Business Plan Advisors can do the research and write your feasibility study and report for real estate, oil and gas and many other industries and markets, both in the US and internationally.
A feasibility study is an evaluation and analysis of the potential of the proposed project which is based on extensive investigation and research to give full comfort to the decisions makers. Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the prospects for success.In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained.As such, a well-designed feasibility study should provide a historical background of the business or project, description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, feasibility studies precede technical development and project implementation.
A feasibility study evaluates the project’s potential for success; therefore, the perceived objectivity is an important factor in the credibility to be placed on the study by potential investors and lending institutions. It must therefore be conducted with an objective, unbiased approach to provide information upon which decisions can be based.
Market and real estate feasibility
Market feasibility studies typically involve testing geographic locations for a real estate development project, and usually involve parcels of real estate land. Developers often conduct market studies to determine the best location within a jurisdiction, and to test alternative land uses for given parcels. Jurisdictions often require developers to complete feasibility studies before they will approve a permit application for retail, commercial, industrial, manufacturing, housing, office or mixed-use project. Market Feasibility takes into account the importance of the business in the selected area.
This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies,
In this stage, the project’s alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered and these factors are to be well known. Further an enterprise’s own culture can clash with the results of the project.
In case of a new project, financial viability can be judged on the following parameters:
- Total estimated cost of the project
- Financing of the project in terms of its capital structure, debt equity ratio and promoter’s share of total cost
- Existing investment by the promoter in any other business
- Projected cash flow and profitability
The financial viability of a project should provide the following information:
- Full details of the assets to be financed and how liquid those assets are.
- Rate of conversion to cash-liquidity (i.e. how easily can the various assets be converted to cash?).
- Project’s funding potential and repayment terms.
- Sensitivity in the repayments capability to the following factors:
- Time delays.
- Mild slowing of sales.
- Acute reduction/slowing of sales.
- Small increase in cost.
- Large increase in cost.
- Adverse economic conditions.
Market Research Study & Analysis
This is one of the most important sections of the feasibility study as it examines the marketability of the product or services and convinces readers that there is a potential market for the product or services. If a significant market for the product or services cannot be established, then there is no project.
Typically, market studies will assess the potential sales of the product, absorption and market capture rates and the project’s timing.
The feasibility study outputs the feasibility study report, a report detailing the evaluation criteria, the study findings, and the recommendations.