How to prepare a feasibility study: 9 practical steps

The nine steps

1. Define the project precisely: activity, city and district, size, available capital, and the purpose of the study.

2. Identify the decisive variables: every activity has one or two variables that change the decision on their own, such as rent for a café. Find them early.

3. Study the market and competitors: who buys, how much they spend, who sells nearby and at what price, collected from actual sources with dates. See the market study guide.

4. Derive demand from its driver: sales are never a free number; they come from capacity, footfall × entry rate × average ticket, or visits × conversion.

5. List costs line by line: fit-out and equipment at supplier prices, rent, salaries including social insurance, fees and working capital.

6. Sequence the licences: which authorities apply, in what order, with fees and timelines.

7. Build the financial model: five-year income statement and cash flow, break-even and payback. See the financial feasibility guide.

8. Test scenarios: what if demand falls 20%, or opening slips three months?

9. Write the decision as the numbers say it: feasible, feasible with conditions, or needs redesign, and if not feasible, find the form that would be.

Common mistakes

• Copying figures from a ready-made study for another city or year.
• Counting VAT-inclusive prices as revenue.
• Ignoring the owner’s salary when the owner will run the business.
• Confusing profit with cash flow.
• An optimistic base case without evidence.

Do it yourself or commission it?

For a small amount and a simple activity, a good market read and a cost table may be enough; try the free break-even calculator.

For a large amount, a financing application, or when you need someone to tell you “no” with numbers, a custom study saves the research time and its mistakes. Request a quote.

Frequently asked questions