Our ServicesFeasibility Study

The feasibility study is a scientific method to estimate the probabilities of success of an investment idea before making any investment contribution.

It is the tool that will support the startup business or the entrepreneurs in preventing risks and challenges and help in achieving the desired objectives.
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Feasibility Study

What is
feasibility study?

The feasibility study is a scientific method to estimate the probabilities of success of an investment idea before making any investment contribution. It is the tool that will support the startup business or the entrepreneurs in preventing risks and challenges and help in achieving the desired objectives.

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Whether the study is designed to be submitted to local funding entities or a bank for rescheduling, we – at Arab center- have the required expertise

Most entrepreneurs feel reluctant to develop a feasibility study for their new projects, and they believe that it is just a tool to get the fund. The study is indeed essential for funding agencies, but it should always be there regardless of the financing model to guide the investment decision. Our advisory services rely heavily on producing economic feasibility studies before launching any business.

The study covers the market, technical, and financial aspects and addresses important factors such as:
1-Expected demand and factors affecting it
2- Current and future competition
3- Pricing of the service or product
4- Proposals to increase demand if possible
5- Needed employees, titles, and salaries
6- Special technical factors in terms of design, and maintenance, and fixed assets costs
7- Other development costs
8- Licenses obligatory to start work and the costs of renewing them
9- Steps required to start work
10- Cost structure
11- Required capital
12- Marketing plan in terms of required activities and costs
13- Financial projections in terms of income, expenditures, and cash flows

The market study includes

Market Study
Includes

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  • Market research
  • Market highlight
  • Demand needs
  • Market segments
  • Supply and competition
  • Sector analysis
  • Carry out Porter’s five forces of analysis. Which is the best model to assess the risk embedded in a given sector. The model analyzes the sector from five different angles and answers several questions related to each aspect.
  • a. The threat of entrance: Does it take a lot of licenses and approval to get into the business?  Does it require high capital? Any operational hazard or challenge? Does it take a long time to breakeven?
  • b. Bargaining power of suppliers: Are the suppliers few and one of their kind? Can they place pressure on the business?
  • c. Bargaining power of buyers: Can clients place pressure on the service provider?  How easy it is to shift for another competitor.
  • d. Rivalry: How intense is the competition.
  • e. The threat of substitutes: What are the substituting services/offerings that present similar value.
  • – Analyzing the market volume and current indicators and field specificity of the project.
  • Analyzing the project clients and how to attract them.
  • Current status of competitors.
  • Expected movements of competitors before starting a project.
  • – Competitors sales after starting a project.
  • – Expected sales.
  • – Distribution channels.
  • – Marketing ideas rendering success to project products and insuring customers initiation.
The financial study includes

Financial
Study

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  • Assumptions
  • Revenue streams
  • Cost (direct and Indirect)
  • Fixed assets
  • Working capital (if applicable)
  • Startup capital
  • Pro forma statements
  • Business feasibility (NPV, IRR, Payback)
  • Required items for project assessment balance.
  • Analyzing Break Even Point (profits balance with expenses).
  • Cash flows and forecasted sales.
  • Analyze the elements of strength, weakness, opportunities, and challenges.
  • How to deal with debts and available loan resources.
  • Partnerships percentage.
  • Profitability of the project.
  • Financial sensitivity of the project.
  • Expected financial status of the project in the short, medium and long terms.
The technical study includes

Technical
Study

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  • Location Analysis.
  • Facility layout & planning (Conceptual design and General Equipment Arrangement).
  • Facility Fit-out and preparation for production.
  • Process flow diagram.
  • Machines and Equipment list for main Production and Packaging.
  • Machines and Equipment Technical Study.
  • 3 Quotations of Machines and Equipment – production lines .
  • Power, water and other energy consumptions.
  • Work Breakdown Structure for the production facility.
  • Capital Cost “CAPEX” Estimation
  • Operational Cost “OPEX” Estimation.
  • Manpower and Resources List & wages.
  • Schedule of business construction, commissioning, and startup.
  • Operational Plan.
  • Basic assumptions creating the project idea.
  • Project Location.
  • Needed resources.
  • Work, operational methods and productive art of the project.
  • Products & relationship with suppliers and external parties
The environmental study includes

Environmental
study

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  • Environmental Feasibility Study uses information gathered and analyzed during the Remedial investigation phase to
  • design and then evaluate potential remediation alternatives for sites. The goal is to find the most effective option, preferably one that permanently eliminates or reduces contamination.
  • Overall protection of public and environmental health.
  • Effective reduction of hazardous waste toxicity, mobility, and volume.
  • Long-term and short-term effectiveness.
  • Potential consequences of the remediation process itself.
  • Implementation and technical reliability.
  • Statutory compliance.
  • Public opinion and cost.

By analyzing all these factors, officials, scientists, and responsible parties can identify the alternative that is most likely to provide a comprehensive remedial solution.

The General Study includes

General
study

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  • Executive summary.
  • The current need for the project.
  • Project inputs.
  • Social and economic return of the project.
  • About partners, their experiences and roles in the project.
  • Table of contributions to capital.
The Business Plan includes

The Business
Plan

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Operational Plan

  • Basic assumptions creating the project idea.
  • Project  Location.
  • Needed resources.
  • Work, operational methods and productive art of the project.
  • Products & relationship with suppliers and external parties.
  • Total number of finance that the project needs.

The Business Plan

  • Operational Plan- Implementation Phase
  • Business Model
  • Key Partners
  • Key Resources
  • Key Activities
  • Value Proposition
  • Customers Channels
  • Customer Relationship
  • Cost Structure
  • Revenue Streams
  • Formal procedures and technical requirements … etc.
  • How to get the required licenses.
  • Research, analysis and determining the suitable location for the project set up.
  • Project management techniques.
  • Organizational structure of the project.
  • Levels and job authorities for every location.
  • Identifying the required needs from each employee with cost and job description.
Feasibility Study Appendixes includes

Feasibility Study
Appendixes

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  • Designs and drawings of the project.
  • Charts indicating expected sales numbers within the project years.
  • Basic data about places attracting customers.
  • Charts indicating competitors shares in the market and etc.
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Arab Center
Headquarter - Abu Dhabi
For inquiry, please do not hesitate to contact us
Our locations
Where to find us?
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Get in touch
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Arab Center
Headquarter - Abu Dhabi
For inquiry, please do not hesitate to contact us
Our locations
Where to find us?
https://drassat.com/wp-content/uploads/2020/04/img-footer-map.png
Get in touch
Arab Center Social links
Follow us and stay updated

Copyright by Upbeat Digital. All rights reserved.

Copyright by Upbeat Digital. All rights reserved.

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