How to Prepare a Good Feasibility Report

Since good planning is a prerequisite for the survival and success of any business, we’ll like to discuss how to write or prepare a good Feasibility Report using a good feasibility report template.

Without proper planning, a business may head towards failure if corrective measures are not taken in time. A Feasibility Report is simply a Business Plan. Feasibility Report is a detailed study that examines the profitability, feasibility, and effectiveness of a proposed investment opportunity.

The report, no matter how elaborate, should be prepared before one undertakes any business or expands the existing one.

A feasibility report can be prepared by the prospective investor or consultancy firms who charge fees depending on the value of the project and how elaborate is the proposed investment opportunity. Based on the Feasibility Report, the entrepreneur can decide to accept or reject the project.

If the project is viable and acceptable, the entrepreneur has to estimate the initial capital outlay and decide on where and how to raise the funds.

Related Articles on Feasibility Report Sample

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• Feasibility Study – What Needs To Be Taken Into Account?
• Why Do You Need A Business Plan?
• Outline Of A Detailed Business Plan
• Planning For Success: Writing A Good Business Plan
• How to Continue with Your Business When It Feels Like You Are Stuck in the Same Place

The Uses of Feasibility Report

The Feasibility Report can be used by the entrepreneur in the following areas:

• To meet the stipulated requirements of financial institutions. For instance, banks and other financial institutions giving loans to start business executives demand a Feasibility Report of the proposed investment.

• To provide the basic information for effective decision-making with respect to the proposed investment. By showing the market potentialities, technical and financial implications of the proposed opportunities, the feasibility report enables the entrepreneur to accept or reject the project.

• To assist the entrepreneur in developing future plans for the organization.

• To serve as the basis for measuring the performance of the proposed business.

Components of a Feasibility Report

No two feasibility studies have identical components. However, there are certain critical aspects that must be present in a good feasibility report. Below are the feasibility report format

A typical feasibility report format is as below:

The nature of the business, Management, Teams, Financial and Economic Analysis, and Marketing plan. In other words, the major areas covered by the feasibility study can be divided into nine major areas namely:

1. Introduction
2. Description of the business
3. Market consideration – A preliminary Evaluation
4. Management Team
5. Technical Specifications and Production plan
6. Marketing Plans
7. Examination of the critical risks and problems
8. Financial and Economic plans
9. Evaluation and conclusion

Photo by Mikael Blomkvist from Pexels