Feasibilty study

Discussion in 'Starting a Business' started by youngkia1, Jul 13, 2011.

  1. youngkia1

    youngkia1
    uix_expand uix_collapse
    Member

    Joined:
    Mar 17, 2010
    Messages:
    398
    Likes Received:
    8
    Hi do you know what are the aspects and the sequence of a feasibility study?or do you know what are the books to that are helpful in doing it to make it as a guide?
     
  2. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,575
    Likes Received:
    1,165
    From my own perspective I've always considered writing a feasibility study to be more or less the same as writing a business plan. Unless you are writing a feasibility for a huge multimillion Dollar project, you are probably best writing a business plan for the project. The research you do for the business plan should help determine if the idea is feasible or not.
     
  3. youngkia1

    youngkia1
    uix_expand uix_collapse
    Member

    Joined:
    Mar 17, 2010
    Messages:
    398
    Likes Received:
    8
    Hi Fergal thank you for giving me an idea,I started to do my own research about the feasibility study but my big problem now is to come up with the financial aspect,I don't know how to start it.
     
  4. ArcSine

    ArcSine
    uix_expand uix_collapse
    Member

    Joined:
    Jun 2, 2010
    Messages:
    233
    Likes Received:
    187
    YK, the financial portion of a biz plan usually covers two main areas: One is a set of forecasts and projections showing how the idea's revenues, costs, profits, and cash flows are expected to play out over a reasonable interval of time (next 4 years, say). Think of it as projecting what you expect your P&Ls to look like for the first 16 quarters (e.g.) of the business's life.

    Alongside that, you'd try to estimate what your balance sheets will look like, as well. Generally, the projected income statements tend to determine the projected bal sheets to a large degree. For example, your expected levels of receivables and inventory are driven primarily by your sales expectations. Similarly, the necessary investment in other assets (desks, computers, e.g.) is largely a function of your Sales and Expenses forecasts.

    Then comes the second major component of the Financial section: How you intend to finance these assets, and the business itself. Obviously your menu of financing choices can only be assembled after first developing a concrete understanding of both your asset needs, and your expected cash flows.

    In summary, the starting point is the development of a solid projection of your expected revenues and expenses. This in turn will lead you naturally into the other aspects of the Financial component of the biz plan.
     
    • Like Like x 2
  5. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,575
    Likes Received:
    1,165
    youngkia1 you should find the Business Plan Template links in our Useful Business Resources / Links section very helpful. They include templates for the financial projections and forecasts.

    Good luck with it and please do let us know if you have any specific questions.
     
    • Like Like x 1
  6. youngkia1

    youngkia1
    uix_expand uix_collapse
    Member

    Joined:
    Mar 17, 2010
    Messages:
    398
    Likes Received:
    8
    Thank you guys,I will try all your suggestions this will really help me,and I will find some research Hope it will be successful.
     
  7. Fergal

    Fergal
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Nov 18, 2007
    Messages:
    10,575
    Likes Received:
    1,165
    Good luck with it youngkia1, please do post back if you have any further questions or you would like any feedback in relation to your business plan.
     
  8. marksmith

    marksmith
    uix_expand uix_collapse
    Banned

    Joined:
    Feb 1, 2011
    Messages:
    10
    Likes Received:
    0
    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.In its simplest term, the two criteria to judge feasibility are cost required and value to be attained.As such, a well-designed feasibility study should provide a historical background of the business or project, description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, feasibility studies precede technical development and project implementation.
     
  9. youngkia1

    youngkia1
    uix_expand uix_collapse
    Member

    Joined:
    Mar 17, 2010
    Messages:
    398
    Likes Received:
    8
    Thanks to all of you guys,Yes Fergal I will post again if I have some question.I really appreciate it.
     
    • Like Like x 1

Share This Page