Feasibility and Reporting
A detailed feasibility study is required to make an objective investment decision for entrepreneurs. With the feasibility study we will prepare a report, where the economic, technical, financial and legal aspects of the investment are analyzed, and an evaluation that explains whether the investment in question is profitable or feasible for the entrepreneur.
1. Market research: By making researches and evaluations on general characteristics of the sector or market, target market size, market sales prices of the product or service, demand forecasting, competition in the market, possible competitors in case of establishment of a business and other subjects related to the business subject to investment; It is determined whether there is sufficient demand and the demand level is estimated.
2. Economic evaluation: The economic feasibility of the project is evaluated by making the cost-benefit analysis of the investment. This section is particularly important when applying for state support.
3. Legal evaluation: The legislation, permits and licenses required for the establishment of the business, the legal procedures to be followed, the contracts to be signed during the investment period and other legal issues are discussed.
4. Technical evaluation: The flow process of the work subject to feasibility, the selection of the establishment site, the determination of the technical infrastructure features needed to do the feasibility subject work, the determination of the machine-equipment need, the determination of the appropriate capacity, the raw material and input requirement, the arrangement of the organization chart, the total fixed investment the calculation of the amount and working capital, the calculation of depreciation and other related issues are evaluated from a technical point of view.
5. Financial analysis: Finding the initial investment amount, planning financial resources, net present value, return on investment (ROI), calculating the payback period of the investment, preparing the cash flow statement and other financial issues are evaluated.
6. Risk analysis: Determination of possible risks in case of uncertainties, determination of the factors affecting the cash flows of the investment and the sensitivity of the investment results against these factors, the creation of different scenarios as well as the base scenario, and the feasibility results are evaluated differently for each scenario.
An investment project which feasibility study has not been completed or has not been carried out is unlikely to be successful. Therefore, in order for entrepreneurs and investors to make a correct investment decision; They should do a good feasibility study or have it done by experts and experienced consultants in this field.