Expansion and growth have always been a vision of company-owners and entrepreneurs. These vision is as important as a feasibility study or basicall knowing how viable is this vision of expansion. From one branch to reaching other countries, from serving a few customer groups to going worldwide.
Oftentimes when a business decides to expand and branch out to other countries which has a market they haven’t explored before, they miss out on a facts and details that play a role on their business success such as market practice and culture. This is why every company that aims to enter a country should conduct a Feasibility Study.
WHY YOU SHOULD CONDUCT A FEASIBILITY STUDY BEFORE SETTING UP YOUR BUSINESS
Feasibility Study, also called as a Business Opportunity Analysis, paired with Market Research – is a study that helps determine if the business idea is viable. It looks not only into the costs of expanding in that chosen country but also looks in depth into the culture, current market practices, competitors, and rules and regulations. It finds out the workability and profitability of a business venture. It is filled with analysis, calculations, and estimated projections. This gives investors a solid idea of the venture and if it is worth the time, effort, and money by letting them see the possible outcomes.
This is an extremely important step before investing a bigger amount to execute other processes because this phase allows the company to foresee their future in the chosen country. It is highly beneficial in giving stakeholders a clear picture of the venture’s future and possibilities.
Here are reasons why every company should do a Feasibility Study:
- Explore possible outcomes of the business venture
- Gives companies a picture of how the business will endure long-term, looks at financial risks, recognize potential cash flows and challenges
- Gives project teams more focus and provides an alternative outline
- Narrows the business alternatives
- Identifies a valid reason to undertake the project
- Enhances the success rate by evaluating multiple parameters
- Aids decision-making on the project
A feasibility Study gives the company a change to get things right before they put in a bigger investment and eventually know whether the idea is worth pushing for if they look at solid facts. It also saves many companies from reaching a point of ‘no-return’, when things don’t go originally as planned. A Feasibility Study is what presents questions and explores answers that will prepare the business for challenges, removes limitations, and explore solutions which they never thought they should.
Know more about how to effectively conduct and use Feasibility Study to expand a business in the UAE or GCC by getting in touch with us. SDAC Consulting DMCC is a business consulting that has been helping companies successfully do a Market Research and Feasibility Studies for almost ten years now. Tell us more about your business – you can reach us at [email protected] or click HERE.