What is the purpose of conducting a feasibility study?

The purpose of conducting a feasibility study is primarily to assess the viability of a project idea before committing resources. This involves examining various aspects of the project, such as technical feasibility, market demand, financial considerations, and organizational capability. By performing a feasibility study, stakeholders can identify potential challenges and risks associated with the project, allowing them to make informed decisions about whether to proceed.

This step is critical as it helps prevent the misallocation of resources on projects that may not be practical or beneficial; it establishes a foundational understanding of the project’s prospects in its early stages. In contrast, other activities such as documenting financials, finalizing deliverables, or determining team performance metrics serve different purposes within the project lifecycle and do not focus on the initial evaluation of a project's feasibility.