Feasibility Study: In this era of globalization, where every business competes with the other in order to attain and achieve huge amounts of profits and establish a better corporate image, it becomes really necessary that all the decisions are taken after due assessment of the factors that are capable of affecting the profitability as well as the efficiency of the firm.
Investment in any project is one of the biggest decisions that any entrepreneur takes because it also decides the amount of risk that his money will be exposed to. Therefore, it is imperative that a feasibility study is carried out to know the outcome of the investment that a business is going to make today.
A feasibility study is the careful analysis of the external factors â€“ Political, Legal, Technological, Social, etc so as to see how successfully a project can be completed with the time frame and with the best possible returns. It not only looks at the positive outcome but also reveals the negative outcome of the project.
A feasibility study reveals the problems that a plan will face in its due course and helps the business to be prepared and make informed decisions in order to tackle the problem when it arises. As a feasibility study carries out an all-around check of the business plan or idea, it also helps in preparing marketing tactics in order to convince the investors to invest showing the positive and projected returns of the plan.
A feasibility study is carried out in different sectors as follows:
Market Feasibility â€“ In this, the market carefully studies and portrays the nature of the industry in which the business is going to commence, the competition that the business will experience, what is the current and the future potential of the market and also helps in estimating the sales and helps in developing the advertising ideas in order to attract the prospective buyers.
Technical Feasibility â€“ This focuses on the technical aspect, scrutinizing all the methods and deciding the amount and the type of machinery that will be required to carry out the processes. It also focuses on the type of labor that will be required to operate the machinery.
Financial Feasibility â€“ This is one of the most important feasibility studies that have to be carried out with utmost care because it deals with finances. Deciding upon the amount of capital that needs to be introduced, deciding on the mix of the capital structure and the sources from where to finance it, and also develop the projected returns that are expected to flow in from the investment being made.
We, at ARC Associates, indulge in providing one of the best consultancy services that can help you make better decisions about business survival and pave its way towards growth. We have an expert team of financial advisors and consultants who are working for a better outcome for your business not only providing the best consultancy services but also helping you to tackle complex business situations.
The consultants at ARC Associates are well versed with the market trends and industry in the UAE and can provide the best feasibility study consultancy services in order to help the clients out.