HLB HAMT is an experienced Feasibility Study Consultants For Start-Ups in Dubai, UAE that will assist businesses of all size, including startups, by making business plans and conducting feasibility studies.
2. Research has shown that there are two main reasons behind the downfall of
new business ventures. The first is that they fail to offer a product or service
the market wants at the right time and second, that the business simply ran
out of the cash it needed for business continuity either because its
product/service did not have the expected success, or it had overlooked
certain key assumptions relating to market demand and operating costs. This
is where feasibility study steps in. HLB HAMT is an experienced
organizational consultant in UAE that will assist businesses of all size,
including startups, by making business plans and conducting feasibility
studies.
3. If you have a great idea to start a new business or intend to develop an idea
within an existing business, thorough research is essential. You need to find
out if:
There is a market for your idea.
Your idea is financially viable.
Any new business starts with an idea because of certain circumstances or
need.
4. • Let us look at the examples of Airbnb and Uber, two startups that commenced
operations almost at the same time. They both started at the right time, i.e., during the
2008 recession, the circumstances demanded it, because people who lost their jobs due to
recession needed to survive through making extra cash, where Airbnb allowed
homeowners to let out a room for travellers while Uber allowed anyone with a car to
become a cab driver. Regardless of the origin of the idea, it is necessary to conduct
certain market research to ensure the success of the business and the achievement of
profits; this means preparing a feasibility study for the project. The decision to conduct a
feasibility study should not be taken lightly as it is a time-consuming process. However,
not doing a feasibility study can be more expensive in terms of the poor decisions made
resulting in failure of the business altogether.
5. • A feasibility Study is largely number driven and ultimately tests the
viability of an idea or a new business opportunity, which proves to be really
beneficial for start-ups not just in Dubai, but across the globe. By assessing
the market for your concept, market competition, estimating financial
viability and identifying potential pitfalls, you can make an informed
choice about the achievability of your entrepreneurial endeavour.
6. • To effectively conceptualize the business plan, the entrepreneur must have
some initial and promising knowledge before beginning a detailed
feasibility report. This is a pre-feasibility stage that can be achieved by
brainstorming sessions with friends and family members in a confidential
circle. If this is complete, you can move on to the feasibility study once the
concept seems to receive a good response.
7.
8. The elements to include in a feasibility study vary according to the type of
business venture and the kind of market opportunities identified. But the steps
listed below are main phase of any feasibility study process:
1. Market Feasibility:- The first step in the feasibility study is to study the
factors affecting supply and demand. The market feasibility study is an
important step to complete the next phase. It is necessary to identify the
market in which the product will be sold and check whether market is
controlled by intense competition. Understand whether the product/service
add value for an existing product/service or is it produced for the first time in
the market.
9. It is also necessary to identify the consumer for the product/service offered and
the income group, target consumer age group, gender, and other consumer
characteristics so that the demand for the product/service can be accurately
estimated.
2. Technical Feasibility:- In this phase generally a group of engineers or
technical experts study the project’s technical aspects. They assess the
technology, machinery and technical equipment required to go forward with the
business and fully meet the estimated market demands. An important element in
the technical feasibility study is to determine the production capacity to meet the
estimated demand i.e., estimation of raw material and labor requirements.
10. The number of employees varies from one business to another depending on the
nature of the business. Based on this analysis a decision on whether the technical
resources are available to convert the idea into reality shall be arrived.
3. Financial/Economic Feasibility:- The final phase of the feasibility study is to
prepare cash inflow and outflow forecasts based on all the evaluated market and
technical details. The financial forecasts will assess the cost of the project, sales
& profits, return on investment, investment payback period, etc. Financial
viability is a key factor for investors to participate in a new business venture, so
invested capital must demonstrate the potential to produce an economic return
for investors at least equivalent to that available from other equally risky
investments.
11. The precision and reliability of the study of financial feasibility depends on
the accuracy of the data used. As the business idea evolves and passes
through pre-feasibility, market feasibility and technical feasibility stages
accuracy of information being used in financial feasibility stage will be much
reliable than during idea inception stage. Calculations of financial feasibility
need to be performed with utmost caution and the complexity of assumptions
depends on the number of different variables to be considered relating to
revenue, operating & capital costs, structure of financing, etc.
12. • Once the financial projections are accurately estimated, it also makes it
easier to conduct sensitivity analysis on key parameters, which makes it
possible for investors to envision different scenarios and possibly mitigate
risk associated with these parameters.
13. CONCLUSION
• The decision to go/no-go is one of the most important in a new business
concept. Once you have decided to pursue a business idea, then a feasibility
study will be a major information source in making this decision. The
findings of the feasibility study should outline the several different
scenarios which will allow you to carefully analyze the financial results and
challenge the underlying assumptions so that you are convinced about the
business concept. This is the reason why a properly developed feasibility
study is critical in business decision making.
14. HLB HAMT is a feasibility study consultant for start-ups in Dubai that
conducts studies that focuses on assessing the potential of a business idea,
risks and benefits associated with it and numerous other critical
components.
15. CONTACT US
HLB HAMT
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
www.hlbhamt.com
