Thursday, November 17, 2016

Definition of Feasibility Study

The feasibility study is needed by many people, especially for those investors especially as the initiator, the bank as a lender, and a government that gives a code of laws and regulations, which of course the interests of all different from each other. Investor interest in order to determine the level of profit from investments, bank interest to know the security level of loans and the smooth return, the government emphasize the benefits of these investments in macro good for the economy, employment opportunities, etc.

Given that the conditions that will come filled with uncertainty, it would require certain considerations because in the feasibility study there are many aspects that need to be studied and researched the feasibility of making the results rather than the study are used to decide whether to project or business feasible or postponed or even canceled , The foregoing is to show that the feasibility study will involve many teams from various experts in accordance with the field or each aspect such as economists, legal, psychologists, accountants, engineers, technology and so forth.

And feasibility studies are usually classified into two parts based on the orientation expected by a company that is based on the orientation of the profit, which is referred studies that focus on the benefits economically, and the orientation is not on profit (social), which is referred study emphasize a project that can be executed and implemented without thinking about the value or economic benefit.

So understanding the feasibility study peroject or business are researches related to various aspects of both the legal aspects, socio-economic and cultural, market and marketing aspects, technical aspects and technologies to the aspects of management and finance, where they are used for basic research feasibility studies and the results are used to decide whether a project or business can be done or delayed.

Aspects of the project feasibility study or business that consists of various aspects that have been mentioned above include:
1. The legal aspects
Relating to the existence of legally where the project will be built that includes the applicable law, including:
a. licensing:
i) Permission locations:
• certificate (deed),
• proof of payment of the last United Nations,
• recommendation of RT / RW / District
ii) Business license:
• The Articles of Association of the company's local notary PT / CV or other legal entity.
• TIN (taxpayer identification number)
• Letter company registration certificate
• Permit the place of business of local government
• Letter mark counterpart from local government
• Local Business License
• Letter rising sign issued by the Regional Office of the Department of Information

2. The social aspects of economic and cultural
Associated with the impact given to the public because of the existence of a project:
a. From the cultural
Assessing the impact of the presence of project on the lives of local communities, the local indigenous customs.
b. From the economic angle
Whether the project can change or even reduce per capita income of local inhabitant. Such as how much the level of income per capita of population, national income or the average wage of local labor or minimum wage, etc.
c. And in terms of social
Does the existence of the project area is becoming increasingly crowded, traffic more smoothly, their communication lines, and other electric lighting, local community education.
To get it all by means of interviews, questionnaires, documents, etc. To see whether a project is feasible or not by comparing the desire of investors or parties related to the source of the data collected.

3. Aspects of the market and marketing
In connection with the market opportunity for a product that will be offered by a project:
• Potential market
• The number of potential consumers, consumers who have the desire or the desire to buy.
On the development / growth of the population:
• The purchasing power, the ability for consumers in order to buy goods include the behavior, habits, consumer preferences, demand trends in the past, etc.
• Marketing, concerning starategi used to reach the most potential markets or opportunity marketing or how much influence the magnitude of the strategy to achieve market share.

 4. The technical aspects and technologies
Project relating to site selection, the type of machine, or other equipment in accordance with the production capacity, lay out, and the selection of appropriate technology.

5. The management aspects
In connection with the management of project development and operations.

6. Financial aspects
In connection with a source of funds that will be obtained and projected returns to the level of capital expenditures and sources of funding are concerned.
The feasibility study is a description of the planned business activities, in accordance with the conditions, potential and opportunities that are available from various aspects. Thus, in preparing a feasibility study should include at aspects as follows:
a. Aspects of markets and marketing
b. Technical and Technological Aspects
c. Aspects of organization and management
d. Economic and financial aspects
Which need to be described in the introduction, among others Background the answer of problems that members of some questions such as kind of the type of activity or business idea / project

2.2 Aspects of marketing and market
Marketing aspects of the market and covers
a. market opportunities
b. market developments
c. Determination of market share
d. And the rare step required in addition to the Necessary policy

2.3 Technical and Non-Technical Aspects
Factors that need to be described is that concerning the location of the business / project planned. sources of raw materials, the type of technology used, production capacity, the type and amount of investment required in addition to the production plan for the economic life of the project.

2.4 Aspects of organization and management
Needs to be elaborated forms of activities and how the management of the business idea / project that is planned efficiently, if the management system has been determined based on the technical and business activities. Compiled form of organizational structure which is suitable and appropriate to carry out these activities

2.5 Economic and financial aspects
What needs to be Discussed on the economic aspect is
a. Estimated investment
b. Operation and maintenance costs.
c. Sources of financing
d. Estimated revenue
e. Analysis of investment criteria
f. Break even point and the pay back period
g. Projected profit and loss and cash flow

Understanding Business Feasibility Study
according Cashmere and Jafar (2003) is an activity that delve deeply about an activity or effort that will be run, to determine whether or not a business major to do. Aim do this business Feasibility Study course that will stand up to perform as desired both in term short or long, and to measure how much the business potential in both situations to support or not support situations.

Definition of project feasibility study
is a temporary activity that takes place within a limited period with a specific allocation of resources and is intended to carry out tasks that targets have been outlined clearly. For example: build factories, create new products or following trade fairs.

The characteristics of the project profile:
1. Have specific objectives, the final product, or work late
2. Cost, work schedules, resources, the necessary quality criteria have been determined
3. Temporary Activities, in the sense of age restricted completion of the task. The starting point and the end of the activity look well defined.
4. Activities that are not routine, not repetitive. The type and intensity of activity changed only in way project progresses.

The difference between the feasibility study of the feasibility study of the project: Business feasibility study is a study of a business plan that not only analyzes feasible or not feasible business is built, but also when operated on a regular basis in order to achieve maximum benefit for an unspecified time. For example: the launch of new products. While the feasibility study is a research project on the feasibility of a project is built for a specific period.

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