subject: What Is Feasibility Analysis? [print this page] Feasibility is a research process to make financial reports on which business plans are created. It focuses comprehensively on planning which includes risk management and a secondary protocol or more commonly a contingency plan. It allows executives and entrepreneurs to convert perceptions into business ideas, after passing them through a critical examination of all possible worst scenarios. It is different to other research reports because it focuses on all aspects of business plans.
It is initialized with feasibility analysis, which is focused on the study of goals and objectives that are expected by the owners. It is the point where it gets decided whether to continue with the proposal or discard it. If the analysis shows a positive result and stake holders pursue with it, then next step is to conduct a feasibility study. There are many types of it such as:
Infra Structure Feasibility:
In this type, research is focused in selection of best possible location to operate business. It could be an expansion in the current building, may be taking an office on rent or even purchasing, whatever goes best on ROI. It also includes assessment of over head expenditures, cost of furniture, fixtures and equipments as per the requirement.
Resource Feasibility:
It deals with the calculation of required time to gather all resources in order to start functioning. At this stage a contingency or back up plan is also discussed and finalized.
Law Feasibility:
In this type all the processes are evaluated for any possible conflict with the law of local government or the one under which your business will operate.
Agenda Feasibility:
Once finalized, a project should start as per the proposed time. In some types of business it is very important to start early to get maximum market share. Getting slow in starting can cause a severe loss, for example a demand for mobile phone changes quickly so you need to market that technology on time.
Feasibility analysis is a specialized job and large scale companies usually hire the services of financial experts, but for small and medium enterprises it is recommended that they consult with specialized firms such as iSource Biz which provides feasibility analysis and other financial services at low cost.
by: Ayaz Haider
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