What is a feasibility study?

A feasibility study is research we undertake for a client to help them determine whether their project will succeed financially. The research we do is based on the following

• Our industry experience
• ABS Census data
• On the ground research, i.e. in-person surveys

Feasibility studies are highly recommended as they create a clearer picture of how the venue will work. Often, banks will ask for these to be done before lending money, so the research we do can play a key part in advancing a clients project from paper to reality. Subsequently, feasibility studies can also provide reassurance to the client that their proposed concept will work, before the full investment is committed to.

How long can they usually go for?

They can take around 2 – 3 months to conduct, as they give a snapshot in time of the current state of the area. So you can imagine then, they get dated pretty quickly. Even so, they are still one of the best ways to determine the success or failure of a project! Timing of a feasibility study is crucial.

Can you give an example of what content goes into a feasibility study?

Regardless of what medium is chosen, our research includes:

• What’s the available spend for dining and drinking in the area?
• How many other local venues/competitors are there?
• What’s the background and experience of the venue runners? 
• What other new developments are planned for the area?
• What’s the makeup of the local population? Will they frequent the style of the venue proposed?

Why do clients choose to conduct one?

One of the big reasons is because it’s a requirement of whoever is lending them money – they want assurance that their loan will see returns.

But often, it’s a confidence thing. Moreover, people want a second opinion – and bringing a new venue to life requires a lot of time, effort and money. So, you can imagine that going through the time and effort to seek a professional second opinion is important to the client!