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Feasibility Study Services

CDA offers Feasibility Study Services in Dubai, helping you assess the success or failure probability of your business. Our feasibility study specifically looks into the key aspects such as the market scope, HR structure, financial viability, and other operations related to your business. At CDA, you will gain a comprehensive overview of competitive factors in addition to demographic, economic, legal, economic, financial, and technical risks.

feasibility study services in dubai

Feasibility Study Services In Dubai,UAE

Dubai has been developing as a fast-growing economy, and a suitable haven for businesses to flourish. But, your success depends on the suitable environment and the modus operandi of the operation that you implement. You must analyse various factors like the amount of funding, and identify potential obstacles to gear up and proceed. As a novice or a runner, sometimes, you may not be able to identify and rectify these and other major areas. Here is the significance of the Feasibility Study Services for your organisation and an outsourcing service provider like CDA Accounting & Bookkeeping Services LLC.

A feasibility study is an analysis of all relevant factors, like technical, financial and legal side of a project, and determines the possibility of finishing the project efficaciously.

Feasibility study is a significant process in the business management. CDA analysis bit by bit the complete functioning of a business project, assess thoroughly the opportunities and obstacles of each phase of business before getting into the actual procedure, and make relevant strategies for the growth of your business.

The objectives of feasibility studies:

Feasibility study is a substantial procedure in business administration. Feasibility study is done for the following purposes: - 

  • To recognise thoroughly all facets of the project, concept, or plan
  • To become conscious of any potential glitches that could impede the implementation of the project
  • To determine whether the project worth undertaking, after thorough investigation
  • To identify the amount of capital it will need to get the business gear up
  • To avert the company from going blindly into dicey businesses
  • It projects the expected benefits out of the investment

The Importance of Feasibility Studies

  • It allows a business to decide where and how it will function
  • It helps identify potential impediments that may hinder its operations 
  • It helps determine the amount of funding it will need to get the business up and running
  • It helps aim for marketing stratagems that could help persuade investors that capitalising in a particular project or business is a wise choice.

How to Conduct a Feasibility Study

  • Get response about the new concept from the fitting investors
  • Scrutinise and enquire about your data to make sure that it's compact
  • Initiate a market survey research to augment data collection
  • Write an organizational, operational, or a business plan
  • Concoct a projected income statement
  • Concoct an opening day balance sheet 
  • Concoct an initial "go" or "no-go" choice whether to move ahead with the plan

Different Areas of Feasibility Studies

1. Financial Feasibility Study

When business owners have an idea about a new project, they first conduct a feasibility study to determine its viability. A complete feasibility study would examine the market, analyse the technical and production issues, and economic factors. 

It evaluates the economic practicability of a projected endeavour by evaluating the start-up budgets, operational costs, cash flow and forecasting the future performance.

The results from a financial feasibility study determines whether the proposed project is financially possible and make a projection on the rate of return on invested capital.

The groundwork of a Financial Feasibility Study takes the following steps:

a. Recognises the Start-up Expenses

As the first step in the preparation of a financial feasibility analysis, CDA experts identify the costs needed to start the project.

CDA experts focus on and analyse the following areas:

  • Land & building purchase cost
  • Procurement of equipment
  • Authorisations and licences
  • Credits required for office space occupancy
  • Primary purchases for resources
  • Legal and accounting fees for integration
  • Office furniture and supplies
  • Utilities
  • Employee remunerations
  • Cost for Advertisements
  • Insurance premiums

Many of them are upfront costs; still, they need attention before the business begins manoeuvres.

b. Concoct Profit and Cash Flow Prognoses

After identifying the start-up expenses, CDA concocts the expected sales, expenses and cash flow statement and analyse whether the projected endeavour is monetarily feasible. Detailed budget analyses is prepared here and it will be revised time to time according to the progress of the work.

The cash flow prognosis comprise of the amount of funds needed for start-up and identifies the source of the income. 

c. Judges the Return on Invested Assets (ROI)

We calculate the possibility of bad cash flows in the initial period using cash flow projections, profits and sales projections, and find solutions to rectify this shortage if the generation of the internal cash flow is not appropriate.

We decide the financial viability of the project using the projected profit on the invested capital. 

This will make us to evaluate how will this project attract investors, and the overall financial return on the project.

The approximation of the financial feasibility of a proposed venture is made using several common approaches. Some are mentioned below.

  • Net present value (NPV) Approach

In NPV approach, a percentage rate is used to deduct the upcoming cash flows to the present. 

If the NPV of the deducted cash flows surpasses the opening investment cost, the project is viable and should be accepted.

  • Internal Rate of Return (IRR) Approach

The Internal Rate of Return Approach uses the same approach for calculating the NPV of cash flows. It is the discount rate that makes the NPV of cash outflows and inflows equal to zero. The IRR can be used to relate the appeal of several projects.

  • Payback Retro (PR) Approach 

The payback retro is the time taken for making the profit from a project to recuperate the expenses of the investment. The PR technique evades the time value of money that is used in assessing the IRR or NPV of a venture.

2. Market Feasibility Study

In the market feasibility analyses, CDA contemplates on the merchandise industry, the rivalry in the market, and the potential buyers. These measures are used to figure out the projected sales of the company. 

The importance of Market Feasibility Study is: -

  • to examine a given project’s competitive position within a particular market
  • to ensure the demand for the proposed project within that market

Areas of concentration:

We make a better market study and tell what type of product is desirable and competitive within that market. We concentrate on:

  • Establishment of Primary Market Area 
  • Exploration of market trends
  • Exploration of Demographic trend (population-related) within the specified market
  • Exploration of Economic trends (household counts) within the specified market 
  • On-site evaluation of the specified site

3. Mechanical Feasibility Study

The mechanical feasibility study is the analysis of the technicality of the support systems that are essential for the carefree running of the business. 

Mechanical Feasibility Study includes the following details that are necessary for the smooth running of the business:

  • The method of delivering a Product or Service
  • The method of delivering Transportation
  • The method of delivering Labour
  • The method of delivering Materials and other Technologies

4. Executive Feasibility Study

In Executive Feasibility Study, CDA focuses on the following areas:

  • The professional background of the experts of the business
  • The professional skills necessary for the experts of the business
  • The legal structure of the business
  • The corporate structure of the business

Why CDA Accounting & Bookkeeping Services

CDA is a big shot in providing Feasibility Study Services to the business community in Dubai and all over the UAE, and find better strategies to improve your business. We are customer centric, and the satisfaction of our customers is our prime importance. We never allow our clients let down and overburdened with their business issues.

Other than the Feasibility Study Services, we offer Business Services, Accounting & Bookkeeping Services, Auditing services, Tax & VAT Filing Services and Due diligence Services to the business tycoons in Dubai. 

If you need any of our services or want to know more about our services, do contact us. Our experts will give you one hour free consultation on your queries.

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