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Career developmentHow To Write Feasibility Studies (With Tips and Examples)

How To Write Feasibility Studies (With Tips and Examples)

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Updated February 19, 2025

Whether you're starting your own company or implementing a new business project, there are a few
strategies you can use to ensure success. One of the most effective strategies is to conduct a feasibility
study. By reviewing the necessary components and preparation required to write a feasibility study, you
can create one that effectively contributes to your success.

In this article, we discuss feasibility studies, why they're important and the key components to include in
a feasibility study, and we provide you with the steps you need to create your own.

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What is a feasibility study?

A feasibility study is a report that aims to determine the practicality, strengths and weaknesses of a
proposed project, existing system or corporation as a whole. Further, feasibility studies also help
professionals do the following:

Plan a course of events to complete the project

Identify the challenges that could arise

List potential solutions that would come about as a result of the project

Two distinct components summarize all of these factors: Desired values to achieve and the cost required
to carry out the venture.
Related: Product Cost: A Definitive Guide (With Examples)

Why is a feasibility study important?

Feasibility studies are important because they encourage professionals to consider all of the factors that
go into a project or business start-up. These include areas such as background, project summary,
description of operations, market research and legal and financial documents.

Furthermore, a well-written feasibility study can help project leaders gain the approval they need to
complete the project. By analyzing each of these areas and preparing a plan of action, professionals can
have the best chance of creating a successful project that benefits the corporation or broader society.

Related: 5 Phases of the Project Management Life Cycle

Key components of a feasibility study

A feasibility study gathers essential company information and encourages investors, company officials or
other company employees to support a project. Here are some key components of a feasibility study to
consider including in your own:

Title page

Table of contents

Executive summary

Market feasibility

Technical feasibility

Financial feasibility

Organizational feasibility

Conclusion

Appendix and reference pages

Title page

The title page is the first part of the feasibility study that your reader sees. You should use a clear title
that provides some insights into your project. A good example is "Feasibility Study for Cultivating Unified
Goals Across Departments."

Your title page should also include the names of the project leader and project members along with
their job titles. You might consider including the date the project is set to start and the estimated date
for completion to provide more context about your time frame to the reader.
Table of contents

The table of contents aims to provide the reader with easy access to any section within the report.
Complete your table of contents after you finish the report to make sure the page numbers coincide
with the section titles. Usually, your word processor has a table of contents feature that makes creating
this component quick and efficient.

Executive summary

The executive summary should be the first major component of your feasibility study. In this section,
you should include an introduction to the project, its purpose, desired solutions and an overview of the
sources you used to support the legitimacy of the report.

Market feasibility

The market feasibility portion of your report provides the reader with insightful information about
company statistics, market research and the future outlook for the company. Start by summarizing your
company's industry. Discuss its history, current practices and trends along with future projections for
the industry as a whole.

Then you can start narrowing your focus to discuss how your company fits within this industry. List your
top competitors, your primary sources of revenue, sales figures and potential niche areas you could
pursue to expand your customer base.

The market feasibility section helps your reader gain more of an understanding of your company, what it
has to offer and how your feasibility project could benefit its growth.

Technical feasibility

The technical feasibility section outlines several operational factors that influence the success of your
business. Discuss your company's location, materials needed to create the products or services you
offer, the manufacturing process, quality assurance facilities and necessary transportation to ship your
products to retail locations.

The technical feasibility section provides your reader with a detailed understanding of which factors
maintain your business so you can continue delivering top-tier products and services to your customer
base. Additionally, this section helps support the credibility of your financial feasibility section.

Financial feasibility

The financial feasibility section outlines all aspects of your company's finances to the reader. In this
section, you should include information about your investors, current revenue, assets and liabilities as
well as total annual revenue from the previous year. You should also include a cost-benefit evaluation
that helps support your business needs.
The financial feasibility section aims to convince the reader to either invest their support, funds or both
into the proposed project by showing them the costs needed to maintain business operations.

Organizational feasibility

The organizational feasibility section demonstrates your company's legal and ethical practices to the
reader. This section should include an outline of the general structure of your company, such as branch
locations or departments.

You might want to include a small bio for each of your founders or board members. You can also benefit
from highlighting the HR procedures that your company uses to maintain ethical and legal responsibility
toward employees, as well as motivational methods you use to instill productivity in the workplace.

The organizational feasibility section helps the reader determine whether your company's current
practices complement or support the proposed project.

Conclusion

The conclusion is the last written section of your report before your appendix and reference pages. This
section summarizes each of the previous sections. You should end the conclusion by highlighting one or
more recommendations to motivate further action on the topic. You can make a separate section for
these recommendations if they require more than a few sentences of explanation.

Appendix and reference pages

An appendix is an optional section, but it's usually beneficial for the reader of the report. This section
includes any information that the reader might find useful but which is not directly relevant to the other
topics discussed in your report. Regardless of whether or not you choose to include an appendix section,
you should include references.

A reference section can have one or more pages depending on the number of sources you used to
create your report. You can use company documents, scholarly articles related to your industry, or any
additional documents you wrote during the project's completion. Be sure to use citations that adhere to
the style guide you are using.

Related: How To Measure Productivity and Increase Efficiency in the Workplace

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How to write a feasibility study

Here is a step-by-step guide to help you write your own feasibility study:

Describe the project.

List the criteria for evaluating these solutions.

State which solution is most feasible for the project.

Make a conclusion statement.

1. Describe the project

The first part of a feasibility study includes a description of the project you want to complete. You
should highlight its purpose and main components that influence its success. For example, "This project
aims to use department education and best HR practices to ensure the successful integration of new
employees with the upcoming merger."

2. Outline the potential solutions resulting from the project

Secondly, talk with your team to create some possible solutions that could result from the project. This
can help you later on in the process when you try to determine which solution provides the most
benefits.

For example:

"Enhanced company productivity"

"Positive workplace culture"

"Satisfaction of new and existing employees alike"

"Improved HR strategies and overall department"

3. List the criteria for evaluating these solutions

Thirdly, write out a list of rules for you and your team to accurately assess these solutions. Consider
criteria such as the potential for revenue, increased productivity, better communication across
departments, expansion of a product line or customer satisfaction.

For example:

"Number of new employees joining the branch during the merger"

"Current state of the HR department and practices used"

"Current workplace culture and employee optimism"

"Projected revenue gained as a result of the merger"

4. State which solution is most feasible for the project

For example, "Based on the potential solutions offered by this merger project, we have decided that the
most feasible solution for both the project and the future of our company is improved HR strategies and
overall department. This is because the basis of our success now and in the future relies on the talented
onboarding efforts of our HR team."

5. Make a conclusion statement

Lastly, the concluding statement helps you summarize your main points. You should start by reiterating
the statement made in your project description that defines it and your reasoning for starting the
project. Then, restate which solution you primarily want to achieve through the project's completion
and explain why you want this solution to hold more significance than the other solutions.

For example, "The goal of this project is to give our HR department the resources they need to
coordinate a successful merger. We have chosen improved HR strategies and overall department as the
most feasible solution because our HR department serves as a fundamental structure to other solutions,
such as increased productivity, positive workplace culture and job satisfaction among our employees."