Pre feasibility is the last stage before undertaking a feasibility study and involves checking that the development has a reasonable chance of success.
Any development will need to undertake a feasibility study to give you the information necessary to decide whether to proceed or not. However a feasibility study inevitably costs money, anything from £5,000 to £50,000 depending on the project. This can be a significant amount of money for a community organisation. It makes sense to think carefully about the viability of the development before taking this step.
The best way to do this is to talk to people who have gone through the development process. Speak to partners and find out about those experiences. These people can advise you on how realistic your assumptions are.
This is the stage where you should think seriously about how the project will fit with your current organisation. Developing an asset is a major undertaking. Pursuing it means committing significant levels of time, energy and financial resources to one project for years into the future.
This is the last moment to consider these fundamental questions. Is asset transfer right for our organisation? Are we doing this for the right reasons? Will it be a distraction from our core programmes? There is no point conducting a feasibility study if the answers to these questions point away from development.
At this point you should also consider the results of the capacity needs analysis and community involvement and assess how realistic the development is for your organisation in terms of personnel, finance and experience.
If your current turnover is £50,000 per-annum is it sensible to take on a £5m development? If only one staff or board member has development experience is the project too great a risk? If you only employ two full-time staff and is it realistic to start a project that requires hiring thirty more?
There are no hard and fast rules here. If the ambition and vision are in place then projects can succeed in the most surprising situations. Going past pre feasibility should only happen if you are comfortable with the size of the project and the implications for your organisation.
Keep these considerations at a top-level. Do not try to do the feasibility study yourself. Have a final board session and talk through all the implications with a critical friend. Involve staff and make sure you have widespread buy-in before going ahead.
The final decision on going ahead with a feasibility study should be based on two factors:
- The cost of the study to your organisation
- The likelihood of proceeding with the project.
The cheaper the study and the bigger your organisation the more speculative you can be. A £10,000 feasibility study for a £10m turnover organisation is far less problematic than a £30,000 feasibility study for a £50,000 turnover group. Always consider the consequences for the organisation of conducting a feasibility study and deciding against development.
Avoid having your head in the clouds. This is the point to move from idealism to realism. Think rationally about the practicality of your plans. Do not proceed unless you are confident it has a good chance of success.
Asset Transfer: A Can Do Guide, DTA