How will a feasibility study make my project business more credible?

The first important thing to know is that feasibility studies are not technically required under the program, however, they are being more and more commonly used. Feasibility studies provide projects with a competitive advantage from a marketing perspective and also helps to smooth the path to USCIS approval for the following reasons:
-They provide an independent view of the market
-They validate financial pro forma projections and assumptions
-They provide an independent assessment of the competition
-They provide an overall independent assessment of the feasibility (or likelihood of success) of the project, to help meet the credibility requirement, both in relation to Matter of Ho and building investor confidence.

Update: in the past year or two, we have been helping clients on RFEs where USCIS has specifically requested feasibility studies. This does not happen in all cases and is still not a requirement, but consider what might change in the business plan and offering documents if a feasibility study is conducted only when an RFE is received, and which points out some flaws that may require material changes to the business plan to remedy.