How to write feasibility study?

Learn the difference between technical and economic justification project (feasibility study) and a traditional business plan. The first document does not require high detail, its contents should reflect only parts of the whole business. In other words, to include in the feasibility study makes sense only to those estimates that are directly associated with the proposed project and describe anticipated changes in the company.

In the simplest case, take a basis of the feasibility study in detail and made a business plan, with the exception of some details, for example the marketing strategy, description of the service or product, a detailed analysis of the risk factors. Leave in the feasibility study the information that can help in assessing the results of innovation and to identify possible problem areas.

Examine the factors that directly affect the activities of the company, including analysis of financial performance. The numbers should show if investment in the proposed development, if require innovations mergers and acquisitions of companies, how the current credit demand. One of the purposes of writing a feasibility study – draft pick necessary equipment and appropriate technology.

Include in the feasibility study a brief summary of the proposed project, putting in it the basic essence of innovation. Justify the choice of a particular organizational decisions, activities, equipment and related technology. Complete document calculation of financial, labor, raw materials and other production requirements. The feasibility study should contain an indication of the amount of funds necessary for the implementation of the project and possible sources of funding.

Complete feasibility study by summarizing the results and formulation of conclusions. A potential investor should understand that the proposed project is economically feasible, and to develop the fullest possible picture of the structure of expected costs and when the calculated financial indicators with the planned income. For the lender is essential also, the calculation of the payback period of the business project.