How to Apply
A feasibility study is an independent and objective document designed to identify the strengths and weaknesses of an existing or proposed business, venture, or idea. It analyzes the opportunities and obstacles based on the industry environment and available resources. A typical feasibility study includes the following:
- A definition of the business idea or venture.
- An analysis of the industry relating to the idea or venture.
- General operating procedures of the venture.
- An implementation plan.
- An analysis of market competition.
- Risk considerations.
- Financial model analysis of the venture or idea.
- Scenario analyses (assumptions) based on varying factors affecting success.
From these components, the Consultant(s) conducting the study gleans observations, recommendations, an in depth understanding of the venture, and the factors affecting its success or failure. In addition, a feasibility study will analyze the business as a whole and provide possible solutions to obstacles that are identified throughout the process.
A feasibility study is an important step in the formation or expansion of any business idea. Through analysis the document seeks to answer questions regarding the venture as well as identify opportunities or the lack thereof. In an effort to save the expense of time and effort, as well as assist a client to decide whether an idea is worth pursuing, a feasibility plan assesses an idea through the application of different realities in order to determine if an idea will actually work. These realities, known within the feasibility study as “assumptions”, look at various scenarios that involve the technology of the venture, as well as the financial components and other variables. The research conducted during the creation of a feasibility study often leads to a more comprehensive understanding of the opportunities and obstacles facing a new business idea.
Thus, feasibility studies provide several important features: analysis of the best structure and implementation of a business or idea, help in planning a project, an in depth description of the project and its proposed implementation, in depth evaluation of the project as a whole, and risk assessment through the use of scenarios.
Many grants require the submission of a feasibility study as part of the grant application process. Grantors often make decisions regarding the awarding of grants based on the information contained in the feasibility study and its conclusions.
Because a feasibility study deals with a proposed ventures assets, cash flow, projected returns, and economic benefits, a feasibility study is often used in order to secure loans. A feasibility study can serve as a formal project presentation to a lender or banking institution. Prior to making investment decisions, lenders often require an independent assessment of a business proposal, as well as information relating to the background on a particular industry affecting the proposed venture.
If you are interested in having a feasibility study conducted by VA FAIRS, please contact us.