During a remote meeting organized by the Asharqia Chamber
A Specialist: marketing study is the heart of the feasibility study
Discussing a remote meeting organized by the Asharqia Chamber represented by the Small and Medium Enterprises Development Center, the best methods for preparing a feasibility study and the most prominent results of the study based on clear goals, during a remote meeting entitled: How to prepare a feasibility study.
During the meeting held Sunday, August 16, 2020, Nayef Al-Melhem, an executive partner at Focus Management Consulting, and the founding partner of "ValuHub" for Evaluation Services addressed a number of issues related to emerging, start-up, small and medium enterprises, which review the concept of the feasibility study, its importance, objectives, and components. And how to prepare it, and the impact of all this on the success of projects in the present and future.
Al-Mulhem said that the feasibility study is the study that determines the requirements for the implementation and operation of the project under study and determines the costs, revenues, and benefits expected from it. Feasibility study for any project means a lack of clarity of vision.
Al-Mulhem reviewed the components of the feasibility study, namely the market, the technical and engineering study, the financial feasibility, the economic feasibility, the organizational and institutional structure, the environmental analysis of the project, and the legal aspects, all of which determine the requirements and benefits of the project.
Al-Mulhem pointed out that projects start with ideas, which may be intertwined and numerous, so it happens that the owner of the project chooses a specific idea, so this idea is the beginning of the initial study of the project, then the matter requires planning, which is a feasibility study, where information about the project to be implemented is collected, and an analysis the information gathered, knowing the investment costs of the project, and the extent of the need for this project for society and the economy, and then reaching a decision regarding the continuation of the project or its dismissal.
The lecturer spoke in detail about many aspects of the market study, which is the heart of the feasibility study, citing a number of determinants required in the market study, which are: the nature of the project, the project's products or services, the target group, the size of the market and the market share, the current and independent demand and supply, and the distribution channels. , Promotion, and analysis of competitors.
Regarding the financial feasibility study, Al-Melhem explained the necessity of determining the assumptions on which the study is based, as well as determining the size of the initial investment, the size of expected revenues and operating expenses, cash flows, calculating the payback period and the net present value, and calculating the internal rate of return for the investment.
He pointed out that projects that provide products are usually easier to determine the supply and demand for projects that provide services, pointing out that the strength of the national economy plays a major role in the recovery of projects of both types, stressing the importance of taking information from official sources because it is reliable and provides the necessary information that benefits Including the investor in various fields about the market situation and target groups so that he can enrich his studies with valuable data through which he can make his decision to invest or not.
Al-Mulhem talked about technology as a necessary means when establishing projects to support the sales process by receiving requests online, indicating the need to choose the service provider by reviewing the technical file of the provider, and analyzing technology options by looking at quality, price, warranty, spare parts, technical support, and training.