April 26 2020 0Comment
جدوى feasibility study Difficulties you may face when preparing the feasibility study

Difficulties you may face when preparing the feasibility study

There are some problems and difficulties that feasibility studies may face in their first steps, which are: difficulty in obtaining accurate data and information from reliable sources or lack of data and information to study the project, especially if the investment opportunity is an entirely new idea and not imitated for similar projects in the market, Difficulty in estimating some important variables in the project and this problem increases if the project is large and the variables are indirect or not accurate quantitative measurement, the process of feasibility study is costly for owners of emerging and small projects due to the high costs of preparing the feasibility study for most The consultative bodies and offices specialized in feasibility studies, in the event that the external environment is unstable politically and economically, it is difficult for the project owner and the authors of feasibility studies to determine the optimal time to start implementing the project on the ground, also from the difficulties the project owner may fail to predict factors The future includes opportunities and risks that may positively or negatively affect the operation of the project during the life of the project, such as: (risks of low demand, fluctuation of prices, and change of production technology).

Among the most important effects that may occur if a feasibility study is ignored for a project idea that might lead to the project’s failure to reach the desired goals of its implementation, the project’s mismanagement and low demand due to the lack of sufficient knowledge and information in the market and competitors and the actual need of the target group, the lack of communication means Marketing commensurate with the nature of the segment or target group, the lack of predictability and the determination of the appropriate amount of supply absorbed by the local market, high costs and prices due to high production costs, may also lead to mismatch of products to the project from the quality and sustainability standards And it has by the authorities and consumers.