economic feasibility studies

For conducting a feasibility study, the entrepreneur should pay attention to the next points and steps:

First:
The entrepreneur/entrepreneurs should detect some details about himself/themselves before starting implementation phase, and these details are:
- What are the experiences and the skills he has/they have that could be of benefit to the project?
- What are his/their personal motives which guarantee the project’s success?
- What are the characteristics he has/they have that will help him or them leading the project?

Therefore, one essential point is that the persons participating in the project should be perceived well, their skills (communication skills, determination, supervision, organization, accounting…etc.), their characteristics (cooperation, eloquence, sincerity, enthusiasm, punctuality…etc.), their experiences and their educational levels. All these elements should be clearly defined.

Second:

Studying the market, regarding:
- The characteristics of the market of your commodity.
- Your market share.
- How can you sell your commodity so that you have a market share


Third:
Conducting a technical study of the project, regarding:
- The assets the project will need.
- The requirements of the intended commodity production.
- The commodity' production phases.

In addition, a few more matters that are connected to the technical aspect should be recognized, like: the site intended for establishing the project, water and electricity accessibility, transportations, requirements of machines and equipments, employees wages, production phases…etc.


Fourth:
Conducting a financial study of the project, regarding:
- Is the project' idea profitable or not
- The source of finance.
- The financial cost of the project.

In addition, a few more matters that are connected to the financial aspect should be recognized, like: the total cost of the project, the monthly profit and the total profit, financial tests for determining the project feasibility …etc.