Feasibility study and reasons for making
Definition of Feasibility Studies
A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it?
Before you begin writing your business plan you need to identify how, where, and to whom you intend to sell a service or product. You also need to assess your competition and figure out how much money you need to start your business and keep it running until it is established.
A Feasibility study is very important for a business. It makes an analysis of all the aspects of a business.
The external factors influencing it and also the internal factors. It also analyzes all the costs associated with the project and how the material would be sourced. On the other hand, it will also make an estimate of how much sales are to be expected and what profits would the project make?
If the results of the feasibility study are favorable, it is logical to proceed with it.
Whereas on the other hand, if the results are not favorable, no businessman will take a risk on it.
The reasons for the feasibility study
1 - To see the need of the project and the chances of success.
2 - Evidence of the funders that this project is expected to succeed and achieve a good return on investment.
3 - Return to learn the material and the restoration of capital.
4 - Ensure the profitability of the proposed project and its expenses, fixed and variable.
The number of tourists who visit the town of El Arish in recent years quite a number given to some other areas where he visited the town of El Arish approximately 15 thousand tourists since 1997 and until 2004 and increased that number to about 19.2 thousand tourists since 2004 and until 2009 an average of Annual increase of 7.3%
Thus, we find that the number of tourists who visit the town of El Arish on the increase and also the existence of a huge tourism project like this project, we can say that the land of Sinai, the land will become fertile tourist projects to increase tourism and attract visitors by the larger.
Either in terms of investment has emerged in the last ten years a wide range of investments and investors in the Sinai and on top of these investors, Dr. \ Hassan Kamel rateb he has several investment projects and industrial land of Sinai Such as the Sinai Cement Factory and Sinai University, which shows us the right vision that this place Suitable for the establishment of projects in excess of the national income and manages the great returns and help to decrease unemployment further.
2.2 The proposed energy absorption
The proposed energy absorption for the services of the project are as follows:
1 - Restaurant: consists of two floors, divided as follows
- ground floor includes the kitchen and the entrance door and contains (10) tables fully accommodate all of them to (5) people.
- First floor and contains a special corner for families and contains a number (10) tables fully accommodate all of them to (5) people.
2 - Cafe on the second floor contains (20) tables fully accommodate all of them to (5) people.
1.3 Furniture and equipment
The project consists of:
1. Restaurant consists of two floors, each containing:
2- Cafeteria in the third round
Equipped with furniture, decorations, equipment and cooking equipment and other fomenters all the latest methods of global quality.
Land and construction
The total area of land 450 (150 X 300) -
- The project includes 3 floors, characterized by dizziness nature of European modern addition to the fountain water and parking places
- Construction area of about 300 m
The amount of space allocated to the fountain 120 m -
- Area streets and parking lots around 2500 m
Table show cost of land and construction for the project
1 - Mobile offshore drilling filed (Jack up Rigs)
Drilling offshore wells and her legs bear the floor and the structure of the rig.
When placed on the site of drilling legs settle on the bottom of the sea.
You can drill in water depth ranges of some feet or meters to more than 400 feet or more than 120 meters.
The time period for implementation of the project
Estimated time period necessary for the implementation of this project is about 7 months.
Annual operating costs
Annual operating costs include:
- Purchases of raw materials consumed the purposes of the restaurant and cafe on the basis that the cost is estimated at about 50% of the total revenues.
- Supplies and services include the cost of electricity, water, fuel and cleaning materials and other.
- Wages and salaries, annual.
- Cost of Sales and Marketing.
Annual operating costs estimated in the first year of the project
Feasibility studies include the cost of salaries duringthe period of incorporation and the other is estimated at about 20000 pounds.
3.4 Investment cost of the project
- The basis and assumptions
To estimate the annual revenues of the draft restaurant and cafe has been the adoption of the following bases and assumptions for the first year:
- Restaurant revenue was estimated on the basis that the average price of a meal in the restaurant 90 pounds.
- The estimated income sufficient basis that the rate of drink in the cafe 30 pounds.
- The assumption that the cost of raw materials, food, drinks and other inputs represent 40% of the sale price of the meal.
- Other income and include delivery to homes and parking and an estimated 3% of the proceeds.