‫‪Feasibility study report‬‬

‫االسم‪ :‬أبي مسلم فاسي ‪ID:87257‬‬

‫الفرقة الخامسة‬

‫مقدم الى‪ :‬الدكتور عمر بسيوني‬

Introduction about feasibility study:

A feasibility study is an in-depth analysis of the financial variability of a property

development, rather than a promoter’s guess that a new idea will be economically
successful. A feasibility study is not designed to prove that a new venture will be
profitable. An independent feasibility study that is professionally prepared by an impartial
third party could result in either a positive or a negative recommendation. If it is negative,
both the borrower and the lender should be happy that the proposal is not developed.
However, if it is positive, this should not be taken as a guarantee of success. A feasibility
study can only consider what is known at present and what may happen in the future. But,
since the future is impossible to forecast accurately, and so many unforeseen factors can
come into play, there can be no guarantees. In other words, a feasibility study may reduce
the risk of a particular investment but does not eliminate it. Some feasibility studies seek
out the most appropriate location for a new property and continue with the study from
there. Others consider one location without considering alternatives.
 Components of feasibility studies
A feasibility study includes a thorough review of every variable that impacts a project’s
practicality. The goal of a feasibility study is to determine if a project is possible and
worth pursuing, so including more factors can make it more helpful. While most
feasibility studies include several of the same elements, there may be additional categories
that are specific to your business. Some of the most important sections are:

• Summary: At the beginning of a feasibility analysis, include a general description

of the project and your preliminary plan for its completion.

• Market research: All feasibility studies should include a section that provides an
overview of the market for a project. This should include a marketing plan, potential
for growth, possible competitors and target customers.

• Operations: The operations section should discuss the technology, machinery,

materials, staffing and other technical details that contribute to running a business.
Consider where you will complete your project and how you will access the
resources needed to create and distribute products and services.

• Organization: A feasibility analysis should also include an outline of how you

envision the organization of responsibilities within a project team. List your plans
for the corporate or legal structure and the expertise you have for implementing
them.
 • Finances: Review how much money you will need to fund a project and how you
will support it financially. Include possible investors or other sources of income and
how you project costs and earnings to change over time.

• Timeline: The timeline provides a plan for how long it will take for a project to be
implemented and list the goals and milestones that show progress.

• Recommendations: In this section, make an honest suggestion of whether to pursue

a project or not. Use the data you collected to draw conclusions about the possible
risks and successes the project could encounter.

A process for conducting feasibility studies

Conducting a feasibility study can be a time-consuming process that includes many
different components, so it is important to develop a plan before beginning. A successful
feasibility analysis helps business owners and project managers to make a fully informed
decision based on research. Use these steps as a guideline when conducting feasibility
studies:

1. Create an outline
2. Write the projected income statement
3. Perform market research
4. Plan organization and operations
5. Create the opening day balance sheet
6. Analyze your data
7. Make a final decision
1. Create an outline
First, create an outline of every variable that could influence the feasibility of your
project. Think about why you are interested in the project and where you see the potential
for it to succeed.

2. Write the projected income statement

The projected income statement includes your expectations for how much income the
project will bring in and how much money you will need to invest to meet that goal.
Consider all costs of starting and running your business and other financial obligations
when writing the projected income statement.

3. Perform market research

Study different aspects of the market such as your competitors, areas for growth,
projected demand and demographic influences. Market research will help determine how
you will advertise to an audience or create awareness of your project. It helps prepare you
for different challenges that your market may experience.

4. Plan organization and operations

Include a plan for how you will organize the daily operations of your business and the
management of its employees. Consider any challenges in assembling a workforce or
distributing a product and how to overcome those issues.

5. Create the opening day balance sheet

An opening day balance sheet is a list that includes the total cost of all of the assets you
will need to launch your project. Include how much each item will cost, where to acquire
it, and possible sources of income. This can include land, equipment and any other
starting costs.

6. Analyze your data

Once you have prepared the data for your feasibility study, analyze and interpret the
information. Consider whether the project has the potential to be profitable and what
major challenges could prevent you from achieving that goal.
7. Make a final decision
Ultimately, the purpose of a feasibility study is to help you make an informed decision
about the future of a project. Think about what risks you are willing to take and how
much you can invest into each project. Planning and committing to it is an important final
step in conducting a feasibility analysis.

Pros of conducting a feasibility analysis

Conducting a feasibility analysis has countless benefits for a business owner or project
manager looking to start a new venture. It is a great way to manage risks and prepare for
challenges.
For example, a library hoping to build a new computer lab could perform a feasibility
study to learn about possible grants to fund their expansion and predict community
impact. By showing that the project would be both feasible and successful in the
community, the library could attract investors and gain public favor for their project.

