Feasibility study
Feasibility studies Factors
• Internal factors: These factors include the financial feasibility study of the project, the product or service that will be provided, the target market, the operational feasibility study of the administrative team, the operational feasibility study of the machinery and equipment, the initial costs, and the necessary infrastructure.
• External factors: These factors include an economic feasibility study for projects and a feasibility study for social, political and technological projects. It is preferable to resort to the best feasibility studies company for projects in order to request a feasibility study to reach informed decisions based on thoughtful information.
The feasibility study consists of:
• Study the demand market to determine the expected volume of demand
• Study the supply market to study competitors and abundance in the market
• Study the legal requirements and their financial impact
• Study the project techniques, including requirements, tools, systems, human factors, and their financial impact
• Financial study of the project to determine the capital and operational costs and expected returns
What is the benefit of a feasibility study?
• It is a response to very important questions and inquiries, the most important of which is in a simplified manner: Is there a gain or loss and what is the percentage of this gain from what you invested?
• Is this satisfactory to me?
• Are profitability ratios consistent with similar activities?
• When will I be paid back what I invested in this project?
The rational investment decision must be preceded by studies that show the existence of a sufficient market in which the project’s production is disposed of, whether commodity or service production.
