Chapter 3

Feasibility Study

Pre event activity

What is an event feasibility study?1.An event feasibility study is a controlled process for identifying challenges and opportunities, determining objectives, defining successful outcomes and assessing a range of costs and benefits of an event concept. It is a preliminary study undertaken before the real work of an event/festival starts, to ascertain the potential of the events success.

What is an event feasibility study contd?2.This is an objective study to explore the viability and practicality of proposals that have been put forward as ideas for an event.Many large organizations employed the services of external consultant especially for events that are of an international nature and ones that were bided for by the organization /destination eg. World cup cricket.

Benefits of Completing a Feasibility Study for Events

1.Provides an effective analytical tool that assists decision makers in determining if the event concept will meet objectives and is viable 2.Provides supporting evidence for recommendations and demonstrates the strengths and weakness of the event concept 3.Helps to analyze the business idea in more depth, providing greater clarity on the event concept, defined objectives and key stakeholders 4.Allows for better, more informed decisions on the event concept at a logistical, financial, resources and marketing environment level 5.Reduces the risk of a wasted investment in time, resources and money 6.Helps reduce the event project planning time for the event should it go ahead

Feasibility StudyKeys to Success/ and questions asked:Is the event a good idea? Should I hold this event?What is the purpose and objectives- charity or commercial venture.2.Do we have the Skills?Administrative, financial and marketing etc.If it is a charitable event- there must on-going time and commitment by the volunteers.

Feasibility Study3.Is the Host Community/population Supportive?Must solicit the support of the communityMust commit to the significant expenditure and inconvenience- repairs, noise etc.Opportunity cost to the city- roads vs. health care, stadium vs. housing.4. Do we have the infrastructure in the Community?Infrastructure is integral to the hosting international events. There must be a cost/benefit analysis, especially the usage of the infrastructure thereafter. Transportation and Parking are also important considerations.

Feasibility Study5. Can we get the venue at the price we can afford?Cost of venue rental is key( tents are oftentimes unsuitable as there are challenges with dcor, lighting, electricity and catering. For an entertainment event price is a critical factor.Cost of venue is also dependent on time for which it is required- time for set up and dismantling is quite long leading to increasing cost eg. Car and boat shows.Loading area, access and storage are other considerations.ParkingSecurity is important as high-priced items can go missingLong term financial viability is always an issue

Feasibility Study6. Will the event attract an audience? The location of the venue or site is crucial for attracting the numbers and the targeted audienceWill there be support for the event to make it economical( if finance is a set objective)Audience - % of local patrons and visitors attending. Market research into current trends is essential for event feasibility- Size of the market, time demographics and lifestyle is important.

Feasibility Studies7. Will the Event Attract Media Support?Media- Will the event attract national or international attention as the Olympics.Smart events planners plan with the media in mind and consider the different outlets available and the most suitable location for them.Promotion of events utilizing print and electronic media.Kind of event small or large community or private.

Feasibility Studies8. Is the Event Financially Viable/will I have sufficient funds to start?If the event is not viable it will have a short life span.As a community event it is unlikely to generate huge profits but will generate community spirit and enhance the reputation of the areaFees would be sufficient to cover local expensesNot all events are ticketed- entrance fees, Govt. subventions, sponsors and merchandising are examples of how funding can be raised

Feasibility Studies9. Are the success criteria Reasonable?Criteria on the success of events is judged widely. Event audience, participants, community and sponsors.Should be based on objectives set by the planner and contractor.Generally outcomes or judged on tangible results such as improved sales and level of exposure and not the intangible- increased confidence and skills of participants.

Feasibility Studies10. What are the RISKS?Most important of all Event Planners must brainstorm to consider all risks associated with the event:Heavy weather, wind, and /or rainFloodingFireSafety- Collapse of buildings or temporary structuresAccidents involving workers and/or the event audienceCrowd controlSecurity of participants and VIPsFood PoisoningBreakdown in water supply or power supply

Feasibility StudiesContingency Planning in order to deal with and minimize risks, policies and procedures must be put in place to deal with all eventualities. SOP must be put in place for all risks

The IACC( International Association of Conference Centers) has set international standards for operations, facilities, equipment and management for small to medium sized conferences centers ( 20 -50 people) and this is widely adopted. This accreditation an excellent method for reducing most of the common risks

Feasibility StudiesThe SWOT AnalysisImportant for every eventStrengths: are the internal strengths of the organizations, for example, the enthusiasm and commitment of volunteers, the specialist knowledge of the lighting engineer, or the wide range of products available for planning themes and dcor.Weaknesses: are the internal weaknesses of the organization, for example, the skills and knowledge of the management committee or their lack of availability for meetings.Opportunities: are the external favorable things that may occur, such as new sponsorships or unexpected positive publicityThreats: are also external: competition, poor publicity, and poor crowd behaviors would all be classified as threats.

Feasibility StudiesThe aim of the event organizer is to : Improve feasibility 2. Reduce risksTo improve the feasibility of the event is to improve the strengths of the organization and maximize the opportunities.Acknowledging the potential weaknesses and dealing with them will minimize the risks.

Discussion Question!Give your experience of risks you've encountered while attending events. Explain how a proper feasibility study could have assisted.

************************