Question

To what extent should the results of a company’s feasibility analysis be reported in its business plan?

Answer 1

There are two types of Feasibility study: Technical and Organizational. Technical feasibility study is such a study regarding a Project that covers all the processes, be it input, output, on-site programs and procedures, in a comprehensive way. The basic aim of this study is to ensure that various trouble-shooting aspects of a Project is taken care of so that a long-term survival of the Project is assured as well as primarily back the Financial plan of the Organization, thereby highly recommended tool before the commencement of any Project. Under Technical feasibility studies, once the issues are identified, efforts are taken to sort out the same by providing solutions to overcome such problems. Various important part of the Project is identified that may possibly have a significant influence upon the Project in terms of consistency of the Project performance.

On the other side, an Organizational feasibility is such a feasibility study that is undertaken to interpret whether the Organization has sufficient managerial skills all overall competency along with resources to set up a Business enterprise. Under this team, the management team that shall initially take up the business is evaluated first, followed by the resource sufficiency. Once both these aspects are taken care of, the Business Organization, be it a sole proprietorship or Joint-stock, could be actually taken care of.

Therefore, these analyses should be incorporated in the business plan to extent that it should support the Business goals and objectives as well as the Organizational strategies. Something that has not been added into the business plan, is what the Feasibility analysis helps the Business organization to determine and hence such distinct results should be incorporated into the business plan.