Transforming a good idea into a valid business case is far from simple.
Feasibility studies are essential when planning any new project and form the basis and foundation for successful project implementation. We estimate the potential in the project or business case to make sure that the vision is realistic, fund-able and economically feasible. We evaluate the business idea and undertake a feasibility study which includes industry assessment, the opportunities, risk factors, market analysis, competitive scenario analysis, financial feasibility, financial projections, location/site evaluation, business life cycle analysis, logistic support, and resources, etc.
Furthermore, VAT Consultants in UAE, VAT Consultants in Dubai, Chartered accountant, Vat in Dubai and financial institutions and investors, typically require a feasibility study of the business which an organization needs to finance the business. It doesn’t make any difference if it’s a product or service. The feasibility study will provide the discipline and insight to reassure the investor that the idea is worthwhile pursuing or not.
There are usually three main components of the feasibility study. However, depending upon the nature of the business, technical analysis may not be required.
- Market analysis
- Technical analysis
- Financial analysis
A market analysis should be conducted first to know about the adequate demand for the product or service. The components of the market analysis include:
- Projected market share
- Demand, supply, opportunities, and challenges
- Pricing strategy
- Marketing model
- Risk factors
- The estimate of the market size
- Customer needs
- Competitor analysis
Further, the operational analysis is of paramount importance and include:
- Location for producing the product or rendering of the services
- Size of the manufacturing unit/office, capacity, and plan for occupying the space
- Equipment requirements and the technical & cost details of the same
- Sources for procuring the raw material
- Labor and transportation matters
- Production strategy
- Timeline constrains
- Government, legal and industry regulations, etc.
Financial analysis is a critical component of the feasibility study. With financial analysis, it cannot be determined the feasibility of the idea. Key components include:
- Capital requirement
- Startup cost
- Revenue projection
- Gross profit margin
- Net profitability
- Cash flows analysis
- Breakeven analysis
- Payback period of the investment
- Internal rate of return of the project
- Net present value determination
We would be delighted to discuss how we can help you, and your group or company through Vat consultants in Uae. Please get in touch and contact us at email@example.com or alternatively, contact our office directly.