The first thing we must do, before we get fully into the analysis of the term viability, is to determine its etymological origin. And this task leads us to discover that it comes from the French viable , which in turn is composed of two Latin words: vita , which can be translated as “life”, and the suffix -bile , which is equivalent to “possibility”.
Feasibility is the quality of being viable (which is likely to be realized or materialized thanks to its circumstances or characteristics). The concept also refers to the conditions of the road on which it can be traveled. A study that attempts to predict the eventual success or failure of a project is known as a feasibility analysis. To do so, it starts with empirical data (which can be contrasted) which it accesses through various types of research (surveys, statistics, etc.).
Any project or company that you want to start must have as its main tool a feasibility plan that makes clear the possibilities of success that these initiatives can have. In this case, it is essential that the following phases or elements necessarily appear in that document:
A clear definition of the activity to be carried out.
An in-depth study of the market. This means analyzing not only the preferences and habits of potential customers, but also the different entities that will become competitors.
An operational plan in relation to the technical and human resources needed and available.
A financial economic study.
A marketing plan. Within this area, the commercial policy to be carried out must be clearly defined. Therefore, you should focus on issues like product, price, promotion and distribution.
An analysis of the profitability of the initiative, both economically and financially.
In addition to all this, it is extremely important that the legal aspects that must be taken into account and that must be complied with are very clear in the aforementioned feasibility plan. Feasibility analyzes are carried out at a government or corporate level. It is a useful resource before starting work or launching a new product. In this way, the margin of error is minimized, since all the circumstances related to the projects are studied. One can speak of technical feasibility to refer to what meets the technological and natural characteristics involved in a project. The technical feasibility study is usually linked to safety and control (for example, if the idea is to build a bridge, the technical feasibility will refer to the study of the terrain in question and the environmental conditions to prevent it from falling). Economic viability, on the other hand, is related to the financial resources available to start a project and the profits that it is eventually expected to obtain. If starting a productive venture requires an investment of $100,000 and the said venture can generate a maximum profit of about $1,000 per year, the project is not economically viable.