Product/ service feasibility analysis

The purpose of a product/ service feasibility analysis is to do an overall assessment of the
appeal of the product or service being proposed. Before a firm rushes into developing a
new product or service, it should be sure that this product or service is something the
customer wants. There are a few steps to do this:
A. Product / service desirability: First, we need to ask some questions to determine the
appeal of the product or service. For example: Does it make sense? Is it reasonable?
Next, we need to create a concept statement. A concept statement is a one-
page description of a business that is distributed to people who are asked to provide
feedback on the potential of the business idea. This provides the entrepreneur with a sense
of the viability of the product idea and suggestions for how the idea can be strengthened
before proceeding further.
B. Product / service demand: In order to determine the product/ service demand, you need
to talk to potential customers face to face, and use online tools, such as google AdWords
to assess the demand of your product/ service.

Technology feasibility study

A technical feasibility study assesses the details of how you intend to deliver a product
or service to customers. Think materials, labor, transportation, where your business will
be located, and the technology that will be necessary to bring all this together. It's the
logistical or tactical plan of how your business will produce, store, deliver, and track its
products or services.

A technical feasibility study is an excellent tool for both troubleshooting and long-term
planning. It can serve as a flowchart of how your products and services evolve and move
through your business to physically reach your market.

Begin—or End—With an Executive Summary

The word "summary" is key here. Highlight the key points of each section you'll include
in your technical feasibility study. You can do this in advance to provide yourself with a
sort of guideline or skeleton to follow as you prepare your study. It is often easier and
more concise to write it after you've finished, so you have the information you want to
include right in front of you.

In either case, the summary should appear at the beginning of your technical feasibility
study.

Prepare an Outline
Even if you decide to write your executive summary last, you can begin with an outline
that will serve a similar purpose in guiding you through the remainder of the study.

The order in which you present technical information isn't as important as making sure
you have all the components in place to show how you can run your business. You
don't have to include specific financial information in the technical portion of
your feasibility study. However, all information in this component should support
financial data represented elsewhere.

Basic areas you'll want to cover include materials, labor, transportation or shipping,
physical location, and technology. Be sure to include a thorough description of the
services or products you'll be offering. How will your business benefit consumers? Give
investors a reason to choose you over your competitors.

Calculate Material Requirements

List the materials you'll require to produce a product or service. This section is where
you'll indicate where you'll get those materials. Include information such as whether
volume discounts will be available as your business grows or if you plan to manufacture
your parts at some point in time.

Include what parts and supplies you'll need to produce a product, including things like
glue and nails. Mention all materials that will be involved in producing or manufacturing
what you're selling.

You don't have to include actual financial data in this portion of the study either.
However, financial data that supports your narrative assessment should be included as an
attachment in a separate spreadsheet.

Calculate Labor Requirements

You can't run a business, offer services, or manufacturer products without the help of
others and that help will cost you. Even if you start your business as its only employee,
you'll have to add to your labor pool at some point if you plan to grow.

In most cases, labor will be one of your biggest small business expenses, if not the
biggest. List the number and types of employees you need to run your business now and
that you might have to employ in the future as your business grows.

You can break labor into categories if necessary, such as senior-level management, office,
and clerical support, production or distribution staff, professional staff including lawyers,
accountants, engineers, and marketing, and fulfillment employees—those in the mailroom
or shipping department.
If you plan to outsource order fulfillment, fundraising, or other aspects of your company’s
business, be sure to list what functions you're targeting and to whom you'll send these
tasks.

Transportation and Shipping Requirements

How will you transport items if you must send them from one place to another? Smaller
items can be shipped via local carriers, DHL, or USPS, but heavy or bulk items must be
transported via a freight or trucking company.

If you're shipping perishable items, you'll need special overnight handling. You might
also need special permits to ship certain items, and nonprofit organizations should
consider applying for discounted postal rates. These are all things that affect the “how” of
moving your goods from one place to another.

If you offer services, how will trainers, educators, consultants, and sales personnel get to
customers and clients? You will need a licensed distributor or pharmacy to ship on your
behalf if you offer a product that's governed by state or federal law such as medications or
prescription medical supplies,

Calculate Marketing Requirements

How will you reach consumers? It is a crucial consideration because your business will
fail without them. It's something investors will be keen to know.

Go beyond simple advertising plans, although this is important, too. Exactly what type of
advertising campaign do you plan to launch? Will you lean more heavily on print media
or other options and what consumers will you target? Explain why they would want to
buy from you rather than any of your competitors.

The Physical Location of Your Business

Where you run your business will influence your success. If you're starting in a home-
based office, determine when and if you'll need a “brick and mortar” office at some point
in the future—office space outside your home. Will you eventually need warehouse
facilities, your factory, or your trucking facility? Will you require a retail storefront or any
other purchased or rented facilities to conduct your business?
Discuss the pros and cons of where these facilities will be in the physical location
component of your feasibility study. Should they be in one central location or across state
lines? Do you need special parking considerations for customers or trucks? Do you have
to be near other facilities such as an airport, a commerce center, or a shopping mall?

