The main difference between a feasibility study and a viability study is the scope of analysis. A feasibility study typically assesses if an idea or project is feasible from a technical, operational, and financial perspective. It usually looks at the current situation in order to determine whether or not an idea has the potential to be successful.
A viability study is more comprehensive and looks further into the future. It examines multiple possible scenarios and investigates how different factors could affect a particular project or idea. Viability studies are often used to determine the financial sustainability of a project in the long term.
Both feasibility study and viability study can provide valuable insights for business decisions. A feasibility study can provide an initial assessment of a project’s potential and whether it should be pursued or not. By contrast, a viability study offers more detailed information about the financial sustainability of the project and other risks that may need to be taken into account before going ahead with the project.
For projects that require long-term commitment, a viability study is generally the better option as it looks into the financial and operational performance of the project over an extended period. By contrast, a feasibility study is more suitable for short-term projects or ideas that require only a one-time investment.
Ultimately, both feasibility studies and viability studies offer important information when it comes to making decisions about projects. By taking into account the scope and long-term implications of a project, businesses can make informed decisions that will help them succeed in the long run.
Let’s now understand their difference on different grounds
- Time: A feasibility study looks at the current situation and examines whether an idea is feasible or not. On the other hand, a viability study examines multiple scenarios and investigates how different factors could affect a particular project or idea in the long run.
- Scope: Assessing the feasibility of a project or concept is an initial step. Whereas determining its viability means uncovering more in-depth information regarding its economic sustainability.
- Purpose: A feasibility study is a must-have to analyze if an innovative concept has the potential to become technically, operationally, and financially successful. On the other hand, conducting viability studies provides a deeper view of how different scenarios can determine the long-term fiscal sustainability of any project.
- Tools: Feasibility and viability studies require data collection, analysis, and modeling to determine the project’s success. To gain a more comprehensive picture of potential outcomes for the project at hand, feasibility studies can also include interviews or surveys with the stakeholders involved.
Pros & Cons of Feasibility Study:
- Quick to complete and cost-effective.
- Can provide valuable insights into a project’s potential from a technical, operational, and financial perspective.
- May not provide a comprehensive understanding of the project in the long term.
- The limited scope may mean that certain risks are not taken into account.
Pros & Cons of Viability Study:
- Offers more detailed information about a project’s financial sustainability over an extended period.
- Examines different scenarios to identify potential risks and opportunities.
- Can be expensive and time-consuming to complete.
- Results may be difficult to interpret or not take into account all the factors that could affect a long-term project.
While each approach has its own advantages and disadvantages, both types of studies can provide valuable insights when it comes to making decisions about projects. By taking the time to consider both feasibility and viability, businesses can make informed decisions that will help them succeed in the long run.
The conclusions of both studies should always be taken into account before investing in or committing to a project, as this can greatly reduce the risk of failure and ensure that businesses are making sound decisions. Knowing the key differences between feasibility and viability studies – as well as the pros and cons of each – can be a valuable asset to any organization.
If you are still not sure what type of study is right for your project? Don’t worry – you can contact a feasibility study company and they can help you determine which approach is best. Whether it’s a feasibility or a viability study, they will provide the knowledge and data that you need to make the right decision. These companies can help businesses conduct feasibility and viability studies with ease. With their experience, they can provide comprehensive assessments that will give you the confidence to make confident decisions. With their help, you can be sure that your project will succeed in the long run.