The purpose of the Feasibility Study phase and knowing the types of economic Feasibility Study. That is to confirm the business requirements and benefits of the project. Identify and select the preferred or most helpful solution. To prepare an Outline Schedule for the Delivery Stage.
The key players within the Feasibility Study Phase are:
The Feasibility Study Manager/Project Manager handles managing the Feasibility Study Stage.
The Business Sponsor handles signing off the key deliverables.
The Sponsor’s Representative handles preparing the Full Business Case.
The representing the Business Sponsor on day-to-day issues and matters.
The Business Sponsor’s cost or profit center handles producing the Full Business case.
It is obtaining the necessary authorization for the project to progress into Delivery.
Process Description & Recommendations
The Business Sponsor should appoint a Feasibility Study Manager/Project Manager.
The Feasibility Study Manager/Project Manager should plan the Feasibility Study Stage in detail.
Including producing a document entitled the Terms of Reference for the Requirements Definition Phase.
The Feasibility Study Manager/Project Manager should create a working environment. Including any necessary office accommodation. Project filing system. The specific management procedures, including time recording management.
As this Phase progresses, the Business Sponsor should collect the information required to develop the benefits within the business case.
The Feasibility Study Manager/Project Manager should conduct the Requirements Definition. They produce the Requirements Definition Report to include:
- The business objectives and strategy
- Functional and generic requirements.
- Data models
- Data flow diagrams.
Feasibility Study Manager Recommendations
The Feasibility Study Manager/Project Manager should review the project with the Business Sponsor to revalidate its continued viability.
Feasibility Study Manager/Project Manager should produce the Terms of Reference for the Feasibility Study.
The Feasibility Study Manager/Project Manager should undertake the Feasibility Study and produce the Feasibility Study Report, which should:
Reiterate the objectives and business requirements.
Specify the proposed solution.
Include a comparative analysis between the proposed solution and other options which were considered.
The Sponsor’s Representative, with assistance from Finance personnel and the Project Manager, should prepare the Full Business case.
The Sponsor’s Representative should issue the Full Business Case for review and agreement to:
1- The Business Sponsor.
2- The appropriate management area.
3- Information Technology representatives.
4- Finance Division representatives.
5- Stakeholders.
Steering Committee members, if appropriate.
With assistance from the Business Sponsor, the Finance Division should produce.
The Project Authorization Form and get the requisite corporate authorization.
The Business Sponsor should send a copy of the Full Business Case and the signed Project Authorization Form.
To the appropriate management area to get the required resources and confirm funding for the project.
As in the Initiation Phase, The Business Sponsor should be responsible for monitoring.
The progress of the Feasibility Study Stage.
If he/she has doubts about the benefits or risks of the project or that it will support the real business needs,
it is the responsibility of the Business Sponsor to reconsider the initiative and.
If necessary, end the work Components of an economic feasibility study
An economic feasibility study created to reduce the risks and ensure the project’s feasibility.
Once it ascertained that a particular project can carry out , it can only implemented?
Therefore, it is not just an inquiry but also a plan or framework for the conduct of a business.
The feasibility study contains five main components:
Feasibility study contains Marketing, technical, management, financial, and social convenience study.
During the marketing study, the researcher must establish. Whether the product and the company’s competitive position in the business demanded.
The sales projection of the project should also achieved as part of the market study.
The technical study will consider manufacturing, plant dimension, production schedule, machinery, location of the plants, layout, structure, raw materials, installations, and waste disposal.
The study of management includes:
- How to manage the project such as the organization of the business.
- That is including the organizational chart.
- The function of each unit management personnel, skills, and the number of labors required.
The researcher must include:
An assessment of capital needs, break-even outputs, sales, and prices,
the number of sales necessary to produce a specific profit level.
Thus, the cash payback period in the financial study.
Finally, a social desire measured by the economic benefits of the people who live in the community and its vicinity.
It is no surprise that study is a critical stage in business growth.
Thus, a feasibility study used to assess the viability of a proposed business venture.
The success of the feasibility study depends on the careful identification. The evaluation of all aspects necessary to the business’s success.
