''Good Business Intentions Can Sound Promising, But Without An Expert Assessment Of Feasibility It Is Naïve To Invest In Actions''
A feasibility study is an analysis and evaluation of a proposed business plan and business projects to determine its viability and/or action plan. In this a feasibility study should clarify at least the following aspects;
• technically feasible,
• implementation method (project management),
• able to realise within the given resources and budgets,
• adequate forecasted cash-flow and profits,
• meet the long-term business goals.
Feasibility studies are almost always conducted where it will be new plans, new business or new projects. In those situations, there is mostly an absence of references and experience, while considerable risks and sums are at stake. We, therefore, carry out feasibility studies at and for:
• new activities for an existing business; new products, new markets, new target groups,
• start-up business,
• buying an existing business (mergers and acquisitions),
• an expansion of current business operations,
• construction projects,
• CapEx financial investments (assets) projects,
• initiate an action plan or strategy approach,
• or to obtain an independent second opinion.
Reasons to do a feasibility study and research
Conducting a feasibility study as mainly desk research and if required some fieldwork is an excellent business method. Analyzing effective businesses, you will undoubtedly discover that they did not enter into a brand-new business endeavour without initial extensively examining all the issues, evaluating the possibility of business success and pinpoint potential pitfalls.
Below are various reasons to carry out feasibility studies
• only a small investment which is always valuable
• creates accessible and unambiguous information (that will also unite stakeholders)
• provides emphasis to the project and also outlines alternative options
• project management preparation as defining scope and project planning and design
• appoint critical Go/No Go decisions as well as point of no return and limits business decisions
• determines new possibilities through the investigative procedures
assesses factors not to continue
• improves the probability of success by addressing as well as mitigating risk elements
• offers high-quality information and details for decision making
• gives documentation that business venture is and was extensively examined
• aids in securing funding from loan providers and various other financial sources
• assists to attract financial equity investors.
The feasibility study is a crucial step in business assessment procedures. If appropriately carried out, it may be the most effective investment of business endeavour you ever could be made. Sayings as “look before you leap and “well begun are half done” justify investments in feasibility studies.
image: Feasibility study is an analysis of unavoidable requirements, opportunities, weaknesses, limitations and threats of the 6 main aspects
Prior to a business plan or if there is a further elaboration required of a particular section of the business plan (such for example: design and construction phase), we do research and prepare a report with issues like;
• environmental (stakeholders)
• technical (technology)
• legal and
** to given
** an elaboration with a specification of
• evaluation substantiated options
** resulting in conclusions
• the proposed approach
• risk analysis and mitigation
• a schedule / milestones
• (additional) terms
• (still to be made) desicions