Ammon – An economic feasibility study can be defined as the process of collecting information about a specific project and analyzing it with the aim of understanding how to implement it and reducing risks to ensure achieving targeted profits. This is done by comparing the proposed project with the local market and its requirements. Here are the basic steps for conducting an economic feasibility study:
Determine personal qualifications: The project owner must determine the skills and experiences he possesses that can contribute to the success of the project. You must also know the personal motivations that can support project continuity and identify important personal qualities for project leadership.
Market study: The market must be carefully analyzed to understand the characteristics of the proposed products or services, determine the size of the market and the project’s possible share in it, and determine marketing strategies to achieve the target share.
Technical study: This includes determining the fixed assets required for the project, the requirements for the process of producing products or services, and identifying the different stages of the production process.
Financial study: The possibility of achieving profitability from the project and how to secure the necessary financing must be determined. This includes determining the total costs of setting up the business and determining the appropriate selling price for the products or services.
Project description: The project must be described accurately, including the project name, planned activities, location, and legal identity.
Organizing the staff: The role of each individual in the work team must be determined to ensure that operations are carried out effectively.
Project requirements: You should know the requirements for the project, including the financial capabilities and resources necessary to implement it.
Costs and Prices: Total costs must be determined and competitive prices set for products or services to successfully compete in the market.
In short, the economic feasibility study represents an essential step to determine the feasibility of the project and its potential success in the market, and it requires careful analysis of the various financial, operational and market aspects of the project.
