A feasibility study evaluates whether a proposed idea, project, investment, product, service, expansion, or operational initiative is sufficiently practical and viable to justify further development.
A feasibility study is not simply a persuasive business document. Its purpose is to examine the proposal critically, identify constraints, estimate requirements, test assumptions, and provide decision-makers with enough evidence to determine what should happen next.
Use this template as a structured starting point. Not every project requires every section, and some studies may require additional technical, environmental, legal, financial, market, or operational analysis.
The depth of analysis should reflect the size, complexity, uncertainty, and potential consequences of the proposed initiative.
Study Title:
[Insert title]
Project or Initiative:
[Insert project name]
Organisation:
[Insert organisation]
Study Prepared By:
[Insert name or team]
Study Sponsor:
[Insert sponsor]
Study Date:
[Insert date]
Version:
[Insert version]
Status:
[Draft / Under Review / Final]
Provide a concise summary of the proposed initiative and the principal findings of the study.
The executive summary should normally address:
Write the executive summary after completing the main analysis so that it reflects the actual findings.
Executive Summary:
[Insert summary]
Explain the circumstances that led to the proposed initiative.
Consider:
Background:
[Insert background]
Define the problem or opportunity clearly.
A problem statement should explain the current situation and why action may be required.
An opportunity statement should explain the potential value that may be created.
Problem or Opportunity:
[Insert statement]
Evidence:
[Summarise supporting evidence]
Describe what is being considered.
Include:
Proposed Initiative:
[Describe proposal]
Define what the feasibility study and proposed project are intended to achieve.
[Insert objective]
Objectives should be specific enough to support later evaluation.
Define what the study examines.
Potential areas include:
Included in Study:
[Insert scope]
Excluded from Study:
[Insert exclusions]
Explain how the feasibility assessment was performed.
Possible methods include:
Methodology:
[Describe approach]
Record the principal information used in the assessment.
| Source | Type | Date | Relevance | Reliability Considerations |
|---|---|---|---|---|
| [Source] | [Primary/Secondary] | [Date] | [Relevance] | [Assessment] |
| [Source] | [Primary/Secondary] | [Date] | [Relevance] | [Assessment] |
Distinguish between verified information, assumptions, estimates, and interpretations.
Identify assumptions that materially influence the analysis.
Examples may include:
| Assumption | Basis | Impact if Incorrect | Confidence |
|---|---|---|---|
| [Assumption] | [Basis] | [Impact] | [High/Medium/Low] |
| [Assumption] | [Basis] | [Impact] | [High/Medium/Low] |
Assess whether sufficient market opportunity may exist.
Consider:
Market Assessment:
[Insert analysis]
Define the intended market.
Primary Customer Group:
[Insert customer group]
Secondary Customer Group:
[Insert customer group]
Geographic Market:
[Insert market]
Customer Characteristics:
[Describe relevant characteristics]
Customer Need:
[Describe need]
Assess evidence that customers may actually want or need the proposed product or service.
Potential evidence includes:
Demand Evidence:
[Insert analysis]
Demand Confidence:
[High / Medium / Low]
Estimate the relevant market.
Where appropriate, distinguish:
Total Addressable Market:
[Insert estimate]
Serviceable Available Market:
[Insert estimate]
Serviceable Obtainable Market:
[Insert estimate]
Explain the assumptions behind each estimate.
Assess whether the target market is expanding, stable, or contracting.
Consider:
Market Growth Assessment:
[Insert analysis]
Divide the market into meaningful groups.
Possible segmentation variables include:
| Segment | Characteristics | Need | Potential Value | Priority |
|---|---|---|---|---|
| [Segment] | [Characteristics] | [Need] | [Value] | [Priority] |
| [Segment] | [Characteristics] | [Need] | [Value] | [Priority] |
Identify existing and potential competitors.
| Competitor | Offering | Target Market | Strengths | Weaknesses | Relevant Implication |
|---|---|---|---|---|---|
| [Competitor] | [Offering] | [Market] | [Strengths] | [Weaknesses] | [Implication] |
| [Competitor] | [Offering] | [Market] | [Strengths] | [Weaknesses] | [Implication] |
Do not limit competitive analysis to organisations offering identical products. Alternative solutions may also compete for the customer’s resources.
Assess how the proposed initiative could compete.
Consider:
Competitive Position:
[Insert analysis]
Explain why a customer would choose the proposed offering.
Customer Problem:
[Insert problem]
Proposed Solution:
[Insert solution]
Primary Benefit:
[Insert benefit]
Differentiator:
[Insert differentiator]
Evidence:
[Insert supporting evidence]
Evaluate potential pricing.
Consider:
Proposed Price:
[Insert price]
Pricing Basis:
[Explain basis]
Alternative Pricing:
[Insert alternatives]
Determine whether the required technical solution can realistically be developed, acquired, implemented, or operated.
