Considerations and Benefit of China Feasibility Study

Update time:2018-01-16  source:

China feasibility study evaluates the project’s potential for success. The perceived objectivity of the evaluation is an important factor in the credibility placed on the study by potential investors and financiers. Also, the creation of the study requires a strong background both in the financial and technical aspects of the project. For these reasons, outside consultants conduct most studies.

 

Considerations of China Feasibility Study
Financial analysis a key step in a feasibility study. It must make a realistic estimate of how much capital will be needed for startup. It must also identify all other costs, such as capital equipment, inventory and human resources costs. Finally, the feasibility study must predict sources of capital, cash flow, how long capital will last during implementation, how profits will become available, how to reinvest or distribute profits and return on investment.

 

Technical requirements must be spelled out in a feasibility study. The most commonly included requirements are management expertise, physical plant or facilities needed, human resources and expertise available or to be sourced, stable viable lease or land ownership to support activity, raw material for products, production, transportation and utilities.

 

Benefit of China Feasibility Study
The feasibility study clarifies an organization's strengths, liquidity, financial resources and expertise. It requires that the business determine what will distinguish its product or service from competitors. It also helps businesses and organizations develop strategies for risk mitigation. It may provide alternatives that help your service or product overcome pitfalls such as governmental regulations, industry licensing, tariffs, cultural obstacle, and political restrictions that may affect potential success and profitability.

 

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