Feasibility vs Viability: Difference and Comparison

There is rapid growth in the number of businesses today. A new company takes birth every day, be it small or big.

Many people have the same ideas or practices and run the same type of business; hence, everyone needs to learn how to run a business and understand every aspect.

One needs to research and make sure that a business/idea can be achieved and can make a profit. In other words, something needs to be feasible and viable. An in-depth study is required to save your business and make it successful.

Key Takeaways

1. Feasibility refers to the practicality and possibility of implementing an idea or project, while viability refers to the ability of an idea or project to succeed in the long term.
2. Feasibility is determined by analyzing the resources required, risks involved, and potential obstacles, whereas viability, is determined by assessing the profitability, sustainability, and competitiveness of the idea or project.
3. Feasibility focuses on short-term outcomes, while viability focuses on long-term outcomes.

Feasibility vs Viability

Feasibility or feasible means how easy or difficult something is and whether you can achieve it or not. In contrast, viability implies the ability to work successfully (make a profit) and ensure the business works excellently in the long run. It is the ability to survive.

Feasibility measures how easy or difficult it is to achieve or do something. One should always think about how feasible their goal/idea is. It gives you the answers to whether or not something you have planned can execute and work.

This plays a vital role in the business sector. They conduct a feasibility study to assess the practicality and possibility of a project/idea.

Viability measures how long (duration) it will work for and how successful it will be. The ability to work well and gain profits is viable or viable.

It assesses all the factors and gives us answers/ results to determine if the business or idea is viable and should be continued. Determining these factors is a viability study essential in the business sector.

Comparison Table

Parameters of Comparison	Feasibility	Viability
Definition	Feasibility measures how easy or difficult it is to achieve or do something.	Viability measures how successful (profit) and sustainable the business will be.
Study	Feasibility study	Viability study
Types	Operational feasibility, technical, legal, financial feasibility, etc.	Marketing viability, technical, financial viability, etc.
Components	Defines the project scope, determines current market trends, conducts detailed risk analysis, etc.	I define strategic objectives and evaluate production costs, financial scenarios, etc.
Usage in a Sentence	‘I doubted the feasibility of his new business plan.’	‘I was positive about the long-term viability of the plan.’

What is Feasibility?

Feasibility measures how easy or difficult a task or work will be. In other words, it is the state of being quickly done. It is used as a tool in the business sector. It finds out whether or not a business will work and give an outcome as planned or will it fail.

Any person/person in business should study and look into the company’s feasibility before starting it.

There is a study that is conducted to discover the strengths and weaknesses of an idea/ business. This study is known as a feasibility study. It helps a lot to save your business and run it successfully.

It checks and deals with opportunities, legal, tax requirements, finance and accounting, background check, and market policies. The study also helps to develop objectives, form a framework, etc. 

The feasibility study is essential to save the company from losses, as investing money blindly in something unfeasible is risky.

There are different types of feasibility studies according to the different areas and sectors –

1. Marketing feasibility – studies and determines the aggregate demand for the product/service. They need a lot of information to carry out this study. Market surveys and secondary sources can give partial information.
2. Technical feasibility – it studies the technology for production and various other processes. They check the capacity, raw materials required, etc.
3. Economic/financial feasibility analyses the costs/ expected profits/ benefits. It studies whether or not the business will be able to meet the needs and bear the costs of the products and services. They compare the benefits with the costs.

There are a few other types of study as well.

What is Viability?

Viability measures how successful and how long the business will run. In simple words, it is the ability of a company or an idea to survive. If a business is not sustainable, then it is not considered viable.

It is essential for any person to check and study the viability and only then convert the idea or the plan into a business. This helps to avoid loss.

If the plan has the scope of developing and advancing with time, it is considered viable. The study investigates the ability of the business to earn profit and sustain itself in the market.

This study is known as a viability study. The study examines the market, technical aspects, business model, etc.

There are different types of liabilities according to the various aspects and sectors. They are –

1. Market viability assesses the environment, target market, potential competitors, pricing, distribution, etc.
2. Technical viability – assesses the supply chain, manufacturing raw materials, resources, etc
3. Economic viability and financial viability – this assesses the overall costs needed and all the other aspects that come under finance.
4. Etc.

If the benefits of the business exceed the economic costs, the company will be considered viable.

Main Difference Between Feasibility and Viability

1. Feasibility measures how easy or difficult it is to achieve or execute a plan, whereas viability measures its success (profit) and sustainability.
2. The study of feasibility is known as feasibility, whereas viability is known as viability study.
3. The types of feasibility are operational, technical, financial, etc., whereas the kinds of viability are marketing, technical, and economical.
4. Components of feasibility are defining the project scope, detailed risk analysis, etc., whereas the members of viability define the strategic objective, evaluating production costs, etc.
5. A feasibility test is conducted to test whether the plan will succeed or fail. In contrast, a viability test determines whether the plan is worth it and will bring profits and benefits.

References

1. https://www.oxfordhandbooks.com/viewByDoi/10.1093/oxfordhb/9780199234769.003.0010
2. https://www.sciencedirect.com/science/article/pii/S1359835X05004331