The feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea?” All activities of the study are directed toward helping answer this question.
Feasibility studies is an analysis and evaluation of your proposed project to determine if it is technically feasible, is feasible within the estimated cost, and will be profitable.
Reckon deploys three main components for feasibility studies
- Market Analysis: This includes a study of the industry, present market, projected market potential, sales, competition, and potential buyers. Understanding market potential gives businesses insight into the demand for their product or service.
- Financial Analysis: It establishes how much start-up capital is required, sources of capital, returns on investments, and other financial estimates such as gross profit margins and net income
- Technical Analysis: It analyses the materials, transportation, labor, location, technology required, and other factors related to the product or service