A feasibility study is just what it sounds like: a systematic study to understand whether a specific projectis feasible. The ultimate outcome of any feasibility report is a go / no go decision. You either move forward or you don’t.The most common reason for a feasibility study would be to limit one’s losses.
We consider the following factors when carrying out feasibility studies:
The study must be based on realitynot pure speculation or abstract theory. This usually requires primary and secondary market research, to understand whether customers will buy, or if investors will invest.
The projectmust be sufficiently well defined that specific hypotheses can be tested. Without detailed product or service characteristics, nothing can really be determined to any degree of confidence.
Whether a study’s findings are positive or negative, the feasibility study can help entrepreneurs and managers better understand what aspects of the project are of greatest strategic importance to the success of the venture. If the feasibility study is negative, the findings still may uncover previously unknown market opportunities and can thus help set the stage for some other successful product or service commercialization. If the feasibility study is positive, the findings should provide useful insights and benchmarks for the project as it moves forward in the commercialization process.
Contact us for all your feasibility study needs as regards to real estate investment.