Avoid Costly Mistakes: Feasibility Assessment Instructions Every Manager Needs

By: Meredith Malinawan, PMP; Editor: Geram Lompon; Reviewed by: Alvin Villanueva, PMP

Did you know nearly 70% of projects fail to hit their original objectives because of poor planning, unforeseen risks, or misalignment with business strategy? Imagine how many resources we waste, how much time we lose, and how many opportunities we miss when we fail to evaluate critical factors early on.

As a project manager, it is not enough to complete projects—one must deliver measurable value and long-term success. Leading a project entails embracing rigorous project validation, proactive risk mitigation, and resource optimization right from the start. The key to all of this is a thorough feasibility study.

A feasibility study evaluates technical capabilities, financial viability, legal compliance, operational readiness, and scheduling practicality. By setting up clear assessment criteria and aligning with stakeholder expectations, you reduce risks, secure buy-in, and drive project success while avoiding costly pitfalls.

This guide provides the essentials for confidently assessing your project’s feasibility. A clear, step-by-step framework will guide you through each stage, along with real-world case studies highlighting the tangible impact of successful feasibility analysis. Additionally, you will have access to practical resources like checklists and templates that help make the process seamless.

Let us dive in and transform uncertainty into logical, strategic action. Your journey toward more innovative, more successful project management starts here.

Feasibility Studies Explained: Why They Are Crucial for Project Managers

A feasibility study is a structured analysis that determines whether a proposed project is practical, viable, and sustainable. Examining key factors—technical capabilities, financial outlook, legal requirements, operational readiness, and scheduling constraints—helps project managers gain clear insights before committing significant resources.

This study is crucial for project managers. It provides an objective snapshot of a project’s potential, ensuring it aligns with organizational priorities and available resources. By identifying risks and constraints early, a feasibility study empowers teams to make informed Go/No-Go decisions, secure stakeholder support, and avoid costly setbacks.

The Tangible Benefits of Performing a Feasibility Study

A feasibility study is a key step in project management that helps you decide—before investing significant resources—whether a project is worthwhile. The following list explains the benefits of conducting a feasibility study on a project:

• Project Alignment: Confirms that the project fits your organization’s priorities and utilizes available resources effectively.
• Risk Prevention: Uncovers challenges and constraints early, allowing you to develop targeted risk mitigation strategies.
• Financial Justification: Provides a clear picture of cost-effectiveness and potential ROI, so you invest only in projects that deliver value.
• Stakeholder Confidence: Delivers data-driven insights that help secure buy-in from investors and decision-makers.
• Operational Readiness: Assesses whether your current infrastructure can support the project, ensuring smoother implementation.

Case in Point: A startup in the renewable energy sector conducted a feasibility study before launching a solar power project. The study confirmed strong market demand and showcased robust investor interest, ultimately helping them secure $10M in funding.

Feasibility studies pave the way for informed, strategic decisions—minimizing risks, optimizing resources, and setting the stage for long-term project success.

Timing Matters: When and Why You Should Conduct a Feasibility Study

The timing of your feasibility study can determine your project’s success. Conducting it too late risks wasting resources, while starting early helps prevent costly surprises. Ideally, before committing significant resources, feasibility studies begin in the pre-project or initiation phase. They’re also valuable when expanding existing initiatives, preparing major investments, or navigating high-risk situations such as new technologies or regulatory changes.

The following lists the key benefits of early feasibility studies:

• Early Risk Identification: Spot challenges and potential pitfalls before they escalate, giving you ample time to devise effective mitigation strategies.
• Resource Optimization: Ensure your project aligns with organizational capabilities, strategic goals, and available resources. If a project is not viable, you can pivot or cut losses without wasting time or budget.
• Data-Driven Decisions: Gain the confidence to make clear Go/No-Go decisions with objective insights that boost stakeholder alignment and funding support.
• Business Case Validation: Build a strong, data-backed justification that confirms the project’s financial soundness and strategic fit.
• Strategic Alignment: Ensure your project aligns with your organization’s goals and priorities.

Case Example: A global IT company skipped a feasibility study before launching a cloud-based service. Six months into development, they discovered critical security risks—a setback that forced a $5M redesign. An early feasibility study could have revealed these challenges, saving the project from costly errors.

By conducting a feasibility study early in the project lifecycle, you set a solid foundation for success, minimize risks, optimize resource use, and ensure that every step aligns with your strategic objectives.

The 5 Key Areas of Project Feasibility (TELOS Framework)

A well-rounded feasibility study breaks down a project’s viability into five essential dimensions: Technical, Economic, Legal, Operational, and Scheduling feasibility. This framework helps you decide if a project will succeed from every angle.

