22 April 2025
What is Feasibility? How is a Feasibility Study Conducted?
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The success of a project often does not lie in the moment it begins, but rather in the right steps taken before initiating it. Among these steps, the most critical one is undoubtedly the feasibility study. Today, for every organization aiming for sustainable growth, feasibility is not merely preliminary research but also a strategic guide designed to minimize risks.
What Is Feasibility?
The word "feasibility" originates from the Latin term feasibilis, meaning "doable" or "achievable." In the business world, this term refers to the process of evaluating whether an idea, initiative, or investment is realistic, applicable, and sustainable. However, it is not simply about answering the question "Can it be done?"
In reality, the question "What is feasibility?" finds its meaning under the following subheadings:
- Is this project technically possible?
- Is this initiative financially sound?
- Are market conditions ripe for this idea?
- Does this project pose legal risks in light of current regulations?
- Is the project realistic in terms of human resources, time, and other resources?
Comprehensive and analytical answers to these questions form the cornerstone of the investment or project.
What Is a Feasibility Study?
A feasibility study is a multidimensional and interdisciplinary analysis process conducted before outlining the roadmap of a project. This study does not merely generate figures and reports; it also establishes a corporate vision, strengthens risk forecasting, and guides the organization toward making informed decisions.
In this context, a feasibility study systematically examines:
- The strategic alignment of the investment,
- Whether the project will generate economic value,
- The required infrastructure and technology investments,
- Workforce planning,
- And most importantly, ways to minimize the likelihood of failure.
How is a Feasibility Study Conducted?
A feasibility study conducted under the guidance of experienced professionals includes specific methodological steps. These steps must be supported by both qualitative and quantitative data. Here are the steps of an ideal feasibility process:
| Step | Description | Key Points |
|---|---|---|
| 1. Project Definition | The project’s objectives, scope, and outputs are clarified. | If the goal is unclear, the study is in vain. |
| 2. Preliminary Research (Pre-Feasibility) | A quick and low-cost initial screening is conducted. | First filtering stage—saves time. |
| 3. Data Collection | Market, technical, and financial data are systematically collected. | Source reliability is critical. |
| 4. Development of Alternatives | Multiple scenarios are created. | Don’t get stuck on a single “best” option. |
| 5. Technical Feasibility Analysis | Adequacy of hardware, software, infrastructure, and human resources is tested. | Include emerging technologies (AI, IoT). |
| 6. Financial Analysis | Investment amount, NPV, IRR, and payback period are calculated. | Conduct sensitivity analysis. |
| 7. Risk Analysis and Management | Risks are assessed using methods such as PESTLE, SWOT, or Monte Carlo. | Add a control plan. |
| 8. Feasibility Report Writing | Findings are compiled with charts and recommendations. | Use transparent and evidence-based language. |
| 9. Decision and Presentation | The report is presented to management and investors; the final decision is made. | Visually supported, brief, and clear presentation. |
What Is a Feasibility Report?
A feasibility report is the final output intended for decision-makers, compiling all analyses conducted into a single document. A well-prepared report:
- Structurally includes the sections: introduction, methodology, findings, conclusion, and recommendations.
- Uses data visualization (charts, tables, infographics) to make complex details readable.
- Provides bold yet realistic advice: “Proceed with the investment” or “Restructure the project.”
The most critical point to consider is the objectivity of the report. If the report only highlights positive aspects, it misleads the investor; if it focuses solely on negatives, it may overlook opportunities.
Key sections that must be included in an effective feasibility report:
- Executive Summary
- Project Description and Objectives
- Market and Demand Analysis
- Technical and Operational Analysis
- Financial Projections
- Legal and Regulatory Assessment
- Risk Analysis and Alternative Scenarios
- Conclusion and Recommendations
This report typically serves as a primary reference in the decision-making processes of investors, boards of directors, and funding institutions involved in publicly supported projects.
What Are the Types of Feasibility?
A feasibility study cannot be approached from a single dimension, as projects are inherently multilayered. Therefore, feasibility analyses incorporate perspectives from various disciplines. In any project planned at the corporate level, the types of feasibility detailed below must be evaluated collectively.
- Technical Feasibility examines whether the project can be implemented using existing or obtainable technologies. This analysis evaluates infrastructure, production capability, software and hardware requirements, engineering solutions, and technical expertise. For instance, if the establishment of a production facility is planned, key questions of technical feasibility include whether the machinery is sufficient, whether the production capacity meets the needs, and whether the technology is up to date. Additionally, the level of digitization in the production process or automation possibilities are also covered under this evaluation.
- Economic and Financial Feasibility focuses on evaluating the economic benefits of investment in the short and long term. This analysis calculates key financial indicators such as cost elements, capital requirements, profitability ratio, payback period, net present value (NPV), and internal rate of return (IRR). Financial feasibility not only aims to determine profitability but also to assess the sustainability of financing the investment. An entrepreneur or company executive can clearly determine whether the investment is truly an economic opportunity through this analysis.
- Legal Feasibility assesses whether the project complies with the laws, regulations, and legislation of the country or region in which it will be implemented. This includes sector-specific regulations, licensing and permit requirements, occupational health and safety obligations, environmental responsibilities, and especially, legal frameworks such as KVKK and GDPR for personal data protection in data processing projects. Such analyses help prevent potential legal risks in the future and allow legal compliance strategies to be established in advance.
- Operational Feasibility tests whether the project can be integrated into organizational structures, processes, and human resources. This analysis takes into account factors such as workforce adequacy, training needs, governance models, process efficiency, and optimization of workflows. For example, in internal digital transformation projects, aspects like employee adaptation, alignment with corporate culture, and change management are key determinants of operational feasibility.
- Time Feasibility, also known as Scheduling Feasibility, focuses on whether the project can be completed within the designated timeframe. The project timeline, critical path analysis of activities, time management strategies, and potential delay risks due to external factors are analyzed within this scope. Time feasibility is of vital importance, especially for publicly committed projects, in terms of delivery deadlines. The cost of delays may be high not only financially but also in terms of reputation.
All these types form the building blocks of a feasibility study. Depending on the scope and nature of the project, certain types of analyses may become more prominent. However, it must be remembered that these evaluations are not independent of one another; they are interrelated layers that complement each other and form a whole.
Why is a Feasibility Study Important?
In today’s rapidly changing business world, it is not merely “good ideas” that lead to success, but well-prepared projects. At this point, feasibility is not just an analysis—it is a safeguard for success.
The Strategic Importance of Feasibility:
- Guiding resources without waste
- Identifying and managing risks in advance
- Enhancing corporate reputation and credibility
- Building trust for investors, banks, and public funding
- Laying the groundwork for long-term growth plans
Conclusion: Projects Succeed Before They Begin
True success begins with being sure that a project is "feasible" through detailed analysis before it even starts. A feasibility study is not only about planning for today, but also for the future. In this way, businesses are built on stronger foundations, capital is used efficiently, and risks are managed in a controlled manner.
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