The Nuts and Bolts of a Feasibility Study
Many entrepreneurs seem to be unsure on whether or not they should invest in a feasibility study. Many come to us with statements like: “why spend money on predicting numbers when we know that the reality will still be different no matter what”. This statement may only apply to the financial forecast section and not to the feasibility study as a whole. The reason why we hear such statements is that many entrepreneurs seem to mistake a feasibility study for a financial forecast and pass their judgment accordingly. As a firm offering advisory services, we do acknowledge that the financial forecast cannot be 100% accurate and saying otherwise is a lie. Then why do we — like many other advisory firms — still provide this service and recommend it to our clients, and most importantly, why does the bank financing your project require you to submit a feasibility study with your papers? Qatar Development Bank (QDB) for example not only requires you to submit a feasibility study, they...