What Does viability Mean
The first thing we have to do, before entering fully into the analysis of the term viability, is to determine its etymological origin. And this task leads us to discover that it comes from viable French , which in turn is made up of two Latin words: vita , which can be translated as "life", and the suffix - bile , which is equivalent to "possibility".
Viability is the quality of viable (which is likely to be carried out or materialized thanks to its circumstances or characteristics). The concept also refers to the condition of the road where you can travel.
A study that attempts to predict the eventual success or failure of a project is known as a feasibility analysis . To achieve this, it starts from empirical data (which can be contrasted) which it accesses through various types of research (surveys, statistics, etc.).
Any project or company that you want to start must have as its main tool a viability plan that makes clear the possibilities of success that those initiatives may have. In this case, it is vital that the following phases or elements necessarily appear in said document:
A clear definition of the activity to be carried out.
A thorough study of the market. This means analyzing not only the preferences and habits of potential customers but also the different entities that are going to become competitors.
An operational plan regarding 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, you have to focus on issues such as product, price, promotion and distribution.
An analysis of the profitability of the initiative, both economically and financially.
In addition to all this, it is extremely important that the legal aspects that must be taken into account and that must be complied with are made very clear in said viability plan.
The feasibility analyzes are developed at the governmental or corporate level. It is a useful resource before starting a work or launching a new product . In this way, the margin of error is minimized since all the circumstances related to the projects are studied.
One can speak of technical feasibility to refer to that which attends to the technological and natural characteristics involved in a project. The study of technical feasibility is usually linked to safety and control (for example, if the idea is to build a bridge, the technical feasibility will refer to the study of the land in question and the environmental conditions to prevent it from falling).
The economic viability , on the other hand, is related to the existing financial resources to start 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 said venture could generate a maximum profit of about $ 1,000 per year, the project is not viable from an economic point of view.