What all financial data points are covered in a Feasibility Study?

Posted by Paritosh Kashyap on September 16th, 2022

A feasibility study is one of the most prominent ways to learn about our business’s or startup's future. It would not just help in taking go or no-go decisions about a new business, but will also help in learning about the market, customers, regulations, manpower, vendors, and much more. It is also helpful in risk analysis and making a prudent long-term strategy.

The initial steps in a feasibility analysis include outlining your project plan, beginning by aiming at unserved needs. Then they define the feasibility factors that are too high to clear.

Market research is the key to achieving greater success without any doubt and that is why making the market research deep and insightful is crucial. However, there is more to a feasibility study apart from market research.

One of the important steps in a feasibility analysis is to conduct a thorough financial analysis. A feasibility report is incomplete without a robust financial analysis in place.

Mentioned below are some of the major points that are covered in a feasibility study.

Investment Cost Analysis: Make a break-up analysis of major cost component such as machinery, labor & work force, real estate, raw materials, etc.

Preparing a Projected Income Statement- Via this step, they work backwards, beginning with what to expect the income from the project to be and what funding is needed to reach the goal.

Financial Structure- Prepare the financial structure to meet the various technical, economic, operational, and legal requirements of the project.

Sales & Gross Profit: Analyse and estimate the overall sales, revenue, and profit figures.

ROIs: Calculate the ROI.

All these steps result in the most efficient way of getting an accurate feasibility study in return. By conducting the financial analysis, the amount of benefit your business or startup will fetch is immense.

Conducting this service needs experience and the right sources to fetch information. Rather than doing it yourself, one can consult relevant feasibility service providers such as The India Watch which has conducted feasibility analyses in a wide range of sectors including but not limited to real estate, retail, food & beverage, e-commerce , hotel, textile, building materials, and much more.

For any further requirements, feel free to drop a mail at info@theindiawatch.com