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This is one of the most important aspects after feasibility study is being carried out. It clarifies or assesses the viability, stability and profitability of a business or a project. Our Finance professionals prepare all these reports using ratios which use information from financial statements and other required reports. On the basis of these reports, a company might: Continue or discontinue its main operations, interior decorations, renovate or re-furbish, acquire or rent/lease area (Asset Management), issue stocks or negotiate for a bank loan to increase its working capital and also other decisions that might allow management to make an informed selection on various alternatives in the conduct of its business.
What makes any project feasible? Will the location be feasible in terms of customer’s foot-fall? These are the questions, any entrepreneur must take into consideration very seriously. A feasibility study is a preliminary study that is undertaken to determine and document a project’s viability. This document is analyzed to make a decision whether to proceed with the project or condemn it. Even tough if the project is approved, it is very important to calculate the various scenarios, i.e. best case, optimistic case, break-even and pessimistic case scenario to proceed further. |
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