Technology Requirements to Run Your Business

Every business needs at least some kind of technology to operate. The technology
component of your feasibility study should include discussions about telephone answering
systems, computer hardware and software, and inventory management.

Don't overlook items like cash registers and potentially the ability to accept credit cards
and process checks. You might need special devices to accommodate the disabled, or
teleconferencing equipment and facilities. Cellphones and PDAs are almost a must for
most businesses, and you might need alarm or camera systems and manufacturing
equipment as well.

Include Target Dates

Tell investors when you plan to do what to bring your concept to fruition. Don't neglect to
mention the small steps. Cover it all, from initial organizational meetings to when you'll
purchase equipment or facilities and when and how you'll open your doors for business.

Be reasonable. You don't want to promise that you'll perform by a miraculous deadline
then fail to do so.

Support Your Financial Information

Don't make the mistake of trying to entice investors with your staggering growth
projections and a potential return on their investment. There's always an increase in
expenses with an increase in revenue.

Don't rely strictly on feasibility study conclusions to impress an investor. An experienced

investor or lending institution will read your entire report and come to their conclusions.
It's therefore critical that the technical and financial data in your study reconcile. If other
parts of your feasibility study show growth, you'll also have to project labor and other
costs and the technical ability to support that growth.
The technical component should serve as the written explanation of your financial data
because it offers you a place to include detailed information as to why an expense has
been projected high or low. You can explain why it's even necessary. It demonstrates to
potential investors and lenders—and in some cases, potential clients—that you've thought
about the long-term needs your business will have as it grows.

Summary of the Technical Feasibility Study

Be sure to include all the technical requirements of your business from production to
customer receipt. This information will help investors know more about the operations of
your business.

Having a great idea for a product or business isn't enough—you must show how you can
make money from it. The technical feasibility study addresses the physical and logistical
mechanics of it, and how you'll be able to get something into the product and back out the
door to customers.

Market environment
are documents that help businesses assess their likelihood of success. These studies
include an analysis of the industry, competitors, and more.
Key Takeaways
• A market feasibility study helps businesses set expectations and plans.
• A good market feasibility study assesses the market environment while also
identifying potential customers and other sources of revenue.
• Unlike marketing plans, which aim to make your business look as good as possible,
market feasibility studies should be an objective assessment.

Competition
Competitive Analysis Definition: Identifying your competitors and evaluating their
strategies to determine their strengths and weaknesses relative to those of your own
product or service.
How do you create a competition in a feasibility study?
The level of competition a business will face is important in determining its feasibility: Is the potential
market saturated with similar products or services? Will the competition come from independent
merchants or national chains or both? What does the lack of competition say about the market?
 Industry
Why Do I Need Industry Reports?
A good industry analysis is an important part of your feasibility study and will help you
determine the attractiveness of your product or service. An industry analysis can help to
determine the following:

• Size of the industry and whether it is growing

• Importance of the industry to the market
• Major players within the industry and the level of competition
• Financial outlook of the industry
• Historical perspective

Business model
A Business Feasibility Study can be defined as a controlled process for identifying
problems and opportunities, determining objectives, describing situations, defining
successful outcomes and assessing the range of costs and benefits associated with
several alternatives for solving a problem.

What are business model concepts?

A business model is the conceptual structure supporting the viability of a business,
including its purpose, its goals and its ongoing plans for achieving them. At its simplest, a
business model is a specification describing how an organization fulfills its purpose.

Market and sales strategy

What is marketing strategy in feasibility study?

A marketing plan emphasizes the specific strategies, data, estimations, and campaigns that
are planning to be implemented. Compared to a marketing plan, the feasibility studies can
be identified as a logical study that identifies the practicability of a market plan or a
proposal. For example, if your marketing plan is to promote a new product or service, you
might have a strategy dedicated to how you're going to use email marketing to support
these broader goals. Every marketing plan will most likely produce several marketing
strategies as part of the broader plan.
 Production operation requirements

What is production feasibility study?

A new product feasibility study is a market research methodology that aims to provide
predictive analytics to guide the next steps for marketing, sales, and product development.
The objectives of this type of market research often include obtaining insight on: Product
placement. The target markets.
Why is a feasibility study important for a new operation?
Feasibility studies examine potential risks to determine whether they're worth taking. A
comprehensive feasibility study can distinguish real economic opportunities from
investments that could fail.

Management and personal requirements

Management and Personnel Feasibility • It pinpoint the project's general to specific

market feasibility topics. • It presents the market and an analysis of past, present and
future demand and supply situation for the product(s).

