Feasibility Study
A feasibility study is an initial stage assessment of a project to determine its viability. It involves analysis based on market, technical and financial perspective. Feasibility study serve investors to assess generation of sufficient cash flows to ensure stability of new business or expansion of a business segment.
Why it is necessary to conduct Feasibility Study?
Technology is bringing rapid innovation, that could render existing business venture obsolete due to highly competitive environment. Further, market and financial analysis showing consumer trend, competitors' behavior, cost of doing business, gestation period, funds management, pertinent laws or regulations and other like factors shed an essential light over project keep running.
Consumer preferences changes with new product choices and cost vis-à-vis quality matrix, that could render even a well-known brand under category of Question Mark / Dog Products in BCG Matrix.
Therefore, before making an investment decision, above stated considerations is a key for any investor to open up a proposed project.
Phases of Feasibility Study:
Schedule Stage
This phase involves market study of below factors:
- At this phase, the time frame to set up a project is determined.
- Timeline to make a project operational is essential as the market is very dynamic.
- Unusual delays can entirely change the basis on which detailed feasibility study is conducted.
Market Analysis
This phase involves market study of below factors:
- Prevailing and future market conditions.
- Dominant market players, and bridging gap with their strengths and weaknesses.
- Comparison of product/service to launch with the existing products/services, in terms of features, pricing, delivery channels, consumer response and value addition for target customers.
Financial Study
This phase involves market study of below factors:
- Cost of start-up and legal expenditures
- Capital and operational cost.
- Profitability and expected Return on Investment (ROI).
- Means to generate finance and financing costs.
- Cash inflows/outflows.
Technical Analysis
This phase involves market study of below factors:
- Hardware / Software requirement.
- Capital assets requirement.
- Manpower requirements of skilled and unskilled labor.
- Accommodation of business expansion in existing facilities.
How we stand out as Project Viability Analyst
We understand that each phase of feasibility study requires a special skill-set to accomplish timely and effective studies of the market, technical and financial aspects; therefore, we have a team of experts who deal with each phase based on their relevant skill-set and experience.
We conduct a comprehensive assessment of all parameters to examine a project from stability and viability perspective, by taking into account the micro & macro-economic factors of the project to launch and its industry environment.
Our feasibility analysis report presents the expected financial and operational aspects of a project based on our in-depth studies and realistic assumptions.
