Thursday, 5 January 2012

Financial Feasibility Analysis

Purpose :
A financial feasibility study projects
*how much start-up capital is needed,
*sources of capital, returns on investment, and
*other financial considerations.

 It looks at how much cash is needed, where it will come from, and how it will be spent.

What is a Financial Feasibility Study?

A financial feasibility study is an assessment of the financial aspects of something. If this case, for starting and running a business. It considers many things including start-up capital, expenses, revenues, and investor income and disbursements. Other portions of a complete feasibility study will also contribute data to your basic financial study.

A financial feasibility study can focus on one particular project or area, or on a group of projects (such as advertising campaigns). However, for the purpose of establishing a business or attracting investors, you should include at least three key things in your comprehensive financial feasibility study.

*Start-Up Capital Requirements,
*Start-Up Capital Sources, and
*Potential Returns for Investors.

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