The most important elements of the economic feasibility study : The economic feasibility study is a comprehensive analysis of the proposed project to determine its financial and commercialThe most important elements of the economic feasibility study viability. This study aims to provide information that helps in making an informed investment decision. The following are the most important elements of the economic feasibility study:

Determining the scope of the project

Determining the scope of the project is the first and fundamental step in the economic feasibility study. This includes identifying the main objectives of the project, the amount of work required, and the resources needed to implement it. The scope of the project must be accurate and clear, as it helps guide all future decisions related to the project. Determining the scope helps avoid unnecessary expansion or heading towards paths that may negatively affect the project.

Market Analysis

Market analysis is one of the most important elements of the economic feasibility study, as it focuses on studying demand and supply in the target market. This includes identifying the target group, studying competitors, and evaluating the available opportunities and challenges. Through this analysis, it can be determined whether the project will face sufficient demand for the product or service, as well as how the project can differentiate itself from competitors.

Risk Study

Risk study is one of the crucial points in the feasibility study, as it helps identify the potential challenges and risks that the project may face. This includes financial, operational, legal, or even risks associated with economic or political conditions. By assessing these risks, investors and project owners can take preventive measures or develop contingency plans to minimize the negative impact of these risks.

Legal Study

The legal study focuses on analyzing local and international regulations and laws that may affect the project. This study includes identifying the required licenses, environmental laws, labor laws, and intellectual property protection. This study ensures that the project is in compliance with all applicable laws, which helps avoid future legal problems.

Technical Study

The technical study focuses on the technical and production aspects of the project. This includes identifying the technology and machinery used, identifying production processes, and assessing the availability of the necessary resources. The technical study also includes assessing the appropriate location for the project and the ability to meet the technical requirements for production or service provision with high efficiency and quality.

Identification of Equipment

Identification of equipment includes identifying the tools and machinery needed to implement the project. This requires studying the production or service requirements and identifying the type of equipment the project needs to achieve the desired goals. The equipment must be appropriate in terms of cost and efficiency, and in line with the long-term needs of the project.

Identifying technical cadres

Identifying technical cadres requires knowledge of the skills and experiences required to implement the project efficiently. This includes selecting the right individuals to work in every aspect of the project, from production to management. Having a qualified and diverse technical team helps ensure the success of the project and achieve its goals.

Financial study

Financial study is one of the most important elements of the economic feasibility study, as it focuses on analyzing the financial feasibility of the project. This includes identifying the costs associated with the project, estimating expected revenues, and determining potential profitability. The financial study also includes evaluating returns on investment and analyzing financial feasibility in terms of cash flows, fixed and variable costs, and the financing required to implement the project. Thus, all the most important elements of the feasibility study form the basis for making informed decisions about the project and ensure that the project is feasible from an economic, technical, and legal standpoint.