The feasibility study of a project examines and determines a number of variables and finally draws conclusion, whether the proposed venture is worthwhile or profitable, now or in near future. Although, factors like hard work, passion, a clever business idea and astute businessman, all contribute in the success of a business but before jumping for the launch or the expansion of the business, doing feasibility analysis is quite helpful. In the management of any project, feasibility study assumes greater importance. A feasibility analysis is conducted to determine the viability of any project idea. MBK Auditing is the top-most company for the feasibility study in Abu Dhabi. Our analysis opines that a project is technically and legally feasible and economically justifiable or not. Our study also tells whether the project is worth the investment. In some cases the project is not viable and doable due to many reasons. Our well designed study offers a historical background of the proposed project and includes a description of the product or the service, marketing research and policies, financial data, details of operations and management, accounting statements, , tax obligations and legal requirements. Below are the types of feasibility studies, we conduct.
Technical feasibility: This assessment is focussed on the available technical resources. We determine whether the organization’s technical resources meet the capacity to pull off the project or not. Also, whether the working team is capable of transforming the idea into working system. It also involves the evaluation of hardware, software and other technical requirements.
Economic feasibility: This analysis involves the cost and the profit analysis of the proposed project. In this step, we determine the tentative cost, viability and the benefits linked to the project. The study serves as an independent project assessment and improves its credibility.
Legal feasibility: This study determines, whether any part or any aspect of the project conflicts with the legal requirements. This saves the considerable time and the money of the organization as it may learn that the project was not feasible right from the beginning.
Operational feasibility: This study analyzes and determines, whether and how the organization’s needs can be met in the project. The study also investigates, how a project plan satisfies the requirements, identified in the project analysis.
A feasibility study assesses the viability of an idea, project, or business by analyzing resources, potential profits, and risks. It aims to determine if the proposal is cost-effective and beneficial for long-term success.
A few key components include technical, market, organizational, and financial feasibility analyses. The study provides insights on market demand, organizational gaps, revenue projections, and risk mitigation strategies.
The purpose of feasibility study in Dubai is to guide decision-making by evaluating a project’s practicality and potential success, helping stakeholders make informed choices about resource allocation and project viability in technical, financial, legal, and market aspects.
Types of Feasibility Studies Offered by MBK Auditing
As the best feasibility study company UAE, we offer a combination of various feasibility studies comprehensively. Here are five different kinds of feasibility studies –
Technical Feasibility Study
A technical feasibility study aims to verify whether an organization can successfully employ its technological internal resources and knowledge. This evaluation entails examining several factors, such as the following –
- a) Production capacity: Does the business have the means to generate that volume of goods and services for clients?
- b) Facilities needed: Will today’s facilities meet the requirements, or will new facilities be built?
- b) Raw materials and supply chain: Has the company maintained a supply chain, and have efficient purchases been made?
- d) Regulatory compliance: Do experts possess the necessary certifications to fulfil industry norms and criteria, and does project execution adhere to pertinent guidelines?
Economic Feasibility Study
The project’s financial viability is the main focus of this financial feasibility study. Usually, the economic feasibility study entails the following steps –
- a) Calculate the capital needed by adding overhead, other capital, and financing collection.
- b) Cost breakdown: Calculating and outlining all project expenses, such as labour, material, hardware, and overhead costs.
- c) Funding sources: Experimenting with different avenues of funding, such as grants, banks, or stakes.
- d) Revenue projection: To determine the amount of income, return on investment, and profit margin, use prediction methods such as cost-benefit analysis or business forecasting.
- e) Financial analysis: Predicting the project’s performance using methods associated with a financial analysis, which are distinguished by financial projections, cash flow statements, and balance sheets.
Legal Feasibility Study
An investigation known as legal feasibility examines if a project complies with all applicable rules and laws. Important things to think about are –
- a) Regulatory compliance: providing the project team with a comprehensive briefing on all applicable rules and regulations that the project must abide by.
- b) Business structure: Evaluating whether legal frameworks—such as corporations versus LLCs—would best safeguard governance, minimize taxation, and protect liability.
Operational Feasibility Study
An operational feasibility study examines a product’s ability to meet needs and discusses how simple it will be to maintain and operate after it is installed. This study also lists the importance of assessing a product’s usefulness, as well as the reaction and recommendations of the application development team.
Scheduling Feasibility Study
The primary focus of scheduling a feasibility study is proposed project timelines and deadlines. This evaluation also examines the length of time team members will be required to finish the project. This significantly affects the business. The intended outcome might not be reached if the programme is not completed on time.
