In this post I want to share a little my knowledge and understanding regarding the difference between Pre-feasibility study and feasibility study. Most people who are working in business field are more familiar with feasibility study than pre-feasibility study. Actually, the principle of both study are similar. The difference is how deep the analysis will be.
What is pre-feasibility study?
Pre-feasibility study is a preliminary study undertaken to determine, analyze, and select the best business scenarios. In this study, we assume we have more than one business scenarios, then we want to know which one is the best, both technically and financially. In pre-feasibility we select the best idea among several ideas. It will be hard and takes time if we explore each scenario deeply. Therefore, shortcut method deem acceptable in this early stage and can be used to determine minor components of investment and production cost.
If the selected scenario is considered feasible, it is recommended to continue the study to feasibility to get deeper analysis of the selected project scenario. (more…)