Feasibility Studies

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These days, Investors desire to make decisions that are smart and based on provable facts and figures. Gone are the days when Entrepreneurs invest in a business that is based on speculation.


Even though every business opportunity starts with some sort of speculation, testing the speculation to validate that it can be realized in the marketplace is a key requirement for making a decision that puts funds into a business opportunity. It is better to test the feasibility of a business opportunity before investing in it than investing in an opportunity that is not feasible ab initio only to know this after a huge amount of funds have been invested into it.


Sconducting a feasibility study helps us to understand whether a business idea, proposed project, or business venture is feasible, which is testing speculation to validate its realizability in the marketplace.



Key Areas of a
Feasibility Study
which include →

A feasibility study must cover the following key areas of evaluation at the minimum:

(demand and its key drivers, supply and its key drivers, consumption, local production, imports and smuggling, market valuation and forecast etc.)
(product or service details, manufacturing process and standards, machinery and equipments requirements, inputs requirements and sourcing, ideal location for plant and layout, utility requirements, production schedules etc.)
(business ownership structure, best fit organisational structure, manpower requirements, legal requirements, capitalization etc.)
(potential contribution to GDP, employment generation opportunities, social desirability, environmental effect, foreign exchange contribution potentials etc.)
(initial capital requirements, sources of funding available and indicative terms, projected financial statements, financial analysis, investment appraisal including NPV and IRR, break even analysis and sensitivity analysis)