How to properly do a project feasibility study
A project feasibility study is a study conducted by the owner of the project on his own or by one of the companies specialized in completing feasibility studies in order to study a new project or expand an existing project, to find out the feasibility of implementing the project and its success rate. The feasibility study shows the capabilities required for each project and its investment costs. Marketing opportunities, expected revenues and challenges.
The importance of project feasibility study
The objective of the feasibility study is to know the needs of the successful project in terms of costs and resources and its success rate in the short and long term. The feasibility study also helps to identify the points of opportunity available for the project and the points of expected challenges, and to develop plans to overcome them in order to reach the project for the greatest success rate in the future.
The economic feasibility study and the market study make it possible to know the expected risks in the future and develop an alternative plan in the event of their occurrence in order to get out with the lowest possible losses. The feasibility study also determines the project costs, spending and expected revenues.
Is a feasibility study necessary?
A project feasibility study is the basis for determining the success of any project or not.
The feasibility study is very necessary for any project and cannot be dispensed with, and any project must complete a feasibility study linked to a certain time to implement it in order to reach the main goal and achieve the highest possible profit return. Offices, companies and houses of expertise in marketing consulting and feasibility studies with great experience and good reputation can be used. Or to prepare a feasibility study yourself if you have experience and know a lot about your field, your competitors, your market, and how to satisfy your customers.
A feasibility study is the first step towards the success of the project, so do not skimp on spending money, time and effort in order to complete a feasibility study that defines the goals of your project in the short and long term and briefs you on all the details of the project before its implementation.
Before proceeding with the preparation of a detailed feasibility study for your project, you must first:
1. Classification of the project and its activities (service – commercial – agricultural – industrial – real estate…).
2. Determine the location of the project.
3. Identify partners according to their experience and qualifications.
4. Determining the legal form and structure of the company (individual project – limited liability company – closed joint stock company – open joint stock company in the Capital Market Authority).
5. Determining licenses and permits, their place of issue, their cost, and the time required to receive them to start the project.
6. Determine the specifications and features of the product or service provided.
7. Knowledge of the tax system, deadlines for submitting financial reports, and the specific percentage to be paid.
8. Steps for labor recruitment and insurance.
This was just a simple introduction to making a preliminary project feasibility study, and you can go deeper now and see how to prepare a project feasibility study in detail: Feasibility study
You may be interested in: You can download a ready-made feasibility study template with all the details to fill in your project data, and you can also download pre-prepared feasibility studies for different projects: a ready-made feasibility study + different project studies