A feasibility study tells you, and investors, whether the project can work commercially, technically, financially and legally before you commit major capital. A software startup does a lighter version; a plant, clinic or manufacturing line does a full one.
Recommended structure
- Executive summary: recommendation, key numbers, key risks.
- Project definition: objectives, scope, location, capacity, customers and offer.
- Market feasibility: demand evidence, pricing, competition (see market research).
- Technical / operational feasibility: how it is built and delivered, technology maturity, suppliers, staffing, facilities, test results.
- Financial feasibility: startup cost, operating cost, revenue, cash flow, break-even, payback, NPV and IRR where relevant, sensitivities.
- Legal, regulatory and IP: licences, approvals, data privacy, product safety, patents, contracts.
- Environmental and social review: impacts and benefits, community, and ESG expectations of funders.
- Risk register: likelihood, impact, mitigation and owner for each risk.
- Implementation plan: milestones, budget, team, stage gates.
- Conclusion: go, no-go, or go with conditions.
Estimate accuracy by stage
| Stage | Typical accuracy | Use |
|---|---|---|
| Concept / screening | Roughly ±30–50% | Decide whether to test further |
| Pre-feasibility | Roughly ±20–30% | Grant applications, angel round |
| Feasibility / detailed design | Roughly ±10–20% | Bank loans, project finance, major investment |
Financial tests lenders and investors apply
- Break-even volume and break-even price.
- Debt service coverage ratio (lenders often look for 1.25–1.3× or more).
- Months of runway and capital required to reach the next milestone.
- A downside case with lower sales, higher cost and delay.
Sector spotlight: cleantech and waste. Add mass and energy balances, scale-up risk (bench to pilot to commercial), feedstock and offtake contracts, permits and a life-cycle emissions comparison. A qualified independent engineer’s review adds credibility.