A feasibility study (feasibility study) is a set of calculation and analytical documents containing both initial data and basic technical and organizational solutions, estimates, estimates and other indicators that allow considering the feasibility and effectiveness of an investment project.
The main difference between a feasibility study and a business plan is that a feasibility study is a specific planning document for the creation and development of industrial facilities. Therefore, special emphasis in the structure of the feasibility study is placed on the production and technical aspects of the project, and the commercial, market problems of the future business remain almost undisclosed. In addition, the difference between a business plan and a feasibility study is its strategic orientation. Therefore, we can talk about a much narrower, more specific nature of the feasibility study compared to the business plan. The business plan is gradually replacing the feasibility study from the field of entrepreneurial activity. A feasibility study can be carried out on a variety of scientific and technical measures, which can be carried out both at a specific enterprise, research institute or CDB, and on the scale of the entire economy of the country. These include such areas of activity as, for example, justification for the construction of new production facilities, enterprises or modernization of existing ones; justification for the creation of a commercial structure; justification for foreign economic activities (for example, the creation of a joint venture), etc.It should be especially noted that the development of a feasibility study of any scientific and technical event is always carried out before making any important decision, for example, when designing a certain type of equipment and deciding on its serial construction; when deciding on the creation of any production focused on a certain type of product.
Feasibility study chain (feasibility study chain) — to prove and justify the effectiveness of an investment project for creditors or managers of an organization, if the financial results of the preparation of a feasibility study and TER (preparation of a feasibility study and TER) are positive.
The style and form of the feasibility study differ from each other, depending on the final goal.
Feasibility studies can be compiled for:
- banks, in order to obtain loans for the project;
- participation in tenders;
- for the management of an enterprise wishing to develop economically;
- investors, in order to attract them.
- The task of drawing up a feasibility study is to estimate the costs of the project and its results, and analyze the payback period of the project.
Result
Professionally compiled, in accordance with the methodology of UNIDO (United Nations Industrial Development Organization) A feasibility study containing:
- summary — a brief overview of all the main issues of the content of each chapter;
- background and history of the project;
- market analysis and marketing concept;
- material resources;
- location, site and environment;
- design work;
- organization and overhead;
- human resources;
- calendar implementation of the project;
- financial analysis and investments.