Feasibility Study Services
Feasibility Study Services
Aebiaccountax offers Feasibility Study Services in the UAE, helping you evaluate the potential success or risks of your business venture. Our feasibility studies focus on critical areas such as market scope, HR structure, financial viability, and operational factors relevant to your business. At Aebiaccountax, you’ll receive a detailed analysis of competitive factors, along with insights into demographic, economic, legal, financial, and technical risks. Our team of feasibility experts is highly experienced in developing solid business plans, conducting in-depth feasibility studies, and delivering comprehensive feasibility reports tailored to your business needs.
Why Feasibility Study?
The UAE has emerged as a rapidly growing economy and a prime destination for businesses to thrive. However, success relies heavily on choosing the right environment and implementing the right operational strategies. Business owners must consider various factors, such as the level of funding and potential obstacles, to ensure smooth progress. For both newcomers and seasoned entrepreneurs, identifying and addressing critical areas can be challenging. This is where Feasibility Study Services become essential for your organization.
A feasibility study is a comprehensive analysis of key aspects, including the technical, financial, and legal components of a project, to determine the likelihood of its successful completion. A detailed feasibility study is crucial for organizations to evaluate the viability of a project or decision. In the UAE, businesses turn to feasibility study services to uncover potential risks and rewards associated with a project.
Feasibility studies play a vital role in business management. Aebiaccountax’s feasibility study services in the UAE provide an in-depth analysis of a business project’s entire scope. We thoroughly assess the opportunities and challenges at each stage of business, enabling you to devise effective strategies for growth before diving into the actual execution phase.
Objectives of Feasibility Study
- 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 a 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
Importance of Feasibility Studies
- It helps aim for marketing stratagems that could help persuade investors that capitalising in a particular project or business is a wise choice.
- It helps determine the amount of funding it will need to get the business up and running
- It helps identify potential impediments that may hinder its operations
- It allows a business to decide where and how it will function
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
The different areas of feasibility studies are mentioned below:
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 determine 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 financial feasibility analysis, Our experts identify the costs needed to start the project.
Aebiaccountax 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 determining the start-up expenses, Aebiaccountax carefully prepares projected sales, expenses, and a cash flow statement to assess whether the proposed venture is financially viable. We provide detailed budget analyses, which are continuously reviewed and adjusted based on the progress of the project.
Our cash flow projections include the total amount of funds required for the start-up and clearly identify potential sources of income, ensuring a comprehensive financial plan for your business’s success.
c. Judges the Return on Invested Assets (ROI)
At Aebiaccountax, we assess the likelihood of negative cash flows during the initial stages by utilizing cash flow projections, profit forecasts, and sales estimates. If the internal cash flow generation appears insufficient, we provide tailored solutions to address any potential shortfalls.
The financial viability of the project is determined based on the projected return on invested capital, enabling us to evaluate how attractive the project will be to potential investors and the overall financial return.
To estimate the financial feasibility of a proposed venture, we employ several common approaches, some of which are outlined below.
- Net present value (NPV) Approach
In the 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.
In market feasibility analyses, Aebiaccountax evaluates the product industry, market competition, and potential buyers. These insights are used to estimate the company’s projected sales and market performance.
The significance of a Market Feasibility Study includes:
- Assessing a project’s competitive position within a specific market
- Ensuring there is sufficient demand for the proposed project in that market
This approach helps businesses understand their market dynamics and make informed decisions for sustainable growth.
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
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
In Executive Feasibility Study, Aebiaccountax 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 Aebiaccountax?
Aebiaccountax is a leading provider of Feasibility Study Services, helping businesses across the UAE develop effective strategies to enhance their growth. Our customer-centric approach places client satisfaction at the forefront of everything we do. We ensure that our clients are never left overwhelmed or burdened by their business challenges.
In addition to feasibility study services, Aebiaccountax offers a wide range of business solutions, including Business Services, Accounting & Bookkeeping, Auditing, Tax & VAT Filing, and Due Diligence Services to industry leaders across the UAE.
If you’re interested in any of our services or would like more information, feel free to contact us. Our experts are available to provide a one-hour free consultation to address your queries.