Feasibility studies are not exercises for back of the envelope calculations and haphazard processes. The feasibility study has to be able demonstrate value creation, risk management, technical feasibility and realistic funding support. Our service provides support for conducting pre-investment assessments and associated business plans, typically into investments at an industry, enterprise or infrastructure level. The old adage about ‘a failure to plan being a proven plan to fail’ remains as a relevant reminder about the value of planning. Most of the big failures in investment performance can be traced back to poor planning, monitoring and evaluation at the pre-investment stage3. Peter Drucker’s methods for organizational performance improvement remain just as relevant today as they were a decade or more ago when he suggested any useful plan must answer five essential questions: What is our mission? Who is our customer? What does the customer value? What are our results? What is our plan to improve performance? Self assessment and ownership of answers is critical. Continuous improvement can be achieved on any indicator. Pre-investment assessment systematically reduces risk, creating investor confidence and improved likelihood of success.
What can we do for your organization to ensure the feasibility study and pre-investment is robust?
●Pre-investment evaluations: an opportunity to capture all existing information and control risk. (Wondu Business & Technology Services [Copyright] Confidential)
●Prepare detailed or conceptual plans
●Conduct needs assessments and willingness to pay.
●Industry and sector studies
●Project design and options analysis.
●Due diligence.
●Estimate value for money and generate Benefit Cost Analysis.
●Economic valuation and financial analysis.
●Technical feasibility assessment.
● Regulatory assessment
●Governance management
●Procurement policy and management
●Implementation and execution
●Self assessment performance improvement.
●Public Private Partnerships
Our approach to feasibility and pre-investment assessment
The feasibility study requires attention to detail and input from diverse professions including market assessment; location, site and environment; engineering and technology; financial analysis; institutional and governance examination; and risk management.
This starts with clarifying mission and goals and gaining and understanding what outcomes are desired. The pre-investment process has enormous capacity to enhance financial control, reduce risk and stimulate investor confidence.
A high quality pre-investment process leads, ultimately, to improved international competitiveness, enhanced responsiveness to market requirements, reduced risk and improved accountability.
Feasibility and pre-investment examples
●Australia-China-European vertical textile, garment chain – feasibility study for establishing a fully vertically integrated raw material-retail supply chain for providing fibre, textiles and garments to end in China, Australia and Western Europe.
●Biodegradable Plastics: The potential for Australian potato as an input for biodegradable polymers
●Evaluation of infrastructure investments; commercial enterprise investments (new plant, new buildings, relocation); start-up enterprises; evaluation of R&D investment.
● Feasibility study of producing furfural and other petro-chemicals from biomass. A project for Australia in conjunction with Latvian State Institute of Wood Chemistry, Riga.
● Numerous other projects for start-ups ranging from fully Internet driven to traditional businesses
Interesting links