Regulation and environmental issues

A complete assessment of the environmental implications and requirements of a fixed link

project would be undertaken as the project moves forward through its various stages. As
the feasibility of the project is firmed up and at an appropriate time, formal documentation
would be submitted by the project proponent to fulfill regulatory requirements. The
outcome of this submission would determine the degree of environmental investigation
and studies required for the project. The project would require federal and provincial
approvals under the Canadian Environmental Assessment Act and the Newfoundland
Environmental Act. Current practice does allow screening and registration under one
jurisdiction with both levels of government acting as regulatory agencies jointly. A
detailed list of the applicable legislation, standards and permits that would have to be
obtained is included at the end of this discussion. The documentation to be submitted
would likely be substantial and in component parts to address the potential areas of
interest and mitigation measures. The time frame for the overall process could be several
years; for the purposes of developing preliminary schedules in this report, three years
were assumed. As part of the determination of final feasibility, a drilling program would
be required to obtain better information on the geology of the bedrock that would be
tunneled. Environmental approval would be required for this feasibility level activity
before such a program could be carried out. A formal application process would be
followed which would identify the various processes to be undertaken; regulators would
then determine the degree of environmental assessment required before the drilling could
proceed. Such an assessment may pertain to potential effects of the drilling on marine life,
fishing activity and marine traffic. At the current pre-feasibility level of study, some
comments may be made on the potential environmental implications of constructing a
tunnel under the Strait. First, by building a tunnel, the effect on the environment, in
particular the physical environment of the Strait, is minimized. There is no concern,
obviously, for the potential large scale oceanographic and climatic effects that might be
wrought by a surface crossing such as a causeway and bridge. In the location of the Strait
itself, there would be no or very little effect from the actual tunneling process or from the
traffic once the tunnel is completed. There may be some concern for the effect of noise on
marine life during construction; there should be sufficient information from other marine
tunneling projects to address any such concern. An occupational health and safety concern
relates to the potential effects of the construction on the workers. Emissions from the
mucking system operation would have to be controlled within certain limits for this
purpose. The principal concern with respect to the tunnel itself is likely the disposal of the
excavated material. This would have to be transported to suitable disposal sites on both
sides of the Strait if the tunnel is advanced from both ends. The volume of material on
each side would be approximately 730,000 m³. This is sufficient to cover an area of 7.3
hectares at a depth of 10 m. Material would have to be transported and disposed of in an
environmentally acceptable manner at approved disposal sites. Consideration may have to
be given to the sea water that would drain from the material over time. It is possible that
some of the material could be used for road construction and general fill purposes in the
approaches and terminus areas. The other components of the project relate to the work
required on both sides of the Strait to prepare the approaches and the facilities in the
terminus areas. The construction associated with these activities is common to most road
and buildings projects. Attention must be paid to the crossing of any stream with both
Fixed Link between Labrador and Newfoundland Pre-feasibility Study Final Report
p:\memorial\Phase 1 & 2 Report 78 appropriate design to accommodate fish flows and the
implementation of procedures to prevent deleterious runoff during construction, the
appropriate containment of fuels, and the transport and disposal of surface vegetation and
any unsuitable excavated subsurface material. As far as is known, there are no rare
species of plant or animal life or archaeological relics in the study areas, the general
surrounding areas have been inhabited for a long time, and thus, there is not expected to
be any unusual environmental effect resulting from such construction and operational
activities in the study area. Overall, while the project would be a major undertaking over a
long construction period, its nature is such that there would not likely be major
environmental concerns that are outside the realm of a more typical heavy construction
and earth moving project.
 Critical risk factors
Feasibility analysis is a detailed study of how a project can be completed and accounting
for factors that might affect it such as technological, economic, legal and scheduling
factors.
What is risk in feasibility study?
The risk variables include 8 aspect of investment feasibility that is consist of marketing
aspect, technical and technological aspect, political aspect, regulation and policy aspect,
social and cultural aspect, environment and city planning aspect, financial aspect,
economical aspect.

Financial predication
Forecasting in Feasibility Study
The purpose of a financial feasibility study is to determine if a project will be viable for
an organization or business. A financial forecast uses historical data to project future
financial trends, enabling organizations to plan.
A financial feasibility analysis examines the expenses of starting, operating, and
maintaining the business; market and economic feasibility; expected return on investment
(ROI); and expected liabilities.
The primary three types of financial statements are the balance sheet, the income
statement, and the cash flow statement.
 Conclusion
This feasibility study shows there is a high possibility of prospering in goat meat
production. Because you spent a lesser amount of money and resources in this business
It would be more ideal to venture of this kind of business than other large animals
There are also lesser risk and failures it has a high profitability rate at lesser expenses.
. if you have a small investment capital, you can still engage in an income generating
Business like goat meat production. You can start at lesser cost and end up with higher
income rate.