Types Of Economic Feasibility Study
Types of economic feasibility study business is an essential introductory component of any entrepreneurial project.
Because it gives entrepreneurs insight into their success. As aspiring entrepreneurs,
Thus, we should all be aware that it will become an integral part of your business life.
Feasibility studies in Riyadh applied to prepare for a particular try.
And despite the advances in technology we are seeing.
There’s still something beyond the genius behind being able to see the future (or at least the first few years of it).
A business feasibility study in Riyadh is an evaluation of a business proposal conducted to find out.
how difficult it is to pursue a particular activity read this to find out why Feasibility study steps is essential for your success.
It attempts to measure the complexity of the task financial and time.
Expenditure and give a reasonable estimate of other resources needed to carry out the plans.
Also, it aims to provide a good analysis of the project in consideration and its impact on society.
There are five common forms of feasibility studies.
These are as follows:
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Technology and system feasibility
This part of the study evaluates whether system requirements.
Thus, for specific business endeavors are workable.
From inputs to processes, outputs, domains, programs, and procedures.
Researchers use various methods to determine.
If the company can handle the demand and follow up on project completion.
By using specific hardware, software, personnel, and expertise.
2. Economic feasibility
This feasibility analysis is commonly applied to a business – whether it pertains to the actual facility or simply pursuing a new system.
It known as cost/benefit analysis.
But, it is directed to estimate the development and operating costs of the task under investigation.
So, It attempts to compare the expected costs and benefits/savings of the endeavor and determines.
whether the benefits outweigh the expenses.
3. Legal feasibility
This feasibility study aims to determine.
If any aspect of the business plan conflicts with the judicial system.
Or has legal requirements that must meet, for example, apart from permits.
Thus, there are some specific safety standards of opening a new sports facility or theme park.
So, all these things must adhere to be functional.
4. Operational feasibility
Researchers and aspiring entrepreneurs should conduct this study.
To know how well a particular business try addresses problems and meets.
The expected outcomes identified from the early development stage analysis.
5. Feasibility scheduling
This type of business feasibility study attempts to predict.
But, how long a project will take to complete.
It also tries to determine whether changes can make in the completion period.
If specific interventions applied.
Time measured because it determines the reasonableness of a particular task.
The importance of the feasibility study
Do you know the importance of it? Almost everyone wishes to have their own business.
At some point for various personal reasons.
Thus, almost everyone has an idea of what kind of work they would like to do.
But, it is a common truth that not all ideas guaranteed to succeed in business.
Going into business means risk.
Nobody would like to start a business and see it go down the drain because their idea did not work.
So when planning to start a business, you would want to be on the safe side.
You want to make sure that your business idea will work and will turn into a profit.
That is the main reason you wanted to start a business anyway, to earn.
Over the years, I have seen several friends venturing into work. Some of them succeeded.
But, the others did not fare so well and gave up their venture for several reasons.
First, some of them found out that there was no viable market for what they had to offer.
Second, others did not realize that the market was already saturated. Until it was too late, and they could not compete with other similar businesses.
Some ran out of financial capital because they had no idea how much it would cause to start their business.
But, some were unable to cope with the challenges of having to own and run a business.
Thus, all those who failed had one thing in common; they did not conduct a feasibility study.
So, You have an idea, and you believe that you can do a business out of it; that’s fine.
But before you decide to go ahead with your plan, Make a FEASIBILITY STUDY STAGES IS BOUND TO MAKE YOUR BUSINESS to improve your business.
A feasibility study is a research that an individual conducts
It’s your first line of defense against project failure.
This is research that you would like to conduct before going into the actual project development.
It conducted during the planning stage.
However, a good feasibility study could tell you if there is a viable market for your product if done .
So, It will tell you if that market grew potential or if that market is already saturated.
This could state how much risk involved if you were to push through with your plans.
It also indicates whether the risk is within acceptable levels or too much.
This could also state if your proposed budget for the project is enough for what you need or not. Pretty much.
Thus, your feasibility study will state whether your project will succeed or not.
However, allowing you the chance to realign your plans to be sure that it will have better chances of succeeding.
Suppose you have plans to get into a business Feasibility Study at any point in your life before you do anything else.
