Let’s assume you have a new product, service, or business approach in mind. The next step is to ask yourself, “Is this feasible?” Do you have the right people, tools, and attitude to make this a success? Is this the correct project to work on, and is it the perfect time? Otherwise, your boss is unlikely to be persuaded to approve your proposal.
A feasibility study should be conducted to answer these questions. To know the feasibility of your new business idea, you need to conduct a feasibility study. This article will discuss the step-by-step guide to conducting a feasibility study. By following the steps, you will be able to understand whether your new business approach is executable or not.
What is a feasibility study?
A feasibility study is a formal evaluation of the viability of a new company idea, such as a suggested plan, new product or service, or new business strategy. A feasibility study’s main objective is to establish whether or not you can achieve the plan’s goal successfully and within a fair amount of time and money.
You will write a report at the end of a feasibility study to deliver the findings to relevant stakeholders for evaluation. If the findings are satisfactory, i.e., the proposal is practical, the report will be incorporated into a project plan, and the project’s next phase will commence. So, let’s focus on the steps in conducting a feasibility study.
1. Preliminary Analysis
The preliminary analysis assesses if the feasibility study itself is warranted, just as the feasibility study examines whether a proposed project is worth the effort. The truth is that completing a feasibility study is a time-consuming and rigorous procedure, and the preliminary analysis will search for any impediments that might render the feasibility study ineffective.
In addition, you also need to outline the business plan. You should concentrate on an unmet need, a market where demand exceeds supply, and if the product or service has a distinct edge. This first step is crucial; the whole report will be wrong if you don’t do this correctly. If you need a highly accurate feasibility report, contact feasibility study companies in UAE and get it today!
2. Defining the Scope
Before evaluating a project’s possible effect, you must first define its scope. Defining the project’s goals, tasks, phases, expenses, deliverables, and deadlines is part of this. The project scope includes identifying internal stakeholders as well as external clients and customers.
You cannot perfectly execute your new business idea until you don’t know the idea’s scope. When executing the idea, how much budget will be required, and what kind of technology or resources will you require?
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3. Market Research
Is there a demand in the market for this particular venture? Before embarking on a project, this is crucial knowledge, which is precisely what market research aims to provide. The market research also provides information about the present competitive environment and assists in identifying aspects such as regional effect on the market, market overall value, and demography.
It makes no difference if you have a good product. If you do not have a target audience for your product, your concept will not provide the intended results. A complete project feasibility report must include a market analysis or research.
4. Financial Assessment
The feasibility study would examine the project’s financial expenses and hazards. Human resources, equipment, materials, software, hardware, buildings, and third-party services may incur costs. Furthermore, the financial evaluation will include the possible impact of project failure on the bottom line.
This comprises an asset and liability assessment that should be as precise as feasible. To do so, list things, suppliers, expenses, and available finance. Consider leasing or acquiring land, buildings, equipment, and finance for assets and accounts receivable.
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5. Roadblocks and alternative solutions
What possible issues and events might cause project delays or failure? What are some other ways that might avoid these issues? Most feasibility studies will involve an evaluation of these aspects as well.
This step involves locating all the possible risks and issues during the execution of the business idea. The potential risks include the unavailability of technology or human resources; employees may leave the company during the project. You need to be proactive and consider alternative solutions for all listed risks.
6. Reassessment
At this point, you should have a colleague PM, a manager, or someone else in your business examines the whole feasibility study from top to bottom. Having a fresh pair of eyes on the study can guarantee that you don’t overlook any critical factors or overestimate prospective project impacts.
A reassessment of your feasibility report will help you locate possible errors in your report. You need to find an experienced person to review your report and help you add more additional information. You can also contact feasibility study companies in UAE to review your report and give accurate recommendations.
7. Present your findings.
All set; now it’s time to present your feasibility report to the higher management. It is time to deliver your feasibility study and its findings to leadership or whoever is in charge of accepting or rejecting the idea. Be open and transparent about your findings.
They will decide whether the project is feasible according to facts and findings. While presenting the report, be clear about the terminologies and explain everything. Once it’s approved, start executing the project.
Conduct a Feasibility Report Today!
Feasibility reports are a great way to assess any new business idea. By conducting the feasibility report, you will be able to know the required budget, human resources, all related stakeholders, market research, and much more. If you want an accurate feasibility report to avoid errors, contact feasibility study companies in UAE and get an accurate feasibility report for your idea.