Perhaps many of the new starters are ignorant of the term “feasibility study” and they do not know that knowing this concept is the most important step before starting implementing any idea for a new project. On the other hand, we find some owners of projects aware of the concept, but they do not appreciate how important it is to grow projects from an economic point of view, and it is what matters most for every start-up of a profitable project, and there are some who may not know the steps that must be followed to make a successful feasibility study. In this article, we will explain the concept of “feasibility study” and its importance, and we will answer the question “How do I do a successful feasibility study?”
A feasibility study is a set of analyzes that give the idea or project owner a clear view of whether the idea is feasible or not, and if it is feasible, what is the optimal way to start, and it also helps in setting logical goals that are appropriate to the project’s potential and market requirements. Simply put, the importance of a feasibility study lies in three phases:
Find out if the project is profitable or not, and that is what matters to every new business owner
And if the project is profitable, then what is the profit rate? That is, the difference between revenues and expenses
The feasibility study also helps the business owner to set a clear “Business Plan”, and thus enables him to return to look at a list of goals again to measure the extent to which it can be achieved on the ground.
Now that we know the concept of feasibility study and its importance, we must make a successful feasibility study by following the following five steps:
Market feasibility study, through which market requirements are identified and competitors analyzed and the target group of consumers as well as prices
Technical feasibility study, through which the employer determines:
The appropriate location for the project and the most important characteristics that should be available on this site
The number and specifications of the required labor
Goods, commodities or raw materials required
Required technology, does it need specific hardware, software or applications?
Financial feasibility study, in which statistics are made of the expected expenses and revenues, so the business owner can determine the capital that must be started.
An executive feasibility study in which the administrative structure and employees and the growth and expansion plan for the project are determined
Recommendations are the most important of what came in the feasibility study and in which the steps or strategy to be followed in order to achieve the goals are determined.
Of course, not everything that came in the feasibility study will be accomplished