Feasibility Studies
Planning is essential in the establishment of a new business. Arcfin Consultancy will help you to start planning your business. Arcfin Consultancy use Feasibility studies in many ways but primarily focus on proposed business
ventures. Investors and others with a business idea should conduct a feasibility study to determine the viability of their idea before proceeding with the development of a business.
Determining early that a business idea will not work saves time, money and heartache later. A feasible business venture is one where the business will generate adequate cash-flow and profits, withstand the risks it will encounter, remain viable in the long-term and meet the goals of the founders. The venture can be either a start-up business, the purchase of an existing business, an expansion of current business operations or a new enterprise for an existing business
Reasons to Do a Feasibility Study
Conducting a feasibility study is a good business practice. If you examine successfull businesses, you will find that they did not go into a new business venture without first thoroughly examining all of the issues and assessing the probability of business success.
Below are other reasons to conduct a feasibility study.
● Gives focus to the project and outline alternatives.
● Narrows business alternatives
● Identifies new opportunities through the investigative process.
● Identifies reasons not to proceed.
● Provides quality information for decision making.
● Provides documentation that the business venture was thoroughly investigated.
● Helps in securing funding from lending institutions and other monetary sources.
● Helps to attract equity investment.
The feasibility study is a critical step in the business assessment process. If properly conducted, it may be the best investment you ever made.
Go/No-Go Decision
The go/no-go decision is one of the most critical in business development. It is the point of no return. Once you have definitely decided to pursue a business scenario, there is usually no turning back. The feasibility study will be a major information source in making this decision. This indicates the importance of a properly developed feasibility study.
Results and Conclusions
The conclusions of the feasibility study should outline in depth the various scenarios examined and the implications, strengths and weaknesses of each. The project leaders need to study the feasibility study and challenge its underlying assumptions. This is the time to be skeptical.
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