Feasibility study starts when the developer faces the
problem in existing system and hence recognizes a need
for developing/ improving the system. It aims to objectively and rationally uncover the strengths and
weaknesses of the existing business or proposed venture,
opportunities and threats as presented by the environment,
the resources required to carry through, and ultimately the
prospects for success. In its simplest term, the two criteria
to judge feasibility are cost required and value to be
attained. As such, a well-designed feasibility study should
provide a historical background of the business or project,
description of the product or service, accounting
statements, details of the operations and management,
marketing research and policies, financial data, legal
requirements and tax obligations. Generally, feasibility
studies precede technical development and project
implementation.