How do I do a feasibility study for a project? The feasibility study is the first step when planning the implementation of any project, whether it is small or medium-sized, and it is necessary to implement it before creating the project, because of its paramount importance, as it guides the owner of this project and knows the extent of its success or failure before spending any money on it Through this study, you also get to know the market situation, and in this article we will answer all your questions, perhaps the most important of which is how to do a feasibility study for a project and what are the best companies that will benefit you in that study.
How do I do a feasibility study for a project?
Many people who want to implement their own projects wonder what are the steps that precede the establishment of the project so that they can make money through it.
Let us answer that, which is the feasibility study. It is the guiding guide for any project. Through it, you can identify the market need for products and services, the volume of supply and demand, and competitors such as your project and target customers, and through this study, you will know whether the market needs this project or not.
Through this study, you can also learn about the following:
First, the technical elements related to the project such as space, location, equipment, licenses and necessary equipment, in addition to knowing the extent of your need for labor and the costs of each of the above.
Secondly, the financial elements of the project, which include the costs of establishment and operation, the expected revenues and profits of this project, and others.
As for how the feasibility study of projects works, the majority of project owners resort to offices or companies specialized in this field, and they pay in return huge sums of money, and it increases a lot if those projects are medium.
So imagine with me that you will find a lot of experiences about feasibility studies and how to prepare them efficiently and at an unparalleled price in one place called a technology company, but we are not here to promote ourselves, but we are here to answer you the question of how to do a feasibility study for a project on your own with ease, whatever its size or Its type is in the following lines.
Feasibility Study Basics
First: You must know what is the definition of a feasibility study, which is in a simplified form a study carried out by the owner of the project to know all the needs related to him from the smallest things to the largest.
Second: Knowing the basic elements of the feasibility study, which consist of:
The technical study.
Third: How to conduct a feasibility study through a market study:
This stage can be considered the most important of the three stages. Through this study, you can identify the volume of goods or services that the project will provide, determine the production capacity, the needs and desires of customers, and the gaps and opportunities that can be exploited.
The technical study:
The aim of this study is to know and determine the area of the site and the costs of the project headquarters from services such as energy, water and money, in addition to determining the need, costs and supplies of production, and determining the production stages in detail in the case of production projects.
As for how to conduct a technical feasibility study for the project, you only need to know the following in the following ways:
Specifications of the project site from the licensing body or those who have previously implemented the same project or even via the Internet.
Rental costs by visiting the site where he wants to implement the project, in addition to equipment and machinery by communicating with production line companies to find out the average prices.
Salaries of employees by asking workers in the same jobs and perhaps owners of the same projects or through electronic recruitment sites.
It is the most dangerous stage of the feasibility study, through which the profits and revenues of the project are identified. Accordingly, the investment decision is taken, either to implement the project, cancel it, or reconsider it.
It is worth noting that the results of the financial study are the harvest of the market study and the technical study, as it depends greatly on their results.
Simplified feasibility study
The feasibility study is the engineering of the project and the subsequent financial and economic studies are the starting point, whether the project is small or large, governmental or private, new or expansion.
The models and methods through which investors conduct a simplified feasibility study differ from one project to another, but they all agree on
The basics of the feasibility study that we have already mentioned, in addition to an important and necessary stage, which are:
Environmental and Social Study:
It is one of the important factors, especially in major industrial projects, which have an impact on the surrounding environment, where the results or social effects of the project must be evaluated in order to achieve the best use of material and human resources in order to achieve economic development.