Importance Of Economic Feasibility.
The economic feasibility step of business development is that period during which a break-even financial model of the business venture is developed based on all costs associated with taking the product from idea to market and achieving sales sufficient to satisfy debt or investment requirements.
A well-designed study should offer a historical background of the business or project, such as a description of the product or service, accounting statements, details of operations and management, marketing research and policies, financial data, legal requirements, and tax obligations. Generally, such studies precede technical development and project implementation.
The objective of the economic feasibility is to develop a financial model of the business venture
BENEFITS OF Economic Feasibility:
- Improves project teams’ focus.
- Identifies new opportunities.
- Identifies a valid reason to undertake the project
- Enhances the success rate by evaluating multiple parameters.
- Identifies reasons not to proceed.
Our strategy of Economic Feasibility
Our strategy of Economic Feasibility depending on the end objective of your project. However, a good master plan unifies the project’s vision and prepares you with information like sketches, scope of work and budgets.
- Conduct a Preliminary Analysis
- Prepare a Projected Income Statement
- Conduct a Market Survey, or Perform Market Research
- Plan Business Organization and Operations
- Prepare an Opening Day Balance Sheet
- Review and Analyze All Data
- Make a Go/No-Go Decision