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Feasibility reports

When to use a Feasibility Study?
The purpose of a Feasibility Study is to identify the likelihood of one or more solutions meeting the stated business requirements. In other words, if you are unsure whether your solution will deliver the outcome you want, then a Project Feasibility Study will help gain that clarity. During the Feasibility Study, a variety of 'assessment' methods are undertaken. The outcome of the Feasibility Study is a confirmed solution for implementation A Project Feasibility Study is an exercise that involves documenting each of the potential solutions to a particular business problem or opportunity. Feasibility Studies can be undertaken by any type of business, project or team and they are a critical part of the Project Life Cycle. At this stage the client’s business needs are analyzed, information about project participants is collected, and the requirements for the system are gathered and analyzed. The client’s expectations for system implementation are studied and the proposed solution is offered. During the Feasibility Study stage, the project’s goals, parameters and restraints are agreed upon with the client including:
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Project budget and rules for its adjustment; Project time frame; Conceptual problem solution. The following tasks are performed at this stage:  The project feasibility is estimated and the project scope is defined;  Risks and benefits are identified;  The project structure is elaborated;  The project is roughly planned;  The next project stage is planned precisely;  Cost of the next phase is evaluated precisely and cost of the other phases — approximately;  Functionality development priorities are defined;  System creation risks are estimated. At the end of this phase the following documents are available:  Feasibility Report — description of the proposed solution and list of high-level functional requirements;  Project Structure> — description of the project organization;  Project Plan — project schedule;  Risks List — list of potential project risks and possibilities of their elimination. Feasibility studies address things like location, raw material availability, connectivity, availability of natural resources, like water etc. They provide in-depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plan.
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The information we gather and present in your feasibility study will help you: List in detail all the things you need to make the business work; Identify logistical and other business-related problems and solutions; Serve as a solid foundation for developing your business plan. Feasibility study will help to find a cost-effective way to set up the plant. This is especially important when operating cost plays the dominant role for survival.

The Components of a Feasibility Study: Description of the Business: The product or services to be offered and how they will be delivered. Market Feasibility: Includes a description of the industry, current market, anticipated future market potential, competition, sales projections, potential buyers, etc.  Technical Feasibility: Technology selection, Raw material availability, Grid connectivity, Water
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The information we gather and present in your feasibility study will help you:  List in detail all the things you need to make the business work.  The next project stage is planned precisely.  Conceptual problem solution. Market Feasibility The client's business needs are analyzed. Road and rail connectivity etc. Raw material availability.  Functionality development priorities are defined.  Project time frame. returns on investment. The client's expectations for system implementation are studied and the proposed solution is offered. and the requirements for the system are gathered and analyzed.  Serve as a solid foundation for developing your business plan. the project's goals.  The project structure is elaborated. Grid connectivity. This is especially important when operating cost plays the dominant role for survival.  Cost of the next phase is evaluated precisely and cost of the other phases approximately. The following tasks are performed at this stage:  The project feasibility is estimated and the project scope is defined. Feasibility study will help to find a cost-effective way to set up the plant.  The project is roughly planned. Water availability. parameters and restraints are agreed upon with the client including: Project budget and rules for its adjustment. availability. availability of natural resources. During the Feasibility Study stage. and serve as a valuable tool for developing a winning business plan.  Identify logistical and other business-related problems and solutions.  System creation risks are estimated. sources of capital. .  Risks and benefits are identified.  Technical Feasibility Technology selection. Financial Feasibility: Projects how much start-up capital is needed. etc. They provide in-depth details about the business to determine if and how it can succeed. like water etc. Feasibility studies address things like location. information about project participants is collected. connectivity. raw material availability. Road and rail connectivity etc.

feasibility and effectiveness of a proposed investment opportunity. Feasibility Report is a detailed study that examines the profitability. the entrepreneur has to estimate initial capital outlay and decide on where and how to raise the funds. A Feasibility Report is simply a Business Plan. Related Articles on Feasibility Report Sample/Format o o o o o Why Do You Need A Business Plan? Outline Of A Detailed Business Plan Planning For Success: Writing A Good Business Plan 9 Major Areas To Be Covered By A Good Feasibility Report Feasibility Study – What Needs To Be Taken Into Account? . the entrepreneur can decide to accept or reject the project. should be prepared before one undertakes any business or expands the existing one. a business may head towards failure if corrective measures are not taken in time. etc.  Financial Feasibility Projects how much start-up capital is needed. The report. Without proper planning. sources of capital. no matter how elaborate. i’ll like to discuss how to write a good Feasibility Report with a good feasibility report formattoday. How to Prepare a Good Feasibility Report with Format Posted in Entrepreneurship by Olufisayo Since good planning is a pre-requisite for survival and success of any business. Feasibility Report can be prepared by the prospective investor or consultancy firms who charge fees depending on the value of the project and how elaborate is the proposed investment opportunity. If the project is viable and acceptable. returns on investment. Based on the Feasibility Report.

o o To assist the entrepreneur in developing future plans for the organization. Management Team 5. Financial and Economic Analysis and Marketing plan. Introduction 2. Technical Specifications and Production plan 6. o To provide the basic information for effective decision making with respect to the proposed investment. Market consideration – A preliminary Evaluation 4. Teams. Management. Examination of the critical risks and problems 8. By showing the market potentialities. the feasibility report enable the entrepreneur to accept or reject the project. the major areas covered by a feasibility study can be divided into nine major areas namely: 1. In other words.The Uses of Feasibility Report The Feasibility Report can be used by the entrepreneur in the following areas: o To meet the stipulated requirements of financial institutions. Evaluation and conclusion . banks and other financial institutions giving loans to start a business executives demands for a Feasibility Report of the proposed investment. Description of the business 3. For instance. However. To serve as the basic for measuring the performance of the proposed business. Components of a Feasibility Report No two feasibility studies have identical components. Financial and Economic plans 9. there are certain critical aspects that must be present in a good feasibility report. Below are the feasibility report format A typical feasibility report format is as below: The nature of the business. Marketing Plans 7. technical and financial implications of the proposed opportunities.