Why is a feasibility analysis conducted?

A feasibility analysis is conducted primarily to evaluate the viability of a project idea. This process assesses whether the proposed project is practical and achievable within the constraints of resources, time, and technology. By examining factors such as financial, technical, legal, and operational aspects, stakeholders can make informed decisions about whether to proceed with the project, alter its scope, or abandon it altogether.

The focus of a feasibility analysis is to ensure that the project is not only a good idea on paper but also realistic in terms of implementation. This crucial step helps organizations minimize risks and allocate resources effectively, thereby increasing the likelihood of project success.