Why You Should Conduct A Feasibility Study For Your Commercial Project?

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If you are thinking about embarking on a new commercial project, whether this is a new hotel in a far-away destination or you are planning a recreational trail, you need to do so with a lot of care and consideration. You cannot simply dive in and see where the wind takes you. Careful planning is a necessity, and this is why a feasibility study is of the utmost importance. Below, we will provide you with details on what a feasibility study is and how this can help you with your project. 

What is a feasibility study and what is the purpose of conducting one?

It does not matter what sort of commercial project you are undertaking, a feasibility study should be undertaken at the earliest possibility so that you can determine the potential of the project. 

You can work with a tourism consultant on your feasibility study. The chief aim of this sort of study is to determine the financial viability of the land and whether or not it will be a failure or a success. 

This study will highlight any risks or problems that a potential plot of land may face, whether this is gaining planning permission or problems with the suitability of the site. 

What sort of land or properties requires a feasibility study?

There are lots of different properties that required a feasibility study. This includes agricultural lands and fields near villages, towns, and cities, as well as old barns and agricultural buildings. Other examples include parcels of land with former or current use and vacant buildings. No matter what your venture may be, it certainly makes sense to have a professional feasibility study carried out. 

What are the benefits of having a feasibility assessment carried out?

There are a number of different benefits for businesses that are associated with having a feasibility study carried out for your overseas investment. This includes the following:

  • You will be able to understand the limitations and opportunities of a development

  • Financial viability is determined so you can plan effectively and put together the best finance structure 

  • The study will assess Gross Development Value (GDV)

  • Find out more about planning obligations, requirements, and restrictions

  • Find out more about the sort of planning applications that are going to be needed 

  • An assessment of the construction costs will be carried out, including contingency, sales and marketing, utility, and fees

  • Sensitivity tests can be carried out on concepts and cashflows where possible expenses and sales values can hurt the viability of the scheme

  • The consultant could also make recommendations regarding further surveys that would be appropriate, including archaeological, contamination, arboricultural, drainage, and ecology surveys 

To conclude, when it comes to any sort of commercial project, especially one in another country, it is imperative that you consider all of your options carefully and do not rush into the decision. A feasibility study is one of the most important parts of this. Make sure you get a professional team on board that can assist you.

Alison Morgan