A feasibility study is an analysis of a possible business venture. The study focuses on helping answer the question of “should we continue with the suggested idea?”
Feasibility studies are used in many ways but mainly focus on proposed business endeavors. CEO’s/ Administrators and CFO’s with a business idea should conduct a feasibility study to determine the viability of the proposed idea before proceeding with the development. Determining this early on in the process will save time, money and headaches later.
The study is usually performed by an accounting firm or outside consultant. A few accountants that have helped our clients are Wipfli, McGladry& Pullen, EideBailey. Typically an architect is engaged prior to or during this phase to provide preliminary drawings and cost estimates to see if the project is realistic for the budget. Once you determine what you can afford and if you can build the facility your organization desires, the next phase involves finding and reviewing financing options. Most organizations are not able to finance projects through cash reserves and community fundraising support alone.