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9 Steps to Conducting a Feasibility Study.
How to do a business feasibility study. In writing a business feasibility report the executive summary should come first. Feasibility Study example or feasibility analysis refers to the most initial assessment of a proposed plan or project and investigates the practicality of such a plan or project. A feasibility study can be a time and resource consuming endeavor and as such it is pertinent to first conduct preliminary analysis.
In this section you should include an introduction to the project its purpose desired solutions and an overview of the sources you used to support the legitimacy of the report. How to Conduct a Feasibility Study Well lets talk about a few steps that we do in order to conduct the feasibility study. Cash flow forecasts Pro forma profit and loss statements Pro forma balance sheet Breakeven analysis.
The first objective of a business feasibility study is to avoid the occurrence of risks that can be controlled or cannot be controlled. The feasibility study will be a major information source in making this decision. A Typical Feasibility Study Continued Conduct cost and profitability assessment Plan for future action Determine the funds required to set up your business.
Uncertainty about future conditions makes you need to conduct a feasibility study analysis in order to reduce the risk. Also it helps to delineate the situations and calculate the profitability of choosing business alternatives. The study attempts to answer two main questions.
This should contain basic information that should include a summary of the information relating to the business that is to be considered. Make it easy to make plans. The separate roles of the feasibility study and the business plan are frequently misunderstood.
Think of it as a pre-feasibility study to access if there is an actual need to conduct the feasibility study in the first place. Develop short-term financial projections including. A feasibility study looks at the viability of a business venture or project with an emphasis on identifying potential problems.
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