A feasibility study is an evaluation of a proposal designed to determine the difficulty in carrying

out a designated task. Generally, a feasibility study precedes technical development and project
implementation. In other words, a feasibility study is an evaluation or analysis of the potential
impact of a proposed project.

[edit] Five common factors (TELOS)

[edit] 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

[edit] 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. [1]

[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.

[edit] 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] Output
The feasibility study outputs the feasibility study report, a report detailing the evaluation
criteria, the study findings, and the recommendations.
Definition of Feasibility Studies: A feasibility study looks at the viability of an idea with an
emphasis on identifying potential problems and attempts to answer one main question: Will the
idea work and should you proceed with it?

Before you begin writing your business plan you need to identify how, where, and to whom you
intend to sell a service or product. You also need to assess your competition and figure out how
much money you need to start your business and keep it running until it is established.

Feasibility studies address things like where and how the business will operate. They provide in-
depth details about the business to determine if and how it can succeed, and serve as a valuable
tool for developing a winning business plan.

Why Are Feasibility Studies so Important?

The information you gather and present in your feasibility study will help you:

 List in detail all the things you need to make the business work;
 Identify logistical and other business-related problems and solutions;
 Develop marketing strategies to convince a bank or investor that your business is worth
considering as an investment; and
 Serve as a solid foundation for developing your business plan.

Even if you have a great business idea you still have to find a cost-effective way to market and
sell your products and services. This is especially important for store-front retail businesses
where location could make or break your business.

For example, most commercial space leases place restrictions on businesses that can have a
dramatic impact on income. A lease may limit business hours/days, parking spaces, restrict the
product or service you can offer, and in some cases, even limit the number of customers a
business can receive each day.

The Components of a Feasibility Study

 Description of the Business: The product or services to be offered and how they will be
delivered.
 Market Feasibility: Includes a description of the industry, current market, anticipated
future market potential, competition, sales projections, potential buyers, etc.
 Technical Feasibility: Details how you will deliver a product or service (i.e., materials,
labor, transportation, where your business will be located, technology needed, etc.).
 Financial Feasibility: Projects how much start-up capital is needed, sources of capital,
returns on investment, etc.
 Organizational Feasibility: Defines the legal and corporate structure of the business
(may also include professional background information about the founders and what
skills they can contribute to the business).
  Conclusions: Discusses how the business can succeed. Be honest in your assessment
because investors won’t just look at your conclusions they will also look at the data and
will question your conclusions if they are unrealistic.

Summary: Feasibility studies contain comprehensive, detailed information about your business
structure, your products and services, the market, logistics of how you will actually deliver a
product or service, the resources you need to make the business run efficiently, as well as other
information about the business.

Purpose of a Financial Feasibility Study: A financial feasibility study projects how much start-
up capital is needed, sources of capital, returns on investment, and other financial considerations.
It looks at how much cash is needed, where it will come from, and how it will be spent.

What is a Financial Feasibility Study?

A financial feasibility study is an assessment of the financial aspects of something. If this case,
for starting and running a business. It considers many things including start-up capital, expenses,
revenues, and investor income and disbursements. Other portions of a complete feasibility study
will also contribute data to your basic financial study.

A financial feasibility study can focus on one particular project or area, or on a group of projects
(such as advertising campaigns). However, for the purpose of establishing a business or
attracting investors, you should include at least three key things in your comprehensive financial
feasibility study:

 Start-Up Capital Requirements,

 Start-Up Capital Sources, and
 Potential Returns for Investors.

Start-Up Capital Requirements

Start-up capital is simply how much cash you need to start your business and keep it running
until it is self-sustaining. You should include enough capital funds (cash, or access to cash) to
run the business for one to two years.
What is a Market Feasibility Study and How Does a Market Feasibility Study
Differ From a Marketing Plan?

All feasibility studies should look at how things work, if they will work, and identify potential
problems. Feasibility studies are done on ideas, campaigns, products, processes, and entire
businesses.

Feasibility studies assess something and consider both pros and cons. They analyze potential
business scenarios. A Marketing Plan maps out specific ideas, strategies, and campaigns based
on feasibility study investigations, that are intended to be implemented.

Think of market feasibility studies as a logistical study and a marketing plan as a specific,
planned course of action to take.

What Should be Included in a Market Feasibility Study?

Things to Include in a market feasibility study include:

 Description of the Industry

 Current Market Analysis
 Competition
 Anticipated Future Market Potential
 Potential Buyers and Sources of Revenues
 Sales Projections

How to Write an Industry Description

Give a brief one- to two-paragraph description of the industry your business is categorized as
according to the U.S. Department of Labor. Determining your industry is important for receiving
government contracts, attracting investors, and for receiving grants (if you form as a nonprofit).

