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Business Feasibility Study

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BUSINESS FEASIBILITY STUDY AGREEMENT

This Business Feasibility Study Agreement (the Agreement) is entered into as of by and between:

RECITALS

WHEREAS, Client seeks an independent feasibility assessment to evaluate the commercial viability, technical requirements, and financial projections for the project titled ;

WHEREAS, Consultant has the professional expertise and experience to perform market analysis, technical review, financial modeling, and operational assessment necessary to produce such a feasibility study; and

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the parties agree as follows.

SCOPE OF WORK

Consultant shall perform the services described below in a professional manner consistent with industry standards. The services shall include, but are not limited to, the tasks identified in the Scope of Work field and any milestones agreed in writing by the parties.

METHODOLOGY & MILESTONES

Consultant will employ the following methodology components (select applicable):




Due Date:

Due Date:

Due Date:

PAYMENT TERMS

Compensation for the services described herein shall be paid in accordance with the schedule below.

Deposit Due Date:

Balance Due Within:

(Percent per month applied to overdue amounts; parties may modify this by written agreement.)

TERM AND TERMINATION

This Agreement commences on the Start Date and terminates on the End Date unless earlier terminated in accordance with this section.

Start Date:    End Date:

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure the breach within days after written notice. Either party may also terminate for convenience upon days prior written notice to the other party.

Upon termination, Consultant shall deliver to Client any completed deliverables and invoice Client for all services performed and reasonable reimbursable expenses incurred through the effective date of termination.

CONFIDENTIALITY

Each party (Recipient) shall keep confidential all non-public information disclosed by the other party (Discloser) that is designated confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Recipient shall not disclose such Confidential Information to any third party and shall use it only to perform its obligations under this Agreement.

Exceptions: Confidential Information does not include information that is (a) publicly available through no fault of Recipient; (b) already lawfully known to Recipient at the time of disclosure; (c) independently developed by Recipient without use of Discloser's Confidential Information; or (d) required to be disclosed by law or court order, provided Recipient gives prompt notice to Discloser to seek protective relief.

INTELLECTUAL PROPERTY

Consultant retains ownership of any pre-existing intellectual property and methodologies used in performing the Study. Unless otherwise agreed in writing, upon full payment of amounts due under this Agreement, Consultant grants to Client a perpetual, non-exclusive license to use the final deliverables solely for Client's internal business purposes.

WARRANTIES, LIMITATION OF LIABILITY, AND INDEMNITY

Consultant warrants that services will be performed in a professional and workmanlike manner consistent with generally accepted industry standards. Except for the foregoing warranty, Consultant disclaims all other warranties, express or implied.

LIMITATION OF LIABILITY: Except for liability arising from willful misconduct or gross negligence, Consultant's aggregate liability for any claim arising out of this Agreement shall not exceed the total fees paid by Client to Consultant under this Agreement. Parties may specify an alternate cap amount here:

GOVERNING LAW; ENTIRE AGREEMENT

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles.

Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. Any amendment must be in writing and signed by both parties.

NOTICES

Notices shall be sent to the addresses set forth above or to such other address as either party may designate in writing. Notices shall be effective upon receipt.

Client - Printed Name:

By:

Date:

Consultant - Printed Name:

By:

Date:

Enter text✕

What a Business Feasibility Study Is and When It Matters

A Business Feasibility Study evaluates whether a proposed business idea, product, project, or expansion is practical, financially viable, and legally feasible. It combines market analysis, cost and revenue projections, operational requirements, legal and regulatory checks, and risk assessment to inform investment and management decisions. The study typically produces a recommendation and an implementation roadmap that stakeholders can use to decide whether to proceed, adjust scope, or stop the initiative. Reports range from brief memo-style analyses to multi-section documents with appendices of financial models and supporting data.

Why a Feasibility Study Improves Decision Quality

A structured feasibility study reduces uncertainty by documenting market demand, required capital, regulatory constraints, and operational capacity. It clarifies assumptions used in financial forecasts and surfaces critical dependencies, such as permits or third-party approvals. The study also creates an auditable record for investors, lenders, or internal approval processes, making subsequent due diligence and funding decisions faster and more defensible.

Why a Feasibility Study Improves Decision Quality

Who Typically Prepares and Reviews a Feasibility Study

Tailor depth and review cycles to the audience: high-level summaries for executives and detailed appendices for technical reviewers.

  • Startup founders and executive teams who need investor-ready evidence and a prioritized roadmap for product-market fit and capital requirements.
  • Project managers and business analysts within corporations evaluating new lines of business, capital expenditures, or geographic expansion.
  • External advisors—consultants, accountants, or technical specialists—who provide independent validation of assumptions and specialized analyses.

Essential Sections to Include in a Professional Study

A complete feasibility study combines market, technical, financial, legal, and operational analysis with a clear recommendation and implementation plan.

Executive Summary

One- to two-page overview that states the project, key findings, viability conclusion, and primary metrics used to reach the recommendation.

Market Analysis

Defines target market segments, size estimates, competitive landscape, pricing assumptions, and customer acquisition channels driving revenue projections.

Technical Feasibility

Describes product or service requirements, technology stack, supply chain needs, facility constraints, and any prototyping or testing results.

Financial Model

Three- to five-year profit and loss, cash flow, break-even analysis, and scenario sensitivity testing under conservative and optimistic assumptions.

Regulatory Review

Identifies permits, licensing, industry-specific compliance (for example HIPAA or SEC filing implications), and expected timelines to obtain approvals.

