Feasibility Study
The feasibility study is a part of the initial design stage of any project. It is conducted to objectively uncover the strengths and weaknesses of a proposed project or an existing business, to determine the viability of an idea in terms of economically justifiable, legally, and technically feasible.
Our finance team in perpetual focuses on the importance of a feasibility study in view of the fact that it’s always beneficial to the project as it gives you and other stakeholders/ partners a clear picture of the proposed project as it’s a well-designed study that our finance team offer, which include a historical background of the business or project sector , such as a description of the products or services , projected accounting statements, details of operations and management, marketing research and policies, financial data, legal requirements, and VAT obligations. Generally, such studies precede technical development and project implementation and in some cases it might uncover new ideas that could develop a project’s scope.
In our feasibility analysis we help our clients by identifying any constraints the proposed project may face, including:
- Internal Project Constraints: Managerial, Technical, Technology, Budget, Resources, etc.
- Internal Corporate Constraints: Financial, Marketing, Export, etc.
- External Constraints: Logistics, Environment, Laws, and Regulations, etc.
In addition to that, we examine and analyse various areas in our feasibility study:
Market Feasibility
Our main objective of a market feasibility study is to offer in-depth and thorough analysis to our clients to fully understand the market condition, determine whether enough demand exists to make the venture successful, the supply chain, describes the industry and understand it in different aspects, the current market situation, competition, sales projections, operational requirements, and potential buyers.
Technical Feasibility
In this part we focus on the technical resources available to the organization. We help organizations determine whether the technical resources meet capacity and whether the technical team is capable of converting the ideas into working systems, it also include issues of materials, labor, transportation, where your business will be located, and the technology needed for each department.
Organizational legal Feasibility
This assessment examines the legal and corporate structure of the business, investigates whether any aspect of the proposed project conflicts with any local legal requirements/laws and it covers any mandatory governmental fees the businesses operations may require after an excessive research about the government laws on the clients’ operating country.
Organizational legal Feasibility
This assessment examines the legal and corporate structure of the business, investigates whether any aspect of the proposed project conflicts with any local legal requirements/laws and it covers any mandatory governmental fees the businesses operations may require after an excessive research about the government laws on the clients’ operating country.
Economic Feasibility
This assessment typically involves a cost and benefits analysis of the project, helping organizations to determine the viability, cost, and benefits associated with a project before financial resources are allocated. It also serves as an independent project assessment and enhances project credibility. Our analysis helps decision-makers determine the positive economic benefits the proposed project will provide.
Financial Feasibility
In this study we assess the viability of a project based on major pivotal component:
- Capital expenditures.
- Company Expenses (Monthly & Yearly)
- Revenues.
- Cash flow model.
- Income statement model.
- Investment valuation model.
Moreover, we examine potential sources of capital, returns on investment, required rate of return, payback period, and Identify areas for growth. The financial feasibility study is developed for companies that seek to understand the amount of capital they need to procure to successfully start, operate and grow.