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Economic feasibility study: Every economic project, whether small or even large, an individual project or a government project needs planning, but when starting to implement the project we must know the details of the project and this is known as feasibility study, the feasibility study is a study carried out by the idea The new project to determine the costs of the project and its importance, and the returns that can be achieved from it, and the external influences that could be a barrier in the way, and competition, so as to be able to implement the project and success and avoid loss, and in this article we will talk about how the feasibility study.
Components of Feasibility Study
The economic feasibility study contains several components:
– The marketing feasibility: The project owner must at this stage to study the market in terms of the possibility of accepting members of the community for the new project, the number of projects competing for the new project, competitors and the tastes of consumers, and accordingly we provide the project inputs and materials for production, The project owner should think about the production methods, so that the product is of high quality and at an appropriate price, and he should also study the ways of distributing the product to the end consumers. It is also necessary that the place of sale is very close to where the consumers are located so that they can easily reach it It should also be innovative in ideas that attract the consumer to its products and give its project a competitive advantage. It can also be distinguished in the ways of packaging its products, in the way of selling by installments, granting discounts or giving gifts. successful.
– Technical feasibility of the project: The technical economic feasibility study is one of the economic feasibility of the project, and depends on the study of financial, social, economic and environmental, it depends on the data obtained in the marketing study, and the technical study related to machinery and equipment and technical requirements of the project.
– Financial feasibility: Any study of the project in terms of financial, since each project costs are spent on it from the beginning of thinking until the establishment and operation, and the returns and profits realized after implementation.
– Social feasibility: where the study of the impact of the project on the creation of job opportunities, and how much job needed by the project, and also concerned with how to distribute income between different groups in society.
– Environmental feasibility: intended to study the impact of the project on public health, the project must not affect the environment and does not harm them and does not cause a disturbance to the population if located in a residential area.
How To Do a Feasibility Study
To conduct a feasibility study, the following steps should be taken:
– Determine the item to be sold or service to be provided, and the project is supposed to be economically and socially feasible.
– It is better to study the market conditions before starting the project, to see the possibility of people’s demand for the commodity to be sold or the service to be provided, and to know the prices of competing goods in the market and demand.
– Develop a plan to run the project, and study the costs needed by the project and compare the capital owned by the project owner.
– Expected revenues and profits that can be achieved from the project to ensure that the idea of the project is useful and useful.