Feasibility

Start a New Business or Buy and Existing One?

A good and practical answer is, “IT DEPENDS.”

* First, it depends on the nature and kind of business you have.

* Second, it depends on the availability of opportunities for acquisition.

* Third, it also depends on your personal biases.

The Project Feasibility Study

The project feasibility study, sometimes called a project study or a feasibility study evaluates the viability of a business undertaking.

The project study is merely considered as a procedural requirement for securing financing or government assistance.

Its real objective is to guide the project promoters, business executives, and financial managers in determining the actions they must take on a project in order to bring about its successful operation.

Preparation of a project study covers:

1. Collection of data which is significant to all areas of undertaking (through research work)

2. Analysis of collected data

3. Formulation of recommendations, based on analysis

Various Aspects of Project Feasibility Study

Marketing Aspect

* Considered the life blood of virtually all project feasibility studies for the extent of the data and information gathering because the succeeding aspects depends largely on it.

* Includes the following topics: demand, supply, demand and supply gap analysis, marketing program, and the projected sales,

* Its objective is to determine the quantity of the product that can be sold at a certain price given the competitive situation.

Organization and Management Aspect

* Overall implementation plan

* Includes a study of: officers and key personnel, basic considerations in forming the organizations, form of ownership, organizational chart, and project schedule.

* Its objectives are to determine the option effectiveness of the organizational set-up and the qualifications of the individuals who will make up the organization and determine the successful realization of the project...