Financial Feasibility And Building Income Of A Company (Essay Sample)

FEASIBILITY STUDY
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FEASIBILITY STUDY
A feasibility study is a document showing the outcome of a research has been done. It shows the results of the findings, analysis, and evaluation of the suggested project and establishes whether the project is really viable or not. It ascertains whether the project is effective in terms of cost, mode of operation and profitability. Before any project starts, a feasibility study should be conducted so as to be sure whether the project is viable or not (Houle, Charrois, Faruquee, Tsuyuki and Rosenthal, 2017). The study will give you answers on whether the amount of capital available will be enough to fund the proposed project, and whether it is the right time and place to start the project.
To begin with, the opportunity or problem of the business has to be clearly stated. The scope has to be clearly defined so as to avoid confusion. Unnecessary statements serve no purpose in a feasibility study and should be avoided. This ensures that those involved are not confused. It is also important to cite all the parts of the project directly or indirectly affected. Mention members involved in a business and the funding body or individual of the business. Projects started without a well-stated scope, in most cases end up deviating far from the plan, and hence lack consistency in its operations.
Another component of the feasibility study is The Current Analysis. The current analysis is the component used to evaluate and establish the current implantation methods and identify whether there is any problem in the implementation process. In most cases, a problem may not be detected in the current analysis. Maybe some little misunderstandings here and there which require simple adjustments. Advantages and disadvantages of the approach in use are also established. Moreover, there may be good products and systems which may be used currently and save the cost that would be incurred later. This component helps one to save time since one doesn't have to stop every time they detect a problem.
For the proposed project to commence, the basic requirements must be there. Requirements may be technical or organizational. Technical requirements are those that are needed to technically perform the project. For example in pharmacy, technical requirements include medicine, technical, and medical machines. On the other hand, organizational requirements are resources needed to make the project run smoothly. For example furniture and fixtures and fittings. Moreover, requirements may vary from one project to another since every project operates differently from the other. The objectives of the business are what dictates its requirement. The study, therefore, needs to determine whether what is required is really available.
The approach is another component which simply describes the course action. Through this, it will be possible to establish which methodology to use in the implementation stage. A variety of approaches need to be considered before choosing on which to use (Houle, Charrois, Faruquee, Tsuyuki and Rosenthal, 2017). The approach selected should be the most efficient to the success of the business. Nevertheless, decisions also need to be made such as whether to rent an apartment for the project or buy. The decisions will also highly dependent on the project objectives and projections. For a business to be successful, there is need to make long-term plans.
This involves examining the effectiveness of the selected approach especially in terms of cost. It starts with analysis on whether the project estimated cost is effective or not. The approach selected will also be reviewed in this component after which a recommendation will be done. Other alternatives are also evaluated so as to provide a larger scope for comparison. For a pharmacy, an estimate of the cost of medicine and other medical machines is done together with a schedule showing how the business is going to run and when to start and end. With proper evaluation, the business is likely to succeed.
There is always a need to review your feasibility study. In this, all the elements are assembled in a formal document to enable proper review (Staszewsky, Pasina, Musazzi, and Latini, 2018). The two main purpose of the review is to determine whether the study was accurately and thoroughly done; and to decide whether to approve, reject or ask for some adjustments in the feasibility study. If all the parties agree to approve it, then they will be required to sign as an indication that they have agreed to it. This will help avoid confrontation in future. Nevertheless, if the feasibility study is rejected, the reviewing team should explain the reasons for the rejection and attach it to the document.
The specialty pharmacy has its income statement clearly stated. Although the start-up capital is high, the pharmacy projection of the yearly turnover exceeds the cost of goods sold. This shows that the project has a high markup. Most businesses encounter challenges in the initial stages of the business and they may end up making losses. The challenges come as a result of insufficient start-up capital to cater for the operating expenses or even improper planning. If the financing of the project is in place and the sponsor has agreed to sponsor the entire project, then the project is very viable.
The main objective of any business is to attain high-profit margin. The business that operates under very little or no profit is likely to withdraw from the market (Staszewsky, Pasina, Musazzi, and Latini, 2018). A business, therefore, has to work through thick and thin to get a good market share which may translate into high profits. Specialist pharmacy needs to strategize on how to improve its...