Feasibility studies are systematic analyses conducted to assess the viability of a proposed project or initiative before significant resources are committed. These studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success. Unlike preliminary assessments, feasibility studies delve deeper into the analysis of financial, operational, technical, and legal aspects to ensure that the decision to proceed is based on thorough due diligence.

The essence of conducting a feasibility study is to provide stakeholders with critical information that could prevent costly mistakes by evaluating potential problems and determining if the project is realistic and profitable. It acts as a safeguard, ensuring that only projects with a positive outlook and strategic fit are pursued, thereby optimizing the allocation of resources.

Feasibility studies encompass several key areas, including market analysis, financial projections, operational requirements, and risk assessment. Each of these areas contributes to building a comprehensive understanding of the proposed project's potential, guiding decision-makers toward informed choices about moving forward, modifying, or abandoning the proposal.