1. Technical Feasibility
   • Technology Readiness: Do you have the necessary hardware, software, and infrastructure?
   • System Compatibility: Will the new solution integrate smoothly with your current systems?
   • Scalability & Maintainability: Can the project grow with the business and adapt over time?
   • Expertise Availability: Is the required technical know-how in place?
   • Quick Tip: Consider using AI-powered simulators to test scalability before diving in.
2. Economic Feasibility
   • Cost-Benefit Analysis: Are projected costs justified by the expected benefits?
   • Investment Strategy: What funding sources are available to support the project?
   • ROI & Payback: How soon do you anticipate a return on investment?
   • Case Example: A construction firm uncovered unexpected geological challenges during its feasibility study, leading to a redesign that saved millions in potential reinforcement costs.
3. Legal Feasibility
   • Regulatory Compliance: Does the project meet all necessary legal and industry standards?
   • Permits & Licenses: Are all essential approvals and permissions secured?
   • Data Protection & Ethics: Do you have strong measures in place for privacy and ethical considerations?
4. Operational Feasibility
   • Workflow Integration: Can the project be seamlessly incorporated into existing operations?
   • Stakeholder Buy-In: Will employees, customers, and partners support the change?
   • Change Management: Are there effective strategies and training plans for a smooth transition?
5. Scheduling Feasibility
   • Timeline & Milestones: Is the project schedule realistic and well-planned?
   • Critical Path & Bottlenecks: Have you identified time-sensitive tasks and potential delay factors?

By evaluating these five key areas, you gain the clarity to make informed decisions and ensure that every aspect of your project aligns with your organization’s strategic goals. This comprehensive approach reduces risks, optimizes resource allocation, and sets the stage for lasting success.

Conducting a Thorough Feasibility Study in 10 Steps

A feasibility study involves careful research and analysis to decide whether a project is viable. It is a valuable tool that helps organizations assess potential risks and benefits before committing significant resources. With a structured approach and proven research methods, project managers can thoroughly evaluate a project’s chances of success.

Here are the steps to guide you in conducting a feasibility study:

1. Start Strong with a Preliminary Project Analysis – Identify the project’s purpose, objectives, and preliminary constraints to establish a foundation for comparative analysis.
2. Clearly Define Your Project Scope – Outline what the project will entail and what it aims to achieve, ensuring clarity in scope and deliverables.
3. Validate Your Market with Comprehensive Research – Gather data on market demand, competition, and potential customer base to validate market viability.
4. Conduct a Thorough Technical Evaluation – Evaluate the technical aspects needed to implement the project, ensuring compatibility with organizational capabilities.
5. Analyze Financial Feasibility for Sound Investments – Analyze costs, funding sources, and potential financial returns using structured financial assessment techniques.
6. Ensure Complete Legal and Regulatory Compliance – Satisfy all legal standards and obtain permits for compliance.
7. Confirm Operational Readiness – Determine if the existing operations can support the new project and integrate seamlessly.
8. Identify and Mitigate Project Risks – Identify potential risks and develop mitigation strategies through scenario planning.
9. Compile an Actionable Feasibility Report – Compile the findings and recommendations into a detailed report, ensuring clarity for decision-makers.
10. Make Your Final Go/No-Go Decision – Based on the study, decide whether to proceed with the project, modify its approach, or abandon it.

This guide outlines each step in detail in the following sections, offering a clear and practical roadmap for conducting a successful feasibility study.

Start Strong with a Preliminary Project Analysis

The preliminary analysis defines your project’s concept and gauges its initial viability. Start by clarifying its purpose, key objectives, and any early constraints that might influence success. Collect initial data, talk to stakeholders, and quickly review potential challenges and opportunities. This first step sets the groundwork for more detailed analysis later and ensures the project aligns with your organization’s strategic goals.

Clearly Define Your Project Scope

Defining the project scope means outlining its boundaries, deliverables, and objectives. This step sets the framework for all future analyses and keeps the study focused on what matters. A clear scope helps prevent scope creep and ensures the study addresses the key factors for the project’s success.

Validate Your Market with Comprehensive Research

A market survey or research helps you understand demand, identify your target market, and grasp the competitive landscape. It involves gathering data on customer needs, market trends, and competitors, which validates the project’s market feasibility and informs decisions on product design, pricing, and marketing strategy.

Conduct a Thorough Technical Evaluation

The technical analysis checks whether your current technology and resources can support the project. It looks at equipment, expertise, and overall technical needs to determine whether you can use your existing setup or need new solutions.

Analyze Financial Feasibility for Sound Investments

Financial assessment reviews the project’s costs, potential revenues, and overall economic impact. It involves creating detailed financial projections, evaluating funding options, and running cost-benefit, Net Present Value (NPV), and Internal Rate of Return (IRR) calculations. This step determines if the project’s financial benefits justify the investment and help secure the necessary funding.

