Just because a project is pitched doesn’t mean it’s the right project. Organizations have to explore the proposal and determine if it’s a good fit for them in terms of risk, reward, resources and so on. That’s why there’s a feasibility report.
What is a feasibility report? We’ll answer that, show what should be included and even add a feasibility report example to show what it would look like in a real-world scenario. Then, we’ll add links to some related free templates to help with the feasibility study report.
What Is a Feasibility Report?
A feasibility report in project management is a detailed analysis that evaluates the practicality, risks and potential success of a proposed project before committing significant resources. It helps decision-makers determine whether the project is viable by assessing various factors such as technical feasibility, financial viability, operational capacity and market demand.
This report typically includes an analysis of project objectives, required resources, potential risks, estimated costs and expected benefits. It helps identify challenges that may arise and provides recommendations on whether to proceed with the project, modify it or abandon it altogether.
By conducting a feasibility report, organizations can minimize risks, optimize resource allocation and improve project planning. It ensures that investments are made in projects that are realistic, profitable and aligned with business goals. Once the project is proven feasible, that’s when it’s time to put away the report and pick up the project management software.
ProjectManager is award-winning project and portfolio management software that turns a feasibility report into a project plan that teams can execute with our multiple project views. Project managers can schedule tasks, resources and costs on Gantt charts, which also link dependencies to avoid delays and cost overruns, filter for the critical path and set a baseline to compare the plan against the actual progress in real time. That plan is shared with teams who can execute their work on kanban boards or task lists, while stakeholders stay updated on the calendar view. Get started with ProjectManager today for free.
What Should Be Included in a Feasibility Report?
A feasibility report provides a comprehensive assessment of a project’s viability by analyzing various critical factors. It helps organizations make informed decisions about whether to proceed with a project, adjust the plan or abandon it. Below are the essential components of a feasibility report.
Executive Summary
A high-level overview of the report, summarizing key findings, conclusions and recommendations. The executive summary provides stakeholders with a quick understanding of the project’s feasibility without needing to go through the entire document.
Project Description, Goals and Objectives
Outlines the project’s purpose, scope and intended outcomes. It defines the problem the project aims to solve and the specific goals it seeks to achieve.
Resource Requirements
Details the human, material and technological resources needed to execute the project. This includes workforce, equipment, facilities and software requirements.
Technical Feasibility
Evaluates whether the project can be implemented with the available technology, infrastructure and expertise. It examines system compatibility, required innovations and technical risks.
Financial Feasibility
Analyzes the project’s cost estimates, funding sources, return on investment (ROI) and overall profitability. It helps determine whether the project is financially sustainable.
Market Feasibility
Assesses the demand for the project’s product or service, target market, competition and potential customer adoption. This ensures that there is a viable market for the project’s success.
Operational Feasibility
Examines whether the organization has the capabilities, resources and operational structure to execute and sustain the project. It also considers workforce skills and internal process alignment.
Scheduling Feasibility
Evaluates the estimated project timeline, key milestones and potential scheduling risks. It helps determine if the project can be completed within the required timeframe.
Legal and Regulatory Considerations
Identifies compliance requirements related to laws, regulations, industry standards and contractual obligations. It ensures that the project aligns with legal frameworks.
Environmental and Social Impact
Analyzes the potential environmental and societal effects of the project. This includes sustainability factors, ethical concerns, and community impact assessments.
Project Assumptions and Constraints
Lists any assumptions made during the feasibility study, such as economic conditions, resource availability or technological advancements. It also highlights constraints like budget limitations, regulatory restrictions or workforce capacity.
A well-structured feasibility report provides a clear and objective evaluation of a project’s viability, helping stakeholders make informed decisions.
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Project Feasibility Report Sample
Use this free Project Feasibility Report Sample for Word to manage your projects better.
Feasibility Report Example
Now that we better understand a feasibility report, including the components that make it up, an example will help put the document in context. Below we imagine a construction project and how the feasibility study report determines the viability of the work.
Project Description, Goals and Objectives
The proposed project involves the construction of a brand-new hotel building in a prime urban location. The hotel will cater to business and leisure travelers, offering high-end amenities, conference facilities and premium dining options. The objective is to establish a competitive hospitality business that meets market demands, generates consistent revenue and contributes to local economic development.
Resource Requirements
Resources are people, equipment and anything else needed to execute the project. Below are the resources that are required for this project.
- Land Acquisition: Prime urban real estate (approximately 50,000 sq. ft.)
- Construction Materials: Concrete, steel, glass, wood and eco-friendly materials
- Labor and Workforce: Architects, engineers, contractors and construction workers
- Technology & Equipment: HVAC, elevators, security systems and IT infrastructure
- Furniture & Fixtures: High-quality furnishings, kitchen equipment and decor
- Operational Staff: Management, housekeeping, catering and security teams
Technical Feasibility
This section evaluates whether a project can be successfully implemented with the available technology, resource capacity and expertise.
- Structural Design: A modern high-rise with energy-efficient architecture
- Utilities & Infrastructure: Reliable water supply, electricity and sewage systems
- Safety Standards: Fire suppression systems, earthquake resistance and emergency exits
- Smart Hotel Technology: Automated check-in, keyless entry and integrated room controls
Financial Feasibility
Here, the project’s economic viability is evaluated, such as its costs, funding sources and potential profitability.
- Estimated Project Cost: $50 million (land, construction and operational setup)
- Funding Sources: Bank loans, investors and government incentives
- Projected Revenue: $15 million annually (room bookings, event hosting and dining services)
- Break-even Analysis: Expected within five years
- Operational Expenses: Staff salaries, maintenance, marketing and utilities
Market Feasibility
This assesses whether there is a demand for a product or service in the target market.
