What types of feasibility studies do you need to prepare?
There are several project studies that should be considered when analyzing the project, but each of these types has preliminary studies and detailed studies:

1. Initial feasibility study:
   It is a preliminary model that includes the general idea of the project, market study, initial costs of the project, project needs and location, and risks that the trader may face. This study determines whether this project can be implemented or not.
2. Detailed feasibility study:
   It is a more detailed study than the initial study, and includes all aspects of the project. Initial and detailed studies apply to several types of studies such as:
3. Technical feasibility study:
   It is a study that includes considering all technical aspects of the project, such as the size and location of the project, product specifications, technical schedules and regulations, etc. Preparing a technical feasibility study contributes to organizing and determining the needs of the internal operations of the project.

The technical feasibility study also helps organize and estimate the capital data for investment in the project, so this study must be very accurate so as not to cause disruption to the financial data.

How to do a technical feasibility study?
Determine the size of production and production capacity, and in this section there are several points that must be taken into account:
Calculating and determining the size of future production.
Calculating the number of products that must be produced during a specific period of time.
Predicting the expected sales figure.
Studying projects that provide the same services or products.
Determining the type of production, and there are several sections for the type of production such as:
Continuous production, which is the production of a large quantity of products with the same specifications, and at the same pace for a long period due to the high demand for them.
Order production, which is the production of specific products according to customer specifications.
Variable production, which is the production of a batch of specific products, then another batch of another product is produced.

2. Determining the project location:
   It is important to carefully choose the project location to ensure the possibility of expanding the business and establishing other branches in the future, because the project location may cause a lot of losses when the current branch does not suit customers or may be inappropriate for production operations. The choice of location depends on considering several important factors, including:

The cost required to operate the project.
The costs of providing project employees.
Proximity to sources of production materials.

3. Internal planning of the project:
   The internal planning of projects helps in the smooth and fast running of production operations. The factors affecting internal planning include:

The type of systems used to complete operations (administrative or sales).
Product specifications.
Production volume.
Product monitoring and testing system.
The policy set by the management to expand the business activity.

4. Selection of production equipment:
   Each business activity has equipment that is different from other business activities, and important criteria that must be applied when comparing machines and equipment include:

The amount of production capacity of the project.
The extent of technological development of the machines.
The costs of operating and maintaining machines.
The productive life of machines.
The possibility of obtaining machines from their sources.

5. Determining the project needs:
   In the technical feasibility study stage, the project needs are determined, such as:

Raw materials.
Equipment.
Manpower.
Internal organization regulations that clarify the division of buildings, locations of machines, warehouses, building infrastructure, etc.

2. Market Study:
   Market study is the stage that gives the merchant an idea of his position in the market, and through research in the market, the merchant will know the size of the demand for the products and services he wants to provide, and the market study also gives the merchant the opportunity to know the competitors in the market. Among the important criteria that the merchant sets when studying the market:

Determining the products and services for the project.
Determining the target group.
Estimating the extent of demand for the products.
Identifying the current market and its characteristics.
Estimating the size of revenues for the first five years from the start of the project.
How to conduct a market feasibility study?

1. Collect and analyze information:
   You can determine the target market for your products and services using interviews, questionnaires, and reports
2. Market study:
   You can divide the markets you want to study into several sections so that you can study the market more deeply, such as:

Horizontal market:
The vertical market is not specialized in meeting the needs of a specific sector, but rather meets the needs of many sectors, and traders in these markets try to meet the needs of a large segment of people.

Vertical market:
It is a market specialized in providing products or services to a specific sector (such as the automotive industry, or the mother and child products industry), and competition in this market is high because it tries to meet the needs of a specific category.

You can also divide the market into several sections according to the geographical factors of the target group:

Dividing customers by age (adults, children).
Dividing customers by gender (males, females).
Dividing customers by social status (individuals, families).
Dividing customers by education.
According to income (medium, high).

3. Predicting the size of demand:
   The size of demand is predicted based on the products currently available in the market, in addition to several other factors such as:

The demographics of the target group (customer characteristics such as age, economic status, etc.).
Customers’ consumption patterns for products.
The value of alternative goods in the market.
Economic stability.
Environmental and social stability.

4. Studying competitors:
   It is important to study competitors and know the services and products offered in the market, so that you can identify their strengths and weaknesses, the pricing method in the market, and the adopted marketing methods.
5. Predicting the size of the market gap:
   By studying the market size study and competitors, you will have an overview of the weaknesses of competitors, so that you can know what customers need and what competitors do not provide them, then you can exploit this point to develop your products, to suit customer demand.
6. Determining the marketing method:
   The appropriate method for marketing the business is determined based on:

The type of products.
The price of the products.
The place where the products are provided.
Customer needs.
Their purchasing power.

3. Legal feasibility study:
   The legal feasibility study deals with all investment laws, financial and tax laws, wages, and many other laws that may hinder the success of the project.

Factors that determine the legal feasibility of the project:
Knowing the type of project and determining its field (industrial, commercial, etc.).
Determining capital and government support.
Determining the target sector (governmental or private).
Size of the project.

4. Financial/Economic Feasibility Study:
   The economic or financial feasibility study is a very important element when starting any project, as after this study you can make a decision whether to invest in this project or not. Through this study, the company’s strengths and weaknesses become clear to you from a financial perspective, and the financial study will also raise your awareness about making the right decisions in projects.