Before launching any business idea, the first thing you should do is conduct a feasibility study.
Key Takeaways
- A feasibility study evaluates whether a business idea is worth pursuing before any real investment is made.
- Understanding the parts of a feasibility study helps ABM students produce structured, credible, and actionable academic outputs.
- OEd SHS prepares ABM students for real business decisions in college and the workplace.
In the Accountancy, Business, and Management strand, students don’t just learn theories — they learn how to apply business thinking to real-world situations. One of the most practical and career-relevant outputs an ABM student will produce during Senior High School is a feasibility study.
What is a Feasibility Study?
A feasibility study is a structured analysis that determines whether a proposed project or business idea is practical, viable, and worth pursuing. At its core, a feasibility study is how entrepreneurs, managers, investors, and analysts check if an idea has a real shot at success before committing time, money, and resources.
For ABM students, it’s hands-on training for the business world. It is typically a major academic output in which students propose a business concept and rigorously assess its potential for success. It teaches students to think like entrepreneurs and analysts.
Types of Feasibility Studies
Before knowing how to conduct a feasibility study, it’s important to know the different types so you can approach yours with the right focus.
1. Market Feasibility Study
A market feasibility study examines whether there is sufficient demand for the product or service. It looks at the target market, competition, consumer behavior, and market trends. This is often the first and most critical type — because if there’s no market, there’s no business.
2. Technical Feasibility Study
This type of feasibility study evaluates whether the business has or can acquire the technology, equipment, processes, and technical expertise needed to operate.
3. Financial Feasibility Study
A financial feasibility study analyzes the numbers: startup costs, projected revenue, operating expenses, return on investment, and break-even point. This type answers the most fundamental business question: Will it make money?
4. Organizational/Management Feasibility Study
This one looks at whether the proposed business has or can build a capable management structure and workforce.
5. Legal Feasibility Study
This type identifies any legal requirements, permits, regulations, or compliance issues the business must address. This is especially relevant for businesses in regulated industries such as food, healthcare, and finance.
6. Environmental Feasibility Study
This study assesses the potential environmental impact of the business, including sustainability concerns and regulatory requirements.
Parts of a Feasibility Study
A feasibility study format gives you a clear framework for organizing your work. Most feasibility studies in the ABM strand contain these elements:
- Executive Summary – A concise overview of the entire study, including the business concept, key findings, and overall recommendation. Written last but placed first.
- Business Description – Introduces the proposed business: what it is, what it offers, its mission, vision, and the problem it aims to solve.
- Market Analysis – Presents research on the target market, customer profile, demand assessment, competitor analysis, and market trends.
- Technical Study – Describes the operational requirements: location, equipment, production process, technology needs, and facility layout.
- Management Study — Outlines the organizational structure, roles and responsibilities, staffing requirements, and management qualifications.
- Financial Study — Contains projected financial statements, startup cost breakdown, revenue forecasts, and return on investment analysis. This is often the most scrutinized section.
- Legal Study — Lists the legal structure of the business, required permits, licenses, and relevant regulations.
- Conclusions and Recommendations — Summarizes the findings across all areas and provides a clear recommendation on whether the business is feasible.
Why ABM Students Conduct Feasibility Studies
Feasibility studies are used across virtually every industry, but they are particularly relevant in ABM strand courses because the strand is built around business and financial literacy.
Entrepreneurship classes require students to develop and assess business concepts — the feasibility study is the structured tool for doing exactly that. A feasibility study is when all your ABM subjects come together in a single practical, real-world output. It’s a simulation of what actual business analysts and entrepreneurs do every day.
How to Make a Feasibility Study: Step-by-Step
Here is your feasibility study guide — a practical breakdown of the steps in conducting a feasibility study for ABM students:
1. Define Your Business Idea
Start with a clear, specific business concept. What product or service are you proposing? Who is it for? What problem does it solve? The sharper your idea, the more focused and credible your study will be. Avoid vague concepts — “a food business” is too broad, but “a ready-to-eat healthy meal delivery service for college students in Quezon City” gives you something concrete to work with.
2. Identify Scope and Objectives
Determine what your study will and won’t cover. Set clear objectives — what specific questions is your feasibility study trying to answer? Defining your scope early prevents your study from becoming unfocused and helps you allocate your research time efficiently.
3. Conduct Market Research
Gather data on your target market. Use surveys, interviews, and secondary research to understand your potential customers — their needs, preferences, and buying behavior. Analyze your competitors: who are they, what do they offer, and where are the gaps your business can fill?
Your market research is the backbone of your entire feasibility study.
4. Assess Technical Requirements
Identify what you’ll need operationally to run the business — location, equipment, suppliers, production process, and technology. Be realistic about what’s available and what it costs. This step grounds your business idea in practical reality rather than keeping it theoretical.
5. Develop Financial Projections
This is where you run the numbers. Estimate your startup costs, monthly operating expenses, projected sales, and break-even point. Build a simple projected income statement and cash flow forecast. You don’t need to be an accountant, but you do need to be honest about whether the numbers make sense.
6. Evaluate Legal and Organizational Requirements
Research what permits, licenses, and legal registrations your proposed business would need in the Philippines, including DTI registration, BIR registration, barangay clearance, and any industry-specific permits.
7. Analyze and Interpret Your Findings
Once all sections are complete, step back and look at the full picture. Is there a market? Are the financials viable? Are there legal or operational barriers? Weigh the evidence across all areas and form an objective assessment of the business idea’s feasibility.
Knowing how to make a research paper with proper analysis applies here, too. It requires strong critical thinking skills.
8. Write Your Conclusions and Recommendations
Summarize your findings clearly and provide a direct recommendation: is the proposed business feasible, feasible with modifications, or not feasible? Back your recommendation with the evidence from your study.
Turn Business Ideas Into Reality
A feasibility study helps develop the analytical mindset that separates good business thinkers from great ones. At OEd SHS, ABM students don’t just read about business concepts — they apply them.
The ABM strand at OEd is designed to equip students with the knowledge, critical thinking skills, and practical tools to produce feasibility studies that go beyond academic compliance and reflect genuine business insight. Through a flexible learning setup that lets students work at their own pace, OEd ABM students get the time and space to research thoroughly, think deeply, and produce outputs they can actually be proud of.
Learn more about our senior high online program and enroll now!
Frequently Asked Questions
1. Is a feasibility study the same as a business plan?
Not exactly. A feasibility study comes before a business plan — its purpose is to determine whether a business idea is worth pursuing. A business plan, on the other hand, is a detailed roadmap for actually running the business, assuming the idea has already been validated.
2. Can our group propose a business that already exists?
Yes, but your study needs to present a distinct angle, target market, or value proposition that sets your concept apart from what’s already in the market.
3. What’s the most common mistake ABM students make when writing a feasibility study?
Choosing a business idea they love without checking if the market actually supports it. It’s easy to get attached to a concept and then unconsciously write a study that proves what you already want to believe. A strong feasibility study is objective, even when the findings aren’t what you hoped for.
