Every day, our team at Goldwin Associates writes feasibility reports for a wide range of companies offering an even broader range of products and services. Many people ask us how to write a feasibility study and if it is possible to do so without hiring (or paying) an outside party. The quick answer is yes.
The first step in writing a feasibility study report is identifying the project or product under consideration. Here are the ten steps to writing a feasibility study. Please keep in mind that there are sub-categories within each of the categories listed below – and, don't worry, there are even sub-categories within those sub-categories!
A Step-by-Step Guide to Writing a Feasibility Study:
◆ Identify and explain the project you want to work on. Know exactly what you want to do and create a business plan to back it up. Deviation is only a good idea if your current business model fails or you need to pivot due to a shift in market conditions.
◆ Make certain that your market statistics and analysis are up to date. Check your market research numbers twice and three times. Incorrect numbers can doom a project, stifle growth, contribute to the failure of raising capital, and much more.
◆ Determine any legal obstacles that must be overcome. Regulatory issues, permitting, government licenses, and other considerations must be addressed from the start. If you believe you will be unable to obtain a specific legal requirement, it may be best to abandon the project.
◆ Financials. Understand your numbers. From your development or budgetary needs to the proforma, income statements, cash flows and balance sheets, profit and loss statements, and other financial statements. Know your numbers inside and out.
◆ Making use of the proceeds The use of proceeds is somewhat related to the financials, but it is a separate standalone document that shows where your capital will go and how it will be used, from purchasing equipment to hiring to development, sales, and marketing.
◆ Factors of Risk Determine the business's risk. List all reasonable and valid risks, as well as any unexpected risks. Inadequate risk factors in a feasibility study can prevent a company from obtaining financing and bring it to the non-existent world. Risk factors should not be underestimated, and all resources should be used to ensure that all significant risks to the business have been addressed.
◆ Exit Techniques. Include an analysis of your company's potential exit strategies and how you intend to implement them. A strategic sale, an investor buy-out, or even an initial public offering (IPO) are all examples of exit strategies.
◆ Increase the size of the company. Any feasibility study should demonstrate how you intend to scale the business and grow the products or services.
◆ Explanation of Profit Describe how you intend to make a profit. Profit is also linked to the business's scaling, financials, and exit strategy. There is no positive exit unless the company generates revenue and profit (of course, this is not always the case for publicly traded companies that do not generate profit but are priced on future performance – but not everyone is that fortunate).
◆ Team. Last but not least, the feasibility report should emphasize the company's teamwork. A strong management team can help any business, especially if capital is required to launch or grow the company. Surround yourself with an experienced team, and make sure to highlight their abilities in the report.
While each of the aforementioned steps is somewhat broad, it is important to remember that there are many variations of this model and subsets of categories within each group. However, the preceding should give you an idea of how important it is to cover the fundamentals of any feasibility study.
The team at Goldwin Associates creates first-rate feasibility study reports. Indeed, hundreds of businesses around the world have used our feasibility services. Hundreds of feasibility study documents have been written in more than 50 countries by our team of researchers, business plan and financial consultants, and attorneys. We have written feasibility studies for a wide range of industries and businesses, including real estate development, oil, gas, and energy, product launch, scientific exploration, and many others.
A feasibility study is carried out prior to the start of a project. Principals of companies and their investors want to ensure that any project they plan to develop is actually "feasible," and the purpose of writing such a report is to prepare a study demonstrating this feasibility (which of course will help save needed capital and time in the long run). A feasibility study contains vital information and data such as the funding required to complete the project, the market opportunity, government regulations, risk factors, strengths and weaknesses, the management team, and the company's financials. While a feasibility study may sound similar to a business plan, such reports are typically much longer and contain more market and financial information.
The Goldwin Associates team is well-known for its keen insights into any given market, as well as our straightforward assessment of a project's viability. We work one-on-one with our clients to ensure that each project is custom-tailored to the needs of the business.
The Goldwin Associates team can help with any of the feasibility studies listed below. Each study has its own characteristics, but there are more similarities than differences between them.
There are four major feasibility studies:
◆ Real Estate Feasibility – This is the most common type of feasibility study that we write at Goldwin.associates. The land survey, building permits, zoning laws, impact on the surrounding environment and natural habits, traffic issues, and general impact on businesses in the area, as well as the overall market opportunity, are all included in real estate feasibility reports. Real estate feasibility studies are frequently conducted prior to the acquisition and development of land for housing developments such as condos, single-family homes, and apartments, as well as larger projects such as hotels, buildings, and sky scrapers.
