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Feasibility Study Report

Updated:2018-3-13 11:47:40    Source:www.tannet-group.comViews:3596

Feasibility study report refers to an analysis of the ability to complete a project successfully, taking into account legal, economic, technological, scheduling and other factors. Rather than just diving into a project and hoping for the best, a feasibility study allows project managers to investigate the possible negative and positive outcomes of a project before investing too much time and money.

Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of the existing business or proposed venture, opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the prospects for success.

The Components of Feasibility Study Report
1. Description of the Business:The product or services to be offered and how they delivered.
2. Market Feasibility: Includes a description of the industry, current market, anticipated future market potential, competition, sales projections, potential buyers, etc.
3. Technical Feasibility: Details how you will deliver a product or service. Include materials, labor, transportation, where your business will be located, technology needed, etc.
4. Financial Feasibility: Projects how much start-up capital is needed, sources of capital, returns on investment, etc.
5. Organizational Feasibility: Defines the legal and corporate structure of the business.
6. Conclusions: Discusses how the business can succeed. Be honest in your assessment because investors won’t just look at your conclusions they will also look at the data and will question your conclusions if they are unrealistic.

The Instruction of Feasibility Study Report
1. Begin the feasibility study report by describing the scope of the proposed project studied.
2. Define the project's goals and objectives.
3. Detail the resources that will be required for the project.
4. Discuss the financial aspects of the proposed project.
5. List the project's advantages and disadvantages.
6. Define the costs and benefits of the proposed project.
7. Prepare an executive summary and table of contents.

The Significance of Feasibility Study Report
1. List in detail all the things you need to make the business work;
2. Identify logistical and other business-related problems and solutions;
3. Develop marketing strategies to convince a bank or investor that your business is worth considering as an investment; and
4. Serve as a solid foundation for developing your business plan.

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