Not all feasibility studies are the same. The term "feasibility study" is often used as a catch-all, but it actually encompasses five distinct types of analysis — each examining a different dimension of whether your project can succeed. Understanding these five types helps you ensure your analysis is complete and that you haven't left a critical blind spot.
Most serious business decisions require all five types. But the emphasis shifts depending on your industry, project stage, and the specific risks involved.
The 5 Types at a Glance
| Type | Core Question | Examines |
|---|---|---|
| Technical | Can we build it? | Technology, equipment, expertise, infrastructure |
| Economic | Will it make money? | Costs, revenue, NPV, IRR, payback, market demand |
| Legal | Are we allowed to do it? | Regulations, permits, licences, compliance, zoning |
| Operational | Can we run it day-to-day? | Staffing, processes, supply chain, management |
| Scheduling | Can we deliver it on time? | Timeline, milestones, dependencies, deadlines |
1. Technical Feasibility
Technical feasibility asks whether you have — or can acquire — the technology, equipment, infrastructure, and expertise needed to deliver your product or service.
What It Covers
Technology Assessment: Is the required technology available, proven, and reliable? A SaaS startup needs to assess whether the technology stack can deliver the proposed functionality at scale. A manufacturing business needs to evaluate whether production equipment can meet quality and volume requirements. Infrastructure Requirements: Does the physical or digital infrastructure exist? A rural hotel development needs road access, water supply, power, and telecommunications. An e-commerce business needs hosting infrastructure, payment processing, and logistics networks. Expertise Availability: Do you have the skilled people needed, or can you recruit them? A medical practice needs qualified practitioners. A tech company needs developers with specific skills. A restaurant needs experienced chefs. If the required expertise is scarce or prohibitively expensive in your market, technical feasibility is compromised. Scalability: Can the technical solution grow with the business? A system that works for 100 users but breaks at 10,000 has a technical feasibility problem that will surface at exactly the wrong time.When Technical Feasibility Is Critical
Technical feasibility deserves the heaviest emphasis when your project involves unproven technology or novel applications of existing technology, when the project requires specialised equipment with long lead times, when the required expertise is scarce in your market, or when infrastructure limitations could constrain operations.
Real-World Example
A telemedicine startup proposing to deliver real-time video consultations in regional Australia. The concept is sound, but technical feasibility hinges on whether broadband infrastructure in target areas can support reliable video calls. If 40% of the target population has inadequate internet connectivity, the addressable market shrinks dramatically — and the entire financial model changes.
2. Economic Feasibility
Economic feasibility is typically the most extensive component and often what people mean when they say "feasibility study." It determines whether the project can generate sufficient financial returns to justify the investment.
What It Covers
Market Demand: Is there enough demand for your product or service? This includes TAM/SAM/SOM analysis, competitive landscape assessment, pricing sensitivity, and demand trend analysis. Cost Analysis: What does it cost to build and operate? CAPEX (capital expenditure for setup) and OPEX (ongoing operating expenses) must both be thoroughly estimated with appropriate contingency. Revenue Projections: How much revenue can the business realistically generate? Revenue models should be built bottom-up from verifiable assumptions — number of customers, transaction frequency, average transaction value — not top-down from market share guesses. Financial Metrics: The investment-grade calculations that determine viability:- Net Present Value (NPV): Does the investment create value after accounting for the time value of money?
- Internal Rate of Return (IRR): What annualised return does the investment generate?
- Payback Period: How long until the initial investment is recovered?
- Break-Even Analysis: What revenue level covers all costs?
When Economic Feasibility Is Critical
Economic feasibility is critical for every project. There is no business decision where the financial viability question doesn't matter. However, it deserves the heaviest emphasis when the capital investment is large relative to available resources, when the project has a long payback period with significant upfront costs, when the business model is unproven and revenue projections are uncertain, and when external financing (bank loans, investor capital) is required.
For a comprehensive explanation of the key financial metrics, see What is NPV, IRR, and Payback Period? A Non-Accountant's Guide.
3. Legal Feasibility
Legal feasibility identifies the regulatory, licensing, and compliance requirements that apply to your business — and assesses whether they can be met within your budget and timeline.