◆ Comprehensive Feasibility - A comprehensive feasibility study is a comprehensive report that takes into account some of the most rational business practices that should be implemented before beginning any project. The comprehensive feasibility report includes information on land acquisitions and real estate issues, as well as the economic and cultural impact on the surrounding areas. Such in-depth research can be found in our business plan features (if a client wants a very long and detailed analysis). The comprehensive feasibility study is also mentioned in the real estate feasibility study (see above), and it is the most popular feasibility study we offer, along with the real estate report.
◆ Financial Economic Feasibility – When a company wants to know if the proposed amount of capital and financing is sufficient to complete a project successfully, it conducts an economic feasibility study. While a business plan may include a section called the "CBA," or cost-benefit-analysis, an economic feasibility study will go into greater detail and include more statistics and numbers in the financials.
◆ Marketing Feasibility – Marketing feasibility investigates market impact and penetration, including demographics, target market, product testing, and other factors. Prior to launching a project into the market, whether on a local, regional, national, or global scale, a viable market study is required.
Additional Feasibility Studies are being conducted:
Our firm has also written and assisted with the following additional (less well-known) feasibility reports:
◆ Technical Feasibility – Whether or not a company has the technological know-how and resources to achieve its objectives.
◆ Schedule Feasibility - Does the project have enough time and resources to be completed on time?
◆ Cultural Possibility - Local as well as broader cultural and societal impact.
◆ Feasibility in Legal and Ethical Terms – Is there any ethical or legal ramifications to a project, and if so, what are they?
◆ Feasibility of Resources - What resources are required, and will they be sufficient to complete the project successfully?
◆ Operational Feasibility – Can your company solve problems and capitalize on potential opportunities during development?
Writing a professional feasibility study is good business practice, especially for companies that plan to raise millions of dollars and want to have the information they need to make an educated decision about a project's viability readily available. By conducting a feasibility study, for example, for a real estate project, you will be able to avoid potential pitfalls during development, save needed capital, and possibly discover new market opportunities.
Goldwin Associates' team has extensive experience writing feasibility studies all over the world. Here is a summary of our procedure. As an example, consider a real estate project. Numerous features are missing, but the general idea is as follows:
◆ Your project's preliminary analysis
◆ Recommendation for the next step
◆ Take on the project
◆ The preliminary analysis of the proposed development area, including preliminary demographics
◆ Conduct a land or site inspection
◆ Costs of construction and development proposed
◆ Demographic analysis of proposed area
◆ Neighborhood analysis
◆ Demographic comparison
◆ Municipal incentives
◆ National market overview
◆ Analysis of similar project or developments
◆ Regional market analysis
◆ Competitive market analysis
◆ Competitive advantages of project or location
◆ Disadvantages of project or location
◆ Projected overall market
◆ Pricing analysis
◆ Purchases or occupancy
◆ Interviews if needed
◆ Financial analysis
◆ Principals
◆ Advisors
◆ Third party team, i.e. law firm, accountant etc.
◆ Pro forma
◆ Balance sheet
◆ Income statement
◆ Profit and loss
We will then send the draft version of the feasibility study for review and comments once it is completed.
Goldwin.associates is a one-stop shop for all of your feasibility study, prospectus, business plan, and offering document requirements. Thousands of projects have been completed by our team. We have set a high standard for feasibility study performance, taking into account time constraints and budgets. We take pride in providing superior service – not just on a local or national scale, but on a global scale – at a fraction of the cost and usually twice as fast as our competitors. By producing a market-driven, financially conscious feasibility study, we provide our clients with the tools they need to make an informed decision about the business opportunity at hand. Our company's primary goal is the success of our clients.
This site's content and information are subject to change without notice. Some content, such as service offerings, may be out of date. Goldwin.associates is not a broker-dealer. We do not sell or solicit any type of security. We have never been compensated in any way for securities sold in any capacity. Golwin.associates is not an attorney's office. For all legal advice and questions, seek the advice of an independent attorney.
For a copy of our Privacy Policy, please click here.
Address: Derech Menachem Begin
146
Po box 7187 Tel Aviv
Israel
© 2021 Goldwin Associates.
All Rights Reserved.