Feasibility studies for Businesses
Why do a Feasibility Study?
A feasibility study is a good first step before the business plan to determine the potential of a business idea on a basic level of feasibility. A feasibility study’s main goal is to assess the economic viability of your proposed business. The feasibility study needs to answer the question: “Does the idea make economic sense?” This study will provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of your success. The outcome of the feasibility study will indicate whether or not you should proceed with the proposed venture. If the results of the feasibility study are positive, then the next step will be to develop a business plan.
If the results show that the project is not a sound business idea, then the project should not be pursued. Although it is difficult to accept a feasibility study that shows these results, it is much better to find this out sooner rather than later, when more time and money would have been invested and lost.
We conduct feasibility study for new business start ups wherein we conduct economic- techno study of the investment to be made in new business as an investment decision. We assist in preparation of business projections wherein we assist the management in preparing the projected balance sheet, projected profit and loss account, and projected cash flows as a part of business projections.
The feasibility study is perhaps most misunderstood aspect of developing a new project or Business venture. Yet, it is the most important step, as mistakes at this early stage can permanently handicap the project's performance, perhaps fatally. A good feasibility study is more than just a set of financial projections that is incorporated into the overall business plan. Done properly, it becomes the market-driven strategic plan that is the road map for all subsequent decisions. As much as answering the question "Is a project feasible?", a good market and financial feasibility study also addresses the question of what is most feasible and what should all its attributes be to assure maximum success.
At SKM International Chartered Accountants and Business consultants, our team of experts has assisted organizations of many types industries in UAE to determine the financial feasibility of a wide variety of projects. In each case our many years of hands on experience and understanding of the details that go into developing reliable financial projections has enabled our clientele to make well educated decisions about the viability of their plans.