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Feasibility study of projects

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08 Nov 2020

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Feasibility study of projects

Feasibility study of projects. Unemployment rates in our society have become high, which gave young people an incentive to search for small projects to start their life with, so you find young people today racing to feasibility studies for many projects in order to choose the appropriate project for them to set up, as the feasibility study throws The light on all aspects of the project, including costs, technical, financial, and economic studies, and market studies, so this study is an actual study in order to help young people on how to start the project while they are on fixed land, working and knowing what they do, unlike those who start the project without a feasibility study, they work without plans and often fall at the first obstacles Because they are not fully aware of the project.

How to determine costs with the feasibility study

The costs fall into three components and they are

Institutional costs, which are one-time costs, such as issuance of certificates and licenses necessary for the project, and these costs cannot be recovered after that.
Capital is financial, and it is those costs that accrue to the purchase of assets such as land, equipment, machinery and buildings. Those costs are one-time costs that can be recovered or can be replaced.
Operating costs, which are the costs used in the production process, such as purchasing raw materials, electricity and water consumption, workers’ wages, and other such costs.

Feasibility study of projects

The first step is to study the market to know the quality and prices of competing products
And knowing the size of supply and demand in order to determine the production capacity of the project and then determine the sales operations.

The second stage is the technical study, which determines how to build the project
And where will the project work, which includes buildings, devices, machines, and the necessary specifications for those buildings and machines?

The third step is the operational study, which is the cycle of the product or service of the company from the purchase of raw materials through the beginning of manufacturing to the end of the product and its exit to the consumer.
The fourth step is the economic study, which is responsible for all costs and is also responsible for the volume of revenues and profits of the project, which is what the project owner decides to implement or cancel.
Any feasibility of a project depends on the type and size of the project, and it is better to approve the feasibility studies for large or medium projects from the offices dedicated to the work of such studies, as they have the necessary cadres and expertise in this field.

Feasibility method

Before the start of any project, if this project is large, small, or medium, it must have a feasibility study, which includes some points that you must know, which are four indispensable points, the capital to start with, knowledge of the market needs, and technical study in light The capital that you have, and the type of project, to determine the type and size of labor required, as these are of great importance for the success of any project. Watch here

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Technical Economic Consulting Company was established in 2012, it was established by a team of investment professionals to become one of the leading investment companies to provide the best management consulting services to local international companies and institutions. Since its inception, the company has continuously expanded to become one of the largest leading consulting firms in the region through its branches located in the Arab world as well as representative offices in Europe.

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