Whether you're an inspiring entrepreneur or an employee in a leadership position, a feasibility report can help you properly analyze any situation at hand. One of the best ways to do this is with the TELOS acronym. This article will examine what a feasibility report is, which situations it can be used in and how to use TELOS to write a complete feasibility report.
Feasibility Report, Defined
A feasibility report is basically an analysis of a specific idea, and it is used to make informed decisions instead of just jumping in. It examines how effective a specific plan or project will be, but its main characteristic is in its ability to analyze how efficient the idea will be as well. It does this by taking a close look into a number of different aspects needed for a successful execution of the idea. Some of the most common factors include things like: capital, resources, time, legalities, technology and economics.
When to Use a Feasibility Report
When an entrepreneur has a general business idea, he/she may have a number of different plans in mind to go forward with it. Also, when a company is faced with a specific dilemma, a brainstorming session may generate a variety of proposed solutions to the problem. It is always good to have a number of options, however, It may be hard to come to a conclusion for which idea or plan is the best? Well, that's when a feasibility report comes in.
A feasibility report will allow an entrepreneur or company leaders to understand a specific idea's viability. Feasibility reports help them make informed decisions on choosing which specific plans to go forward with. It will also give them an idea of how the idea or project will play out before ever taking the first steps.
Feasibility Reports for Entrepreneurs
Sometimes, a business plan and a feasibility report can sound like the same thing. Both are examinations of a specific idea that not only properly lay out a plan so that the idea has a good chance of success, but both also look at the obstacles that will probably lay ahead of the plan's execution. In fact, financial institutions might even require entrepreneurs to include a feasibility report in their business plan.
A bank or investment firm may require entrepreneurs to include a feasibility report in their business plan for a number of reasons. Not only will it provide those who may be considering to give start-up loans to the entrepreneur's proposed business plan investment but, it also gives financial institutions more confidence when they see the inspiring entrepreneur has carefully considered the possible obstacles of a business idea. They want entrepreneurs to not only look into market potentialities, but the technical and financial implications of the opportunity as well.
A feasibility report will also provide entrepreneurs with value by laying out future plans for the organization, and will act as the basis for measuring the performance of the business plan too.
Feasibility Reports For Managers
Feasibility reports can also be used in assisting organizations well after the business plan stage. Just like a feasibility report will help an entrepreneur choose the best execution plan for his/her business idea, it can also help leaders of an already established organization find the best solution for any problem that they are faced with. The types of dilemmas a feasibility report can assist in include; assessing which location is best for expansion, how to cut costs properly without affecting business, what new technologies to develop, and much more. A feasibility report will also provide the leaders of an organization with any supporting data and reasoning behind any specific recommendation.
Anyone who is creating a feasibility report can use the acronym TELOS to help them ensure all of the areas needed for a complete analysis of the idea's viability are covered. The Greek word "telos" routes from the word teleology, which is the study of objects with a focus on their purpose, aims, and goals. However, the acronym TELOS stands for; technology, economics, legality, operations and schedule.
It is important to look at what kind of technology will be necessary to fully complete the project or idea successfully. This can be achieved by creating a draft outline of the finished project which will show the information and process requirements that will be needed.
This will look at the cost factors of a specific idea. It will look at the total cost of completing a project, and will compare it to the estimated return value, and will play a big part in determining whether the idea is worth undertaking or not. This is similar to a cost benefits analysis.
Any current legislation that will affect the project must be carefully looked at as well in order to understand what kind of impact it may have on the success of the idea. Government bodies and any relevant external regulatory should be looked at. Also, any prior commitments made to other partners, clients, or the organization itself like internal policies should be considered as well.
An analysis of the operations will look at how effective the project will be in solving the problem at hand or at accomplishing the goals in mind. This section will look at the different people and divisions that will be involved and be needed in the process.
The scheduling aspect of the project is the final stage of the feasibility analysis. It looks at forming a realistic time frame for project completion, and assists in assessing the viability of the idea as well. If the schedule seems to be too time-consuming or unviable, it is reworked until it fits with the project's goals. If a specific idea's schedule does not match the goals of a certain idea or project, and it cannot be altered, a new idea or project with a more suiting timeline may have to re-considered.
The Bottom Line
A feasibility report may seem like a lot of work but, when it comes to analyzing a proposed solution to a problem or the viability of a business idea, there is no better analysis tool. A feasibility report can assist entrepreneurs in finding the best way to execute his/her business idea, and can also help them find start-up funding as well. For already established organizations, a feasibility report can help leaders assess the best solution for many different types of problems. Whether you're an entrepreneur or a business leader, a feasibility report can help you overcome many obstacles. By using the acronym TELOS, you will also remember to cover all the necessary areas needed for a complete feasibility report.