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 clients business needs are analyzed, information about project participants is collected, and the requirements for the system are gathered and analyzed. The clients expectations for system implementation are studied and the proposed solution is offered. During the Feasibility Study stage, the projects goals, parameters and restraints are agreed upon with the client including:

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.

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

availability, Road and rail connectivity etc. Financial Feasibility: Projects how much start-up capital is needed, sources of capital, returns on investment, etc.

Market Feasibility
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: 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.

Technical Feasibility
Technology selection, Raw material availability, Grid connectivity, Water availability, Road and rail connectivity etc. 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. 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 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.

Financial Feasibility
Projects how much start-up capital is needed, sources of capital, returns on investment, etc.

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, ill like to discuss how to write a good Feasibility Report with a good feasibility report formattoday. Without proper planning, a business may head towards failure if corrective measures are not taken in time. A Feasibility Report is simply a Business Plan. Feasibility Report is a detailed study that examines the profitability, feasibility and effectiveness of a proposed investment opportunity. The report, no matter how elaborate, should be prepared before one undertakes any business or expands the existing one. 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. Based on the Feasibility Report, the entrepreneur can decide to accept or reject the project. If the project is viable and acceptable, the entrepreneur has to estimate initial capital outlay and decide on where and how to raise the funds.

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The Uses of Feasibility Report

The Feasibility Report can be used by the entrepreneur in the following areas:
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To meet the stipulated requirements of financial institutions. For instance, banks and other financial institutions giving loans to start a business executives demands for a Feasibility Report of the proposed investment.

To provide the basic information for effective decision making with respect to the proposed investment. By showing the market potentialities, technical and financial implications of the proposed opportunities, the feasibility report enable the entrepreneur to accept or reject the project.

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To assist the entrepreneur in developing future plans for the organization. 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. However, 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, Management, Teams, Financial and Economic Analysis and Marketing plan. In other words, the major areas covered by a feasibility study can be divided into nine major areas namely: 1. Introduction 2. Description of the business 3. Market consideration A preliminary Evaluation 4. Management Team 5. Technical Specifications and Production plan 6. Marketing Plans 7. Examination of the critical risks and problems 8. Financial and Economic plans 9. Evaluation and conclusion