A well-done feasibility report is something that enables you to understand the future scope of your business. A wisely prepared feasibility report decides the future of a business and enables you to decide whether you should make investments in the business or startup or product launch. Unlike any other research or survey, a feasibility study requires the following dos and don'ts of the same. Come look at what they are and how they can act beneficial if followed crucially.
Do’s of a Feasibility Report
Preliminary Analysis- Start by outlining your business or startup idea. You need to recognize your business or startup's USP. They should concern with the following-
· Does it focus on an unserved market?
· Does it fathom the pain point of target consumers?
· Does it offer them a more attainable or efficient solution than what is obtainable in the market?
Followed by the next step, which is to index the preliminary obstacles, like-
1. Is it too expensive to produce?
2. Is it too out-of-the-box?
3. Does it have limited market potential?
Prepare the Income Statement- The vital step of a financial feasibility study is to find out whether the business or startup idea is economically workable. You will be required to work in reverse to curate the income statement for your business or startup.
Begin by regulating the estimated income you plan to get from the project. Next, figure out the investment needed to reach this goal, as it is the basics of an income statement. You will further need to make improvisations by taking into consideration all variables.
Market Study- It doesn’t matter whether you have a tremendous business or startup idea or not. If you don’t have a set audience who will buy your product or service, your idea will not give the expected results. Market study or research is a vital part of an in-depth business or startup feasibility report. So, if you don’t have the time, tools or resources to conduct this step thoroughly, hire a third-party firm like The India Watch to provide you with the best results on time.
Market research offers a wide picture of the rational income you can expect from the business or startup. You need to take under consideration many factors, such as-
· Market value
· Strengths and weaknesses of competitors
· Response to market expansion and more
. Customer assessment and their needs & requirements
, Information on the regulatory landscape
Business Organization and Operations- Once you have accomplished the earlier steps, the next step is to initiate your new business or startup hierarchy.
1. Startup costs- fixed investments, operational expenses
2. Deciding the size of the team
3. Costs of equipment, merchandising, marketing, etc.
4. Real estate investment
5. Identifying raw material supply and availability
6. Other overhead costs, etc.
Preparing the Opening Balance Sheet- It incorporates an estimate of the assets and liabilities of your business or startup coming up. While it may not be correct, try to create it closely. Curate a list of all assets and liabilities, including buying land, paying office rents, equipment financing, staff recruiting, training prices, etc.
Review and Analysis- It's time to evaluate and analyses all the information collected. Research if there are any replacements to be made. See if your capital declaration matches the costs and liabilities. Is it realistic? Also, ensure to analyses all fears included and curate a possible plan to head them.
Decide if the Business or Startup Idea is Yes or No- The last step of the thorough feasibility study report includes the time to determine whether to go forward with the business or startup idea or drop it. Before you create a choice, describe whether the time, assets, and money you pay out on it will give you successful returns in the long run and aid meet your business goals.
Don'ts of a Feasibility Report
They don't majorly involve researches that include, and require a lot of money and time consumption. Also, if you have a specific concern, share it with the feasibility conducting advisory as its team will keep in mind all the dos and don'ts you want for the report to be followed.
For more, explore The India Watch’s website! The India Watch works with a wide range of industries and sectors and helps them prepare feasibility studies, detailed project reports, preliminary analysis, etc.