Consider:
Technical Assessment:
[Insert analysis]
List important technical requirements.
| Requirement | Description | Available? | Gap | Proposed Solution |
|---|---|---|---|---|
| [Requirement] | [Description] | [Yes/No] | [Gap] | [Solution] |
| [Requirement] | [Description] | [Yes/No] | [Gap] | [Solution] |
Where multiple technical approaches exist, compare them.
| Option | Advantages | Limitations | Cost Considerations | Risk | Suitability |
|---|---|---|---|---|---|
| [Option] | [Advantages] | [Limitations] | [Cost] | [Risk] | [Assessment] |
| [Option] | [Advantages] | [Limitations] | [Cost] | [Risk] | [Assessment] |
Assess whether the organisation can practically operate the proposed initiative.
Consider:
Operational Assessment:
[Insert analysis]
Describe how the proposed initiative would function after implementation.
Key Activities:
Responsible Functions:
[Insert functions]
Required Resources:
[Insert resources]
Delivery Model:
[Insert model]
Identify resources required to implement and operate the initiative.
[Insert requirements]
[Insert requirements]
[Insert requirements]
[Insert requirements]
[Insert requirements]
[Insert requirements]
Assess whether the organisation currently possesses the required capabilities.
Consider:
Current Capability:
[Insert assessment]
Capability Gaps:
[Insert gaps]
Identify required personnel.
| Role | Number | Required Skills | Timing | Estimated Cost |
|---|---|---|---|---|
| [Role] | [Number] | [Skills] | [Timing] | [Cost] |
| [Role] | [Number] | [Skills] | [Timing] | [Cost] |
Assess whether necessary goods and services can be obtained.
Consider:
Procurement Assessment:
[Insert analysis]
Identify legal and regulatory considerations.
Potential areas include:
Legal and Regulatory Assessment:
[Insert analysis]
Where specialist legal advice is required, identify the issue for appropriate professional review rather than treating this template as legal advice.
Where applicable, assess environmental effects.
Consider:
Environmental Assessment:
[Insert analysis]
Assess relevant social effects.
Potential areas include:
Social Assessment:
[Insert analysis]
Evaluate the financial implications of the proposal.
Consider:
Financial Assessment:
[Insert analysis]
Identify the resources required before the initiative can begin operating.
| Investment Item | Estimated Cost | Timing | Basis |
|---|---|---|---|
| [Item] | [Amount] | [Timing] | [Basis] |
| [Item] | [Amount] | [Timing] | [Basis] |
Total Initial Investment:
[Insert amount]
Estimate recurring costs.
Potential categories include:
| Cost Category | Monthly Estimate | Annual Estimate | Basis |
|---|---|---|---|
| [Category] | [Amount] | [Amount] | [Basis] |
| [Category] | [Amount] | [Amount] | [Basis] |
Describe how the initiative is expected to generate revenue.
Revenue Source 1:
[Description]
Pricing:
[Price]
Expected Volume:
[Volume]
Expected Revenue:
[Amount]
Repeat for each significant revenue source.
Prepare an appropriate forecast period.
| Period | Revenue | Operating Costs | Capital Expenditure | Net Cash Flow |
|---|---|---|---|---|
| Year 1 | [Amount] | [Amount] | [Amount] | [Amount] |
| Year 2 | [Amount] | [Amount] | [Amount] | [Amount] |
| Year 3 | [Amount] | [Amount] | [Amount] | [Amount] |
State the assumptions underlying the forecast.
Determine the approximate level of activity required to cover relevant costs.
Fixed Costs:
[Amount]
Variable Cost Per Unit:
[Amount]
Selling Price Per Unit:
[Amount]
Estimated Break-Even Volume:
[Volume]
Explain the calculation and assumptions.
Where appropriate, assess the expected return relative to the resources invested.
Initial Investment:
[Amount]
Expected Return:
[Amount]
Expected Period:
[Period]
Estimated ROI:
[Percentage]
The methodology used should be clearly stated.
Estimate how long it may take to recover the initial investment.
Initial Investment:
[Amount]
Expected Annual Cash Flow:
[Amount]
Estimated Payback Period:
[Period]
If cash flows vary significantly, use a period-by-period calculation rather than a simple average.
Identify financing requirements.
Total Funding Required:
[Amount]
Internal Funding:
[Amount]
External Funding:
[Amount]
Other Sources:
[Amount]
Funding Gap:
[Amount]
Test how the results change when key assumptions change.
Potential variables include:
| Scenario | Key Assumption | Financial Result | Interpretation |
|---|---|---|---|
| Base | [Assumption] | [Result] | [Interpretation] |
| Downside | [Assumption] | [Result] | [Interpretation] |
| Upside | [Assumption] | [Result] | [Interpretation] |
Develop realistic alternative scenarios.
[Describe]
[Describe]
[Describe]
The purpose is to understand how robust the proposal is under different conditions.
