A Financial feasibility study is conducted by the companies before undertaking the project, to decide whether to proceed with the project or not. This study will help the company on understanding the benefits and challenges of the project and enable them to prepare strategies to overcome the threats and make the project a successful one.

Benefits of a Feasibility study

For any business, the ultimate goal will be to maximize its profits and increase the value of the business to the board. Feasibility analysis helps the company to select the most profitable project available. This study helps the company in avoiding the unsuited projects and narrows down the best business opportunities to proceed with. This study helps companies in identifying the valid reasons to undertake projects and increases the company’s earnings.

Conducting Financial Feasibility

This study will commence by ensuring that the project doesn’t involve any major obstacles. If the project is clear of such blocks, the scope of the project shall be determined. A deep analysis of the competitive market shall be conducted to ensure the financial viability of the project. The costs of the project and other resources that will be used will be compared with the proposed benefits of the project. In case any problems are identified during this analysis, a reassessment shall be made. Finally, the company will take the most important decision as to whether the project is feasible to undertake or not.

The decision to go for the project or not is one of the most crucial decisions that a company must take for its business development. Once the company has concluded its decision, there’s no turning back. This feasibility analysis will critically analyse the project and will help the company to make the most appropriate decision for the business growth.

Core Areas to Consider

Before undertaking a project, it’s important to ensure that the company possesses adequate technical capability to execute the project.
Check if the cost-benefit analysis indicates that the company has adequate funds to complete the project.
Make sure that the company can meet all legal requirements that the project involves.
Ensure that the risks involved in the project is worth the company’s time and resources by realising benefits for the company.
Check if the project intends to address the company’s needs by enhancing the its strengths and mitigating its weaknesses.

How C&B help you in Project Feasibility?

At consulting and Beyond, Our Financial advisory help you to identify how suitable a project undertaking will be for your business by conducting thorough analyses of projects and ensuring its viability. We can help your business enhance your business’ profitability as:

We follow a systematic process, where existing and future variables are factored to arrive at comprehensive decision-making.
We validate key client assumptions
We consider the market factor and economic feasibility while taking the variables into consideration
We factor the objectives of all the stakeholders in the evaluation.
Once a Feasibility is done the dynamics of the project can be monitored through key metrics throughout the life of the project, both in implementation and commercialization.