A feasibility study can help you understand your large project.
Imagine that you are starting a business or need to find the right site for a new store. How do you calculate the potential of each initiative? How do you determine if these projects are economic, financial, technical, legal and socially viable?
A very useful tool for new business owners to help answer these questions is the feasibility study. Experts define it as the feasibility analysis of a project that aims to invest. It’s essentially an investigation aimed at identifying the possibilities for an initiative to be executed and then to succeed.
Indeed, it could be argued that any person or organisation wishing to realise a business proposal requires a feasibility study.
The reasons to support this argument are:
â€¢ The feasibility study is key to quantifying the resources available and needed to implement any project.
â€¢ Facilitates the detection of activities essential to execute an idea and deleting unnecessary practices.
â€¢ It is essential to optimise costs and maximise the resources available to invest, from time to money, without forgetting the human factor.
â€¢ Defines the roles that members of staff accompanying the business owner play in the implementation and development of the project.
â€¢ Allows clarification of the conditions that the initiative needs to be profitable. That is, to produce the maximum benefit with the least amount of high-quality resources.
If you are creating a business for the first time, the feasibility study will help you:
1. Know in detail the environment in which your project will be developed.
2. Define the nature of your initiative.
3. Analyse your offer and make projections on the potential demand for it.
4. Whether appropriate and sufficient tools are available to develop your business.
5. Identify the financial requirements of the new business. Is there capital available to realise the project resources; to acquire assets; the relevance of specialised SME financing or other forms of bank credit, among other aspects.
6. Setting prices and designing marketing strategies.
7. Give legal certainty to the project.
If you already have a business and are looking for new outlets, the feasibility study will allow you to find the best location and so on, based on your ability to do business.
With it, you get relevant information about traffic flows of people, proportion of tickets generated, physical dimensions of potential venues, visibility, and accessibility, amongst others. Based on this, you can make estimates and projections of sales transactions.
Small and medium sized businesses must often resort to specialised consultants for advice and guidance. The choice of companies involved in the execution of feasibility studies should operate on the basis of quality and of public recognition.
Most importantly, you get tools to refine your project, and to increase your chances of success in a highly demanding business environment.