There is a common misconception, according toto which a feasibility study is nothing more than a condensed version of a business plan with a significantly reduced or missing section on marketing. In fact, this is not true. What then is the feasibility study of the project? An example in this article.
Essence of the term
Feasibility study, or feasibility study,is a printed confirmation of the technical viability of the project and its feasibility from an economic point of view. Such a formulation seems logically complete and understandable. A feasibility study is an idea reflected on paper.
Для ясности можно привести и обозначение термина "business plan". A business plan is a detailed document containing the following information: who and with what tools will implement the project, at what time interval and in what markets will the goods or services be then presented. At the same time, a feasibility study is a component of a business plan, since the implementation of any project is preceded by its technical and economic evaluation. In other words, if a feasibility study is a document that contains the idea of a project, then a business plan is a step-by-step plan for its implementation.
Content of the feasibility study
Creating a feasibility studyconstruction of the enterprise, it is necessary to take care of its content. This will be the basis of the project. The contents of the feasibility study, as a rule, include the following items: name, project objectives, basic information about the project, business case, additional data and applications. At the same time, the business case is supported by sub points, namely: the cost of the project, the calculation of the expected profit, as well as economic efficiency indices.
Приведённое содержание технико-экономического The rationale for the production is indicative and includes only the main sections. If they are not enough, then you can use other additional ones that will help in the implementation of the project.
Name and purpose
The name should be short but informative.In addition, an attractively formulated name of the feasibility study of the project will help to hook the investor. Example - "Precision Instrument Center". It should also concisely state the purpose of the project. The main task of these two parts of the feasibility study sample is to make a good impression and interest the investor. Too much text can discourage reading a project.
Basic information. Project cost
It is considered a successful feasibilityproject justification, an example of which includes the company's activities, as well as a list of products. In addition, the basic information you need to make a description of the production capabilities and the planned production volumes. In the section devoted to the cost of implementation, there should be a list of works that will be required for the execution of the project, as well as their cost.
The following should indicate the expected amount of income andcosts, provided that the project company will work at the planned load. Based on these data and calculated profit. It should be noted here that depreciation should go as a separate item. Often, this indicator investors regard as one of the sources of profit.
Competent is a feasibilityproject justification, an example of which includes the main indicators of investment efficiency. These include the amount of investment, net profit for the year, internal rate of return (IRR), net present value (NPV), the payback period of the project and BEP for the year - the break-even point.
Additional information and applications
The additional information section shouldinclude any materials that will help strengthen the impression of the project, and emphasize its positive and beneficial aspects. In addition, such information should be aimed at disclosing the main objectives of the project, as well as emphasize its economic efficiency and benefits for the investor. Additional information, besides appropriately executed, will add weight and solidity to the project. In addition, these materials will not overload the main points of the feasibility study, as they are displayed in a separate section. But at the same time, it should be emphasized that there is no little information here. Any information and data should be of value to the investor.
In conclusion, I would like to remind you that good andA good example of a feasibility study can be called a document that is concise and concrete. From it the main idea should be unambiguously clear. The feasibility study does not require a detailed description of the project implementation process itself, but is intended only to attract the attention of the investor. But after achieving this goal, you will need a business plan.
