How To Prepare An Industrial Feasibility Study - Case Study Approach

After carrying out the detailed analysis of the market, production, management, technical analysis of the project and determining the size of operations envisaged, the next stage is to determine the capital costs.

Thereafter, promoters should determine the financial feasibility and commercial viability of the proposed project. This involves the process of assessing the financial implications of the project, the financing options available either in form of loan, equity or lease and the overall financial viability of the project. [Read more…]

Business (Project) Financing In Industrial Feasibility Study

Finance is the most important problem facing an entrepreneur particularly when formulating an industrial project. In most cases, entrepreneurs have meager resources and are usually not in a position to attract finance from external sources. Very often, their main sources of fund are from the promoters personal savings, contribution from family members and sometimes loans from friends, business associates and other informal sources. Business finance is the provision of funds for the effective take off of a new project, expansion or diversification of existing ones and more often for the smooth running of the business after take-off as a going concern. [Read more…]

RAW MATERIALS AND INPUTS

RAW MATERIALS SOURCING

A major preliminary step to be undertaken by project promoters is how to source adequate raw materials and other inputs to ensure a smooth and uninterrupted flow in the production process. Many times, promoters just assume that the raw materials are available in large quantity with no consideration for its demand by other household, industrial and commercial consumers. It is therefore necessary to carefully consider the source from which the raw materials will be procured i.e. whether locally or from overseas. Also, it has to be determined whether the raw materials will be purchased in bulk quantities or not as this would impact on transportation, handling and other costs of production. [Read more…]

PROJECT LOCATION, SITE AND INFRASTRUCTURE

The choice of a project location is one of the most critical decisions when establishing an industry. The location directly or indirectly affects the business throughout its life time or for a long period of time. It is therefore necessary that the choice of a location be preceded by a critical evaluation of factors that will influence the choice either positively or negatively. The promoters must also identify alternative location(s) for the project and critically evaluate them in order to provide a sound justification for the location chosen. [Read more…]