Type & Meaning of Feasibility Studies:
Technology is the cornerstone of most projects, whether you intend to launch a new app, a factory to manufacture a specific product, or even a non-traditional service, the technical aspects will be at the center of this project. That’s where the technical feasibility study comes in.
The feasibility study of a technical project focuses on evaluating the technical and technological aspects of the proposed project, and helps determine the availability of appropriate technology, evaluate the quality of the equipment and devices used in the project, as well as determine the effectiveness of using the adopted technologies.
The artistic feasibility study includes: identifying a suitable location for the project, assessing infrastructure requirements, e.g: Space, interior design, presentation, and necessary lighting.
You should also consider the operational process, identifying the equipment, tools required, inventory requirements, sales and procurement management system, and any other technology you need to run the store efficiently.
- Any new idea or project seems exciting and promising at first glance, but is it economically realistic? Will the expected returns from this project be realized? These are the questions that a feasibility study seeks to answer.
- A project feasibility study aims to evaluate the economic aspects of the project, including: Analyzing the costs and benefits associated with the project, estimating the expected financial return, as well as evaluating the project’s compatibility with the set economic goals.
- Any feasibility study for a financial project analyzes the financial aspects of the project and assesses the possibility of financing it: Estimating capital and operating costs, analyzing potential financing structures, such as: Debt and equity, as well as assessing the ability to bear financial risks.
- In a little more detail, a financial feasibility study includes estimating the expected costs of opening and operating the business, including: Rental costs, impact, inventory, marketing, wages… and other overheads, the projected revenue and potential profitability of the business must also be estimated.
- This study can include Preparing financial projections for several future years and analyzing critical points. Such as: The point of recovery, and the point of profitability.
With the increasing environmental challenges facing the world today, it has become imperative to consider the environmental impacts of any business venture. This is where the importance of an environmental feasibility study comes in.
This study focuses on assessing the impact of the project on the environment, including evaluating potential environmental impacts, identifying environmental measures needed to minimize negative impact, and promoting environmental sustainability.
The social feasibility study is concerned with the fairness of income distribution among the different groups in society, and the social aspects that concern the feasibility study for any project can be summarized in: The impact of the project on creating new job opportunities, how many job opportunities the project requires, and the percentage of regular labor in it. The impact of the project on the distribution of income in favor of low-income social groups.
This study aims to assess the managerial capacity to implement and manage the project: Analyzing the appropriate organizational structure, and assessing the human resources and competencies needed to successfully implement the project.
The organizational and administrative feasibility study refers to the study carried out with the aim of preparing the administrative organization of the investment project to be implemented and designing all administrative systems for it and ensuring that this organization and these systems will be valid in order for the investment project to achieve the objectives for which it was established, whether for the investing public or for the public interest.
Focuses on assessing the legal aspects of the project, including: Identifying legal requirements, applicable legislation, evaluating necessary licenses and permits, as well as analyzing potential legal risks.
The project’s marketing feasibility study aims to determine the size of the target market, assess the demand for the product or service offered, help in understanding potential customers, analyze market behavior and competition, as well as determine appropriate marketing strategies.
The marketing study also includes: Identify appropriate distribution channels, develop a pricing strategy, and determine appropriate promotional efforts to attract customers and increase brand awareness.
A competitor analysis should include a thorough evaluation of competing companies, organizations, or businesses in the target area. The strengths and weaknesses of each competitor should be identified, and potential opportunities and threats should be assessed.
Defining the target audience is crucial to the overall feasibility study, as you must understand the needs and desires of potential customers, determine the age and gender groups, and the style you are targeting. You will also need to conduct market research to understand the product/service trends, the interests of potential customers, and also identify opportunities in the market.
The project’s marketing feasibility study aims to determine the size of the target market, assess the demand for the product or service offered, help in understanding potential customers, analyze market behavior and competition, as well as determine appropriate marketing strategies.
The marketing study also includes: Identify appropriate distribution channels, develop a pricing strategy, and determine appropriate promotional efforts to attract customers and increase brand awareness.
Statistical data, industry reports, and available research can be utilized for this purpose.
2.Competitive (Competitors) Feasibility Study:
A visit to competing companies, organizations, or businesses can be utilized to evaluate their services, configurations, prices, and marketing policies.
3.Marketing Feasibility Study:
The use of social media, local advertising, as well as promotions can be considered to promote the product/service.