About a Feasibility Study
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 details about Feasibility Study -FS - projects, please feel free to communicate with EXCPR company, www.excpr.com and info@excpr.com
