It helps in making appropriate decisions for the project and helps in achieving the project objectives, and the marketing variables that affect those decisions.
It helps meet the needs of society and reduces the waste of money invested in failed projects. This provides security for the money invested in projects.
It helps to get the best allocation of economic resources.
It is a condition for obtaining loans from sources of financing for the project, and it is also a condition for obtaining the approval of state agencies to establish the project.
Learn about: Criteria for evaluating the economic feasibility study for your project
Characteristics and criteria of economic feasibility study – How to do economic feasibility study for a project
The most important characteristics and criteria on which the method of conducting an economic feasibility study for a project and studying this feasibility in a professional manner depends are the following:
The economic feasibility study for the project must contain accurate, reliable and comprehensive information and not be based on expectations.
Elements of economic feasibility study
There are many elements that must be available in the economic feasibility study, and in the method of conducting an economic feasibility study for a project, so that this study is successful and increases the success rate of your project. These elements include:
Market study :
A careful study must be conducted of the target market in which the product will be launched and information must be collected that will benefit your project in the short or long term, sufficient information must be collected about the product and the characteristics of the product or commodity must be determined, whether it will be sold easily, whether this product is present in the market and has competitors, or whether it will be launched for the first time in the market and the need of the market and the need of customers for this product must be determined, in addition to collecting information about the method of selling the product in the market. It is also necessary to know the segment that is being targeted in the market, know the problems that your project may face in the market, find a way to determine the price of the product and know the marketing aspect of the product such as advertising and customer service.
Administrative aspect :
The success of the project depends largely on the administrative side, the people who perform the administrative tasks and their ability to make appropriate decisions, manage the project effectively, distribute tasks ideally to employees, explain the tasks assigned to the workers, and supervise the monitoring of the workflow and implementation of tasks.
Operational side :
It depends on determining the specifications of the production lines, determining the location on which the project will be established so that it is close to the product components, determining the products that the project will offer, the quantity of these products and the total volume of production, and determining the parties that can be dealt with.
Technical study :
It specifies the tools, equipment, mechanisms, and supplies needed for the project, as well as all the workers required for the project, the stages followed to produce the product, and the suitability of the site on which the project will be built.
Financial study
This study studies the financial aspect of the project, and determines the project’s ability to meet all customer needs. It also determines the sources of funding for the project, the capital required to implement the project on the ground, the project’s operating expenses, the final financial costs of the project, the annual profit from the project and the monthly profit, in addition to the salaries of workers, exports and imports.
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Economic feasibility study objectives
Economic feasibility study objectives
Project feasibility studies objectives – How to do an economic feasibility study for a project
In order to know how to do an economic feasibility study for a project, the objectives of the economic feasibility study for the project must be determined. Among these objectives is determining whether the project is applicable on the ground, and whether it can be invested in. This is the main objective of the feasibility study, which is summarized in determining the project’s success rate and failure rate. As for the other objectives of the economic feasibility study for the project, they are:
Identify opportunities that can be invested in the project, and identify alternatives in order to choose the successful project.
Knowledge of effective methods and advanced ways in the marketing process.
Identify the pros and cons of the project.
Providing accurate and important information for making appropriate decisions.
Identify the technologies needed to be used in the project.
Providing plans for the products offered by the project.
Defining the basic concepts and studying the technical, technological, financial and economic feasibility of the project.
Economic feasibility study template.pdf – How to do an economic feasibility study for a project
Given the importance of studying the economic feasibility of the project, and the importance of knowing how to conduct an economic feasibility study for a project, we will provide an economic feasibility study model through which you can learn everything related to the economic feasibility study, and you can use this model as a guide to create an economic feasibility study for your project. This model is a reference for your project and you can follow it to create your own study for your project in its style.
Who are the people who conduct economic feasibility studies? _ How to conduct economic feasibility studies for a project
Conducting an economic feasibility study for the project requires a team of specialists and a group of technical expertise in several fields such as accounting, economics, business administration, statistics, engineering and law. You can resort to consulting offices specialized in economic feasibility studies. You can also use ready-made and pre-prepared models for an economic feasibility study for previous projects, but these models are often for traditional projects. In addition, there are specialized companies that conduct an economic feasibility study for investment projects, such as Future Vision Company, an expert in the field of economics, marketing and economic feasibility studies for the project.
Project cycle – How to do a feasibility study for a project
In what cases does a project need an economic feasibility study?
Any project, no matter how small, medium or large, and whatever its type, whether media, economic, industrial, commercial, technological or other, needs an economic feasibility study for the project, because this study represents the backbone of this project, and it is what determines the project’s success rate in the short and long term or its failure rate, and the possibility of changing the project or canceling it. In all cases and in all types of projects, the start of the project must be preceded by a stage of studying the project’s economic feasibility, through which and based on which everything related to the project will be determined from its beginning to its end, as each project needs to know how to do an economic feasibility study for a project and conduct an economic feasibility study to ensure the success of the project and to obtain a loan to finance the project from a financial institution. Therefore, it must be clear to the sources of financing that the project is feasible and of great importance, and that the required financial resources, skills and sufficient experience are available. We conclude from this that all projects need a comprehensive economic feasibility study before starting the project, and all those in charge of the project need to know how to prepare an economic feasibility for a project.
At the end of this article, after we learned about the importance of studying the economic feasibility of a project, and the objectives, elements, standards and stages of this study and the method of conducting an economic feasibility study for a project, if you want to obtain an economic feasibility study for your project, contact Future Vision Company, an expert in the economic, marketing, technical, artistic and executive fields, with its distinguished staff, so that its team rich in skill and experience can conduct a model study for your investment project to ensure the success of this project. To communicate with Future Vision Company and to view more of the services it provides in the world of economics, trade, industry, technology and marketing, social media development and website development, visit the company’s website
