An investigation to determine what resources are needed to conduct a business given current economic conditions.

Feasibility study is often used in areas such as:
- New business segment to ask what resources must be reallocated in order for the new business to be successful. What will other parts of the business react and how will competitors react,
- New technology innovation,
- New business or industry model being used,
- Old business model failing aside or unprofitable current business model,
- New trends in regulatory or demographic changes.

Feasibility studies can be used in startup, scale up, or restructure phases of business.

Technical feasibility - operations, state of the industry, resources needed

Goals of a feasibility study are often to identify:
1) Key characteristics
2) Factors of Risk
3) Resources required
4) Scope of research to reduce risk
5) Reward
Technology innovations are another area. How will new technology impact the old area.

History makes some innovations clearer than others, such as the automobile over the horse, man made materials over naturally occurring, cellular phones over traditional wire phones and so on. Impact is often overlooked on how business use this newer innovation.

Feasibility studies are not designed to answer everything. They are the starting point. Many times a feasibility study points to the result not to go into a line of business and therefore the value of the work is perceived to be less. Wrong business choices are costly and a feasibility study can prevent such costs.

Basic questions to start with are:
What is the demand for the product or service
What is the comparable product or service
What are the economic benefits and costs in providing the service or producing the product
What are the drivers in the need or desirability of the product or service