What is the purpose of conducting a feasibility study?

The purpose of conducting a feasibility study is primarily to assess the viability of a proposed business project. This involves evaluating various aspects such as technical feasibility, operational feasibility, financial viability, and legal considerations to understand whether the project can be successfully implemented and sustained. By systematically analyzing these elements, stakeholders can make informed decisions about whether to proceed with the project, modify it, or abandon it altogether.

While assessing financial risk, understanding market demand, and evaluating competition are important components of the feasibility study, they serve as part of the broader goal of determining the project's overall viability. A thorough feasibility study provides a comprehensive view, thus allowing the decision-makers to gauge the potential success and resource requirements of the proposed project in context.