Difference Between Feasibility and Viability
The terms Viability and Feasibility are often utilized when performing an investment appraisal on a job to assess its ability to sustain itself. Both play a role in a project’s possible profitability and perfromsnace in the long run but what most people do not realize is that although these two terms may be used for the same purpose of assessment and evaluation, but they are not interchangeable and have distinctive characteristics.
Viability is defined as the capacity of an object to stabilize itself or get maintain its equilibrium/ potentialities. Feasibility, on the other hand, refers to the ability of a business to gain profits and generate income for the owner or the partners.
Viability is assessed and evaluated by a business’s duration of survival, if a business is running over a long period of time then this venture is viable, and if it is short- lived then it is not. It is then safe to assume the viability of a business venture is highly influenced by the profits it earns over a length of time. A profitable business is a viable business, and to make the project viable, then the partners should come up with effective business strategies and tactics. This will involve two important factors to keep the venture viable: Sustainability and Growth.
Feasibility, again, refers to capacity of a project to generate profits despite tight competition from other ventures offering the same service or product. Prior to establishing a business, investors or partners check for its feasibility. The feasibility of a project depends on a host of factors like analysis, making estimates, and plenty of calculations. Formulating strategies and tactics do not play a part in the concept of feasibility; instead, they are important in the project’s concept of viability. We can also say that if a feasible venture lasts a long period of time, this venture is also viable since it is gaining enough profits to keep it running.