What is Feasibility Study?
A thorough feasibility study is critical for organizations to estimate their possibility of completing projects successfully. Organizations utilize feasibility studies to identify possible negative and positive outcomes from a project. This is done before investing valuable money and time in it.
A feasibility study gives a sound assessment pertaining to the viability of an idea, project, or process. This crucial research examines technical, economic, legal, and financial factors. Ideally, the study identifies both the merits and shortcomings of an existing system or proposed venture.
What is Feasibility Study?
A thorough feasibility study is critical for organizations to estimate their possibility of completing projects successfully. Organizations utilize feasibility studies to identify possible negative and positive outcomes from a project. This is done before investing valuable money and time in it.
A feasibility study gives a sound assessment pertaining to the viability of an idea, project, or process. This crucial research examines technical, economic, legal, and financial factors. Ideally, the study identifies both the merits and shortcomings of an existing system or proposed venture.
Types of Feasibility Study
There are many types of feasibility studies which cover different areas as per the requirement and the model of the business:
i. Financial Feasibility
ii. Market Feasibility
iii. Mechanical Feasibility
iv. Technical Feasibility
The feasibility study findings should detail numerous distinct alternatives that will allow you to thoroughly evaluate the financial outcomes and challenge the fundamental underpinnings, allowing you to be confident in the company concept. This is why a well-crafted feasibility study is important in making business decisions.
Why a business needs Feasibility Study Services?
A properly researched and executed feasibility study is capable of clearly identifying possible issues that can arise when a project is implemented, understanding financial, operational, and potential other organizational impacts. It determines if the project will be productive after considering all the influencing factors.
Feasibility study services are a standardized analysis to understand the legal, political and economic environment of the region and then take a decision based on the facts and research after conducting a thorough feasibility study that whether the decision is feasible or not feasible. The ultimate purpose of the feasibility study is to decide whether the company should or should not execute the decision.
Objective of Feasibility Study
Taking a decision without knowing the impact and influence of the decision on the business is business suicide in the business world. Taking a decision without conducting a feasibility study will harm your business or project technically as well as financially, a wrong step will waste your time and money.
A feasibility study is a substantial procedure in business administration. The feasibility study is done for the following purposes:
- To determine whether the project is worth undertaking, after a thorough investigation
- To recognize thoroughly all facets of the project, concept, or plan
- It projects the expected benefits of the investment
- To identify the amount of capital it will need to get the business geared up
- To prepare the company from going blindly into an uncertain industry or business
- To become conscious of any potential glitches that could impede the implementation of the project
Elements of Feasibility Study Services
Our feasibility study services in UAE and Egypt comprise several elements, and they typically include:
Project Overview – An outline of the project, products/services offered, the business model and method of delivery.
Market feasibility – Defines the prospective buyers, competitors, industry, future and current market potential and sales estimations.
Technical feasibility – Lists the data about product or service delivery, which could include labor and raw materials. transportation, the technology needed, business locations, etc.
Financial feasibility – A forecast plan about the funding required, the type of funds, and projected P&L, Balance Sheet, Cash Flows, etc. This includes detailing the assumptions made in the study, sensitivity analysis, and graphical presentation of key financial data.
Organizational feasibility – An explanation of the corporate and legal frame of the company; this might include data about the founders, their professional history and the skills they have that can help the company begin and continue its operations.
Importance of Feasibility Studies
- It allows a business to decide where and how it will function
- Discover fresh possibilities
- It helps identify potential impediments that may hinder its operations
- Business is guided in the proper path
- It helps determine the amount of funding it will need to get the business up and running
- Assists in making crucial decisions
- It helps aim for marketing stratagems that could help persuade investors that capitalizing on a particular project or business is a wise choice