Proper assessment and planning is a must for any business to succeed. If proper business planning is not carried out, an investment may end up as a failure.
This is why much effort must be taken in preparing a small business feasibility study report which can also be called a business plan.
The essence of this plan is to be able to assess the feasibility, sustainability and profitability of a proposed business idea.
No matter the level of your experience in that business/ investment opportunity, a feasible report should be prepared when starting a new business or aiming to expand one.
A feasible report is prepared by the prospective business owner though the service of a writing a business plan can be given to consultancy firm who would charge a particular fee for rendering such service.
The main reason for making a feasible study for a business is to determine if the investment will be viable or not and it is base on the outcome of this business plan that the investor will decide to reject or accept the project.
The entrepreneur will assess the capital requirement, this will determine if he has the financial capacity or not to launch such business and sustain it.
PURPOSE OF FEASIBILITY STUDY
There are a whole lot of advantages to making a feasibility report. A well prepared feasibility report will;
. Help in securing financial assistance such as loans from bank
. Promote decision making in the investment
. Enable investors make expansions and future plans easily
. Give a platform for performance assessment in business
COMPONENT PARTS OF A FEASIBILITY REPORT
Two feasibility studies cannot have identical components.
Nonetheless, there are certain critical aspects that must be included in a good feasibility report. To learn how to write a feasibility report some key items are to be considered. Below are some of these key items and they include;
The nature of investment, management and organization, team, economic and financial planning and analysis, small business marketing plans and strategies.
When writing a good feasibility report, the below listed core areas should be covered
. Business description of the business
. Market Evaluation
. Technical requirement and Production Plan
. Management and Production Team
. Marketing Plans and Strategies
. Financial Analysis and Economic Plans
. Evaluation of Risk and Challenges
. Overall Assessment and Conclusion