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There’s nothing like owning your own business. It can not only give you immense satisfaction and with proper care and attention can become the caretaker of your financial needs. When it comes time to grow, you may find that you need to enlist the help of a group of financial investors. If you have to present your expansion plans to them in order to secure the funding you need, you have the best chance of success if you show them a well-documented feasibility study.
What is feasibility study?
If you’ve never worked with a feasibility study, you may not understand what one is, how to use it to your advantage. This type of study is done when a business needs to change or grow and does not need to demonstrate to its investors that the ideas presented are sound. Considering the current economic climate most businesses are shrinking instead of growing and you will have to work hard to prove that yours can sustain the growth.
If you’ve never written one of these studies, you can use a template to help you understand what information you’ll need and where it should be placed in your report. Essentially the purpose of your study is to help show your potential investors that your ideas and plans for expansion can and will work as long as you have the financial backing to follow through with them.
What information should be included?
If you’re using a template for your feasibility study, you’ll notice that specific areas have been assigned to cover each aspect of your report. You will need to provide a full description of your plans for future changes. Your report should also include any research that you have completed to verify the feasibility of the project and the expected outcome of your project. You should include figures that show how much you expect your projected changes to cost and approximately how much your changes will affect your company’s profit level.
In essence a feasibility study is designed to show your investors that you have taken into account the costs, potential pitfalls and any risks that you expect to see. Your template will also have an area dedicated to showing how you plan to deal with any problems that are likely to arise along the way. This is your chance to show your potential investors that you’ve thought through every eventuality and that your expansion plan is solid. A well thought out and well written report is far more likely than any other medium to secure the necessary finance for your project and is an industry standard.
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