The Project Preliminary Study

The Project Preliminary Study

The project preliminary study contributes to providing an overview with outcomes and statistics about the feasibility of the project. The project preliminary study is one of Mashroo3k for Economic Consulting Company services which helps companies to define their objectives and provide preliminary outcomes on whether the project with its current data is on the right track or not. Many investment ideas may seem feasible and applicable under any circumstances, but is this true?

What is a project preliminary study?

Investors and entrepreneurs have some attractive and tempting project ideas that may seem promising in the beginning, but many of these projects can quickly fail in implementation. Therefore, a project preliminary study shall be conducted before proceeding with a comprehensive feasibility study. The project preliminary study filters some applicable investment ideas which are subject to preliminary assessment according to scientific actions and standards to develop a realistic understanding of the project, taking into account the current situation and the available resources.

What are the contents of the project preliminary study?

The results of the preliminary study are characterized by being brief and accurate at the same time, as they highlight the main elements that determine the fate of the project, as the preliminary study of the project includes three studies: a market size study, a technical study, and a financial and economic study.

  • Market Size Study

The market size study describes the project idea and its details, providing a brief description of the top competitors in the target market. It determines the main elements of the project as follows:

  • Project location.
  • Study of foreign trade volume.
  • Expected imports.
  • Expected exports.
  • Project share of imports.
  • Technical study

The technical study determines the project implementation phases through a proposed schedule, considering the project requirements. It concentrates on the following main elements:

  • Project products.
  • Project timeline.
  • Manufacturing process of products.
  • Production lines required for operation.
  • Financial and economic study

The final and most important phase of the project preliminary study is the clear and precise financial planning of the project. The financial and economic study estimates the total costs of the project, including employment, manufacturing, marketing, development, and other related expenses. It consists of the following main elements:

  • Fixed Capital
  • Working Capital
  • Invested Capital
  • Financing Structure and Repayment Schedule
  • Project Revenue Size
  • Total Operating Costs of the Project
  • Total Fixed Costs of the Project
  • Estimated Income Statement
  • Summary of Financial Indicators of the Project