Financial Feasibility Study

Experts in Financial and Economic Feasibility Studies

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Financial Feasibility Studies

Prospectus’ research and writing team is recognized as a world leader in financial feasibility study preparation. Consisting of lifelong entrepreneurs, our team is dedicated to the success of our clients’ goal. We have assisted hundreds of companies in writing their finance and economic feasibility reports and prepared vital studies for a business’s initial launch. From real estate to high tech to economic development to refineries of all kinds, there is not an aspect of the feasibility study process that our staff is not intimately knowledgeable about. The financial aspect of such studies is one of our strengths.

A financial feasibility study, or FFS, should assess the viability of a project based on major pivotal component: will the project or business have enough cash to complete the project (and generate a profit). One of the bottom lines of any business is whether a company can sustain itself, pay its employees and of course make a profit. A financial study can help in this assessment. Components to considers include:

  1. Company Expenses
  2. Revenues.
  3. Assets
  4. Liabilities
  5. Cash flow (money in, and money out).

An economic or finance feasibility study is developed for companies that seek to understand the amount of capital they need to procure to successfully start and complete any given project. While a business plan may have a section called the “CBA” or cost-benefit-analysis, in an economic feasibility study it will be greater in detail and have more statistics and numbers in the financials.

Importance of a Financial Feasibility Study

There are many important factors that any feasibility study should address, and in the financial or economic studies this is equally true. A financial feasibility study can concentrate on a variety of projects or developments or can focus one specific area or study. In any finance study, particularly if one is seeking to raise capital from a bank or private backers, the basic minimum of any financial report (and business plan as well) should be to cover the following:

  • How much capital ones needs to begin the business;
  • How much capital ones needs to operate the business;
  • ROI or return on investment, i.e. when will investors see their money back with a return.

Why Write a Financial Feasibility Study?

Writing a financial feasibility study is good business practice, especially for companies that are planning on raising many millions of dollars and want to have the knowledge readily available to make an educated decision about a project’s viability. It is hard to image a bank or investor infusing capital in a company raising tens of millions of dollars that does not have such a report.  By creating such a real estate financial study or for any product study, for example, you will be able to navigate potential pitfalls during development and save needed capital in the process, as well as possibly discover new opportunities in the market.

Benefits of Writing a Feasibility Study:

  • Prepares the companies for up to date information regarding statistical information on any project, i.e. market for products, real estate development, demographics, income streams, etc.
  • Creates a knowledge of how much capital, if any, is needed for the project’s launch and success. Again, this can be for any business, high tech, real estate, oil, energy etc.
  • Helps with strategies. Since the financing needs are known this can help with strategizing next moves or first mover advantage for new areas.
  • Identifies areas for growth.
  • Inspires confidence in the management team since obtaining the numbers can strengthen a business and its leadership belief in the company’s success.
  • Feasibility studies provide intelligence, statistics for the management team.

A feasibility study is essentially written prior to a project’s undertaking for a simple reason: Directors of companies and their investors want to ensure that any given project they plan on developing is actually “feasible”, and preparing a study showing this feasibility is the main point of writing such a report (which of course will help save needed capital and time in the long run). A feasibility study includes such vital information and data as the funding needs to complete the project, the market opportunity, government regulations, risk factors, strength and weaknesses, the management team and the financials of the company. While a feasibility study somewhat sounds like a business plan, such reports tend to be many times longer with more details on the market and financials.

Prospectus.com’s team is respected for its keen insights into any given market, and our straightforward assessment regarding a projects viability. We work one-on-one with our clients to ensure that each project is specifically tailored to the company’s needs.

 What We Do

Our team at Prospectus.com has worldwide experience in writing feasibility studies. Here is a partial list of our process. We have used a real estate project as an example. But this can be utilized for product launch, not just for the real estate industry. Some features are missing but the general idea can be conveyed as follows:

Review

  • Initial analysis of your project
  • Recommendation on next course of action
  • Undertake the project

Information assessment and collection

  • Initial analysis of the proposed development area, including the initial demographics
  • Conduct product view or for real estate, land or site review
  • Proposed product costs, or for real estate, construction and development costs

Market analysis

  • Demographic analysis of proposed product or area
  • Product and neighborhood analysis
  • Demographic comparison
  • Municipal incentives
  • National market overview
  • Analysis of similar products or developments
  • Regional market analysis
  • Competitive market analysis
  • Competitive advantages of project or location
  • Disadvantages of project or location
  • Projected overall market
  • Pricing analysis
  • Purchases or occupancy
  • Interviews if needed
  • Financial analysis

Management summary

  • Principals
  • Advisors
  • Third party team, i.e. law firm, accountant etc.

Financial Statements and Projections

  • Pro forma
  • Balance sheet
  • Income statement
  • Profit and loss

Recommendations

  • We will make recommendations based on our analysis and conclusions

Appendixes and Addendum

  • Once complete we will then send the draft version of the feasibility study for review and comments.

Start to Finish

  • We work on the project from inception to completion.

All Encompassing Feasibility Consulting Firm

Prospectus.com is a one-stop, all-encompassing company for all your feasibility study, prospectus, business plan or offering document needs. Our team has been involved in literally thousands of projects.  We have set the bar high for feasibility study performance, taking into consideration time constraints and budgets. We pride ourselves on offering superior service – not just on a local or national level but on a global scale – at a fraction of the cost of our competitors and usually twice as fast. We give our clients the tools they need to make an educated decision about the business opportunity at hand by producing a market driven, financially conscience feasibility study. The success of our clients is the number goal of our company.

Feel free to reach out to us any time for a free consultation for your banking or finance project feasibility study.

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Financial Feasibility Study