- Target Market: Business travelers, tourists and event organizers
- Competitor Analysis: Nearby luxury hotels and boutique establishments
- Market Demand: Growing tourism and corporate event needs in the area
- Marketing Strategy: Digital campaigns, partnerships with travel agencies and loyalty programs
Operational Feasibility
This looks at whether the organization has the resources, structure and capabilities to successfully implement and sustain a project.
- Hotel Management System: Integrated property management software
- Supply Chain: Reliable vendors for food, linens and other essentials
- Staffing Plan: Hiring experienced hospitality professionals
- Customer Service Strategy: 24/7 guest support and personalized experiences
Scheduling Feasibility
Scheduling feasibility evaluates whether a project can be completed within a reasonable and acceptable timeline.
- Planning & Design Phase: Six months
- Permit Approvals: Four-to-six months
- Construction Phase: Twenty-four months
- Interior Setup & Staff Training: Six months
- Grand Opening: Within three years of project commencement
Legal and Regulatory Considerations
At this point, the feasibility report reviews if the project complies with all applicable laws, regulations and industry standards.
- Zoning Laws: Compliance with local building regulations
- Building Permits: Necessary approvals from municipal authorities
- Health & Safety Regulations: Adhering to hospitality industry standards
- Environmental Compliance: Waste management and sustainability protocols
Environmental and Social Impact
This evaluates how a project may affect the environment and surrounding communities.
- Sustainability Practices: Green building certifications and energy-efficient design
- Community Engagement: Job creation and collaboration with local businesses
- Traffic and Infrastructure Impact: Mitigation plans for increased local traffic
- Waste Management: Recycling initiatives and reduced water consumption
Project Assumptions and Constraints
Outlines the key factors that are taken as true for planning purposes, as well as the limitations that may impact project execution.
- Assumptions
- Demand for premium hotel services will continue to grow
- Construction costs will remain stable within the estimated budget
- Regulatory approvals will be secured on time
- Constraints
- Potential delays in obtaining permits
- Supply chain disruptions for materials and equipment
- Market fluctuations affecting hotel bookings and revenue
This feasibility report provides a structured analysis of the proposed hotel construction project to ensure informed decision-making and successful execution.
Feasibility Report Sample
Reviewing a feasibility report sample can be very helpful as you become more familiar with the process of creating feasibility reports. Download the example above as a feasibility report sample for Word by clicking the image.
Related Project Management Templates
To help create a thorough feasibility report, try some of these free related templates. They’re only a few of the over 100 free project management templates for Excel and Word that are available now on our site. These free templates cover every aspect of managing a project, across multiple industries.
Feasibility Study Template
This free feasibility study template for Word provides the basis of analysis that will result in the feasibility report, which is a written summary of that analysis. This helps pinpoint the logistical, financial and market challenges of a proposed project.
Business Case Template
A business case is used to show the costs related to the project and whether they’re worthwhile and will deliver ROI. This free business case template for Word works hand in glove with a feasibility report.
Cost-Benefit Analysis Template
Another way to determine if the proposed project is worth the investment is by using this free cost-benefit analysis template for Excel. It compares what the budget for the project will be against the benefits that it will deliver.
How ProjectManager Helps Manage Projects From Start to Finish
Templates can be helpful, especially when deciding if the proposed project will be a good fit for the organization. All the free downloadable templates from our site will help with that research. However, once a project has been approved and moves into the planning stage, templates are just not equipped to do the job. They’re static documents and projects are dynamic. That’s when it’s time to put away the Excel spreadsheets and open project management software like ProjectManager. Multiple project views help plan and execute the project, while resource management features and dashboards, reports and more keep the project on track.
Robust Resource Management Keep Teams Productive
Once human and non-human resources are scheduled on Gantt charts, project managers can onboard teams and set their availability, including PTO, vacation, global holidays, rates and skill sets. This makes it easy to assign tasks to the right person at the right time. Then, check the color-coded workload page to get an overview of resource allocation. This makes it easy to see who is overallocated or underutilized and balances the team’s workload from the same chart. Now, teams can work at capacity without risking burnout. Use the team page to stay updated on the team’s daily or weekly activities, which can be filtered by priority, progress and more.
Monitor Progress, Cost and More With Real-Time Dashboards and Reports
To ensure that the project is meeting the expectations set by the feasibility report, project managers can first get a high-level view of the progress and performance with real-time project or portfolio dashboards. They’re collecting live data and displaying it on easy-to-read graphs and charts that show key metrics like time, cost, workload and more. For more details, use customizable reports on project status, portfolio status, variance workload, timesheets and more. These reports can be filtered to focus on specific data points or provide a summary and shared with stakeholders to keep them updated. Even our secure timesheets help by tracking labor costs to help keep to the budget.
Related Project Initiation Content
Testing a project to see if it’s worth pursuing is what a feasibility report is for. There are other things project managers can do to figure out if a proposal should be approved and, if it is, how to initiate it. Below are a handful of articles we’ve recently published on our blog that go into those details.
- Cost-Benefit Analysis: A Quick Guide with Examples
- Project Selection: Use These 8 Selection Methods
- Project Initiation: How to Start Your Project Off Right
- How Project Prioritization Scoring Models Help Organizations
- How to Start a Project in 10 Steps
ProjectManager is online project and portfolio management software that connects teams whether they’re in the office, out in the field or anywhere else in the world. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.
