Entrepreneurship feasibility study, good planning is one of the most important steps that achieve success for any project, as proper planning ensures its success and effectiveness as well as the expected good financial return. It was possible to proceed with the project to be implemented or not.
Entrepreneurship feasibility study
The feasibility study is the process of collecting information about the proposed project, then analyzing it in order to know the possibility of implementing it on the ground, as well as working to reduce the risks that it may be exposed to, and obtaining the highest possible profit.
It is the matter that enables the evaluation of the success or failure of the project in comparison with the local market and its requirements, and the feasibility study includes studying the market in terms of financial and technical aspects of the project.
Any project owner or company can carry out the feasibility study on their own without resorting to a specialist.
Or use one of the companies specialized in carrying out the feasibility study, and one of the most prominent of these companies is the Technology Company to carry out all kinds of feasibility studies for various commercial, industrial and service projects.
Explanation of a feasibility study
There are various models and ways in which investors conduct the feasibility study, but there is no doubt that all models agree on three necessary and basic stages or steps to build an integrated feasibility study covering all aspects of the project. These stages are:
Study the market or sector targeted by the project.
Analyzing the service or commodity that the project will provide.
Financial analysis of the project.
Therefore, feasibility studies are one of the most important aspects of business development, as they help companies to employ or direct their resources in a simplified manner, and to identify obstacles that may disrupt their normal daily operations.
And the formation of new marketing strategies that will help build a successful brand, and most importantly, they give the owner of the company a deep insight into the amount of funding he needs to keep the business going.
Some of the main benefits of a feasibility study are:
Determine opportunities Entrepreneurship feasibility study .
Improve team members’ focus.
Identifies the right reasons for undertaking the project.
Enhance the project’s success rate by evaluating various criteria.
Provides basic information about the project.
Help in decision making.
Determine the reasons for not continuing the project.
Preparing a feasibility study
You will need to study the main elements when preparing a feasibility study while these are all required to conduct a study, and may sometimes focus mostly on one single element or a combination of a few.
This component focuses on testing the market for the proposed business or idea, and examines problems such as whether the service or product can be sold at reasonable prices, or if there is a market for it.
The market feasibility study should answer the following questions:
What are the target market sectors?
Why do people buy the product or service offered by the project.
Who are your potential customers and how many.
Where and how you will sell the product or service.
What are the strengths and weaknesses of your competitors?
Who are your current, former or future competitors?
What is the competitive advantage of your service or product?
This element addresses the technical feasibility of the proposed business plan. If your organization is offering a new product or service, the technical feasibility study will determine whether this is technically feasible.
This part of the feasibility study should answer these questions:
What is the proposed service or product?
How can you protect your product or service from competition?
What are the strengths of the product or service?
What are the resources required to produce or provide it.
What is the company’s ability to obtain these resources?
What are the main benefits to customers or consumers.
Is the product or service actually for sale, and if not how far it is from the current market and how much does it cost to apply.
It is one of the elements of the study that focuses on the possibility of commercial success. It mainly focuses on studying a new business, a new product or service, and whether the institution or company can make sufficient profit through it.
This study includes the following questions that you must answer to ensure the effectiveness of the commercial feasibility study, namely:
What is the return on investment?
What are the potential sales volumes of the service or product?
What is the pricing policy that you will follow?