The Feasibility study has become a basic non-side material in the stage of the expansion or expansion of modern commercial projects. The feasibility study aims at analyzing the best ways to build the project, in order to preserve the invested capital and the search for the most profitable returns. The presence of this material at the stakeholder’s disposal will give the parties all the added value and tremendous ability to maximize the success of the project by all standards. In addition, this article will enable capital and bank investors to direct them towards wealth-generating projects with a good return on investment. The following are the most important aspects of a standard economic feasibility study, whose parts must be highly interlinked, to be implemented well.
Promising projects are characterized by the entrepreneurial idea that creates added value to the business, which includes finding the best solutions and working in a non-traditional creative way. Therefore, this part of the project should include updating and analyzing the idea of the project, through which the project can be unique from its peers in the market, and thus ensure the success of the project significantly. In addition, this section should discuss some of the general strategies through which the company will operate and the competitive advantage on which it will depend. Therefore, the “idea of the project” and the leading role of the entrepreneurs should be given a great deal of attention, especially since more than 70% of the success rate of the projects in general depends on these two elements.
- Non-traditional entrepreneurial idea.
- Competitive advantage of the project.
- Product solutions for customers.
As mentioned previously, a large percentage of the success of the business depends on the personality and ability of the initiator to implement the project, in addition to the idea of entrepreneurship, and this part of the feasibility study to highlight the role of the founders and convince investors of the capabilities of these pioneers to implement the idea and management of the project well, The “administrative aspect” of the project must include the organizational structure and the size of the labor required for it.
The management side also has the key indicators of success, which will help the executive management to follow up business developments in a precise and remarkable manner. In addition, this part of the project includes the appropriate legal form to provide the appropriate service to customers, according to official channels. Here are the highlights of this section.
- Superior ability to perform work.
- The size of labor required.
- Legal framework and organizational structure.
The operational side of the project is to achieve consistency in achieving the main production lines, towards achieving the services or products for which the project is based.
One of the items to be discussed in this chapter is the different production lines and the general services provided by the project to customers. In addition, this aspect of the project examines the operational processes of the project, such as: location of the project, equipment and tools, materials used suppliers, raw materials and sources of production, and others.
It is also possible to rely on the Business Model method, which deals with the nine main elements of product creation and value added to customers. The main operational elements are as follows:
- Types of services and products provided.
- Production volume.
- List of suppliers and stakeholders.