use this section of the template to understand the potential risks you face. Weight risks against your rewards, such as financial growth. If the risks are too high, you may reconsider your business idea.
For each project risk, specify the following:
Risk description
Add a brief description of each risk. Some commonly used categories include operational, financial, environmental, reputational, compliance, and cybersecurity risks. But this is, by no means, an exhaustive list of risk categories, so you will need to customize it to your specific project or business context.
Likelihood & impact
Likelihood of a risk measures its chance of occurring, while impact gauges how severe the outcome would be if it did. You can use our built-in table to identify the likelihood & impact levels of both using a five-point scale:
| Rating | Likelihood | Impact |
|---|---|---|
| 1 | Almost Certain | Insignificant |
| 2 | Likely | Minor |
| 3 | Moderate | , Significant |
| 4 | Unlikely | Major |
| 5 | Rare | Severe |
A risk matrix is a great way to help you prioritize risks & mitigation plans. Feel free to use our Risk Matrix & Risk Register template to support proactive risk management by identifying potential threats early in the business process.
Mitigation strategy
In this column, identify a mitigation strategy for each task – or steps you will take to eliminate or limit the impact of a risk. For example, if you want to tackle the risk of critical project-related data, your mitigation strategy will be to create a backup system to protect this data. Needless to say, mitigation plans are crucial for ensuring the continuity of, and minimizing disruptions to your routine business operations, thus building stakeholder trust.
Summary of Findings
Here, create a bulleted summary of your key findings. Try to highlight your most definitive conclusions & valuable points of feedback based on what you learnt during the evaluation process. Make sure your evaluations are detailed, unbiased & derived from factual knowledge & analytical insights.
Recommendations
Put forth any actionable recommendations based on your findings. These may be in the form of detailing the next steps and strategic decisions needed to successfully implement the project. After analyzing the requirements, a consultant typically recommends a particular course of action to satisfy project requirements.
Sometimes, using existing systems already in place is more beneficial than choosing a brand new system, which can be costly. It is the consultant’s job to weigh available options and recommend the most beneficial solution to decision makers.
Version History
A feasibility study is a living document, not a static one. Although prepared during the initial project phases, you need to update and revise the contents of your study whenever new, vital information emerges – for example, if a new competitor enters the market, or a new zoning law is passed by the government.
Use this tabular space to record revisions made to the study, specifying revision dates, the nature of each revision, and the people responsible for implementing the change.
Appendix A, B and so on
Use this section to add a numbered list of supplementary supporting documents or information relevant to the study, such as detailed analytical data, tables, maps, or survey results. Some common items are:
- Company registration documents
- Patent applications
- Credit histories
- Bank statements
- CVs or resumes
- Market research data
- Product pictures or design mock-ups
- Product pictures
- Description of services
- Letters of reference
- Licenses/permits
- Legal documents and other contracts.
What’s Next?
Once you’ve collected and collated relevant information under each section, verify your data against source documentation. Any discrepancies should be noted and discussed with relevant stakeholders & team members with the aim of resolving them as efficiently as possible.
Based on the findings and analysis conducted throughout the feasibility study, it’s time to make a final decision. All the previous steps of your feasibility study lead to this decisive moment so make sure you thoroughly look at each component of your feasibility assessment before calling the final shots.
Give your firm word on whether your project is worth the time, effort, and money going in, and whether it aligns with your company’s strategic vision and long-term goals.
To gather input and answer questions, the PMO or consultant might present the study directly to stakeholders (for feedback & questions).
If a project gets the green signal, you should start working on a project plan that includes a detailed budget, timeline, and work-breakdown structure (WBS). Feel free to use our free templates to help you plan, execute, track & monitor projects!
Final Thoughts
To sum up, a feasibility study examines the necessary technology, assesses the market, and identifies the people, timelines, and funding needed to get your project off the ground.
Amid the intricate landscape of modern challenges and opportunities, a feasibility study serves as a strategic compass for innovators striving to turn their ideas into reality.
A feasibility analysis does not offer a simple yes-or-no solution to complex challenges. Instead, it equips you with the critical questions and informed answers needed to make the most strategic and well-considered decision for your project and team.
We have designed a comprehensive and technical template that can not only assist you in conducting a thorough feasibility study but also help you create detailed feasibility reports based on your analysis.
A feasibility study template is a structured document used to evaluate the practicality and potential success of a proposed project. It offers a consistent format for assessing various aspects of a project—like technical, financial, operational, legal, and market feasibility—before significant resources are committed. The purpose of this template is to help decision-makers determine if a project is viable, guide systematic analysis of the project’s potential from multiple perspectives, and provide a foundation for informed decision-making by highlighting risks, requirements, and benefits.
The template is used for solving the problem of uncertainty in project planning and investment. It helps organizations determine if a project is worth pursuing, what challenges might arise, whether it aligns with strategic goals, and if the organization has sufficient resources and capabilities to execute it.
This template can be a particularly useful & handy resource for Project Managers, Business Analysts, Entrepreneurs & Start-ups, and Consultants.
Remember, a feasibility study is not a sales pitch —rather, it’s a way to ensure the project is something you and your team can accomplish.
