5+ SAMPLE Investment Feasibility Report
What is an Investment Feasibility Report?
An investment feasibility report is a document that proves that an investment that you are going to make is feasible. In other words, it has proof that you are going to make the right investment. Where money is involved, we need to ensure that we are on the right track. If we do not do so, we can lose money which can cause so much loss for us. A feasibility study can make us sure that we are going to profit from our investment. The investment feasibility report can also be referred to as the financial feasibility report. What is a financial feasibility report? It is about the feasibility report done with your financial plans and financial statements. So, what is a feasibility report in business? It is a report that can enable your business that it can have proper investments.
An investment project feasibility study report can be like a feasibility study in research. You should make sure that you are using your resources rightfully. Any financial feasibility report example can prove that it is required for any type of investment. A feasibility report example can make you understand that through it, you can make the right choices. Whether you are going to make a technical feasibility study or an operational feasibility study, you will discover the right things that you should do for your business. A financial feasibility analysis example can bring out the importance of an investment cost in a feasibility study. And for you to make a great feasibility study, you can use a feasibility study template. Through it, you can make a better investment feasibility report afterward.
Benefits of an Investment Feasibility Report
You can have a good analysis of your business idea by having an investment feasibility report. It can answer your question if your investment is feasible. We need practicality in our business so we need a feasibility study that can reveal this. Our investments should be technically, legally, financially, and operationally feasible. If not, we are not going to make a good investment. There can be many reasons why we make an investment feasibility report. Some of these reasons are as follows:
Saves Energy: With an investment feasibility report, you know you will not waste your time chasing an investment. This investment is proven to be beneficial so you know that you are having the right investment for your business. We know that not all investments can be successful. But through the report, you know that the investment has a great potential to be successful. This is because you have carefully made a study that will reveal the strengths and the weaknesses of the investment. You have gone through a project financial plan that discusses the possible challenges that you can have with the investment. Because of this, you will know how you can handle the investment. There is also assurance that everything in the investment will work out and your business can benefit from it. Through the investment feasibility report, you will not waste your energy on investments that can be failures in the end. So, you can only work on things that can give profits to your business. Everything will not be hard for you because you know that the investment is feasible. It is something that can automatically give revenues to your business.Saves Time: Not only can you save your energy from having the investment feasibility report, but you can also save time. It is not worth engaging in investments that will just waste your time. We know that for businessmen, time is gold. If they will consume their time on investments that will go nowhere, then it will be a great waste of time. Businessmen’s time is precious. Because they are busy, they need only feasible investments where they can profit and will be worth their time. They should only enter financial agreements that can benefit their business. By having an investment feasibility report, they can be sure of an investment before engaging in it. This way, they will not go for investments that will only waste their time. If they enter any investment, it will be something that can make them get great revenues. Something that can give improvements for their business. Because of this, they will not engage in meaningless investments that will just waste their money. Everything will be worth it because they have studied everything about the investment first.Saves Money: Before we enter into any investment, we should ensure that they are feasible. If we are in a hurry to enter an investment, then we can lose our money. So, a feasibility study will help so you will know if you are going to enter a profitable investment. By making a feasibility study outline, you can analyze everything about the investment. This is important because a little mistake in the feasibility study can make us lose our money. Remember, you are making an investment to profit. Though we know that it can be a gamble to make an investment, this should not be how things go. Be sure of your investment. Through a feasibility study, make sure that you can benefit from it. Study everything about the investment carefully. See if it has a very good ROI (Return on Investment). Through the feasibility study, research the things that can make you sure that the investment can give profits. By doing this, you can only have investments that can surely give great revenues to your business. In the end, you can save a lot of money that you could have spent on worthless investments. Instead, you can gain profits that can give you a better income from your business.Discover Opportunities: Not all investments can be good opportunities. That is why many businessmen do not enter investments easily. But sometimes, we can pass opportunities because we are not sure about the investments. To help you, you should have an investment feasibility report so you will know if there is a great opportunity for an investment. Thus, businessmen can discover great opportunities by having this report. So, if businessmen want to have great investments, the way to have these is to create an investment feasibility report. They will have the chance to analyze every investment. With a financial review checklist, they will know the best investments in the market. They can be able to separate bad investments from good investments. They will have the chance to enter fruitful investments that can bring them a lot of money. Opportunities may be hard to find sometimes. But through the investment feasibility report, everything can be possible. Businessmen can find their way to the best investments in the world.Knowing the Reasons for a Project: By having the investment feasibility report, you will know the right reasons why you have to do a project. You can justify the project budget of what you are planning to do. We know that when we are spending on a project, we may not be sure if we are going to make a profit. By the report, you can ensure that you are spending on the right things and in the end, they will give you profit. The report can be good for the business owner and your team because they will know that your money is well-spent on the business. There will be no chance of anomalies and everyone can work well on your project, knowing that you are having a good project at hand. These can be a great way for your project to be successful.Having Good Focus for the Project: When your team knows that your investment is feasible, it can enable them to work harder on the project. They know that they are working on the right project. It is something where a feasibility analysis report has been made so everything is assessed. Because of this, they should work hard because you already calculated the results of the project. They will be forced to move for the success of the project. Your team members will cooperate well because they know that you are already expecting a calculated result. In the end, you can expect good productivity for your business.
Tips on an Investment Feasibility Report
A feasibility study is very important to build a foundation in your project plan. To make your work better, you should use practical tips that can guide you to create a better investment feasibility report. You can have the following tips:
Use Project Management Software: By using project management software, you can make your project management plans more effective. It will be easier for you to analyze data. When this happens, you can make better recommendations in your investment feasibility report.Use Templates: A feasibility study template and an investment feasibility report template can help you. You can get ideas on how you can craft a perfect report. The templates can guide you so that your report will be complete.Get Feedback: Prepare feedback form templates and get feedback from stakeholders. What they think can help you decide if the investment is truly feasible or not. You need their feedback so you can be sure that you are on the right track with the investment.Use Market Research: Gather market research reports about the investment. By using market research, you will know if an investment is feasible. You will know if it can keep up with the latest market trends.
How to Create an Investment Feasibility Report
An investment feasibility report may have some criteria to be a good report. If you are on your first time creating an investment feasibility report, you can use the following steps to guide you:
1. Make a Preliminary Analysis
First, you should analyze the project plan for the investment. Focus on the needs of your business. Consider the marketing project plan of this investment. Is it truly going to give you an established market? Have a preliminary analysis.
2. Consider Your Income Statement
Now, you have to consider your income statement. Is the investment going to increase your income? Consider the amount that it can deduct from your income statement. Be sure that it can be an asset to your income.
3. Perform Market Research
Be apt to perform market research. This is the only way you can know if the investment can provide you with a good market. To do market research, you can conduct a survey. Find out if there will be a solid market for the investment.
4. Plan Operations
Then, it is time for you to build a strategic operational plan. Know if you can have the right procedures for the project. For the investment to be successful, you have to plan how you can implement it in your business.
5. Analyze All the Data
Then you should review all the data that you have. Through all the data, you can make a no or go decision. Decide if you will get the investment or not through the report.
What are the types of feasibility studies?
The types of feasibility studies are economic feasibility, technical feasibility, legal feasibility, operational feasibility, and time feasibility.
What are the elements of a feasibility study report?
The elements of a feasibility study report are the financial operations, executive summary, product marketplace, marketing strategy, staffing, and schedule.
To not lose money in our business, we should be wise before entering any investments. We need an investment feasibility report that can tell us if we will have the right investment. This way, we will not waste our money, time, and effort on any bad investments. Always make an investment feasibility report first!