A feasibility study for funding applications is vitally important, as a feasibility study is a detailed analysis that considers all of the pivotal aspects of a proposed project to determine the likelihood of it succeeding. A feasibility study is an assessment of the practicality of a proposed plan or project. The study analyses the viability of a project to determine whether the project or venture is likely to succeed. The study is also designed to identify potential issues and problems that could arise while pursuing the project.
Success in business may be defined primarily by return on investment, meaning that the project will generate enough profit to justify the investment. Many other important factors may be identified such as community reaction and environmental impact.
The Importance of a Feasibility Study for Funding Applications
Feasibility studies analyse the potential benefits, as well as the obstacles of a business venture. The study may be voluntary or required as a prerequisite for government approval or funding from a lender. Conducting a feasibility study before beginning a major endeavor also gives owner and staff a blueprint of the industry market and additional knowledge before the project begins. A feasibility study may cover the entire project or break it down into more specific tasks. This ensures that all vital details for the project are given a thorough analysis.
Some funding institutions require the company to submit a feasibility study with their funding application. This is because the study is an assessment of the practicality of the proposed venture. It takes all the venture’s relevant factors into account, including economic, technical, competitive and target market factors, to objectively evaluate the likelihood of the success of a business venture.
As a start-up or a small business owner with no proven track record or off-take agreements, funders require evidence of economic and financial viability of the proposed concept.
Benefits of Developing a Feasibility Study
Benefits of developing a feasibility study include helping project managers discern the pros and cons of undertaking a project, before investing a significant amount of time and capital in it. Feasibility studies can also provide a company’s management team with crucial information that could prevent them from entering into a risky business venture. Such studies help companies determine how they will grow. They will know more about how they will operate, what the potential obstacles are, who the competition is, and what the market is like. Feasibility studies also help convince investors and bankers that investing in a particular project or business is a wise choice.
At DTC, we undertand that developing a feasibility study includes comprehensive industry, customer and competitor analyses with which to determine market opportunities. In cooperation with you, we assess opportunities, determining the most promising marketing opportunities, and creating action plans for you effectively to capture your market. We gather primary and secondary industry data from which to work.
For more information & assistance on developing a feasibility study…contact DTC today!