How to Prepare a Good Feasibility Report with Format

Since good planning is a pre-requisite for survival and success of any business, i’ll like to discuss how to write/prepare a good Feasibility Report with a good feasibility report format today.

Without proper planning, a business may head towards failure if corrective measures are not taken in time. A Feasibility Report is simply a Business Plan. Feasibility Report is a detailed study that examines the profitability, feasibility and effectiveness of a proposed investment opportunity.

How to Prepare a Good Feasibility Report

The report, no matter how elaborate, should be prepared before one undertakes any business or expands the existing one. Feasibility Report can be prepared by the prospective investor or consultancy firms who charge fees depending on the value of the project and how elaborate is the proposed investment opportunity. Based on the Feasibility Report, the entrepreneur can decide to accept or reject the project. If the project is viable and acceptable, the entrepreneur has to estimate initial capital outlay and decide on where and how to raise the funds.

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The Uses of Feasibility Report

The Feasibility Report can be used by the entrepreneur in the following areas:

  • To meet the stipulated requirements of financial institutions. For instance, banks and other financial institutions giving loans to start a business executives demands for a Feasibility Report of the proposed investment.
  • To provide the basic information for effective decision making with respect to the proposed investment. By showing the market potentialities, technical and financial implications of the proposed opportunities, the feasibility report enable the entrepreneur to accept or reject the project.
  • To assist the entrepreneur in developing future plans for the organization.
  • To serve as the basic for measuring the performance of the proposed business.

Components of a Feasibility Report

No two feasibility studies have identical components. However, there are certain critical aspects that must be present in a good feasibility report. Below are the feasibility report format

A typical feasibility report format is as below:

The nature of the business, Management, Teams, Financial and Economic Analysis and Marketing plan. In other words, the major areas covered by a feasibility study can be divided into nine major areas namely:

  1. Introduction
  2. Description of the business
  3. Market consideration – A preliminary Evaluation
  4. Management Team
  5. Technical Specifications and Production plan
  6. Marketing Plans
  7. Examination of the critical risks and problems
  8. Financial and Economic plans
  9. Evaluation and conclusion


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