Identify risks that could affect feasibility.
| Risk | Probability | Impact | Overall Rating | Mitigation |
|---|---|---|---|---|
| [Risk] | [Low/Medium/High] | [Low/Medium/High] | [Rating] | [Mitigation] |
| [Risk] | [Low/Medium/High] | [Low/Medium/High] | [Rating] | [Mitigation] |
Identify risks that could fundamentally change the conclusion.
Potential examples include:
Critical Risks:
[Insert analysis]
For each major risk, identify a practical response.
Possible responses include:
Risk Response Plan:
[Insert plan]
A feasibility study should consider whether the proposed approach is the best available option.
Potential alternatives include:
Compare the principal alternatives.
| Option | Benefits | Limitations | Cost | Risk | Strategic Fit | Overall Assessment |
|---|---|---|---|---|---|---|
| [Option] | [Benefits] | [Limitations] | [Cost] | [Risk] | [Fit] | [Assessment] |
| [Option] | [Benefits] | [Limitations] | [Cost] | [Risk] | [Fit] | [Assessment] |
Where uncertainty is significant, consider a limited pilot before full implementation.
Pilot Objective:
[Insert objective]
Pilot Scope:
[Insert scope]
Duration:
[Insert duration]
Resources Required:
[Insert resources]
Success Criteria:
[Insert criteria]
Decision After Pilot:
[Define decision rule]
If the initiative is considered feasible, identify what must happen next.
Potential activities include:
Implementation Requirements:
[Insert requirements]
| Phase | Activities | Duration | Responsible Party | Key Output |
|---|---|---|---|---|
| Phase 1 | [Activities] | [Duration] | [Owner] | [Output] |
| Phase 2 | [Activities] | [Duration] | [Owner] | [Output] |
| Phase 3 | [Activities] | [Duration] | [Owner] | [Output] |
Identify conditions that must be achieved for the initiative to succeed.
Examples may include:
Critical Success Factors:
[Insert factors]
Identify measures that could be used after implementation.
Possible indicators include:
| KPI | Definition | Target | Measurement Frequency | Owner |
|---|---|---|---|---|
| [KPI] | [Definition] | [Target] | [Frequency] | [Owner] |
| [KPI] | [Definition] | [Target] | [Frequency] | [Owner] |
State important limitations.
Potential limitations include:
Study Limitations:
[Insert limitations]
Assess the reliability of the evidence used.
Classify important information where appropriate as:
Avoid presenting assumptions as established facts.
Summarise the assessment across the major dimensions.
| Dimension | Assessment | Confidence | Principal Issue |
|---|---|---|---|
| Market | [Assessment] | [Confidence] | [Issue] |
| Technical | [Assessment] | [Confidence] | [Issue] |
| Operational | [Assessment] | [Confidence] | [Issue] |
| Financial | [Assessment] | [Confidence] | [Issue] |
| Legal/Regulatory | [Assessment] | [Confidence] | [Issue] |
| Organisational | [Assessment] | [Confidence] | [Issue] |
Provide an evidence-based conclusion.
Possible conclusions include:
Feasible
The available evidence supports proceeding to the next stage.
Conditionally Feasible
The proposal appears viable if specified conditions are addressed.
Requires Further Investigation
Important uncertainties remain and additional evidence is required.
Not Currently Feasible
The proposal does not currently satisfy one or more critical feasibility requirements.
Conclusion:
[Insert conclusion]
If the proposal is conditionally feasible, identify the conditions.
Examples:
Conditions:
[Insert conditions]
Provide a clear recommendation based on the analysis.
Possible recommendations include:
Recommendation:
[Insert recommendation]
Reasoning:
[Explain the evidence supporting the recommendation]
State what decision-makers are being asked to approve.
Decision Required:
[Insert decision]
Decision Maker:
[Insert role]
Decision Deadline:
[Insert date]
Required Resources:
[Insert resources]
Complete after the feasibility study has been reviewed.
Decision:
[Approved / Conditionally Approved / Further Analysis / Deferred / Rejected]
Decision Date:
[Insert date]
Decision Maker:
[Insert name or role]
Conditions:
[Insert conditions]
Next Action:
[Insert action]
Before finalising the study, verify:
Avoid:
For a new business, emphasise:
For a new product, emphasise:
For a new service, consider:
For a technology initiative, examine:
For geographic or operational expansion, evaluate:
For investment-oriented projects, consider:
Investment decisions may require specialist financial, legal, tax, or technical advice.
For additional resources, explore:
This feasibility study template is a general planning and analysis framework. It should be adapted to the type, size, complexity, jurisdiction, industry, and risk profile of the proposed initiative.
Financial figures should be based on appropriate assumptions and supporting evidence. Technical, regulatory, environmental, legal, tax, investment, or specialist conclusions may require review by qualified professionals.
A useful feasibility study should not attempt to guarantee that a project will succeed. Its purpose is to improve decision quality by identifying evidence, uncertainties, requirements, alternatives, risks, and conditions that should be considered before resources are committed.
The strongest feasibility studies are balanced, evidence-based, transparent about uncertainty, and clear about what decision the analysis supports.