Feasibility studies creation
If you would like to start a project but are not sure if it is cost-effective, it is necessary first to create a feasibility study which will answer to the key question: Is the project economically justified?
Feasibility study is done before investment study, covers three key areas and answers to the questions from different aspects:
- market aspect: Is there a need for products or services which you would like to produce or offer? What would be your market share?
- technical, technological and organizational aspect: What kind of production plant, raw material, organization and people do you need for the production or service provision?
- financial aspect: based on the determined market share and technical, technological and organizational aspects, a financial projection is to be done to show the project cost-effectiveness.