Hiring a Feasibility Study Consultant: What the Study Covers and How to Choose One

A feasibility study consultant gives lenders and funders independent evidence, often built on public data from the U.S. Census Bureau. Before a lender, funder or board commits money to a project, they want evidence that it can work. That evidence is a feasibility study, and a feasibility study consultant is the independent professional who prepares it. This guide covers what a feasibility study includes, when you need an outside consultant, and how to choose one.

What does a feasibility study consultant do?

A feasibility study consultant answers one question: should this project go ahead, and under what conditions? To answer it, the consultant gathers data, tests the assumptions behind the project, and presents the findings in a report that decision-makers can rely on.

The value is independence. A study written by the project’s own sponsors is easy to dismiss. A study prepared by an outside consultant, with sources and methods shown, carries weight with banks, grant reviewers, public agencies and investors.

What a feasibility study covers

The scope depends on the project, but most studies examine five areas:

• Market feasibility. Is there real demand? Who are the customers or users, and who else serves them? See our market research services.
• Technical feasibility. Can it be built or delivered with available sites, technology, labor and suppliers?
• Financial feasibility. Capital costs, operating costs, revenue projections, funding sources and break-even point.
• Legal and regulatory feasibility. Zoning, permits, environmental review, licensing and compliance requirements.
• Organizational feasibility. Does the sponsor have the management capacity to deliver and operate the project?

For public and grant-funded projects, the study often includes a benefit-cost analysis, which many federal programs require.

When you need a feasibility study consultant

• A funder requires one. Many federal, state and foundation grants for infrastructure, housing, transportation, energy and agriculture ask for a feasibility study or its findings in the application.
• You are seeking a loan or investment. Lenders and investors want an independent view of market demand and financial projections.
• A board or council has to approve the project. Public agencies and nonprofits need documented evidence to justify spending.
• You are expanding into a new market, location or service line and want to test the idea before committing capital.

What affects the cost of a feasibility study

There is no standard price, because studies range from a focused market assessment to a multi-part analysis for a large capital project. The main cost drivers are:

• How many of the five areas above the study must cover
• Whether original data collection (surveys, interviews, site visits) is needed or existing data is enough
• The funder’s required format, such as a specific benefit-cost methodology
• The size and complexity of the project, and the deadline

A clear scope agreed at the start is the best protection against cost overruns. Ask any consultant to put the scope, deliverables and timeline in writing before work begins.

How to choose a feasibility study consultant

1. Relevant experience. Ask for examples of studies in your sector and of the same type of funder.
2. Economic and financial depth. Projections and benefit-cost analysis need someone trained in economics, not just report writing.
3. Independence. The consultant should be willing to tell you a project is not feasible, or feasible only with changes.
4. Transparent methods. Sources, assumptions and calculations should be shown so reviewers can check them.
5. Funding knowledge. A consultant who also understands grant writing can make sure the study supports the application it is meant for.

Working with GERC

GERC Consulting is led by Dr. Shirley Ayangbah, who holds a PhD in International Economic and Financial Law and an MA in Economics. We prepare feasibility studies for housing, infrastructure, transportation, energy, agriculture and business expansion projects across California and nationwide. Learn more about our feasibility study services or book a consultation.

Related services

• Economic impact analysis
• Infrastructure grant writing
• BUILD (RAISE), INFRA and Mega grants
• Benefit-cost analysis for grants