Top Feasibility Company in Riyadh, Jeddah, Damman, KSA
Feasibility study in Saudi Arabia exactly does a detailed working on the design of a plan or project to determine whether it can be implemented and if done so, whether it will be successful or not. Like the definition of the term suggests, Feasibility study refers to the consideration of test of the plan or project’s viability in several aspects such as legal, technical, finance, marketing etc. Feasibility study in Saudi Arabia is a set of scientific studies that is conducted to identify the projected returns and costs after giving due consideration to the project’s intended objectives during its life expectancy. These are particularly important steps which are carefully prepared to enable the determination of the validity or evaluation of an investment project in many different respects mentioned above. Feasibility study in Saudi Arabia is conducted especially to determine the viability of investment in a particular project in comparison with the alternative investment projects which are available in the market.
An essential part of the design phase of a project or a business plan, the feasibility analysis is done in order to discover and evaluate the strengths, weaknesses, threats and opportunities for the proposed plan or project which is already in operation. Feasibility analysis is a great way to evaluate the resources required to complete the project, along with finding out the chances of the project’s success. A feasibility study is a must before starting any project in order to avoid wastage of time, money, and energy on an impractical business. Every project has a clear, specific plan and hence, a thorough feasibility study is critical for organizations beforeinitiation of any new project or plan or business. Thus, a feasibility study helps in the estimation of the possibility of completing the projects successfully.
The report of feasibility study prepared by the feasibility study company is utilized by the organizations in identifying the possiblepros and cons among alternatives and the chances of outcomes from a project. Therefore, feasibility study is done before investing the investor’s valuable time and money in the project. A thoroughly researched and well executed feasibility study is capable in clearly identifying issues arising during the project implementation phase and later on and also in understanding the operational, financial and other potential organizational influential factors.
SIGNIFICANCE OF FEASIBILITY STUDY IN SAUDI ARABIA
- The feasibility study examines the various impacts to the business or project and hence is extremely important to the projectand the company.
- Feasibility study in Saudi Arabia is a practical tool to judge if an investment in the plan or project is worthwhile or not bothbefore and during
- Feasibility study in Saudi Arabia enables the investor from seeing the prevailing conditions clearly and avoid slipping into riskand bear losses before implementation of the
- Feasibility study in Saudi Arabia is a scientific tool that helps in trading off investment projects and in choosing from among the best of them thereby enabling profitability both for the investor and the
- Feasibility study in Saudi Arabia is one of the most critical scientific tools which is being used by the decision makers to dealwith the economic problems at the project level and at the national
- Feasibility study in Saudi Arabia enables the investor to have an idea of the expected political, economic, legal, social and environmental changes that might take place in the entire life of the
BENEFITS OF A FEASIBILITY STUDY IN SAUDI ARABIA
A feasibility study has two major benefits:
- Optimum utilisation of resources – A systematic analysis of the project or business idea helps in finding out the exact number of resources required and their availability for the project thereby resulting in optimum utilisation of the available resources
- Discover opportunities: A feasibility study is designed in a way that will help the investor in finding the answer to whether theidea is strong and practical to wade through the market and becomes a success or not? For this single reason, it analyses theidea or project from various angles such as technical, legal, operational, and This will also help the investor indiscovering better and newer opportunities like finding out an untapped market or a better and efficient way to implement thebusiness idea.
Preparing A Feasibility Study In Saudi Arabia
The Feasibility study In Saudi Arabia considers the following aspects of study to do a thorough examination:
- Financial analysis and
- Project sensitivity
- Loan repayment
- Feasibility study
CONDUCTING A FEASIBILITY STUDY IN SAUDI ARABIA
An overview of the method of conducting a feasibility study is given below:
1. Preliminary analysis of the project
The first step in any feasibility study is to do a basic and preliminary analysis of the product or service and the target market for which the project is to be set up. The preliminary analysis helps to look at the business idea in detailed depth and helps in assessing the viability and the probability of the project becoming successful after implementation.
The preliminary analysis focuses on the genuine need for the business idea and the value it is going to serve the unmet need in the market, the distinct advantage the project has over similar products or services and the overall contribution to the society.
The preliminary analysis also helps in finding out the obstacles preventing the product or service to enter into the market and thebarriers to entry to decide on the feasibility of the project.
2. Conducting market survey
The market study is the second important step in conducting a feasibility study examination. It helps with the statistical data of thecompetitors, competitors market shares and their promotional strategies for their products. It is especially useful if the product is comparatively new and specialised and has fulfils a unique need market survey can help in determining the customer’s favourability towards the product. This is done by differentiating between specified geographical area, demographics responsiveness to new products, power of existing brands etc
3. Assess technical and other feasibilities
Once the outline of the project is framed with the business model and delivery methods, the actual feasibility study is done. This is themost primary and important step in the entire process.
- Technical – This studies the technical side of the project as to what equipment will be required detailing their capacity and utilization and includes labour, raw materials. transportation, technology needed, business locations
- Operational – This studies the operational side of the project and focuses on the sourcing of raw materials and other resources as may be needed before and during the implementation of the project with the distribution plan and store locations and the overheads that will be
- Economic – Everything boils down to this at the If this fails, the entire project fails. Therefore, this is the quintessentialstudy to determine the feasibility of a project and if this works well, the success of the projects is guaranteed up to a certain level. Economic feasibility is the process of gathering information and analyzing the collected information in a systematicmanner to determine the feasibility of implementation, risks involved and profitability of the proposed project. .The business idea or plan or project whichever is going to be started has to be economically viable for attracting the investors and for themarket to respond in a positive manner.
4. Make a projected income statement
Once the feasibility study is done, a projected income statement, typically for the next three years forecasting the revenue and expenses will be prepared along with yearly increments, as necessary. Every item on the statement is estimated on a valid basis andentered based on the result of the technical and operational analysis.
5. Create a projected balance sheet
The next step in feasibility study is to prepare a projected balance sheet. This comprises of a financial statement which shows the changes forecasted to the organisation’s financial status at the end of the implementation of the project. This is prepared typically for a specific period of one year.
A projected balance sheet gives a clear picture of ownership and dues of a company at a certain point in the future and containsthe following line items mainly:
- Assets (land, buildings, trademarks, )
- Liabilities (Creditors, taxes, )
- Equity (Contribution by the owners / Investment required)
6. Preparation of the feasibility report
Based on the projected financials, the feasibility study company will compile the relevant data and information gathered and willprepare a feasibility report which will cover all aspects of the feasibility study.
7. Reviewing the data
Once the feasibility report ready, reviewing all the information gathered, considering the validity of the methods and frameworks used to assess the soundness of projections made is very important. This is the penultimate step in feasibility study.
After reviewing the data presented and the report compiled, whether the project or business idea is worth pursuing is decided.