Feasibility study of a project, you may sometimes ask yourself what is meant by a feasibility study and is it an important step when creating a project, and the answer is yes important, as it is a study carried out by the owner of the project with the aim of knowing what profits he may earn through the implementation of this project, as evidenced by those Study the costs that the project will need, whether in terms of time or money, and in this article we will learn together how to conduct a feasibility study for a project and what is meant by it.
project feasibility study
The feasibility study is a very important step that every entrepreneur must take when considering the establishment of his own project, so that he has the ability to determine whether he can proceed with the implementation of the project or stop and reconsider the review of this study.
Doing a project feasibility study is necessary even for small projects that sometimes do not need capital or have limited budgets, and you can adopt two options when making a feasibility in order to facilitate the task.
Whether you want to know how to complete the feasibility study on your own or simply, you can turn to a technology company specialized in providing economic and administrative consultancy in the various fields of investment and development, and various sectors such as the health, educational, tourism and other sectors, in addition to government and private companies and factories.
The company also provides many electronic services that achieve every project owner what he is looking for in terms of success and good financial profit, and the company is distinguished by conducting adequate feasibility studies for any project with the development of alternative plans in case the project is exposed to loss or to the stage of danger.
The company also provides all means of advertising on various social media, appearing in search engines and the first pages on the Internet, after conducting a feasibility study and implementing the project. The technology company provides all these services at a very limited cost and suitable for all project owners, especially beginners.
How to conduct a feasibility study for any project with explanation and detail
Feasibility work differs from one project to another, but it agrees on four basic and necessary for building an integrated feasibility study that covers all aspects related to the project and includes the marketing, technical and financial feasibility study, and the environmental and social study:
First, the technical study:
This study includes a detailed explanation of the product, service or project that you will provide and the needs necessary to implement it in reality, whether in terms of equipment, machines or labor, and that is according to the needs of the project and the volume of production to be achieved, and this study must finally answer the following questions:
What is the service or product provided by the project?
Putting competitors in the market?
What is the size of the demand for that service or product?
What distinguishes your product or service from Donna?
Second, the market study of the project:
This study is one of the most important steps of the feasibility study. Unfortunately, many project owners make the mistake of neglecting this step and not paying attention to what is required through it. This study helps you to identify:
Define the target market to offer your product or service?
Realizing the desires of customers in the product or service provided by the project.
Determine the method and methods of selling the product or service.
Get to know your competitors in the market in terms of their strengths and weaknesses.
Identifying the target audience in terms of numbers, quality, purchasing power and purchasing patterns.
Third, the financial study:
After the completion of both technical and market studies, the second stage comes the financial study, which provides all the financial details of the project in terms of the financial capacity that must be available to implement the project.
This is based on the expected costs of construction, production and marketing, and the availability of those funds, whether from direct investment or resort to borrowing, after studying the amount of interest on the loan, and this study answers the following questions:
What is the amount of capital required to start this project?
What is the price value of the product or service?
Is the required capital available or does it need external financing, such as a loan?
What is the expected sales volume?
What is the rate of return on investment?
Fourth, the environmental and social study:
This study is one of the most important factors, especially in large industrial projects, as it has effects on the environment and society, so the environmental and social effects of the project must be evaluated in a way that achieves the desired economic development from the implementation of this project.