It is important to identify the parts or areas of a feasibility study in order to compose a good feasibility study.
The following are some areas of a feasibility study to be writing in:
- Introduction – It includes background information about the proposed business including proposed name and purpose of the business. Also, determines the skills and experience of the business investors.
- Business Description – It provides information about the business including the product or services to be offered and nature of industry.
- Market Analysis – It includes knowing the current and potential demand of the product as well as the characteristics of buyers and sales forecast over the first three years.
- Management Analysis – Prospective entrepreneurs need to know the skills and talent of the management team in launching the proposed business. It provides details specification of management personnel including primary duties and organization structure.
- Technical Description – It explain the detailed requirements of facilities, inventory and production control as well as raw materials and other utilities.
- Risks and Problems – It should identify the major and minor risks and problems of the proposed business opportunity including the timing and financial start-up.
- Economic Plans – It should contains the cost and benefit to compare
- Financial Plans – It includes the total estimated cost of the proposed business or project as well as projected cash flow and profitability.