Feasibility study
Before spending anything, we ask: is the project worth it? A feasibility study answers from five angles, summed up as TELOS:
| T · Technical | Do we have the technology and skills? |
| E · Economic | Do benefits outweigh costs? |
| L · Legal | Does it comply with laws such as data protection? |
| O · Operational | Will people actually use it, and does it fit how they work? |
| S · Schedule | Can we finish it in time? |
The two most common economic measures:
Payback period = initial cost ÷ net annual benefit
ROI = (total benefits − total costs) ÷ total costs
Try it on the café project. The figures are an example; change them and watch the result:
Net annual benefit25,000
Payback period2.4 years
ROI14.3%
Economically feasible within 3 years.