Feasibility Study
FeasibilityStudy
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What is a
Feasibility Study?
What is a
Feasibility Study?
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The first step for a new project or to plan a new business is to do the Feasibility Study. The main purpose of a Feasibility Study is to evaluate the financial aspects of the new project. The focus of feasibility study in Dubai, UAE is based on all the details needed for a startup, to determine the potential Return on Investment of the project and its sustainability in the competitor’s market. Important data gathered during the preparation of feasibility study helps the stakeholders, owners and managers make appropriate decisions for the future.
What are the main elements of the Feasibility Study?
What are the main elements of the
Feasibility Study?
There are 5 key elements of a Feasibility Study in Dubai, UAE.
- Project Overview: A basic overview of a project that includes its services, business model and delivery.
- Financial Feasibility: It includes the type of funds, cash flows, balance sheets etc. It helps generate key financial data based on assumptions.
- Technical Feasibility: It includes various aspects of technicalities such as locations, technology needed and labor etc.
- Organizational Feasibility: It explains the legal and corporate framework of the company. It may include information regarding the previous work of the company and its founders.
- Market Feasibility: It explains about the buyers, industry, competitors, present and future market potential and estimation of sales.
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opening a bank account in the uae
What are the Purposes of a Feasibility Study?
What are the Purposes of
a Feasibility Study?
Many firms in UAE are providing Feasibility Study Services in UAE for business setup, these studies are primarily based on the following purposes.
It is important to identify and estimate the initial cost needed to start the business, these includes expenses like facilities, equipment, legal fee, inventory etc.
It is to analyze the expected revenue in future. This revenue is generated from the different services being offered over a specific time frame. In this step analysis of market demand, pricing strategies and sales is done.
Assessment of inflow and outflow of cash throughout the project is evaluated. The cost analysis is based on operational expenses that includes production cost, marketing expenses and other administrative costs.
It is important to know whether the market has any consumers in need of your project. The feasibility study lets you know about the market size and potential consumers.
There are several companies that are working on the same project, before starting a new project it is important to identify major competitors offering the same services.
Identifying potential financial risks that may occur during the project are important to be evaluated beforehand. Factors such as economic conditions, regulatory changes and competition may result in potential risks.
The feasibility study plays the most important part in deciding whether to go on with the project or abandon it, considering all important factors. By evaluating the points carefully, the correct decision can be made which can be beneficial for the business in the longer run.
A feasibility study helps gain investors’ confidence, if feasibility study is made to perfection with all important key elements for the investor to understand and analyze the prospects, it is likely that they will invest in the project after reading the study.
A proper feasibility study will help ensure that there is compliance with regulatory requirements and other financial standards.
It includes the assessment of the impact of various factors such as fluctuations in sale volume, costs and pricing on the financial outcomes of the business. This helps understand the project’s sensitivity towards external factors and identifying risk mitigation strategies.
How to conduct a Feasibility Study In UAE
How to conduct a Feasibility Study
In UAE?
The major steps that are includes in conducting a Feasibility Study to its finest are as following:
- Conducting a preliminary analysis
- Preparing a profit/loss statement of the project
- Conducting market research
- Streamlining your business operations
- Prepare an estimated balance sheet for opening day
- Analysis of the data collected
- Decision making
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opening a bank account in the uae
Why Choose
ebs Chartered Accountants?
How can ebs Chartered Accountants? help you conduct a Feasibility study for your new venture?
ebs Chartered Accountants are a leading financial and accounting firm, we provide financial feasibility study services in Dubai. We are a team of highly experienced professionals who provide different services and financial feasibility study is one of our expertise. The extensive experience of ebs helps develop comprehensive and personalized Feasibility Studies that makes it easy for the clients to make the best decisions for their business. We are known for our professional attitude, reliable reputation and timely delivery of your work. Communication with our clients makes it easy to provide all the details they require and make changes if something is not to the clients’ liking. Client satisfaction is the number one priority. If you want to get an in-depth Feasibility Study of your new project or business, contact us for the best services. We will help you throughout the project considering all the little details for a successful business venture.
FAQ's
Market analysis is an integral part of a feasibility study as it provides details into market demand, competition, trends, and opportunities. It helps in estimating sales potential, strategies for prices, and revenues generated.
Stakeholders can make use of the findings of a feasibility study to make informed decisions about the project whether to proceed with it, change its scope, financing, or attract new investors. The study provides a basis for resources to be used, risk management, and other strategic plannings.
A feasibility study in making informed decisions about the project considering its important findings. It provides information regarding the project’s financial viability, risks, and potential returns. It covers all the important aspects of a project for its sustainability.
The fee for preparing feasibility study report in UAE starts from AED 5,000 depending upon the type of business, it may be increased as per the requirements.
