Feasibility Studies

What is feasibility study?

A prior process during which data, information and statistics for each investment project are collected .Then our specialists begin to analyze everything they have in order to decide whether the project is profitable from a financial point of view, or if there are obstacles and risks that make the investor reluctant to the proposed idea.

Components of a feasibility study:

Marketing study

This study is the mainstay in the feasibility study, and its results are the main indicator for the project’s feasibility study. Through it, you can learn about many things such as: The nature and characteristics of the market Competitors’ products and services, and what are their strengths and weaknesses The volume of demand for the product or service provided Consumer behavior desires and natures Available share of the target market The best way to market Familiarity with the means of distribution It should be noted that this study helps you to form a comprehensive idea about the project and its external environment and to clarify for you some important and indispensable matters such as Factors affecting demand, as the demand for project products is affected by geographical location
Determine the annual operating costs of the project Determining the amount of working capital needed for the project at the beginning of its operation Calculate the depreciation rates for the project assets.

financial study

According to the results presented by this study, the investor can determine whether the project is able to achieve theexpected returns or not, because it calculates some important indicators such as the internal rate of return, the internalrepayment period and the break-even point, as is done byknowing the following:*External financing sources, terms and timings for repayment The total investment costs needed for the project
Statement of cash flows during the productive years
Statement of cash flows during the productive years
Determining the size of the project’s expected annual revenues in the content of the operational capacities used

Organizational and administrative study.

As an investor, through this study, you can know the functional tasks of each member of the project. The study is concerned with clarifying the responsibilities, the organizational structure, and the competencies entrusted to the workforce.