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Download feasibility study template in Microsoft Word format.
Choosing a Feasibility Study Format that Will Attract Investors
Do you need to convince a bank or investment firm that your upcoming project or endeavor makes sense from a financial standpoint? Have you thought about the direction you’d like to take with your feasibility study format? There are a number of ways that feasibility studies can be formatted and presented, and while you may think that one is just as good as another, the statistics on this matter seem to contradict you. According to experts, the proper feasibility study format can make all the difference when seeking investors for your project, so in this article we will introduce you to a format that gets results and show you some of the topics typically included in this type of study.
Feasibility Study Format: What’s Your Purpose?
The format your feasibility study will take depends largely on your purpose for creating one. To help you narrow this purpose down, take a minute to examine the following questions:
- Are you attempting to convince a partner or investor to help fund your project?
- Are you trying to decide whether or not your project is “feasible” or whether not you should move forward on an idea?
- Have you been tasked by your direct supervisors, boards of directors or external agencies to develop a plan that analyzes the economic viability of an upcoming project?
- Are you weighing one or more project alternatives?
- Do you feel a feasibility study is the best way to analyze all of a project’s many facets?
These are just a few of the many reasons why one would want to create a feasibility study, and depending on your particular reason, you may want to seek out examples created by others with the same goal or dilemma. For the purposes of this article, though, we will assume your purpose is trying to attract investors, largely because this is the primary reason these plans are created.
Feasibility Study Format: Items to Address
When trying to attract investors for an upcoming project, the feasibility study you create should address several key items. This will help clarify for investors not only how the project will be implemented, but also its economic viability and overall value. Some of the items that should be addressed in your study are noted below:
- Production. This category explains, among other things, the project timeline.
- Marketing. Here you will address how the project will be marketed and the cost for that marketing in terms of staff hours and other resources.
- Technology. Here you will describe the type of technology that will be used, along with additional technology needed for the project to be successful.
- Raw Materials. Raw materials, both imported and local, that will be used during project implementation.
- Utilities. This is a breakdown of the utility costs, including gas, electric, water and even telephone used during the implementation phase.
- Manpower. The “manpower” category is a projection of the staff hours needed and the cost for compensating these employees.
- Investment. Based on the items above, the “investment” category will outline the exact amount needed to get the project off the ground.
- Profitability. In this final part of the feasibility study, you should outline your projections for when the project will turn profitable, and the expected return on the investors’ investment.
A feasibility study format like the one outlined above will give investors a visual representation of how their money will be spent and a “ballpark” idea of when they can expect to turn a profit.