Healthcare is a noble profession with the selfless goal of helping people and saving lives. You, as a healthcare professional have worked hard to get into this sphere. You have the determination to deliver excellence in care and compassion to many. However, as a healthcare entrepreneur, you need to keep an eye on money matters too to remain viable. Remember, your hospital is an enterprise and like every other business has to produce return of investment and profits.

A feasibility study is an important tool that can help healthcare entrepreneurs like you to gauge whether their aspirational venture will be profitable or will collapse in financial losses. A feasibility study can accurately predict is your dream project will be economically viable and successful.

What is a feasibility report

The feasibility study is an in-depth analysis of all the parameters of your business. It thoroughly investigates the practicability of your business scheme and determines if your venture is really worth the investment. It can also be used as a predictive tool to determine if your idea can turn into a profitable business proposition. So, basically a feasibility study will help you test the waters and see if you should or should not invest into your dream.

Why should you go for a feasibility report

A feasibility study can give you a clear outline of your project’s goals and outlines the best way to achieve them. Some healthcare entrepreneurs may have a vague idea of what they want and a feasibility report can help to concretize these plans. It can help you answer important questions like if your venture is economically realistic and if it is legally possible.

A feasibility study when correctly executed can save a lot of time and efforts and also money. Read on to find out how.

However wonderful it may appear in your dreams and however good it may look on paper, not every idea has the potential to be a success. A feasibility study will prevent you from spending your time, energy and money in a venture that is risky and unprofitable and has high chances of failure. If the result of the feasibility study questions the financial, legal, operational and technical viability of your project; you can nip the project in the bud before making any big investment.

1. Financial practicability

The most important answer delivered by a feasibility report is whether your aspirational project will provide value that can justify its cost. Parameters like cost of completion, projected profitability, time to reach success milestones will all have to be scrutinized carefully. If the numbers don’t add up, it is not worth the risk.

2. Time viability

A feasibility study will give you an approximate time of the likely time you will need before you can achieve breakeven and then garner profits. A realistic time schedule is a must for your venture to remain viable. A feasibility report will assess your project timelines and help you predetermine your chances of success. If the deadline for breakeven is too far down the line, you can pull the plug on the venture before investing your hard-earned funds into it.

3. Operational capability

It makes no sense to sink money, time and efforts into a project that will not be functional or will not be adherent to quality standards. A feasibility study can help you get a preview of the operational stability of your project. If the panel of experts does not give the go-ahead in terms of operational efficiency, it will be better to abandon the project at the very beginning instead of incurring losses.

4. Technical possibility

A feasibility report will evaluate whether you and your team have the technical competence and capability and resources to successfully complete your project. If there is a lacuna in this aspect, you will have to upgrade yourself or will have to take a call not to enter into these waters so that future monetary losses are averted.

5. Legal compliance

A feasibility report will delve deep to assess if your venture can be completed with full adherence to government rules, regulations and approvals. If this is not verified to the last letter, it can lead to legal hassles in the future which can cause massive losses.

6. Redesign your business strategy

A feasibility study can evaluate the market challenges faced by a project. If you are forearmed with this information,

you can change your business strategy proactively to overcome hurdles and win the race ahead of competitors. Being aware of every aspect of the market scenario can help you re-evaluate your tactics before you make any major financial blunders. Though the initial investment on a feasibility report may seem like a lot of cost, it is worth it as it prevents losses in the long term. 

To summarize, before launching a project, you should invest in a feasibility study which will give you a 360 degree. realistic viewpoint of whether investing in your dream venture is justified or not.  feasibility study will help you assess if it makes sense to go forward with your idea. Whether you should revisit some key areas before investing in your project or whether to dump it altogether. Though conducting a feasibility study involves costs and you may feel it is unnecessary, it will save you a lot of money and time in the future. If you need any help in conducting a feasibility study, consult Hospertz, a leading Healthcare management firm from India. 

Blog has been written by Dr. Vishal Jadhav, a veteran in the field of hospital consultancy with a rich experience of more than 20 years and founder of the Healthcare Consultancy Firm, Hospertz.