Ensure Complete Legal and Regulatory Compliance

Starting a project requires following all relevant laws, regulations, and standards. It entails reviewing legal constraints, obtaining necessary permits, and confirming compliance with industry-specific requirements to prevent future legal issues.

Confirm Operational Readiness

Operational evaluation checks whether your current processes can support the new project. It looks at how the project will impact existing workflows, whether new procedures are needed, and whether your team and stakeholders are ready for the change.

Identify and Mitigate Project Risks

Risk assessment pinpoints potential issues and develops strategies to reduce them. It involves analyzing uncertainties, estimating the likelihood of failure in key areas, and preparing contingency plans. Mapping vulnerabilities helps target specific risk responses. Solid risk management is essential for the project’s success and long-term sustainability.

Compile an Actionable Feasibility Report

The feasibility study report gathers all the findings, analyses, and recommendations into one comprehensive document. It presents each aspect clearly to support well-informed decision-making.

Make Your Final Go/No-Go Decision

The final step is the Go/No-Go decision. Based on the analysis from the feasibility study, you will decide whether the project should proceed, require further adjustments, or be abandoned. This decision, made in consultation with key stakeholders, ensures that the chosen path will align with your organization’s overall goals.

Structuring a Clear and Compelling Feasibility Report

A well-structured feasibility report compiles the study’s findings, analysis, and recommendations to guide stakeholders in making informed Go/No-Go decisions. A clear organization ensures the efficient presentation of critical aspects, often enhanced with data visualizations. Here is the typical structure:

1. Executive Summary: A concise overview of key findings, conclusions, and recommendations tailored for decision-makers
2. Introduction: Background, objectives, scope, and methodology of the study
3. Project Description: Detailed explanation of the project’s goals, components, and expected outcomes
4. Market Analysis: Insights into market demand, industry trends, target audience, and competitive landscape
5. Technical Feasibility: Assessment of technical requirements, infrastructure, and scalability
6. Financial Analysis: Cost estimates, funding sources, ROI projections, and economic appraisal methods like CBA, NPV, and IRR
7. Legal and Regulatory Considerations: Compliance with laws, permits, and ethical standards
8. Operational Feasibility: Evaluation of alignment with current operations, workforce readiness, and integration processes
9. Scheduling Feasibility: Timeline analysis, milestones, and identification of bottlenecks
10. Risk Assessment: Identification of risks and proposed mitigation strategies
11. Conclusion and Recommendations: Summary of findings and the feasibility decision, with actionable next steps
12. Appendices: Supporting data, charts, and reference materials

To help readers prepare consistent and professional feasibility reports, you can use our downloadable Feasibility Assessment Checklist and Report Template that covers critical evaluation areas. These resources streamline documentation and enhance the clarity of your analysis.

Avoiding Common Pitfalls in Feasibility Studies

A well-executed feasibility study can set your project on the right path, but it is easy to stumble into common traps. Here are five key pitfalls—and how to steer clear of them:

• Starting Too Late: Begin your study in the early pre-project phase.Why It Matters: Delaying the study can waste resources on an unviable project before uncovering critical issues.
• Ignoring Risk Factors: Conduct thorough, multidisciplinary risk assessments.Why It Matters: Overlooking potential risks can lead to unexpected challenges that derail the project.
• Underestimating Costs: Use conservative financial projections and validate them with sensitivity analyses.Why It Matters: Overly optimistic estimates can result in budget overruns and damaged stakeholder trust.
• Incomplete Market Research: Invest time in comprehensive, evidence-based market studies.Why It Matters: Skipping detailed research can misread market demand, resulting in misguided strategic decisions.
• Failure to Act on Findings: Incorporate the study recommendations into your planning and make adjustments along the way.Why It Matters: Ignoring the insights from your feasibility study wastes the effort and increases risk exposure.

Avoiding these pitfalls ensures your feasibility study leads to informed decision-making, better resource allocation, and a higher likelihood of project success.

Empower Your Project Decisions Through Strategic Feasibility Assessments

Feasibility studies are strategic allies in project management. They evaluate technical, economic, legal, operational, and scheduling factors from day one. They catch issues before resources are committed and replace guesswork with solid, data-driven insights behind every decision. These studies use proven frameworks and modern tools to reduce risk, boost ROI, and set your project up for long-term success.

Ready to transform your project outcomes? Start your feasibility study process today and download our checklist and template to guide your journey toward proactive planning, risk management, and sustainable growth. Empower your decisions, optimize your resources, and set the stage for success.

References

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Brown, L. (2025). Understanding What is Feasibility Study in Project Management. Invensis Global Learning Services. https://www.invensislearning.com/blog/what-is-feasibility-study/

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