Feasibility analyses are a detailed study consisting of processes such as location, field research and reporting. Feasibility reports are comprehensive documents that we need a lot in our daily lives. These reports are usually prepared during the start-up phase of a business or investment and are expected to be as detailed as possible. The process of preparing these reports, which have a wide range of sector branches and topics, varies according to the customer’s request and the width of the report content. These reports are prepared by economists, real estate appraisers, legal consultants, etc., who are experts in the financial and real estate sector.
Many techniques are used in the report content, some of which are: location analyses, market research, project and tangible fixed asset valuation, best and most efficient usage analyses, etc. Through these techniques, economic, financial and technical researches are made and the basis of investment projects is formed based on numerical data.
Reports generally consist of technological tools and necessary investment items to be used starting with sector research on the products and services subject to investment. In the last stage, profit-loss analyses are made based on financial research. At the end of the report, works are started to act with the investment method that is found profitable and the process is continued with the right location selected and the necessary budget.
The purpose of the preparation of these reports is to provide information about whether the business line, service or project can take place in real life, whether profit-loss balance or under which conditions and location more optimized results will be obtained and to develop a financial model by determining the possible income-expense statement.
Since the reports are prepared in great detail, they need to go through certain stages and contain a general to specific description content. However, a point to remember when preparing the reports is that the investor understands the formation planned by the investor in detail so that the partner company shows a more accurate approach to the detailed costs of the project, risk-selling potential and customer potential.
For the reasons mentioned above, feasibility reports are vital to building a solid infrastructure and strategic planning if you have a new venture idea or want to evaluate an area/property you own in the most optimized and beneficial way.