What It Covers
Licensing and Permits: What licences do you need to operate? A restaurant needs food handling permits, a liquor licence (if applicable), and health department approval. A financial services firm needs regulatory licensing. A childcare centre needs accreditation and staff certification. Zoning and Land Use: Is your proposed location zoned for your intended use? Zoning restrictions can prevent a business from operating in a specific location, regardless of how strong the market demand. Rezoning is possible but adds 6–18 months and significant cost. Industry Regulations: What industry-specific regulations apply? Healthcare has patient privacy requirements, food service has hygiene standards, construction has building codes, finance has compliance obligations. Each regulatory layer adds cost and complexity. Intellectual Property: Are there patents, trademarks, or copyrights that could restrict your business? If you're developing technology, is there freedom to operate in the patent landscape? Employment Law: What are the requirements for employing staff? Minimum wages, benefits, working conditions, termination rules, and industry-specific employment regulations all affect operational costs and processes.When Legal Feasibility Is a Dealbreaker
Legal issues are most commonly dealbreakers in heavily regulated industries like healthcare, financial services, and childcare; when the project requires a specific licence that is difficult to obtain, like a liquor licence in a restricted area; when zoning doesn't permit the intended use and rezoning is uncertain; and when intellectual property constraints limit what you can build or sell.
Real-World Example
A craft brewery proposing to open in a residential-zoned area with strict noise and operating hour restrictions. The market analysis shows strong demand, the financial model shows healthy returns, and the operational plan is solid. But the legal feasibility assessment reveals that the zoning doesn't permit manufacturing (which brewing is classified as), and the noise restrictions would prevent live music events that are central to the revenue model. Without rezoning — a 12-month process with uncertain outcome — the project isn't legally feasible in this location.
4. Operational Feasibility
Operational feasibility examines whether the business can function effectively on a day-to-day basis. A business might be technically possible, financially attractive, and legally permitted — but operationally impractical.
What It Covers
Staffing: Can you recruit enough qualified staff at a viable cost? This includes the number of employees needed, required qualifications, prevailing wage rates, and employee turnover rates in your industry and location. A luxury hotel in a remote location might struggle to attract housekeeping staff. A tech startup in a competitive market might face developer salary inflation. Processes and Workflows: How will the business operate day-to-day? This includes production or service delivery processes, quality control, customer service workflows, supply chain management, and administrative procedures. Supply Chain: Can you reliably source the materials, products, or services you need? Are there single-source dependencies that create risk? What's the lead time for critical supplies? A restaurant concept based on a specific imported ingredient is operationally fragile if that supply chain is unreliable. Management Structure: Is the management team capable of running the operation? Do gaps exist that need to be filled through hiring or outsourcing? Physical Requirements: Is suitable real estate available at a viable cost? Can the premises be configured to meet operational needs? Is there room for growth?When Operational Feasibility Matters Most
Operational feasibility deserves the most attention in labour-intensive industries like hospitality, healthcare, and retail; when the business depends on specific skills or expertise that are scarce; when the supply chain is complex or geographically challenging; and when the business model requires processes that haven't been tested at the proposed scale.
5. Scheduling Feasibility
Scheduling feasibility assesses whether the project can be completed within a reasonable and necessary timeframe. Time is money — literally, in projects that carry finance costs — and some opportunities have windows that close.
What It Covers
Project Timeline: How long will it take from concept to launch? This includes planning and design, approvals and permits, construction or development, equipment procurement and installation, staff recruitment and training, and testing and soft launch. Critical Path: What are the dependencies? Which tasks must be completed before others can begin? The critical path determines the minimum project duration — any delay on the critical path delays the entire project. Seasonal Considerations: Does the business need to open by a specific date? A ski resort must be operational before winter. A beachside café needs to catch the summer season. Missing the seasonal window can mean months of lost revenue. Market Timing: Is there a competitive window that requires speed? Being first to market with a new concept has value that diminishes with each competitor who follows.When Scheduling Is Critical
Scheduling feasibility is most important for seasonal businesses where missing the opening window has severe financial consequences, for construction projects where extended timelines compound finance costs, when competitive timing creates urgency, and when permits or approvals have uncertain timelines that affect the entire schedule.
How the 5 Types Work Together
No single type of feasibility study is sufficient in isolation. A project might be economically attractive but technically impossible, or operationally feasible but legally prohibited. The five types work as a system of checks:
A project passes feasibility only when it passes all five tests simultaneously. A failure in any single dimension is enough to require modification or abandonment of the concept.
The relative weight given to each type varies by project. A SaaS startup might weight technical and economic feasibility heavily while legal and scheduling concerns are minimal. A hotel development might weight all five roughly equally. A medical practice might give extra weight to legal (regulatory compliance) and operational (staff recruitment) feasibility.
The Bottom Line
Understanding the five types of feasibility studies ensures your analysis is comprehensive. Most business failures can be traced to inadequate assessment of at least one of these five dimensions — usually because the founder was so excited about the economic opportunity that they overlooked a technical limitation, a legal barrier, an operational challenge, or a scheduling constraint.
A thorough feasibility study examines all five dimensions and produces a recommendation that accounts for the full picture.
SimpleFeasibility generates comprehensive feasibility studies covering market and economic analysis, technical and operational assessment, and regulatory overview — with real data, NPV/IRR/payback calculations, and interactive What-If scenarios. Run a Complete Feasibility Analysis →Related Articles: