Feasibility Study Training Program

Feasibility Study Training Program

A feasibility study is an important step in business development. A feasibility study is an analysis of the
viability of an idea. The feasibility study focuses on helping answer the essential question of “should we
proceed with the proposed project idea?” All activities of the study are directed toward helping answer
this question.
The elements to include in a feasibility study vary according to the type of business venture analyzed and
the market. The success of a feasibility study is based on the careful identification and assessment of all of
the important issues for business success. Depending on the business project, additional items may also
be important. The basic premise of a feasibility study is to determine the potential for success of a
proposed business venture.

Course Objectives:
At the end of the course, participants will be able to:
• Definition of a Feasibility Study and Best Practice Techniques
• How to Use a Feasibility Study
• How to Structure and Plan a Feasibility Study
• The Role of a Feasibility Study in a Business Plan
• Build the feasibility study financial model
• Designing an effective feasibility study and Conducting an effective feasibility study
• Apply different investment appraisal methods and analyze financial parameters
• Analyze the feasibility study and find its merits and shortcomings
• How to Execute a Feasibility Study
This Program on Feasibility Studies is designed for a wide range of experienced project or business
managers and team leaders. It will greatly benefit the following:
• Strategic planners .
• Engineers, senior management.
• Functional managers.
• Project managers and individuals involved in preparing, writing and analyzing feasibility studies.
• Operations and Logistics Planners.
• Business Development Specialists.
• Engineering & Developers.

Feasibility Study Course Outline

  • Description of the Project
    – Identification and exploration of business scenarios.
    – Definition of the project and alternative scenarios and models.
  • Market Feasibility (Brief)
    – Industry description.
    – Industry competitiveness.
    – Market potential.
    – Sales projection.
    – Access to market outlets.
  • Technical Feasibility (Brief)
    – Determine facility needs.
    – Suitability of production technology.
    – Availability and suitability of site.
    – Raw materials.
    – Other inputs.
  •  Financial Feasibility
    – Estimate the total capital requirements.

    • Assess the “capital” needs of the business project and how these needs will be
    • Estimate capital requirements for facilities, equipment and inventories.
    • Determine replacement capital requirements and timing for facilities and
    • Estimate working capital needs.
    • Estimate start-up capital needs until revenues are realized at full capacity.
    • Estimate contingency capital needs (construction delays, technology malfunction,
    market access delays, etc.
    • Estimate other capital needs.

    – Estimate equity and credit needs.

    • Identify alternative equity sources and capital availability — producers, local
    investors, angel investors, venture capitalists, etc.
    • Identify and assess alternative credit sources — banks, government (ie. direct
    loans or loan guarantees), grants, local and state economic development
    • Assess expected financing needs and alternative sources — interest rates, terms,
    conditions, covenants, liens, etc.
    • Establish debt-to-equity levels.

    – Budget expected costs and returns of various alternatives.

    • Estimate expected costs and revenue.
    • Estimate the profit margin and expected net profit.
    • Estimate the sales or usage needed to break-even.
    • Identify limitations or constraints of the economic analysis.
    • Determine project expected cash flow during the start-up period.
    • Identify project an expected income statement, balance sheet, etc. when
    reaching full operation.

    Course’s Duration & Hours:
  •  20 hours distributed over (4) Training Days