Feasibilities & Forecasting

Let’s begin by clarifying what a feasibility study is. A feasibility study is simply an assessment of the practicality of a proposed business plan or method; as the name implies, you’re asking, “Is this feasible?”

Why do you need a feasibility study?

Well, it determines the factors that will make the business opportunity a success by defining a roadmap to achieve set targets, goals, and objectives.

THE ROAD MAP TO MANAGE YOUR COMPANY

You should be aware that a feasibility study is one of the tools, along with many others, that can help make your business work. It’s a preliminary document that can set the direction for your proposed business. It allows you to trace the strategies necessary to define a sustainable model. The efficiency of a feasibility study depends not only on the rationale on which it is prepared but also on how the executive management in charge implements it.

A feasibility study can be used to control day-to-day activities and help management make timely decisions. For this, the Feasibility Study must provide information about how your choices will impact the critical success factors, the risk factors, and the ways to counter defined risk factors.

Thorough work is required to gather relevant and reliable information that forms the basis of the assumptions set for the financial forecasting of numbers.

Features of Business Plan

A Feasibility Study primarily includes two portions: WRITE-UP & FINANCIALS.  WRITE-UP is also known as the Theoretical Part and FINANCIALS, which shows the viability of the proposed business in terms of numbers

Write Up part Includes the following;

• Executive Summary
• Business Overview
• Products/ Services Analysis
• Risk/ Opportunities Analysis
• Industry & Market Analysis
• Marketing & Sales Strategies
• Management Overview

The financial part includes the following

• Initial Capital Requirements
• Breakeven Analysis / Ratio Analysis
• Forecasted Financial Statements

Finally, a Feasibility Study may include an exit strategy and Capital Raising Strategy, consisting of an opinion about the viability of the proposed business.  

Brings Success to Business

Feasibility Study will help you identify what works and what doesn’t, allowing you to track your success and take necessary measures accordingly. It will enable you and your team to prioritize your objectives, establish timelines and tools to measure your success, find ways to reduce costs, change marketing strategies, and ultimately increase the business’s profits.

Feasibility Study also helps identify new business opportunities and enhances success rates by evaluating multiple parameters. Conducting market research and surveys helps to identify the market trends, risk factors, demand for products/services, potential obstacles and vulnerabilities, and how to deal with them.   

Help To Find the Lenders

Feasibility Study aims for marketing strategies that help convince investors and finance providers that investing in a particular project or business is a wise choice.

To seek business financing, you must have a detailed Feasibility Study. Investors will pay close attention to the financial projections; investors want to see that you’ve set the proper milestones and implemented realistic tools to measure your success. Investors may also want to know how much you intend to spend in particular areas and the skill set of your management team to ensure the team members have the ability and proper skills to help run the business.