What is a viability study? Definition and examples
Viability Study is an in-depth study that tries to determine how profitable a business idea is. The investigation also tries to determine whether it is possible to convert the idea into a business enterprise.
In medicine, a viability study of the heart, for example, tries to determine whether the heart muscle is alive. This type of study also tries to determine whether the patient needs a revascularization procedure.
This article focuses on the meaning of the term in a finance or business context.
Viability study – is it viable?
The word viability, a mass noun, refers to something’s ability or capacity to work successfully. It could be a proposal, idea, project, or even a plan to change how a company does business.
A viability study tries to determine whether something is viable.
The word ‘viable’ is an adjective. If something is viable, it means that it can work successfully. If a company is viable, it means that we expect it to make a profit year after year.
Viable refers to anything or any situation which can carry on developing, growing, advancing, or thriving.
Viability study vs. feasibility study
People often use the two terms interchangeably. However, they do not have the same meaning.
A feasibility study is an assessment of how practical or doable a proposed method or plan is. It is an analysis that tries to find out whether it is possible to complete a project, successfully.
A viability study is an investigation into a business idea. Specifically, whether the idea will make money, i.e., whether it will be profitable.
The viability study is not about whether something is doable, but rather whether it is worth doing.
Put simply; a feasibility study looks at whether something can be done, while a viability study looks at whether it is worth doing.
However, a growing number of feasibility studies today also include an analysis of the expected profitability of a project or idea.
Viability studies often incorporate market analysis to ensure that a business concept aligns with current market conditions and consumer trends.
Compound nouns – examples
There are many compound nouns in the English language that contain the term “viability study.” A compound noun is a term that contains at least two words. Here are six of them, with their meanings, and also examples of how we can use them in a sentence:
Viability Study Report
A document that presents the findings of a viability study, detailing whether a business idea or project is likely to succeed.
Example: “After months of research, the consulting firm presented a comprehensive viability study report to the investors.”
Viability Study Analysis
The process of examining and evaluating the data collected during a viability study to reach a conclusion about the project’s potential success.
Example: “The viability study analysis indicated a high potential for market penetration, encouraging the team to proceed with the launch.”
Viability Study Framework
An outline or structure used to conduct a viability study, including the criteria and methods of assessment.
Example: “The project manager developed a viability study framework to ensure all critical aspects of the project were assessed.”
Viability Study Consultant
A professional or firm specializing in conducting viability studies for businesses considering new ventures or expansions.
Example: “The startup hired a viability study consultant to evaluate the potential success of their new app.”
Viability Study Methodology
The systematic procedure followed during a viability study, encompassing the steps and techniques used to gather and analyze data.
Example: “Their viability study methodology included both qualitative interviews and quantitative market research.”
Viability Study Outcome
The result or conclusion derived from a viability study, which determines the feasibility and profitability of a project.
Example: “The viability study outcome was positive, showing a clear path to profitability within the first two years of operation.”
These two educational videos come from our sister channel on YouTube – Marketing Business Network. One explains what a “Viability Study” is, and the other explains what a “Feasibility Study” is. Both videos use easy-to-understand vocabulary and examples.
What is a Viability Study?
What is a Feasibility Study?