So you have started a new company in Dubai or the UAE and you need to create a robust feasibility study? Or maybe you already have a running business and need to analyze the viability and profitability of a new project or undertaking?
Whatever your objective or business size, you have come to the right place and this article will take you through a step-by-step process to create an accurate and complete feasibility study for your UAE project.
The first step involves studying the market and analyzing the competitive landscape.
Never assume you don't have any competitors. Some competitors are obvious and direct but many are in fact indirect competitors. Any other business that might draw the attention, time, energy and ultimately money from your potential clients should be considered a competitors to a certain extent.
So in step 1, analyze the market place, understand demand and suppy for your product and services in a particular area and then make sure you are positionning your business in the right niche.
The second step of your feasibility study should focus on understanding the detailed requirements and specific needs of your customers.
What is it exactly that they are looking for? What are your clients' expectations? How can you make sure that your product or service is really meeting and even exceeding their expectations?
During step 2, you need to list and understand all the technical requirements, features and benefits of what you are offering. It is crucial to always put yourself in the shoes of your clients and give them what they really want. This step also allows you forecast the resource needed to serve your market's needs in terms of capital, manpower and other technical, logistic or intellectual resources.
The third step of a feasibility study involves testing the business model.
Now that you have assessed your clients' needs and estimate the size of your operation to serve them, it is time to study the viability of your project.
This steps allows you to answer questions such as:
- Is my business idea worth undertaking at all?
- What costs and revenue am I looking at 1, 2 or 5 years down the line?
- When am I expected to break-even and become profitable?
- Is it worth investing all this money in the project or am I better off looking at other investment opportunities?
These and other important questions can be answered via a thorough and accurate feaibility study. The key here is to assess the probability and size of your long-term business success.
The fourth and final step of a feasibility study includes studying your exit strategy especially when venture capital and outside investors are involved. Stakeholders need to understand the long term capital and resource requirements of your project and you need to clearly define key milestones including timing of profitability and exit strategy.
That's it, we hope that you find this article useful. If you are serious about writing a professional feasibility study for your Dubai or UAE business, do not hesitate to contact us and we will be glad to put our deep experience at your service.
KCCG Consulting is a leading provider of feasibility studies for all companies based in Dubai and the UAE.
Contact us now for more info.