Preparing a Feasibility Study

What is Feasibility Study Preparation?

Feasibility study is a comprehensive study that evaluates the economic, technical, financial and legal feasibility of an investment project. This study plays a critical role in making project decisions and provides detailed information to managers and investors about whether the project will be implemented or not.

Feasibility Study Preparation Stages

1. Project Description and Objectives:

   • General description of the project
   • Aims and objectives of the project
   • Project scope and boundaries

2. Market Analysis:

   • Determining the target market
   • Market size and potential
   • Competitor analysis
   • Market trends and consumer behavior

3. Technical analysis:

   • Determination of technological requirements
   • Description of the production process and methods
   • Raw material and material requirements
   • Facility location selection and infrastructure analysis

4. Financial Analysis:

   • Calculation of project costs (fixed and variable costs)
   • Income and expense projections
   • Profit and loss analysis
   • Cash flow analysis
   • Turnaround time and profitability analysis
   • Determination of financial sources

5. Environmental and Social Impact Assessment:

   • Analysis of the environmental impacts of the project
   • Assessing social impacts
   • Sustainability and environmentally friendly practices

6. Risk analysis:

   • Determining possible risks related to the project
   • Assessing the probability and impact of risks
   • Development of risk management strategies

7. Legal and Regulatory Analysis:

   • Determination of legal and regulatory requirements related to the project
   • Analysis of required permits and licenses
   • Planning legal compliance processes

Feasibility Study Preparation Process

1. Data collecting:

   • Collection of all relevant data
   • Literature reviews and sectoral analyzes
   • Interviews and surveys with relevant stakeholders

2. Data analysis:

   • Analyzing and evaluating the collected data
   • Use of relevant analysis methods (e.g. SWOT analysis, PEST analysis)

3. Reporting:

   • Reporting analysis results
   • Presentation of findings and recommendations
   • Writing and presenting the study report

The Importance of Preparing a Feasibility Study

1. Investment Decisions:
   • It helps make investment decisions by evaluating whether the project is feasible or not.
2. Risk management:
   • It enables potential risks to be identified and managed at an early stage.
3. Effective Use of Resources:
   • It contributes to the correct and efficient use of resources.
4. Strategic planning:
   • It allows strategic planning to achieve project goals.
5. Investor Confidence:
   • A detailed and professional study increases investors' confidence in the project.

Feasibility Study Report Content

1. Summary:

   • Project description, goals and objectives
   • Key findings and recommendations

2. Market Analysis:

   • Market size and potential
   • Competition analysis
   • Market trends and consumer behavior

3. Technical analysis:

   • Production process and technological requirements
   • Facility location and infrastructure analysis

4. Financial Analysis:

   • Project costs and financial projections
   • Profit and loss analysis
   • Cash flow analysis

5. Environmental and Social Impact Assessment:

   • Environmental impacts and sustainability
   • Social impacts and social benefits

6. Risk analysis:

   • Identification and management of risks

7. Legal and Regulatory Analysis:

   • Legal requirements and compliance processes

8. Conclusion and Recommendations:

   • General evaluation of the project
   • Recommended steps and strategies

The Importance of Preparing a Feasibility Study

• Investment Decisions: It helps to make investment decisions by evaluating whether the project is feasible or not.
• Risk Management: Enables potential risks to be identified and managed at an early stage.
• Effective Use of Resources: Contributes to the correct and efficient use of resources.
• Strategic Planning: Allows strategic planning to achieve project goals.
• Investor Confidence: A detailed and professional study increases investors' confidence in the project.

Feasibility Study Report Content

1. Summary:

   • Project description, goals and objectives
   • Key findings and recommendations

2. Market Analysis:

   • Market size and potential
   • Competition analysis
   • Market trends and consumer behavior

3. Technical analysis:

   • Production process and technological requirements
   • Facility location and infrastructure analysis

4. Financial Analysis:

   • Project costs and financial projections
   • Profit and loss analysis
   • Cash flow analysis

5. Environmental and Social Impact Assessment:

   • Environmental impacts and sustainability
   • Social impacts and social benefits

6. Risk analysis:

   • Identification and management of risks

7. Legal and Regulatory Analysis:

   • Legal requirements and compliance processes

8. Conclusion and Recommendations:

   • General evaluation of the project
   • Recommended steps and strategies

Conclusion

Feasibility study is a critical step for the successful implementation of investment projects. This study comprehensively analyzes the economic, technical, financial and legal evaluability of the project. A detailed feasibility study provides important information for investors and managers regarding the success and sustainability of the project.