Example: The industrial first aid kit industry is a lucrative, fast-growing field, with contract
awards as high as $14 million dollars in 2006. Fictitious Business Example (FBE) is being
established for the purpose of producing, and providing, quality industrial first aid kits to the
United States Government, privately-held and publicly-held companies to improve worker's
safety on the job.
What is a Technical Feasibility Study?

The Technical Feasibility Study assesses the details of how you will deliver a product or service
(i.e., materials, labor, transportation, where your business will be located, technology needed,
etc.). Think of the technical feasibility study as the logistical or tactical plan of how your
business will produce, store, deliver, and track its products or services.

A technical feasibility study is an excellent tool for trouble-shooting and long-term planning. In
some regards it serves as a flow chart of how your products and services evolve and move
through your business to physically reach your market.

The Technical Feasibility Study Must Support Your Financial Information

Do not make the mistake of trying to entice investors with your staggering growth projections
and potential returns on their investment that only includes income (revenue) to the business.
With any increase in revenue there is always an increase in expenses. Expenses for technical
requirements (i.e., materials and labor) should be noted in the technical feasibility study.

You should also not strictly rely on feasibility study conclusions to impress an investor. An
experienced investor or lending institution will read your entire report and come to their own
conclusions. Therefore, it is critical that the technical and financial data in your study reconcile.
If other parts of your feasibility study shows growth, you will also have to project labor and other
costs and the technical ability to support that growth.

The technical component serves as the written explanation of financial data because if offers you
a place to include detailed information about why an expense has been projected high or low, or
why it is even necessary. It demonstrates to potential investors and lenders (and in some cases,
potential clients) that you have thought about the long-term needs your business will have as it
grows.

Preparing an Outline for Writing Your Technical Feasibility Study

The order that you present technical information is not as important as making sure you have all
the components to show how you can run your business.

You do not have to include specific financial information in the technical portion of your
feasibility study, but all information in this component must support your financial data
represented elsewhere. Basic things that most businesses need to include in their technical
feasibility study include:

 Materials
 Labor
 Transportation or Shipping
 Physical Location
 Technology
Calculating Material Requirements

In this section you list the materials you need to produce a product or service, and where you will
get those materials. Include information such as if volume discounts will be available as your
business grows, or if you ever plan to manufacture your own parts at some point in time.

Things to include in your list of materials:

 Parts needed to produce a product,

 Supplies (glue, nails, etc.), and
 Other materials that are involved in producing or manufacturing your product.

You do not need to include actual financial data in this portion of the study but financial data
supporting your narrative assessment should be included in a separate spreadsheet as an
attachment.
The Four Most Common Problems in Management and How to Solve
Them

There are a lot of problems being encountered by the

managers caused by managerial dysfunction.
Managing and supervising people is not an easy job. Everyday we are facing different problems
and challenges. Maybe a small or big problems that we must enhance or motivate our people,
talk with them and even sometimes help them to solve their day to day problems. Every
individual has his own characteristic to portray. Variations of people should take into
consideration in managing them. Factors like timing, place, and situation would work well for the

managers.

With the fast changing world, we need to cope up with things that could hinders the development
of one’s managerial skills. Here are the top ten most common problems in management and how
to solve them.

1. The Attitude Problems

o require extra time, attention, and direction
o ignore legitimate authority or directions from their bosses
o smile and tell a joke
o enjoy seeing others achievements

The manager’s attitude is what makes him uniquely as him. Attitude plays a vital role in
your career’s advancement and edge. As we mature in our job, we tend to learn more in
our relationships with other people for whom we work with. The attitude with which we
approach all our tasks eventually shapes our individual role and determines our success.
The reasons for a person having an attitude problem are so deep-rooted and complex that
you don’t want to solve any problem that you encounter. Sometimes, you find that you
are having a continuing problems with your subordinates. Attitude problems may solve
through:

2. The Communication Problem

o Upward Communication calls for tact, because the subordinate may have no contradict
or correct the superior in a manner that does not anger him, downgrade his position, or
damage his ego. For example, don’t ever say to a boss, “You’re wrong”. Bosses don’t like
that kind of communicating. The subordinate, in effect must elicit a reaction or behavior
in the superior much as a salesman makes someone want to buy a product.
o Sideward Communication or communication between peers tends to be by mutual
consent. Since no one has any real authority over others in the peer group, one has to
use logic and persuasions to demonstrate agreement and get any action.
 o Downward Communication tends to be authoritative and quick. Directives or orders are
issued to be carried out. Little explanations are given as to the reason behind the
directives. Open feedback of these directives is generally discouraged in practice, if not
in principle. Let the subordinate who points out that the boss was wrong beware.

