Feasibility Study FS

Feasibility Study FS

A feasibility study – FS - is an analytical tool used during a business development process to show how a business would operate under a set of assumptions and hypotheses. These assumptions often include such factors as the marketing (prices, competition, customers, etc.), operation used (the facilities, equipment, production process, etc.), financing, (capital needs, fixed and variable costs, wages, etc.), and so on.

Then, the FS is usually the first time in a project development process that many key pieces and information about the project are assembled into one overall analysis. The study must show how well all of these pieces fit and perform together. The result will be an overall assessment of whether the proposed business concept is technically and economically feasible. Feasibility studies - FS should also provide sensitivity analyses of the business given changes in key assumptions.

Developing any new business venture is difficult. Taking a project from the initial idea through the operational stage is a complex and time-consuming effort. Most ideas, whether a potential cooperative or an investor-owned business, do not develop into an operational entity. When ideas do make it to the operational stage there is a high failure rate –within the first year!!. Thus, before potential members invest in a proposed business project, they must determine if it can be economically viable and then they must decide if investment advantages outweigh the risks involved—a FS is the means by which these decisions are made. 

For more information regard the FS business, please contact us at info@excpr.com

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