Dividing a project into stages makes it possible to lead it in the best possible direction. Through this organization into stages, the total workload of a project is divided into smaller components, thus making it easier to monitor. The following paragraphs describe a staging model that has been useful in practice. It includes eight stages:
Stage 1 : Initial Stage
Stage 2 : Identification Stage
Stage 3 : Critical Analysis Stage
Stage 4 : Structuring Stage
Stage 5 : Project Development Stage
Stage 6 : Execution Stage
Stage 7 : Maintenance Stage
Stage 8 : Ongoing Management Stage
Stage Three
Critical Analysis Stage
Is it feasible?
A feasibility study is not a business plan. The separate roles of the feasibility study and the business plan are frequently misunderstood. The feasibility study provides an investigating function. It addresses the question of “Is this a viable business venture?” The business plan provides a planning function. The business plan outlines the actions needed to take the proposal from “idea” to “reality.”
The feasibility study outlines and analyzes several alternatives or methods of achieving business success. The feasibility study helps to narrow the scope of the project to identify the best business scenario(s). The business plan deals with only one alternative or scenario. The feasibility study helps to narrow the scope of the project to identify and define two or three scenarios or alternatives. The person or business conducting the feasibility study may work with the group to identify the “best” alternative for their situation. This becomes the basis for the business plan.
The feasibility study is conducted before the business plan. A business plan is prepared only after the business venture has been deemed to be feasible. If a proposed business venture is considered to be feasible, a business plan is usually constructed next that provides a “roadmap” of how the business will be created and developed. The business plan provides the “blueprint” for project implementation. If the venture is deemed not to be feasible, efforts may be made to correct its deficiencies, other alternatives may be explored, or the idea is dropped.
Below are other reasons to conduct a feasibility study.
⦁ Gives focus to the project and outline alternatives.
⦁ Narrows business alternatives
⦁ Identifies new opportunities through the investigative process.
⦁ Identifies reasons not to proceed.
⦁ Enhances the probability of success by addressing and mitigating factors early on that could affect the project.
⦁ Provides quality information for decision making.
⦁ Provides documentation that the business venture was thoroughly investigated.
⦁ Helps in securing funding from lending institutions and other monetary sources.
⦁ Helps to attract equity investment.
The feasibility study is a critical step in the business assessment process. If properly conducted, it may be the best investment you ever made.