Five Reasons Why You Need To Do A Feasibility Study
Throughout the country, recreation centers are producing dynamic programming that’s impacting communities in remarkable ways. Their summer camps are using innovative methods to teach STEM skills. Their fitness centers are keeping seniors physically fit and young at heart. Their gyms are producing the next sport-defining superstars. However, these important buildings require planning before their purpose is realized.
Every community center starts as an idea. However, that idea must be tested and refined. Physical and financial resources are invested into this type of project so it’s critical to determine if the circumstances surrounding it make it viable. This can be done through the creation of a feasibility study.
A feasibility study is a report that assesses a number of market factors that dictate project viability. The report also provides guidelines for “right-sizing” the facility concept to meet market conditions and definitions of success. Feasibility studies examine your market including potential facility users, competitors offering similar services, potential facility costs and revenues, and options for project development. In short, a feasibility study will help determine you or your community’s definition of success, the sustainability of your model, and help you define your community’s goals. In today’s SFA post, we’ll look at five reasons why your community should conduct a feasibility study. Are you ready to bring your concept to life? Contact us today!
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Feasibility Studies Show the Viability of Your Vision
Every development has started with an idea, and while some have defied the odds set against them, those ideas rarely went to work without first being evaluated. By looking at the landscape that surrounds your vision, including where customers would come from and who you are competing with to gain them, you’ll be able to gauge the likelihood of achieving your definition of success. It’s important to note that feasibility studies can also be a critical part “right-sizing” your vision. At the SF Companies, nearly 40 percent of our feasibility studies yield a “yes-if” result, meaning that the initial concept can be adjusted to meet the definition of success.
Feasibility Studies Help Define Your Goals and Objectives
Ideas are great, but they are only as great as their execution. A feasibility study will help clarify what goals need to put in place to be successful by providing benchmarks for a project’s viability. For example, if your community would like to build an indoor/outdoor sports facility, you may not have a clear picture of the construction costs. A feasibility study helps you understand your facility’s costs as well as its revenue earning potential. With this information in hand you can either obtain the resources needed to complete your project or “right-size” your project based on available resources.
Feasibility Studies Help You Develop A Plan
Like ideas, goals are only useful when you start the work. As you define your goals, with the help of your feasibility study, you will have a better understanding of the next steps in the development cycle. From there, a program plan for a “right-sized” facility can be developed and combined with a financial forecast and economic impact study to attract funding partners.
Feasibility Studies Help Execute That Plan
Arguably the greatest benefit of a feasibility study is that they give you specific information about what a project requires for it to be sustainable. By understanding development costs, the competitive landscape, where potential customers will come from, and revenue potential, you’ll have a feel for the sources of capital, partners, and business model needed to achieve success. The components of the feasibility study will serve as a roadmap, describing the most optimal path to creating a new complex.
Feasibility Studies Will Give You an Identity
When planning a new sports, recreation, or entertainment facility, you’ll have a general idea of who you are targeting. However, to attract this valued audience, you must understand their needs as well as the competitive landscape. A feasibility study will help you understand what they have to offer.
Contact SFA For Feasibility Study Help Today
Feasibility studies help companies establish a clear vision of the steps from concept to grand opening. No matter the size of your vision or the team tasked with making it a reality, this level of clarity is crucial to achieving success.