Feasibility Study (Ready-Made Feasibility Study Form Pdf)
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Studying the feasibility of your idea is the first step you need to take when a business idea comes to your mind! And that is until you decide whether the project is worth the investment? Will you start taking action to implement the project if it turns out that the idea is successful, or will you completely exclude the project if it turns out otherwise? Doing a feasibility study is necessary even for small projects with limited budgets, and you can adopt the option of a ready-made feasibility study template to facilitate the task.
Whether you want to know how to complete the feasibility study yourself, or simply want to use a ready-made form with all the details to fill in your project data, in this article you will find what you are looking for.
The importance of a feasibility study
A project feasibility study is the process of collecting information about a proposed project and then analyzing it to find out the possibility of its implementation, and to reduce the risks and profitability of the project. Therefore, it is necessary to know the extent of success or loss of this project compared to the local market and its needs, and then expect its ability to survive as a profitable business.
Good preparation for the economic feasibility study is one of the most important steps for project success. The success of any commercial activity depends primarily on proper planning, and careful planning is the basic pillar on which the expected financial return from the project depends. Hence the need for an economic feasibility study.
How to do a feasibility study
Without the need for any ready-made template, you can complete the feasibility study of your project by yourself, knowing that the models and methods through which investors perform the feasibility study differ from one project to another, but they agree on four basic and necessary stages for building an integrated study that covers all its aspects, including marketing and technical feasibility. And financial feasibility:
First. The technical study
This study includes a detailed description of the project and the product or service that it will provide, and the required requirements for machinery, equipment, and labor, based on the volume of production to be achieved, as well as a market study for the product, meaning that this study answers the following questions:
* What product / service will the project provide?
* What is the size of the demand for the product / service?
* position of competitors in the market?
* What is the comparative advantage of your product/service?
After completing the technical study, the second stage comes, which is the financial study, which provides the financial details of the project in terms of the financial capacity required for the project, based on the expected costs of operation, production and marketing, and the availability of those funds, whether from direct investment or resorting to borrowing after studying The amount of interest on the loan, meaning that this study answers the following questions:
* What is the amount of capital required to start the project?
* Is the required capital available or does it need external financing “a loan”?
* What is the price policy for the product or service?
* What is the expected sales volume?
* What is the expected time period to reach the break-even point (profit – loss)?
* What is the rate of return on investment?
* Third: Market study
One of the most important steps in the feasibility study is the market study of the project. Unfortunately, many people make the mistake of neglecting this step or dealing with it without the required attention. This study helps us to identify:
* Determine the market targeted by the project through the product / service.
* Identifying customers’ desires for the product/service provided by the project.
* Identify the target customers in terms of their number, quality, purchasing power and purchasing patterns.
* Determine the style and selling points of the product / service.
* Identify competitors, in terms of their strengths and weaknesses.
Fourth: the environmental and social study
Among the important factors, especially in major industrial projects, which have effects on the environment and society, comes the importance of studying the community’s need for this project, as well as its impact on the surrounding environment. Therefore, the social effects of the project must be evaluated in a way that achieves the optimal utilization of material and human resources to ensure the achievement of economic development to ensure Providing community needs at the present time, taking into account the protection of the environment and the preservation of the rights of future generations of natural resources.
Fifth: Legal study
This study is concerned with studying the regulating laws and legal procedures for the establishment of the project, and ensuring that the project does not conflict with any of the laws regulating work in the city or town in which it will be established, so as not to be exposed to legal violations in the future that may cause the closure of the project or at least the imposition of fines on it, and Which may cause huge losses.
Sixth: risk assessment
After completing the previous five steps, you must assess the risks that the project may be exposed to, so that you are ready to face them in the event that any of them materialize and limit their negative effects on the project. Therefore, you must prepare the following:
1. Prepare a list of potential risks.
2. Develop the plan that you will follow to manage the risks in the event that any of them occur, God forbid.
After completing the preparation of the feasibility study, you must put that study into effect, i.e. develop an operating plan for the project, which we will discuss in the next article.
Prepared feasibility study template pdf
The following is a ready-made feasibility study for almost any small or medium project. You just have to fill in your project data on it so that you can have a complete study of your project with ease and without incurring the costs of consulting offices. We put in your hands a ready-made template for modification: The ready-made template.
Practical guide for preparing a complete study (model + instructions)
Preparing a comprehensive feasibility study is a time-consuming and often expensive process if you assign it to an office that specializes in preparing feasibility studies. If you want to save time and money and try to prepare it yourself, you can use the following guide: Complete application guide
After completing the steps of preparing the feasibility study, an integrated and clear operational work plan must be drawn up, and the feasibility must be scheduled, i.e. setting the project in a framework, and estimating the time period required for its completion.