Benefits of Conducting a Feasibility Study
Here are a few benefits of conducting a feasibility study –
Risk Identification and Mitigation
A feasibility study helps identify potential risks and challenges associated with a project early on. By recognizing these risks, project managers can develop strategies to mitigate them effectively, minimizing the likelihood of unforeseen issues derailing the project later.
Informed Decision-Making
Feasibility studies provide stakeholders with the necessary data to decide whether to proceed with a project, modify its scope, or abandon it altogether. This ensures that resources are allocated to projects with a higher likelihood of success.
Cost-Benefit Analysis
Feasibility study services in Dubai assess a project’s financial viability by estimating costs and comparing them to expected benefits. This analysis helps determine if the project will yield a positive return on investment (ROI). The project may not be financially viable if the costs outweigh the benefits.
Resource Allocation
Feasibility study in Dubai outline the resources required for a project, including workforce, equipment, and materials. This information allows project managers to allocate resources efficiently and ensure availability when needed, reducing delays and cost overruns.
Stakeholder Buy-In
Feasibility study in Dubai help clearly understand the project’s goals, benefits, and potential risks. This help gain buy-in and support of stakeholders, which is crucial for the project’s success.
Alignment with Goals
Feasibility study services in Dubai assess how a proposed project aligns with an organization’s strategic goals and objectives. If there is a mismatch, it provides an opportunity to refine the project’s scope or reconsider its importance in the context of the organization’s overarching strategy.
Our Feasibility Study Services
Market Analysis
- Analyze market trends and demand to assess the size and growth potential of the target market
- Conduct competitive analysis to understand the competitive landscape
- Study customer demographics and behavior to gauge market acceptance
Technical Feasibility
- Evaluate technology requirements and operational capabilities to ensure the project is technically viable
- Assess infrastructure to identify potential challenges and dependencies
Financial Feasibility
- Estimate costs and create a detailed budget
- Project revenues and conduct profitability analysis to determine if the project will generate an acceptable return on investment.
Legal and Regulatory Compliance
- Ensure compliance with all relevant local laws, regulations, and industry standards
- Identify necessary permits, licenses, and approvals required to operate the business
Operational Feasibility
- Plan and manage resources effectively to support operations
- Design efficient workflows and processes to optimize performance
Scheduling Feasibility
- Develop realistic project timelines and milestones
- Implement time management strategies to meet deadlines
Our Feasibility Study Process in Dubai
Here’s how we do feasibility study in Dubai –
Initial Consultation and Needs Assessment
Our feasibility study services in Dubai process begins with an initial consultation to understand your business needs and objectives. We assess your project’s scope and requirements, ensuring a customized approach tailored to your goals and challenges.
Data Collection and Market Research
We conduct thorough data collection and market research, analyzing industry trends, competitor strategies, and customer demographics. This comprehensive research forms the foundation for an informed and accurate feasibility study.
Analysis and Report Preparation
Our team analyze the gathered data to evaluate the project’s viability. We prepare a detailed report outlining financial projections, technical requirements, market potential, and risk assessment, providing a clear roadmap for decision-making.
Presentation of Findings and Recommendations
We present our findings and recommendations in a comprehensive meeting, offering actionable insights and strategic guidance. Our team ensures you fully understand the study’s conclusions and their implications for your business.
Ongoing Support and Follow-Up Services
MBK Auditing offers ongoing support and follow-up services to assist with implementing recommendations. We remain available to answer any questions and provide further guidance as your project progresses.
Why Choose MBK Auditing for Feasibility Study in Dubai?
MBK Auditing is a reputable choice for conducting feasibility study services in Dubai due to its experienced team of professionals and strong track record in the industry. The firm has been providing accounting and audit services to clients in Dubai and Abu Dhabi since 2008, earning a reputation for diligently working for the benefit of their clients.
MBK Auditing – the best feasibility study company UAE has a team well-versed in various aspects of business advisory, including business valuation in Dubai. Our expertise extends to IFRS implementation for international companies and auditing experience. This diverse skill set allows them to provide comprehensive and reliable feasibility assessments tailored to the specific needs of each client.
By choosing us for your feasibility study in Dubai, you can expect a thorough analysis of the market, financial projections, and potential risks associated with your business venture. Our dedicated professionals have a strong understanding of the local and international business, ensuring that your feasibility study is conducted with the utmost accuracy and attention to detail.
