Feasibility study: your key to planning a successful project
Posted on Jul 22, 2022 at 06:07 PM
One of the essential factors on which the Executive Officer relies before giving the green light to initiate a project is the feasibility study of the project's dimensions and its likelihood of success or failure.
Especially if the cost of implementing such projects amounts to thousands of dollars and millions, then you can't get away with predicting how likely this project is to move forward and return profits beyond the capital that has been made to accomplish it.
Whether you are preparing to carry out your new business or as a CEO of a leading company. You must first learn about the origins of the feasibility study and its implications, as well as the methods of feasibility studies and the importance of each in ensuring the success of your projects.
Given your need for synergies that support you in the proper decision-making process, we have prepared a detailed explanation for all the information you need about the feasibility study process. All you need is to track our article and so on to be fully ready to study the feasibility of your upcoming projects.
What is the feasibility study concept?
We can describe a project feasibility study as a report as an assessment of the strengths and weaknesses of the proposed projects, together with a preliminary analysis of factors relevant to the project, such as economic, technical or legal considerations.
The feasibility study can finally determine whether these proposed projects are suitable for investment or the opposite, as well as their ability to determine the project's success and identify issues or problems likely to arise during the project's implementation process, as well as the expected and hoped-for targets.
So once the feasibility studies are completed, you will be able to fully understand all aspects of the project and assess whether or not the project's implementation will yield results.
In short, feasibility studies can answer the two most important questions that are expected to be asked before the project plan is activated:
- Does the company have the tools and resources to complete the project?
- Are the project's expected revenues worth pursuing?
How does the importance of preparing a feasibility study manifest?
When you think about executing a project that you think will represent good revenue and returns on your company, you first have to start studying the feasibility of the proposed projects due to several reasons, most notably:
- Contribute to building a comprehensive picture of why you are implementing or objecting to the idea of the project.
- Raise the focus of the project team.
- These studies provide valuable information on the post-implementation phase.
- Potential returns from your investment for this project.
- Determine the success level of the project.
- Cost management.
What are the basics of a feasibility study?
Now you must realise how vital a feasibility study is for the project that you are about to start to boost the expected returns from this project. Still, before preparing it, you must keep the following considerations and components in mind to reap the desired benefits.
- Project induction page
This component is one of the essential ingredients for preparing a feasibility study for any project, mainly as it represents the entire project as the first thing to be seen by a company official.
Try to clarify the idea and meaning of the project and include the name of the project leader and the task force involved in its implementation.
- Table of contents
The table of contents aims to provide the feasibility study reader with the essential sections contained therein and also plays a vital role in facilitating access to any of these sections.
But we recommend that you write it after completing the project's feasibility study to ensure that page numbers coincide with the headings of the sections. Also, you can use the text editor to quickly and effectively prepare this component.
- Economic feasibility study
The expected profits must be determined after the implementation of the project and accompanied by a study of the project's economic costs through the introduction of investment information and the required tools and equipment.
- Marketing Feasibility Study
The marketing feasibility study is the second most crucial component of the feasibility study, primarily as it will provide a future picture of the success of the project's marketing plan or the contrary.
While conducting marketing feasibility studies for your project, try to mention your best competitors, the primary sources of your revenue and the proposed procedure to expand your customer base.
- Technical feasibility study
Prepare technical plans through which the expected continuity of projects is achieved. This is done after learning about all the factors that help you fill all the project's gaps and continue to secure and provide first-class services and products to your customers.
- Executive conclusion
This summary takes into account knowledge of all aspects of the project in a simplified and concise manner, so you need to take good care of this component because it is the critical element of the administrator's decision on the implementation or cancellation of the project.
How to write a feasibility study?
You may not have the task of studying the feasibility of the project. Still, as the company's lead manager and everything related to it, you are expected to be called upon to clarify the feasibility study of the project and the technology on which it is based. Hence, you must learn about all the steps to establish the feasibility study.
Here is a comprehensive guide to how to create and study feasibility. This guide will lead you to prepare a feasibility study for all your company projects step by step.
1- Conduct a primary analysis:
Before you study the feasibility of your projects, make sure you don't have any barriers or obstacles you can't overcome.
For example, suppose a project activity-based costing is disproportionate to the capacity of your financial institution. In that case, it will often not be able to complete the project's implementation, so there is no need to examine the feasibility of that case.
2- Describe your project:
He highlighted the project's main objectives and the core components we mentioned earlier, including the study of marketing feasibility, technical feasibility and executive summary.
3- Identify the weaknesses of the project:
After fully describing the project and completing all the required components, find any discrepancies between the above items. For example, ensure that income returns studied in economic feasibility align with market analyses done in marketing feasibility.
4- Suggested solutions to address weaknesses.
If you discover complex problems resulting in the project's systems and plans not proceeding as required, discuss with your team some possible solutions to ensure the desired benefits from your investment operations.
In conclusion,
The feasibility study is a crucial step to evaluating the all-important business in your company if done correctly.
So if you have previous experience with project feasibility study strategies, you can set your sights on this article to enhance your information and ensure that your project feasibility study is completed with the desired effectiveness.
If you want to create practical expertise in feasibility studies and their foundations, we will direct you to attend short training courses in London on investment and entrepreneurship.
