Overview

Viability study, from a business point of view, is an evaluation process for commercial project viability. It analyzes the viability of a proposed commercial project. It assesses constraints, potential risks and opportunities related to the project, allowing stakeholders to take smart decisions about project initiation and its continuation. Its key benefits include identification of potential constraints and risks early in the project lifecycle, assessment of the project’s alignment with the strategic goals of an organization, and evaluation of economic, technical, operational legal and business feasibility. We at Your Property Doctorcan help you determine viability of your project.

Factors that Determine that Viability of a Commercial Project

Market Demand and Competitive Environment

Understanding the current and future market demand is one of the factors that determines the viability of a commercial project. This willmake the project viable.

Growth and Scalability Potential

Growth and scalability determinethe long-term viability of the project. Assessment of the growth potential involves the project’s tendency to adapt to altering customer preferences and market saturation. For instance,—a software application with potential for feature enhancements and continuous updates may have higher growth potential than a static product. A project that can be scaled up to meet the growing demand is more likely to be successful.

Timeframe and Payback Period

Knowing the timeframe to get returns on investment is another factor that determines the viability of a project.Projects that have shorter payback periods are more viable as they allow for faster recovery of the initial investment. On the other hand, the longer the payback period, the more risks with the project.

Sustainability

At present, sustainability in projectshas become a must for project viability. Assessing the alignment of the project with sustainable practices is something to be considered seriously.The sustainable practices include evaluation of energy consumption, waste management, and the overall contribution of the project to climate change. Projects that aligns with sustainable practices and have the least environment impact have more chances of getting regulatory approval and public support.

Cost and Resource Requirements

The cost and resource requirements of the project include the initial investment and the ongoing operational costs of the project. It is essential to check whether the project will be feasible from economic point of view and whether the anticipated returns will be more than the costs.

Risk Assessment

No project is without risks, so identifying these risks is important in determining the viability of a project. Factors, such as market volatility, regulatory changes and technological uncertainties negatively affect the success of a project. Carrying out a comprehensive risk assessment identifiespotential threats and develops mitigation strategies. For example,—if a project wholly depends on a single supplier, it is important to evaluate the risk of supply chain disruptions and switch over to alternative sourcing options.