How is a project feasibility study done? Feasibility studies are one of the important tools that are used in any project to reach the best possible result from economic resources and measure the extent of the expected profit returns compared to the costs spent from the project’s capital. Therefore, it is highly preferred to conduct a feasibility study due to its importance for any project. An economic project, and in this article, we will learn together, dear reader, how to conduct a project feasibility study.
How is a project feasibility study done?
The concept of the feasibility study can be defined as that study that must be carried out before starting any project without regard to the size or type of the project, and the feasibility study mainly depends on two steps that complement each other.
They are if the project is profitable and feasible, then they move to the next step, which is how to implement the project and the steps for its implementation in detail.
As the main objective of the feasibility study is to explore the market, competitors, and other projects within the same field, and realize the extent of the chances of success or loss of the project.
Thus, the feasibility study helps you understand the feasibility of working on your project, and if you do not succeed in a good feasibility study, this may lead your project to a dangerous stage that may lead you to failure.
Therefore, you can use one of the companies that work in this field as a distinguished technology company that has a high degree of skill and professionalism in how to conduct various feasibility studies, and not only this, but the technology company provides thousands of other electronic services that are in the interest of the customer.
The company also provides administrative and economic consultancy for factories, companies, development and investment fields, in addition to various sectors such as the health, education and tourism sectors.
The technology company is also characterized by the implementation of a comprehensive feasibility study that achieves the customer the best possible profit rate, with the availability of alternative plans in the event of the project’s low efficiency for any reason.
In addition to the amazing prices that it provides to all customers, because it realizes the extent of the responsibility that falls on anyone who thinks about implementing a project, and this is what made it the first destination for every project owner who wants his project to succeed.
We are here to provide you with the most important tips that will help you when doing a project feasibility study and not to promote ourselves, so we will answer the most important question that may come to your mind when thinking about creating a project, which is how to conduct a project feasibility study.
project feasibility study
There are different ways and models through which project owners carry out the feasibility study, but they agree on three stages and steps necessary to implement an integrated project feasibility study covering all its aspects. These stages are as follows:
First, a study of the market targeted by the project:
The focus on the feasibility study and market assessment aims very accurately to determine the extent of the project’s success under market conditions, and to know the extent of the target sector and the nature of competition within the market.
In addition to the profit margin within it, the importance of the products or services provided by the project to the market and consumers, and other criteria that must be taken into account.
This step aims to help the project owner to understand the nature of the market and to know the demand for the goods or services that the project will offer in the market.
Second, determine the products or services to be provided by the project:
This step immediately follows the study of the target market or sector, as it reveals to us the extent to which consumers desire the product or service offered by the project, in addition to identifying the basic resources for the production of goods or how to provide the service.
This study confirms whether consumers have the ability to obtain the products or services provided by the project, in addition to evaluating the project’s ability to achieve the desired goals of its implementation, by collecting all information related to the project.
Third, the financial analysis of the project:
This is the final step of the feasibility study steps before starting the implementation process, as it aims to know the extent to which the project can be implemented and its financial success, by conducting several financial studies and analyzes where the focus is on three elements at this stage:
Capital: In this element, all necessary initial costs are covered, such as licenses, equipment, construction costs, required labor, and others.
Estimated profits of the project: This element is determined after the evaluation of the capital, where the expected profits to be obtained through the project are determined.
The expected return from the project: After the completion of the previous two elements, the estimated profits from this investment are determined, as they represent a basic criterion for taking the decisive decision in launching the project or resorting to an alternative plan for the project from a financial point of view.