Feasibility Study is a common word that is usually heard in the business world. Because every one of us need to conduct Feasibility Study if we got a project idea and we need to know if it will be viable or not before wasting money & time.
Hence it comes the role of SME CONSULTING CO., we will provide you with all the support you need in conducting the Feasibility Study.
Feasibility Study Definition
Wikipedia defined feasibility study as a study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the natural environment, the resources required to carry through, and ultimately the prospects for success.
Simply, It is an analysis and evaluation of a proposed project to determine if it is technically feasible within the estimated cost, and will be profitable or not.
You should conduct it before making the business plan to save money & effort.
It consists of a business description, market feasibility, technical feasibility, financial feasibility, organizational feasibility and conclusions.
Process Of Conducting Feasibility Study
1. Business Description
First of all you should refer to important information about your business containing:
- The nature of your business as it includes the industry & what will your business do.
- Business structure which describes how your business is formed (legal structure).
- Mission statement which gives a brief overview of the purpose of the co. & any guiding principles.
4. Preparing Financial Feasibility Study
Furthermore you should prepare the financial feasibility study which includes:
- Startup capital requirement.
- Cash flow projections.
2. Preparing Technical Feasibility
Also, you should make a study of the logistical or tactical plan of how your business will execute the production processes. It includes :
- Details about the production processes including machinery requirement, electricity, etc.
- Storage specifications regarding size, temperature, etc.
- Ways of distribution for your products or services.
- Information about online distribution if you will use it.
- Distribution’s tracking procedures.
5. Preparing Organizational Feasibility
In addition to those studies you should prepare organizational feasibility study. Which aims to define the corporate structure of the business. It includes:
- Description of the business structure.
- Internal& external principles of practices of the business.
- Professional skills & resumes.
- General guidelines for human resources management.
3. Preparing Market Feasibility Study
Another important study you should conduct is the market feasibility study which includes:
- Description of the industry.
- Current market analysis.
- Anticipated future market potential.
- Potential buyers & sources of revenues.
- Sales Projections.
Finally, based upon the previous steps the conclusions will contain summarizes of the important points. Besides it will discuss how the business can succeed based on the information you previously collected.
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Feasibility Study Case
The following chart explores the difference between company’s “X” performance which developed the feasibility study before launching. And company’s “Y” performance which did not develop a feasibility study.
Range of markets
We as a small business consulting company can help you in marketing of consumer goods such as Television, Refrigerator, Air conditioners etc.
Involves marketing to other companies. Where they give much importance to the purchase decision.
Selling to government offices and other government’s departments requires a careful study of the government’s requirements in the purchase announcement. Because the purchase decision mostly is made after bidding. So we can help you in interpreting such announcements & preparing your competitive bid.
Another service of our consulting company is marketing in other countries either to consumers or to businesses is a challenging task. Because when you try to sell globally you should consider the cost of transportation, local competitors and government regulations.And we can offer you all the reports related to such issues in order to take the right decisions.