How to write a feasibility study with AI
A feasibility study answers one question: is the project worth the money and time you will put into it? It has four parts: the market, the technical side, the finances and the risks. AI helps with the research, the number-crunching and the draft, but you confirm real prices from the market yourself.
What a feasibility study has to answer
An initial study is not a document for show. It is a way to find out that a project loses money on paper before it loses money for real. Its value lies in honest assumptions: how many customers a day, really? At what price? And what will rent and salaries cost?
AI shortens the research, organises the figures and writes the draft, but it does not know the rent of the unit you viewed or the quote your supplier sent. You collect those numbers, then hand them over for the calculations.
On the financial side, two formulas are enough to start. Break-even in units equals monthly fixed costs divided by the margin per unit, which is the selling price minus the variable cost per unit. The payback period equals the capital invested divided by net annual cash flow.
The sections and what goes in each
Market study
Who the target customer is, how many of them are in your area, who the competitors are, what prices are typical and what sets you apart. Back each figure with a source or a site visit.
Technical study
Location and floor area, equipment, suppliers, headcount and roles, the daily operating steps and the licences the activity needs.
Financial study
Start-up costs, monthly running costs, expected revenue in three scenarios, break-even, payback period and cash flow for at least twelve months.
Risks
What could sink the project: a delayed licence, a rent increase, weak demand, reliance on one supplier. Pair each risk with an action that reduces it.
The steps
01
Describe the project in a paragraph
The activity, the city, the target customer and the capital available. For example: a specialty coffee shop in Al Khuwair with OMR 25,000.
02
Collect market figures
Ask for sourced research on demand and competitors, then visit at least three competitors and note their prices and how busy they are.
03
List the costs
Get real quotes for rent, equipment and fit-out, and put them in a table: one-off start-up costs and monthly running costs.
04
Estimate revenue in three scenarios
Conservative, expected and optimistic. Base your decision on the conservative one.
05
Calculate break-even and payback
Ask for the calculation in an Excel sheet with visible formulas, so you can change an assumption and see the effect straight away.
06
Write the risks and the recommendation
End with a plain recommendation: go ahead, change the idea, or don't. A study that could never say “no” is not a study.
07
Review and export
Check each figure against its source, then export the study to Word and the numbers to Excel.
Common mistakes in feasibility studies
- Sales estimates based on hope, not on a customer count you can defend.
- Leaving the owner's own salary out of the costs.
- Ignoring working capital: the first months of expenses before the project pays for itself.
- Missing fees, licences and taxes. Confirm them with the relevant official body.
- Relying on a general market figure with no source or date.
- One scenario only, and usually the optimistic one.
Ready-made prompts
Frequently asked questions
Is an AI feasibility study enough to get funding?
It is a strong draft to start from and to discuss with partners. Funders may ask for a specific template, figures backed by quotations, or sign-off from a specialist firm. Ask the funder what they require before you write.
What is the difference between a feasibility study and a business plan?
A feasibility study answers: should we do this project? A business plan answers: how will we do it? You start with the study, and if the answer is positive you write the plan.
Where do I get market figures?
From three places: published official statistics, web research with named sources, and visits you make yourself. In Mibyan the sources appear with the answer, so you can open and check them.
How long should the study be?
For a small project, eight to fifteen pages plus the numbers sheet is enough. Clear assumptions matter more than page count.
Does Mibyan calculate the numbers accurately?
It builds a sheet with formulas that you can open and check in Excel. The result is only as good as the figures you enter, so review the inputs and formulas before relying on them.