A feasibility study is one of the basic steps to starting any business or investment project. It is considered a comprehensive evaluation process for all aspects of the project, starting from the costs required to establish it, to financial projections and the expected return on it. For this reason, it is very important to conduct a feasibility study before embarking on any commercial or investment project, for the following reasons:
1- Ensure the feasibility of the project: If the project is not well formulated, the feasibility study can help reveal this matter. It may be possible for problems to be detected at a stage before the start of the project, which can save time, effort and money.
2- Evaluating the financial aspects: The financial aspects are the most important in any project, and the feasibility study helps in accurately evaluating these aspects. In this way, project costs and expected profits can be known, and this helps to make the right decisions.
3- Risk Assessment: Investors can learn about the risks related to the project, and then take actions to reduce these risks.
4- Attracting investors: The feasibility study can help attract investors to the project. When investors get to know accurate numbers about the project, they can be able to make investment decisions.