FEASIBILITY REPORTS

HOW TO PREPARE DETAILED FEASIBILITY REPORTS

Feasibility reports are the foundation stone for any organisation, once the idea blooms for any business, it is essential to develop a feasibility study to see its realization. It’s basically a methodology to check the success relevance of the project, the product or service, is fair market study, competition, SWOT, the marketing strategy, revenue buildup, costs and the ROI.

Building the project on paper with near to actual figures is called the feasibility study, if it doesn’t support your project, then you don’t have a project. It’s the assessment of the practicality of a proposed plan or method product, project management tool, or the execution method.

The importance of a feasibility study is to establish whether or not a company, team, or organization will deliver on its promises in a satisfactory manner and a reasonable period of time.This is one of the most important project management techniques you’ll want to learn to save your organization time, money, and efforts.

 Just as the name implies, you’re asking, “Is this feasible?”

 STEPS FOR CONDUCTING FEASIBILITY STUDY

A feasibility analysis is an in-depth process to determine the factors that will lead a project to success or failure. We’ve enumerated the process into following steps

PRELIMINERARY ANALYSIS

These analysis are the framework for any FRA [feasibility report analysis], before getting into the detailed structuring of any project

IDEA OUTINE-is the brief structure of the project /industry in scope, your essence and objectives

MARKET SPACE-is gathering DATA from market of any such previous projects, their shortcomings and success ratio. challenges and competition ahead.

SWOT-enumerate the strength, weakness, opportunity and threats of the competition ,policy regulations of governance etc to ascertain projections.

TECHNOLOGY-unlike yester years most of the industries are highly based on technology integration, entrepreneurs need to check the techno edge and is the technology undergoing major process change of proposed project industry. Project performance is based on such developments.

CAPTIAL RISK-every project needs capital, what is the source of funding, and risk of loss of capital and its entrepreneurial ratio

On this prelim analysis we can draw an outline of the project, though details assessments surface up on  deep studies which may affect the initiation of the project, but such prelim assessments give fair idea to get on to full research.

CREATE CORE TENETS OF PROJECT

Now that you have a rudimentary understanding of what you are getting yourself into with this project, it’s time to create a scope outline. This outline will detail the objectives of the project by using the five feasibility questions explained below

Is this plan technically feasible?

Is this plan legal?

Is this plan operationally feasible?

Is this plan feasible within a reasonable period of time?

Is this plan economically feasible?

Using these five questions, you will outline the core tenets of this project including what the current situation or issue is that you plan to solve, what you plan to accomplish, estimations on the impact of the project.

MARKET RESEARCH

This step is key to the success of your feasibility study, so make it as thorough as possible. It’s so important that if your organization doesn’t have the resources to do a proper one, then it is advantageous to hire an outside firm to do so. The market research is going to give you the clearest picture of the revenues you can realistically expect from the project. Some things to consider are the geographic influence on the market, demographics, analyzing competitors, value of market and what your share will be and if the market it open to expansion

FINANCIAL FORECAST

This is one of the core competency of the project , it is suggested to take the professional advice from the chartered financial managers on this OR adapt global reach through remote resources for advice , as it involves lot of calculations , All sorts of financial factors will go into determining the feasibility of a project proposal, however, there are a few major considerations that you should keep in mind when making these calculations: this can be divided in three frames as under mentioned

EXECUTIVE SUMMARY AND PRESENTATION REVIEW

it’s time to evaluate everything you’ve uncovered, compile it all, and present it to the relevant clients or stakeholders. Make sure your findings answer all five feasibility questions, and if each one is answered in the affirmative, that’s everything you need to recommend the go-ahead for this project.All these steps are important, but the review and analysis are especially important to make sure that everything is as it should be and nothing requires changing or tweaking. So, take a moment to look over your work one last time.

Re-examine your previous steps, such as the income statement, and compare it with your expenses and liabilities. Is it still realistic? This is also the time to think about risk, analyzing and managing, and come up with any contingency plans. However, if there are some concerns with certain aspects of feasibility, this doesn’t mean you have to scrap the project altogether. Perhaps this is an opportunity to reevaluate your approach, your budgets, or your endgame to better suit your organization.

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