Feasibility Study in Ghana is exactly what will decide whether your business proposal should be converted into a reality or not.
Do you want to start a new business or expand your business line, but are apprehensive about the practicality and achievability?
A feasibility study is the assessment of a business plan to determine its viability. A feasibility study is an objective analysis based on actual and credible statistics. The feasibility study is the first step to a successful business to determine whether the business plan will bring in the necessary cash flow, thus contributing to the stability of the business.
The internal and external market conditions are studied in this phase. The prevailing and future market conditions are analyzed, the dominant players are identified, and their strengths and weaknesses are determined to bridge the gap. The product/service being introduced is compared to the existing products/services, distinguishing features that create an edge over the existing products is understood and whether it solves any ‘need’ of the market is analyzed. The receptiveness of target customers is studied, delivery channels are identified and value propositions to the customers are determined in this phase.
The start-up costs, operating cost, financing methods, and Profitability is analyzed in this step. The legal costs, capital acquiring costs, and fixed and variable costs are calculated at this stage. The mode of raising funds, through loans, from investors or other ways are determined, understanding the implications and costs related to the financing options. The projected income and expected Return on Income are also ascertained. The supplier and customer terms of payment are also determined, to ensure healthy cash flow. General contents of every financial feasibility will have the following:
The resources necessary for the business are analyzed in this step. The hardware / Software requirements, source and availability of Capital assets, and whether an expansion or change in line can be accommodated with the capital being invested are some of the aspects to be determined regarding facilities and equipment. Manpower requirements, the technical knowledge they should possess, training that should be provided, and the competency and experience of managers are the aspects to be considered regarding labour and management.
The time frame to set up the business is decided in this stage. Though market analysis takes time, a viable business plan must be executed within a set time frame as the market is very dynamic. The business plan should be turned into reality within the stipulated time to ensure that the company’s goals and objectives are met.
We use the PIECES framework which helps in identifying the problems to be solved and their urgency:
A. Performance – Whether the mode of operation provide adequate throughput and response time?
B. Information – Whether the end-users and managers with timely, pertinent, accurate and usefully formatted information?
C. Economy – Whether the mode of operation provides cost-effective information services to the business? Could there be a reduction in costs and/or an increase in benefits?
D. Control – Whether the mode of operation offers effective controls to protect against fraud and to guarantee accuracy and security of data and information?
E. Efficiency – Whether the mode of operation makes maximum use of available resources, including people, time, the flow of forms?
F. Services – Whether the mode of operation provides reliable service? Is it flexible and expandable?
Feasibility study benefits:
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