Businesses today operate at a fast pace. Both customer demands and competitive pressures are increasing. Product life cycles are getting shorter and more innovative and new products are becoming more popular. Companies are always looking for new ways of producing products, developing marketing strategies, and devising new policies to generate revenue. However, this can only be done successfully if both the individual and the company carry out feasibility studies before launching a new project. We provide professional feasibility studies in all key business areas. Our consultants in the UAE will inform you of all the opportunities to succeed or fail with your proposals.

What is a feasibility study?

A feasibility study is carried out to assess whether a project is feasible for a business. The proposed idea is evaluated on the basis of various considerations. The feasibility study ensures effective control of the business and indicates the profit margin of the project.

Also, Check: Company Formation Services

Why are financial feasibility studies necessary?

Before starting a project, both small and large companies must first assess their financial feasibility. Feasibility studies provide statistical information and ensure that the idea is worth pursuing. It is imperative for the company to know whether the project will be feasible and whether it will be profitable for the company. Despite the potential for financial growth of an innovative business idea, there are also many risks associated with the proposal. Without carefully analyzing the feasibility of your ideas, you will lead to many financial mistakes. Feasibility studies are therefore carried out to assess market competition, cost and revenue projections, target viability, and many other factors for project development.

Important elements of a feasibility study

Feasibility studies take into account key elements or business areas. This will provide an in-depth insight into the prospects for the success of the project. These are:

Market feasibility

Market research includes understanding buyer sentiment, demographics, market competition, sales forecasts, and other elements. This will determine your current market position and growth potential.

Technical feasibility

We carry out technical feasibility studies to find out in detail how you will make and deliver your products or services to consumers. The analysis is carried out to determine every technical and operational aspect of your proposed project. Before you can implement your idea, you need to plan everything from the first purchase to the end of the sale.

Organizational feasibility

The organizational feasibility analysis describes the corporate and legal framework of the company. It may include basic information and the professional history of the founder. This feasibility study defines the skills that employees can contribute. Organizational feasibility ensures compliance with UAE legal requirements.

Financial feasibility

A financial feasibility study in the UAE forecasts the financial aspects and economic projections of the proposed enterprise. The accountant assesses cash flows, balance sheets, general ledgers, types of funds required and other financial documents, etc. The financial feasibility analysis is the most influential factor in the business plan. Data on key economic indicators can determine the likelihood of revenue growth.

Cost estimation

Cost estimation is necessary to determine the budget of the proposed project. It is the process of estimating the various types of expenditure associated with the implementation of a project.

Availability of resources

In project management, feasibility studies of resources are essential for decision-making. It helps accountants to analyze where the necessary raw materials are, what is the appropriate competitive price, what accounting system is needed, etc. These resources give an overview of what is needed when producing products or services.

Operational feasibility

Operational feasibility assesses the effectiveness of proposed systems and identifies problems. It meets the requirements identified during the financial feasibility analysis.

Also, Check: Business valuation services in the UAE

Do feasibility studies add value to your business?

In-depth feasibility studies can identify potential problems and risks. It provides an overview of whether the project will be successful or not in the long term. It helps to understand the financial, operational, and other organizational impacts after all factors have been taken into account. Well-researched project implementation has a better chance of success and revenue. With a feasibility study, you have the opportunity to influence customers by showing the statistical and graphical projection of the analysis. As a result, the organization will gain more value and investors will have more confidence to invest money in your company.

In order to carry out a proper financial feasibility study together with a strategic report on the proposed idea, you need to use a business consultancy to get an independent opinion on your project. We have extensive experience in developing business plans and carrying out feasibility.

The benefits of a financial feasibility study in the UAE

Financial feasibility analysis offers a variety of excellent benefits to individuals and organizations. Some of these include:

• Increases chances of success
• In-depth insight into various parameters
• Better decision making
• Identification of new opportunities
• Helps to choose the right direction
• Reduces risks and financial losses
• Narrows business plans
• Gain competitive advantage
• Outsourced consultants for feasibility studies

Often, accounting professionals are usually not sufficiently capable to manage projects and analyze their feasibility. In such a case, companies should outsource to certified and experienced chartered accountants in the UAE. They offer a comprehensive overview, analyzing the business model, the accounting software, and the strengths and weaknesses of the proposed idea. They carry out thorough research and identify gaps in the existing system. Feasibility consultants are not an expense, but they increase the likelihood of success and profit.

How do our feasibility studies work?

BestaxCA offers exclusive financial feasibility services in Dubai, Sharjah, Abu Dhabi, and across the UAE. Our team has excellent accounting expertise and takes a critical look at the influencing factors. When we undertake a feasibility analysis of a project, we first understand its business plan, business potential, and other technical aspects. We conduct in-depth market research and analyze customer behavior in relation to your brand and the products or services you offer. Our experts provide comprehensive reports and presentations to business investors. We also develop spreadsheets and financial charts to help you understand the likelihood of success and failure. We guarantee that the information we have researched gives you the confidence to participate in the project.

Contact Bestax Chartered Accountants and Consultants for feasibility and financial forecasting services in the UAE.

Email: info@bestaxca.com

Call: +971 56 7981808