Clients intending to set up a new business or expanding an existing one need sound and realistic feasibility studies to assess the viability of the project. Generally, a comprehensive feasibility study comprises a technical feasibility, market feasibility, economic feasibility and a financial feasibility, the depth of the study depends on the scope determined by a client.
We at MHSS offer the following types of feasibility studies.
When analyzing the feasibility of manufacturing a product or providing a service, our team researches various aspects of the product or service, including its technical feasibility, to ensure that the business has the necessary resources to support it. A company must consider if a product can be manufactured and delivered using the company’s manufacturing and shipping resources, or if a technological upgrade or implementation of new technology is required. The company must also determine if its personnel have the requisite skills to produce and transport the product, or to provide the service in an optimum way. Our team of experts ensure all technical areas of the feasibility study are examined in detail so we can provide you with sufficient detail to make a sound decision.
To earn revenues, a company’s products must experience market success. Before committing to a product or service, our team conducts the product or service demand and calculates the product’s probable market share. To complete the market analysis, we work alongside the client to gather a description of the company’s industry, identify its competition and potential customers, and project sales revenues for the period of interest. Depending on customer demand, our experts recommend to the company to introduce a new product line for an established market, create a product to supplement an existing product line, improve an existing product, or target a new market with an existing product.
Before launching a new product or service, the company must confirm that the product’s expected rate of return is sufficient to cover production costs and earn a profit. To accomplish this objective, we calculate various break-even points based on different unit prices, sales volumes and costs. In so doing, we determine if the product or service will earn a sufficient profit margin to make the investment worthwhile. The work performed to evaluate the product’s economic feasibility determines if the company proceeds with the undertaking. If so, our experts attempt to identify financial resources for development of the product or service and are alongside you every step of the way.
Financial Feasibility and Business Plan
Financial Feasibility Study (FFS) will provide the vital financial numbers that enables the investor to take the right decision. Future financial projections based on reliable financial information properly worked out and analyzed will be a very useful decision-making tool in the hands of an investor. It consists of wide range of thoroughly analyzed financial statements. Business Plan (BP) will describe the promoters’ details, their background and track record, objectives of the project, the firm’s mission statement, description of the firm’s products and services, firm’s location, profile of human resources, the firm’s organization chart, competitive edge, marketing strategy, market trends and market share analysis, sales forecast, operational expenditure forecast, project financing proposal, investor returns, use of different financial models and techniques and the firm’s future Outlook.
Other Feasibility Studies
In addition to considering the technical, market and economic feasibility of a product or service, a company might also complete managerial and environmental feasibility studies. A managerial study determines if a company’s management team has the capabilities and commitment required to introduce a new and successful product or service. In contrast, the focus of an environmental feasibility study is the environmental impact of the -construction of a manufacturing facility and production of the new product, the risk of negative consequences of the product’s production, and the legal consequences of any negative environmental impact.
We would be delighted to discuss how we can help you, and your group or company. Please get in touch and contact MHSS at firstname.lastname@example.org or alternatively, contact our office directly.