Elements of the feasibility study
Work small projects
In light of the deteriorating economic situation in the world in general, and the high unemployment rates in many societies, especially the Arab societies in particular, many young people are turning to small projects that encourage them to wait for a role in the appointment of a government or private job, A decent life, and enable them to realize their ambitions and future goals.
However, before embarking on the implementation of these projects, an economic feasibility study should be carried out that clarifies the basics of building the project from the ground up to the present, and gives them clear, safe steps in implementing them and guarantees them success in their projects at a high rate.
Definition of feasibility study
The feasibility study is defined as: a complete set of specialized studies that are conducted to determine the investment project from a number of aspects, legal, marketing, productivity, financial, economic and social, to achieve specific objectives which enable the investor to finally make the investment decision for the establishment of the project.
Elements of Feasibility Study
The economic feasibility study is based on a set of two basic stages, each stage includes a set of elements as follows:
Primary study
Or the so-called preliminary study is: a simplified document helps to accept the idea of the project, or rejected, and then if the acceptance of the project is the work of the comprehensive study.
Detailed study
Are the results obtained from the preliminary study, in addition to some detailed information related to the project, which is divided into five sections:
Marketing Feasibility Study: This study is designed to be the basis for determining the rate of demand for goods. It is also considered as the basis for the technical study. Any error in this study will lead to continuous errors throughout the study.
Technical feasibility study: This study identifies a set of basic elements of the project such as: study and selection of the project site, planning the production process, determining the production method, and also indicating the project needs of machinery, manpower, raw materials and finally the total cost of the project.
Financial and Economic Feasibility Study: This phase of the study comes after the completion of the marketing study phase, and the technical study to determine the optimal source and the most suitable for financing the project, such as loans of both types, long-term loans and short-term loans.
The study is about planning, directing, organizing and following up on the project's needs through the best financing mix from the various sources of funding, managing and employing these funds in the various activities of the project, maximizing their results, and giving them returns and economic returns. Top. Profit Analysis: This is the stage that is concerned with estimating the initial profits of the project, without the initial costs.
Preparation of investment proposal: directing sources of funding.
By: Maryam Mosaida