Risk and Implementation Plan

Outlines key risks, mitigation steps, required milestones, staffing, capital requests, and a timeline for achieving go/no-go decision points.

Step-by-Step: How to Complete a Business Feasibility Study

Follow these core steps to prepare a defensible feasibility study that supports stakeholder decisions and funding requests.

  • 01
    Define Objective: Clarify the decision the study must support and the success criteria.
  • 02
    Collect Data: Gather market, technical, operational, and regulatory information from primary sources.
  • 03
    Model Finances: Build revenue, expense, and cash flow scenarios with sensitivity tests.
  • 04
    Document and Review: Assemble the report, circulate to reviewers, and finalize the recommendation.

Configuring a Digital Review and Approval Workflow

Map reviewers and approval order, then configure notifications and version control to streamline reviews and signoffs.

Field Configuration
Reviewer Roles Specify each reviewer and their approval authority level.
Routing Order Choose serial or parallel approval paths based on governance needs.
Notifications Set reminder cadence and escalation rules for overdue reviews.
Document Versioning Enable version control and maintain an audit trail for each revision.

Typical Digital Signing and Distribution Flow

A standard online workflow speeds review, captures evidence of consent, and creates a downloadable completed record.

  • Upload Document: Import the study document in PDF or DOCX format.
  • Place Fields: Add signature, date, and initial fields where required.
  • Send for Signature: Route to signers in the configured order with authentication.
  • Store Completed: Save signed copy plus audit trail in secure storage.

Technical Considerations for eSubmission and Storage

Confirm the platform meets compliance obligations and can export signed records with an auditable certificate for future review.

  • File Formats: PDF, DOCX supported
  • Authentication: Email, SMS, KBA options
  • Integrations: Connectors for CRM and storage

Recommended Internal Timelines for Producing a Study

Suggested timeframes help planning; adjust for project complexity, permitting lead times, and the need for third-party studies.

Market Research:

2–6 weeks depending on scope and data availability

Technical Assessment:

1–4 weeks for initial feasibility; longer if prototyping required

Financial Modeling:

1–2 weeks to build base and sensitivity cases

Stakeholder Review:

1–3 weeks for internal and external reviews

Final Report Delivery:

1 week for edits and sign-off after approvals

Key Risks and Consequences to Watch For

Inaccurate Projections: Misleads investors
Missing Permits: Causes delays and fines
Incorrect Tax Advice: Potential penalties under IRC
Contractual Exposure: Creates liability for commitments
Funding Shortfall: Project inability to proceed
Reputational Harm: Impacts future investment

Common Mistakes When Preparing a Study

  • Relying solely on optimistic revenue assumptions without sensitivity testing or downside scenarios to validate viability.
  • Omitting regulatory timelines or permit lead times, which commonly cause schedule slips and budget overruns for capital projects.
  • Using inconsistent data sources or outdated market figures that result in unsupported conclusions and investor skepticism.
  • Failing to document assumptions and data sources, making the study difficult to audit or update during due diligence.

Security and Compliance Basics for Signed Records

Encryption: TLS 1.2/1.3 in transit
Data at Rest: AES-256 encryption
Certifications: SOC 2 Type II, ISO 27001
Privacy Laws: GDPR, CCPA compliance
Health Data: HIPAA covered with BAA
Audit Trail: Timestamps and access logs

Typical Signatories and Their Authority

Founder / CEO

Primary decision-maker who signs final feasibility conclusions and funding requests. Their signature usually binds the organization for internal approval and external investor presentations.

CFO / Finance Lead

Approves financial assumptions and capital requests; their sign-off confirms budget, cash flow modeling, and any funding commitments reflected in the report.

Practical Examples of How Feasibility Studies Are Used

Two short scenarios show how a feasibility study supports different decision types and outcomes.

Small Retail Expansion

A regional retailer analyzed three new store locations, comparing foot-traffic and lease terms.

  • The model included conservative revenue cases and lease breakpoints.
  • The study recommended one location and a phased rollout, reducing initial capital outlay and preserving optionality for further expansion.

Healthcare Service Launch

A clinic evaluated offering a new telehealth service with HIPAA risk analysis and staffing models.

  • Financials included reimbursement scenarios and equipment costs.
  • The final recommendation prioritized pilot deployment with three-month metrics to validate payer mix and utilization assumptions before scaling.

Practical Tips for Accurate, Efficient Completion

Apply consistent methods and document assumptions to make the study repeatable and defensible for stakeholders and auditors.

Use Primary Data When Possible
Prioritize recent primary research, vendor quotes, and municipal permitting timelines. Secondary sources are acceptable but cite them clearly and test sensitivity to variations.
Document All Assumptions
Maintain a assumptions appendix listing sources, confidence levels, and rationale so reviewers can validate and update projections without re-running the entire model.
Run Multiple Scenarios
Include base, optimistic, and conservative scenarios with clear triggers for each. Sensitivity tables should show which variables most affect payback and cash flow.
Preserve Audit Trails
Keep signed copies, version history, and reviewer comments. This supports due diligence, regulatory inquiries, and any future disputes about decision timing or authority.

Common eSignature Pricing and Feature Overview for Executing Studies

Cost and feature comparisons can help select a signing platform that meets volume, compliance, and integration needs; signNow is listed first for parity in comparison.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Common Issues

Answers to frequent questions about e-signing, legal validity, and digital workflow choices for feasibility studies.


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