The importance of a feasibility study of investments
What is a feasibility study of Investments? A feasibility study is used to determine the viability of an idea. For example, such as ensuring a project is legally and technically feasible as well as economically justifiable. It tells us whether a project is worth the investment — in some cases, a project may not be doable. There can be many reasons for this. The project could require too many resources, which will prevent those resources from performing other tasks. Also it may cost more than an investor would earn back by taking on a project that isn’t profitable.
Uncertainty is a constant that businesses of every size face daily. Getting customers in the door, encouraging them to spend and ultimately generating a profit are basic objectives that can seem difficult to achieve. Changing and adapting new products and ideas into your business are ways to remove some of the uncertainties you face. But without proper forethought and planning, those steps themselves can be highly uncertain. Feasibility study of investments: a chance to ask and get answers to questions that help you to assess potential. You can predict the likelihood of success or failure.
Feasibility studies of investments are focused and specific. They start with a single question asking whether the idea, event or action is a viable solution. This forces you to focus solely on that question to the exclusion of everything else and to explore possible outcomes. A feasibility study is not the same as a business plan. A feasibility study might cause you to discount an idea, whereas a business plan is call to action. You can, in fact, use a feasibility study as a predecessor to creating a business plan.
Feasibility study by Harakis and Merit Group
Harakis, in collaboration with Merit Group, performs financial feasibility studies on projects to determine future returns and assess investment viability. These studies are not only quantitative but also qualitative. A feasibility study of investments can be crucial in evaluating the practicality and success rate of a proposed project. We will highlight the primary issues and implications of any project in all key business areas.
Harakis offers you the chance to “get it right” before committing time, money and business resources to an idea that may not work in the way you originally planned. For example, causing you to invest even more to correct flaws, remove limitations, and then simply try again. Feasibility study may also open your eyes to new possibilities, opportunities and solutions you might never have otherwise considered.
Source: Chron