The CFOO Centre team has years of experience in undertaking feasibility studies for new businesses and projects including Greenfield. The feasibility study is the first stage of the project development process where many key pieces and information about the project and the proposed industry will be assembled into one overall analysis.
The feasibility study will by the end, show how well all of these pieces fit and perform together. The result of the feasibility study will be an overall assessment of whether the proposed business concept is economically feasible.
Our methodology
The feasibility study would be an analytical tool used during the business development process, showing how a business or project would operate under a given set of assumptions. These assumptions would include the following broad factors;
- Manufacturing or service industry processes,
- The facilities,
- The equipment,
- Capital needs,
- Organisational people needs,
- Working capital needs,
- Volumes, cost of goods (COGS), wages, etc,
- Marketing (prices, competition),
- Technology,
- Finance,
- Legal,
- Other considerations including PESTEL analysis and SWOT analysis
Feasibility studies help investors to discern the pros and cons of undertaking a business or project before they invest a lot of time and money into it or prevent investors from entering into a risky venture.
At the initial stages, a number of key businesses will be identified before the feasibility progresses to the next stages of the identification of one main line of business.
In this main line of business, some of the factors that would include the feasibility study would be the estimation and budgeting of;
- Sales and sales programmes
- Marketing costs
- Raw material and supplies
- Land and site preparation
- Plant, machinery and equipment
- Civil engineering electrical engineering works
- Building structure costs
- Cost of production
- HR
- Source of finance
- Cash flows
- Pre-operating expenditures
- Working capital
- Etc Etc
The feasibility study process could take up to 20 weeks or so of full-time work but a feasibility study is a very worthwhile exercise to get estimated overall costs and estimated revenues of the project.
Our engagement process is not a checklist of sorts but rather a tailor-made approach where we will regularly keep the client informed of the progress of the engagement.
Contact The CFOO Centre Limited to undertake your organisations’ feasibility study needs.
rajeev@cfoocentre.com
+254-736-515-168 and +254-722-714-190