The idea of viability refers to the quality of viable.
The first thing we have to do, before entering fully into the analysis of the term viability , is to determine its etymological origin. And this task leads us to discover that it comes from the French viable , which in turn is made up of two Latin words: vita , which can be translated as “life”, and the suffix – bile , which is equivalent to “possibility”.
Viability is the quality of viable (that is likely to be carried out or materialized thanks to its circumstances or characteristics). The concept also refers to the condition of the road where it can be traveled.
Feasibility analysis
The study that attempts to predict the eventual success or failure of a project is known as a feasibility analysis . To achieve this, it starts from empirical data (which can be contrasted) that it accesses through various types of research (surveys, statistics, etc.).
Any project or company that you want to launch must have as its main tool a feasibility plan that makes clear the possibilities of success that those initiatives may have. In this case, it is vital that the following phases or elements appear in said document:
– A clear definition of the activity to be carried out.
– A thorough study of the market. This means analyzing not only the preferences and habits of potential clients but also the different entities that are going to become competitors.
– An operational plan referring to both the technical and human resources that are necessary and available.
– A financial economic study.
– A marketing plan. Within this area, the commercial policy to be carried out must be clearly established. Hence, we must focus on issues such as the product, price, promotion and distribution of the same.
– An analysis of the profitability of the initiative, both at an economic and financial level.
In infrastructure works, carrying out a technical feasibility analysis is essential to guarantee safety.
A resource used at the corporate and government level
In addition to all this, it is very important that said viability plan makes very clear the legal aspects that must be taken into account and that must be complied with.
Feasibility analyzes are carried out at the government or corporate level. This is a useful resource before starting work or launching a new product . In this way, the margin of error is minimized since all the circumstances linked to the projects are studied.
Technical feasibility and economic viability
One can speak of technical feasibility to refer to that which takes into account the technological and natural characteristics involved in a project. The study of technical feasibility is usually linked to safety and control (for example, if the idea is to build a bridge, technical feasibility will refer to the study of the terrain in question and the environmental conditions to prevent it from falling).
Economic viability , on the other hand, is related to the existing financial resources to launch a project and the profits that are eventually expected to be obtained. If the start-up of a productive venture requires an investment of $100,000 and said venture could generate a maximum profit of about $1,000 per year, the project is not economically viable.