What is Feasibility Study Preparation?
A 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 on whether the project will be implemented or not.
Feasibility Study Preparation Stages
Project Definition and Objectives:
General description of the project
Objectives and goals of the project
Project scope and boundaries
Market Analysis:
Determination of target market
Market size and potential
Competitor analysis
Market trends and consumer behavior
Technical Analysis:
Determination of technological requirements
Determination of production process and methods
Raw material and material requirements
Selection of facility location and infrastructure analysis
Financial Analysis:
Calculation of project costs (fixed and variable costs)
Income and expense projections
Profit and loss analysis
Cash flow analysis
Payback period and profitability analysis
Determination of financing sources
Environmental and Social Impact Assessment:
Analysis of environmental impacts of the project
Assessment of social impacts
Sustainability and environmentally friendly practices
Risk Analysis:
Determination of possible risks related to the project
Evaluation of the probability and effects of risks
Implementation of risk management strategies development
Legal and Legislative Analysis:
Determination of legal and regulatory requirements related to the project
Analysis of necessary permits and licenses
Planning of legal compliance processes
Feasibility Study Preparation Process
Data Collection:
Collection of all relevant data
Literature reviews and sectoral analyses
Interviews and surveys with relevant stakeholders
Data Analysis:
Analysis and evaluation of collected data
Use of relevant analysis methods (e.g. SWOT analysis, PEST analysis)
Reporting:
Reporting of analysis results
Presentation of findings and recommendations
Writing and presentation of the study report
Importance of Preparing a Feasibility Study
Investment Decisions:
Helps in making investment decisions by evaluating whether the project is feasible.
Risk Management:
Ensures that potential risks are 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
Summary:
Project definition, objectives and targets
Important findings and recommendations
Market Analysis:
Market size and potential
Competition analysis
Market trends and consumer behavior
Technical Analysis:
Production process and technological requirements
Plant location and infrastructure analysis
Financial Analysis:
Project costs and financial projections
Profit and loss analysis
Cash flow analysis
Environmental and Social Impact Assessment:
Environmental impacts and sustainability
Social impacts and societal benefits
Risk Analysis:
Identification and management of risks
Legal and Regulatory Analysis:
Legal requirements and compliance processes
Conclusion and Recommendations:
General evaluation of the project
Recommended steps and strategies
Importance of Preparing a Feasibility Study
Investment Decisions: It helps in making investment decisions by evaluating whether the project is feasible or not.
Risk Management: Ensures that potential risks are 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
Summary:
Project definition, objectives and targets
Important findings and recommendations
Market Analysis:
Market size and potential
Competition analysis
Market trends and consumer behavior
Technical Analysis:
Production process and technological requirements
Plant location and infrastructure analysis
Financial Analysis:
Project costs and financial projections
Profit and loss analysis
Cash flow analysis
Environmental and Social Impact Assessment:
Environmental impacts and sustainability
Social impacts and societal benefits
Risk Analysis:
Identification and management of risks
Legal and Legislative Analysis:
Legal requirements and compliance processes
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 appraisability of the project. A detailed feasibility study provides important information for investors and managers regarding the success and sustainability of the project.
