Scribd
Upload
204 views12 pages

Project Feasibility Study

This document outlines the key steps and considerations for conducting a project feasibility study. It discusses evaluating business opportunities based on characteristics like customer value and profit potential. Areas of opportunity include new technology, regulations, social issues, and tastes. The feasibility study involves analyzing the market, technology, finances, economics, and environmental impacts. The financial analysis examines costs, financing, profits, risks. Ultimately the study determines if the project is worthwhile.

Uploaded by

keerthana_hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
204 views12 pages

Project Feasibility Study

This document outlines the key steps and considerations for conducting a project feasibility study. It discusses evaluating business opportunities based on characteristics like customer value and profit potential. Areas of opportunity include new technology, regulations, social issues, and tastes. The feasibility study involves analyzing the market, technology, finances, economics, and environmental impacts. The financial analysis examines costs, financing, profits, risks. Ultimately the study determines if the project is worthwhile.

Uploaded by

keerthana_hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Project feasibility Study

Characteristics of an Business opportunity

 Creates significant value for customers


 Offers significant risk adjusted profit potential
to the entrepreneur and investors
 Represents a good fit with the capabilities of
the founder and the management team
 The opportunity for profits will persist over a
reasonable length of time
 The opportunity is amenable to financing.
Areas of Business Opportunities

 New knowledge and technical change


 Changing regulations
 Social turmoil and civic failure
 Changing tastes
Evaluating the opportunity

 Thorough examination of the market for the


business’s product or service.
 Assess the current and anticipated level of
competition and define the strategy that would give
you an edge.
 Look at the economics of the opportunity
 Consider the financial and human resources
required for success.
Flow chart for setting up a small-scale industrial (SSI) unit
1. Selection of a project
a. Product or service selection
b. Location selection
c. Project feasibility study
d. Business plan preparation
e. Prepare project profile

2. Decide on the constitution

3. Obtain SSI registration 4. Obtain clearances from


departments as applicable

5. Arrange for land/shed 6. Arrange for plant and 7. Arrange for infrastructure
machinery

8. Prepare project report

9. Apply and obtain finance

10 a. Proceed to implement
b. Obtain final clearances
Project feasibility study: a schematic diagram
Generation of ideas

Preliminary Work
Initial screening

Is the idea prima facie promising


No
Yes
Plan feasibility analysis Terminate
Analysis

Conduct market analysis Conduct technical analysis

Conduct financial analysis


Evaluation

Conduct economic & ecological analysis

Is the project worthwhile?


No
Yes
Prepare funding proposal Terminate
Market analysis
 Consumption trend in the past and the present
 Past and present supply positions
 Production possibilities and constraints
 Imports and exports
 Structure of competition
 Cost structure
 Elasticity of demand
 Consumer behavior
 Distribution channels and marketing policies
 Administrative, technical and legal constraints
Technical analysis

 Preliminary tests and studies


 Availability of inputs
 Scale of operation
 Production process
 Type of plant and machinery
 Provision for the treatment of effluents
 Layout of plant, building and site
 Work schedule
 Type of technology
Financial Analysis

 Investment outlay and cost of project


 Means of financing
 Projected profitability
 Break-even point
 Cash flows of the project
 Investment worthiness judged in terms of various
criteria of merit
 Projected financial position
 Level of risk
Economic analysis

 Economic benefits in terms of efficiency prices


 Impact of the project on the distribution of income in
the society.
 Impact of the project on the level of savings and
investment in the society
 Contribution of project towards the fulfillment of
certain criteria like self-sufficiency, employment and
social order?
Ecological Analysis

 What is the likely damage caused by the


project to the environment?

 What is the cost of restoration measures


required to ensure that the damage to the
environment is contained within acceptable
limits ?
THANK YOU

You might also like