The first thing we have to do, before entering fully into the analysis of the term viability, is to determine its etymological origin. And that task leads us to discover that it comes from French viable, which in turn is composed of two Latin words: vita, which can be translated as "life", and the suffix -bile, which is equivalent to "possibility."
Viability is the viable quality (which is likely to be carried out or materialized thanks to its circumstances or characteristics). The concept also refers to the condition of the path Where you can travel.
It is known as feasibility analysis to the study that tries to predict the eventual success or failure of a draft . To achieve this part of empirical data (which can be contrasted) that is accessed through various types of research (surveys, statistics, etc.).
Any project or company that wants to start up has to have as a main tool a viability plan that makes clear the possibilities of success that those initiatives can have. In this case, it is vital that the following phases or elements appear in said document:
A clear definition of the activity to be carried out.
A thorough study of the market. That means analyzing not only the preferences and habits of potential clients but also the different entities that will become competitors.
An operational plan concerning both the technical and human resources that are necessary and possessed.
A financial economic study.
A marketing plan Within this area, the commercial policy to be carried out must be clearly established. Hence, we must focus on issues such as product, price, promotion and distribution of the same.
An analysis of the profitability of the initiative, both economically and financially.
In addition to all this it is very important that in said viability plan the legal aspects that must be taken into account and that must be complied with are made very clear.
Feasibility analyzes are carried out at the governmental or corporate level. This is a useful resource before the start of a work or the launch of a new one product . In this way, the margin of error is minimized since all the circumstances related to the projects are studied.
You can talk about technical viability to refer to what meets the technological and natural characteristics involved in a project. The study of technical feasibility is usually linked to the security and control (for example, if the idea is to build a bridge, technical feasibility will be referred to the study of the terrain in question and the environmental conditions to prevent it from falling).
The economic viability On the other hand, it is related to the existing financial resources to start up a project and to the profits that, eventually, are expected to be obtained. If the start-up of a productive venture requires an investment of $ 100,000 and that venture could generate a maximum profit of about $ 1,000 a year, the project is not economically viable.