before investing in a plan....
A feasibility study is the initial design stage of any project and, as the name suggests, tells the client if such project is feasible. It is an assessment of the practicality of a proposed project, which uncover the strengths and weaknesses of a proposed project, the opportunities and threats present in the natural environment, the resources required, and the prospects for success. Globe Evolution can perform a feasibility study which will show the development project’s net present value, payback period, discounted payback period, and internal rate of return.
Conducting a feasibility study involves the following steps:
- Conduct preliminary analyses on the land.
- Prepare a projected income statement that will show the possible revenues that the project can generate
- Conduct a market survey to find out if what is being planned is in demand in the market, and what price consumers will be willing to pay for the property.
- Plan the organizational structure of the new project, defining the staffing requirements and the resources needed.
- Prepare an opening day balance, with forecast expenses and revenue
- Review and analyze the points of vulnerability that are internal to the project and can be controlled or else eliminated.
- Decide whether to go on with the project.