Today, we live in a world of euphemism. For as long as we use nice words, we can cite
any subjects. Most of us search for the right words to express what we feel in the least
offensive manner. This is fine unless we concern ourselves more with the format of
message than its substance. Euphemisms carry us far from the truth into the world of
unreality or out-right lies.

If you really want to hear the plain truth of what the other person really thinks about the
situation, one way to get it is to make the other person angry. When someone is angry
with you, he forgets about your feelings or using nice words. He will tell you in a clear
and loud voice exactly what he thinks about you and the situation that exists between him
and you. He may even go back a bit in time and bring up long forgotten or suppressed
problems. It may not be good for your ego and it may hurt a little, but you will know
what he thinks.

Problems in communication arise when the person doing the communicating is unaware
of or doesn’t care which of the three type he or she is doing (upward, sideward or
downward)

Types of Communication:

So what do we really mean when we use the term communication problem? First, we
must admit that the problem, whatever it is, is generally not communicating. The problem
lies somewhere else. I order to cure any illness or solve any problem, it is best to find the
ultimate cause. There are proximate causes, ultimate causes and others in between in the
chain and cause.

When we spend our time and effort in trying to solve communication problems, in most
cases we are applying solve to rash. It is only temporary in nature and will recur because
we are seeing a manifestation of something that is the effect of some other basic cause.

2. Disagreement
o The know-it-all. This person tells everyone what he thinks-loud and clear. He is rarely
there when a decision has to made, but is right there afterward telling you and everyone
else why he disagreed with what was done. He use 20/20 hindsight to tell you what was
wrong. He is never wrong.
o The shy person. These personalities are so quiet you scarcely know they are around. They
do their work as assigned to them. They rarely venture an opinion or disagree anyone.
They don’t want to hurt anyone’s feelings, so if they believe something is going wrong,
they don’t say anything. They would never presume to suggest to the boss or anyone
 else that there is a better way to do anything. That could cause controversy, and this
type doesn’t like to be the subject of controversy or in any way involved.
o The “I only follow orders type”. These people do what they are told and don’t ask
questions. They disagree or give their ideas when asked, but unless and until they are
specifically requested to give opinions, they tend to remain silent and never question
anything.
o The born arguer. This type likes to oppose for the sake of opposing. No matter what you
plan to do or what decision you want to make, you can count on them to disagree. They
seem to feel that the only way they can show you they have minds of their own is to
disagree with you just about everything and everyone. This is usually a form of arrested
emotional development.
o The reasonable type. These personalities are willing and able to contribute ideas and are
not afraid to disagree or to offer novel ideas, if they are given the right environment in
which to respond. Fortunately, the majority of employees are in this category.

If handles properly, results positive benefits. A good manager encourages those with
other points of view to express their ides. Those who sometimes disagree many will have
something of value to contribute if their viewpoints are not shut off. It is up to those in
charge to create an environment that neither suppresses disagreement nor permits
disagreements to degenerate into hostility and distrust. A manager who skillfully handles
disagreements will not permit employees to” talk the thing to death” without ever
reaching constructive conclusions.

Handling disagreements requires the exercise of good judgment and some knowledge of
personality traits. Let us consider some types of personalities in the workplace:

It is only human to bitterly resist being boxed in or proved wrong. We all have egos and
will react negatively to disagreement that is based upon a criticism of our own
performance, decisions, or judgments. No benefit will accrue to you if you win someone
else.

In summary, coping with disagreement and dissent can be beneficial, depending upon on
how it is done. The issues about disagreement is explained here are not moral or ethical.
It is pragmatic, business-type decisions. When it comes to disagreement on a moral,
legal, ethical level, you should follow your conscience and never compromise it.

3. The Doers
o In any organization, 90% of work is done by 10% of the people
o There are three kinds of people in the world: (1) 5% who do things, (2) 10% who don’t
do anything but carefully study what doers do and comment on these activities to each
other, and (3) group of 85% who neither do anything nor know or care what is going on
o In any organization, 80% to 90% of the sales are made by 20% of the sales force

Doers get things done. They the initiative and generate the activities to be done in the
right time. There are three statements that pertain to doers these are as follows:
 Doers are like yeast in the bread. Just a little in every loaf is all that is needed for the
whole loaf to rise. Too much in one loaf destroys it and none in another destroys that one
too. Doers vitalize the loaf they are in. managers must first identify these people and then
spread them around on the ratio of about one per ten employees, if possible. This will
give good results, whatever goal may be.

These problems may arise in the part of the managers and the labor force. The management of a
business has left the hands of its owners and come into the hands of the professional manger, an
employee himself. Perhaps the strangest thing about the professional manger, as we know him
today, is that he is not working primarily to get rich, but to do good production.