Feasibility Study Timing
Project Stage and
Feasibility Study
Conducting a feasibility study is a crucial step in the early stages of a business or project. It is typically performed after the initial idea has been proposed but before significant resources are committed. This timing allows for an informed decision-making process, ensuring that the project is viable and worth pursuing
When to Conduct a Feasibility Study
A feasibility study should be undertaken during the project planning phase, specifically:​
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After the initial concept or idea has been developed: Once you have a clear idea of what you want to achieve, a feasibility study helps assess its practicality.​
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Before significant investments are made: Conducting the study at this stage prevents the allocation of substantial resources to a project that may not be viable.​
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Prior to detailed project planning and execution: The study's findings inform the subsequent steps, including detailed planning, securing financing, and implementation.​
This approach aligns with best practices in project management, ensuring that potential challenges are identified and addressed early on .​
Importance of Feasibility Study Timing
Conducting a feasibility study at the appropriate stage offers several benefits:​
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Risk Mitigation: Early identification of potential obstacles allows for proactive solutions, reducing the likelihood of project failure.​
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Resource Optimization: Ensures that time, money, and effort are invested in projects with a higher likelihood of success.​I
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Informed Decision-Making: Provides stakeholders with comprehensive data to make evidence-based decisions.​
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Stakeholder Confidence: Demonstrates due diligence, which can enhance credibility with investors, partners, and other stakeholders.
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Summary
In essence, a feasibility study should be conducted after the project's initial concept is developed but before committing significant resources. This timing ensures that the project's viability is thoroughly assessed, facilitating informed decision-making and efficient resource allocation.
How Feasibility Studies Mitigate Risk
A well-executed feasibility study helps identify potential challenges and risks early in the project planning process.
By analyzing various aspects such as technical requirements, financial projections, market demand, and legal considerations, the study enables stakeholders to make informed decisions. This proactive approach reduces the likelihood of project delays, cost overruns, or failures.
What Makes a Feasibility Study Credible?
A credible feasibility study is characterized by its objectivity, thoroughness, and reliance on accurate data. Key attributes include:​
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Independence: Conducted by professionals with no financial or personal stake in the project's outcome, ensuring unbiased analysis .​bia.gov
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Expertise: Prepared by individuals or teams with relevant experience and knowledge in the project's domain, enhancing the study's reliability.​
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Comprehensive Analysis: Covers all critical aspects—technical, financial, market, legal, and operational—to provide a holistic view of the project's feasibility .​
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Transparent Methodology: Clearly outlines the methods and data sources used, allowing stakeholders to understand and trust the findings.​
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Actionable Recommendations: Offers clear guidance on whether to proceed with the project, including suggestions for mitigating identified risks.
Does experience make a difference between feasibility study consultants and why?
1. Depth of Industry Knowledge
Experienced consultants bring a wealth of industry-specific knowledge, enabling them to:​
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Identify nuanced challenges and opportunities unique to the sector.
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Apply proven methodologies tailored to similar projects.
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Anticipate potential pitfalls based on historical data and trends.​
For instance, in the construction industry, seasoned consultants can assess project viability by considering factors like site conditions, regulatory requirements, and market demand, ensuring a comprehensive evaluation.​
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2. Enhanced Analytical Skills
With experience comes refined analytical capabilities. Experienced consultants are adept at:​
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Conducting thorough financial analyses, including cash flow projections and ROI assessments.
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Evaluating technical feasibility by assessing resource availability and technological requirements.
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Assessing market feasibility through detailed market research and competitive analysis.​
Their ability to synthesize complex data into actionable insights is crucial for informed decision-making.
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3. Credibility with Stakeholders
An experienced consultant's reputation can lend credibility to the feasibility study, which is vital when:​
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Seeking financing from banks or investors who rely on the study's findings.
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Gaining buy-in from internal stakeholders who trust the consultant's expertise.
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Navigating regulatory approvals where authoritative assessments are required.​
Their established track record can instill confidence in the project's viability.
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4. Customized Approach
Experienced consultants understand that each project is unique. They can:​
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Tailor the feasibility study to address specific project goals and constraints.
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Adapt methodologies to suit the project's scale, complexity, and industry.
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Provide strategic recommendations aligned with the organization's objectives.​
This personalized approach ensures that the study is relevant and actionable.​
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5. Strategic Guidance Beyond the Study
Beyond the feasibility study, seasoned consultants often offer:​
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Strategic planning assistance to implement study recommendations.
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Risk mitigation strategies based on identified challenges.
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Ongoing support to adapt plans as project dynamics evolve.​
Their holistic perspective can be invaluable throughout the project's lifecycle.
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In summary, the experience of a feasibility study consultant profoundly impacts the study's quality, credibility, and utility. Engaging a seasoned professional can enhance the study's effectiveness, facilitate stakeholder confidence, and contribute to the project's overall success.
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Wert-Berater, Inc. has been providing feasibility study consulting services since 1998, accumulating over 27 years of experience in the field. Their team boasts a combined experience exceeding 150 years, having completed more than 3,600 feasibility studies across various industries and sectors. ​
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Their expertise spans a wide range of services, including SBA and USDA feasibility studies, EB-5 visa studies, and commercial real estate assessments. They have served clients in multiple markets, including the United States, Canada, the European Union, and other international regions. ​
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Wert-Berater, Inc.'s extensive experience and global reach make them a credible choice for conducting comprehensive and bankable feasibility studies tailored to various project needs.
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I am Travis Miller, Client Relations Manager.
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