What is Pre-Feasibility Study Preparation?
A Pre-Feasibility Study is a study that evaluates the feasibility of an investment project in economic, technical and financial terms at the initial stage. This study plays an important role in making investment decisions and provides information to managers and investors about whether the project will continue.
Pre-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
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
Development of risk management strategies development
Legal and Legislative Analysis:
Determining the legal and regulatory requirements related to the project
Analysis of necessary permits and licenses
Planning legal compliance processes
Pre-Feasibility Study Preparation Process
Data Collection:
Collection of all relevant data
Literature reviews and sectoral analyses
Interviews and surveys with relevant stakeholders
Data Analysis:
Analyzing and evaluating the collected data
Using relevant analysis methods (e.g. SWOT analysis, PEST analysis)
Reporting:
Reporting the analysis results
Presenting the findings and recommendations
Writing and presenting the study report
Importance of Pre-Feasibility Study Preparation
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.
Conclusion
A Preliminary Feasibility Study is one of the cornerstones of a successful investment project. This study provides important information for investors and managers by evaluating the feasibility of the project. A detailed preliminary feasibility study contributes to the minimization of risks and the efficient use of resources by increasing the success of the project.
