A feasibility study is carried out by the designer of a new project, showing the needed investments, expected return and the external influences, such as the laws of the country, competition, technological development, collection of information and basic data on the economy in general and the project in particular. This should include costs, prices of inputs, raw materials, assistance, water, electricity, energy, wages, sources of funding, costs of land, buildings and equipment and other fixed assets. The study serves as a blueprint for the project and highlights potential pitfalls as well.

The feasibility study includes:

• Initial perception of the project.
• Targeted market.
• Technical and procedural details.
• Costs and financial preparation.