‘Feasibility’ vs ‘Viability’

If you are starting a business, planning an investment, or embarking on a project, it is necessary that you determine whether it is viable or even just feasible for that matter. Knowing the feasibility and viability of an endeavor or business venture will help evaluate its sustainability and the success of the project or business.

What is ‘feasibility,’ and what does it entail to get a feasibility study of a project? Likewise, what is ‘viability,’ and how can one determine if a project is viable or not? Let us define what these words mean and how they can be done.

‘Feasibility’ is a study that aims at uncovering the strengths and weaknesses of an existing business or a proposed business venture. It takes into consideration the opportunities offered by the environment, its resources, and the subsequent success of the venture. It should include the description of the product or service, its historical background, operational details, financial data and accounting statements, legal and tax requirements, and its policies on management and marketing research.

‘Viability,’ on the other hand, is the study or an investigation of the existing business or proposed venture’s sustainability. It determines whether the proposal should be approved or not. It involves dealing with strategies on how to make the business grow and last. Business growth is an important aspect of viability. How long a business will last is determined by its viability, and it can be seen in the profits that the business has made for a certain period. Good profit means a better chance at success for the business.

There are several types of feasibility:

� Economic feasibility, which uses economic analysis or cost/benefit analysis wherein the benefits are compared with the cost.

� Legal feasibility, which deals with the legal requirements.

� Operational feasibility, which deals with how to solve problems and take advantage of opportunities.

� Schedule feasibility, which deals with the duration of the development and completion of the system and if the schedule or deadline is desirable.

� Market and real estate feasibility, which involves testing of the geographical location of the project.

� Resource feasibility, which involves the amount of time set for the project and the type and amount of resources needed.

� Cultural feasibility, which studies the project’s impact on the local culture.

� Financial feasibility, which includes the total cost of the project, its cash flow, and profitability.

Summary:

1. ‘Feasibility’ is the study of the profitability, strengths, and weaknesses of an existing business or proposed venture while ‘viability’ is the study of the existing or proposed business’s profitability.
2. ‘Feasibility’ deals with environmental opportunities, historical backgrounds, operational details, legal and tax requirements, financial and accounting statements, managerial and market research policies. ‘Viability’ deals with strategies on how to make the business grow and succeed.
3. There are many types and aspects of a feasibility study which include financial and cultural feasibility, legal and operational feasibility, and resource feasibility while business growth and sustainability are the main aspects of viability.

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