Feasibility study of the project. Example of design
There is a common misconception, according toto which the feasibility study is nothing more than a condensed version of the business plan with a significantly cut or missing section dedicated to marketing. In fact, this is not true. What then is the feasibility study for the project? An example in this article.
The essence of the term
Feasibility study, or feasibility study,is a printed confirmation of the technical viability of the project and its feasibility from the economic point of view. Such a formulation seems to be logically complete and understandable. Feasibility study is an idea reflected on paper.
For clarity, the term"business plan". A business plan is a detailed document that contains the following information: who will use the tools to implement the project, in what time period and in which markets will the products or services then be presented. At the same time, the feasibility study is a component of the business plan, since the implementation of any project is preceded by its technical and economic assessment. In other words, if the feasibility study is a document in which the idea of the project is concluded, then the business plan is a step-by-step plan for its implementation.
Contents of the feasibility study
Creating a feasibility studyconstruction of the enterprise, it is necessary to take care of its maintenance. This will be the basis of the project. The content of the feasibility study usually includes the following items: name, project objectives, basic information about the project, business case, additional data and applications. At the same time, the business case is supported by subparagraphs, namely: the cost of the project, the calculation of the expected profit, and economic efficiency indexes.
The content of the technical and economicjustification of production is indicative and includes only the main sections. If they are not enough, then you can use other additional ones that will help in the implementation of the project.
Name and purpose
The name should be short, but informative.In addition, the attractive name of the feasibility study of the project will help attract the investor. An example is the Center for Precision Instrumentation. Also laconically should set out the purpose of the project. The main task of these two parts of the feasibility study is to make a good impression and interest the investor. Too much text can discourage the read of the project.
Basic information. Project cost
A techno-economicjustification of the project, an example of which includes the activities of the company, as well as a list of products. In addition, the main information should include a description of production capabilities and planned production volumes. In the section devoted to the cost of implementation, there must be a list of works that will be required for the execution of the project, as well as their cost.
Next, you should indicate the expected amount of income andcosts provided that the project company will work with the planned load. Based on these data, profit is calculated. Here it should be noted that depreciation charges should be a separate item. Often this indicator investors regard as one of the sources of profit.
Competent is the technical and economicthe rationale for the project, an example of which includes key indicators of investment effectiveness. These include the amount of investment, net profit for the year, the internal rate of return (IRR), net present value (NPV), the payback period of the project and BEP for the year is the break-even point.
Additional information and applications
The additional information section should beinclude any materials that will help strengthen the impression of the project, and highlight its positive and beneficial aspects. In addition, such information should be directed to the disclosure of the main objectives of the project, as well as to emphasize its economic efficiency and benefits for the investor. Additional information, moreover, appropriately designed, will add weight and solidity to the project. In addition, these materials will not overwhelm the main points of the feasibility study, since they are listed in a separate section. But at the same time, it should be emphasized that there is no place for useless information here. Any information and data should be of value to the investor.
In conclusion, I want to recall that good anda good example of a feasibility study can be called a document that is laconic and specific. The basic idea must be unambiguously understood from it. The feasibility study does not need a detailed description of the project implementation process itself, but is only intended to attract the investor's attention. But after achieving this goal, you already need a business plan.