A feasibility study involves four phases:
A market research study must produce a clear sales projection based
on the definition of:
Competitiveness in the
market as compared to that of the competitors. Prices, delivery,
quality, service, financing.
strategy The applied methodologies are described in the above
Market Research section.
The technical aspects stage focuses on the definition of the main
productive elements of the operation:
The main aspects to analyze depend on the kind of investment project.
In the case of an industrial operation, the main elements are:
definition of the product
machinery and equipment
goods and services
This phase defines the project promoter and executor, his/her main
characteristics, the schemed administrative structure, and the
business skills required to carry out the project.
The main elements covered in this phase are:
TO THE COMPANY
OrganiZATION CHART OF THE COMPANY
BUSINESS SKILLS (Curriculum)
This stage presents the financial description of the project and the
answers to basic questions such as: How much is to be invested? How
much is to be financed and in what conditions? What are the
projected sales? What are the projected costs and expenses? What are
the projected profits? What is the behavior of the company’s flow?
Major aspects covered in the financial phase:
OF GOODS AND SERVICES
APplicaTiOn OF RESOURCES
RATE OF RETURN
The analysis and simultaneous presentation of all the elements in a
Feasibility Study are essential for the assessment of the project’s
viability and the determination of its risk levels regarding both
the allocation of capital for investment and the allowance of
credits to finance the project.