The important outputs of the feasibility study, the feasibility study is a necessary step in discovering and correcting errors properly and planning for them in the long term. In this article, we study what the feasibility study is, its importance, and what are the important outcomes of the feasibility study.
Important feasibility study outcomes
There is no doubt that the feasibility study is a very important thing in the field of work. It is a study carried out by the organization to evaluate the project from an economic point of view, and to know the extent of its success. This study aims to choose specific feasibility.
In order to make sure that the feasibility study of your project is effective, you must answer this question (should you proceed with the specific action plan), in addition to determining if the plan is feasible or not.
The use of the feasibility study also allows you to better understand the risks and prepare for them, as the feasibility study provides the achievement of a specific function, which is whether the business plan is viable or not.
The feasibility study includes several steps that can be summarized as follows:
Perform a preliminary analysis.
Determine the target market.
Examine the market and study the customers well in addition to knowing the weaknesses of your competitors within the market.
Determine the scope of the project.
Comparing your proposed product or service with those already on the market.
Understand the financial costs needed to implement the project.
Data review and analysis.
Economic feasibility study criteria
There are several foundations and criteria that must be taken into account when conducting an economic feasibility study, which is represented in the following elements:
Determine the motives, experiences, and personal qualities of the project manager, to ensure his ability to manage the project successfully.
Determining the type of market and whether it is a consumer or not and a market for new industrial goods, consumer goods or local goods, whether it is a local or external market, and what is the share of the new product in the market.
Identify different market characteristics.
Study the technical feasibility of the project in terms of the requirements and stages of production of the commodity as well as the fixed assets.
Assessing the degree of competition in the market, in addition to determining and making estimates for the number of competitors, and the size of the supply of similar products.
Determining the volume of potential customers for the products or services to be provided to the target market by the project under study.
As for how to implement the feasibility study, you can do it on your own, but you must browse the sites designated for this, or resort to one of your friends who have previously worked in the same field.
You can also rely on one of the companies specialized in the field of carrying out feasibility studies, thus ensuring the success of your project by a large percentage.
One of the best companies that have shined on the electronic services arena is the distinguished (Technology) company, which has a long experience in this field, as it has the best experts and specialists in carrying out all kinds of feasibility studies for various projects.
The technology company is also distinguished by its unparalleled prices, compared to the imaginary prices offered by similar companies, and this is what made the technology company the first interface for every novice investor or who has experience in the field of the feasibility study.
The importance of the feasibility study
The feasibility study aims to help institutions and companies avoid stressful projects that drain their money and energy, and therefore this study helps the institution in making important strategic decisions at work.
Including taking other decisions such as: renting a place, purchasing equipment or machines, contracting with employees and workers, or making developments and expansions in the company.
The feasibility study also achieves many positive benefits for the investor, the project, and the community.
First, the benefits for the investor are:
Enable the project owner to choose between the available investment opportunities and how to arrange them.
Showing the extent of the existence of new investment opportunities that need more analytical study.
The results of the feasibility study are for the investor as a guide, meaning that he can refer to it at any stage of the actual implementation.
Second, for the project:
The feasibility study shows the extent of the project’s ability to achieve the desired goals.
It helps to make decisions related to the establishment of the project, such as: erecting buildings, purchasing real estate, and supplying machinery.
Contribute to identifying sources of financing for the project, whether from loans or any external source.
Third for the community:
It helps provide a level of security for the invested funds.
Contribute to solving the problem of scarcity of resources to meet the growing needs of the public.
Overcoming failed projects by paying attention to the details and accuracy of the feasibility study report, which results in not wasting money.