The sparkling business aspirations of Dubai attract businesses and investors with venturesome ideas. Despite embracing innovations, initiatives that are started without adequate feasibility can easily become expensive regrets. This is where a thorough feasibility assessment comes in to determine whether a business is a silent failure or a huge success.
The Cost of Skipping Feasibility Assessment
A few years ago, a businessman in Dubai opened a workout facility in a posh area with the latest equipment. However, due to low membership rates, unforeseen operating expenses, and fierce competition, the gym closed its doors within a year. What went wrong? A feasibility study was an essential stage that they neglected.
On the other hand, a tech startup found that the industry was oversaturated after investing in a thorough feasibility study before releasing its new app. They saved themselves time, money, and regret by changing their plan rather than burning up their capital.
The Essential Components of a Feasibility Study
A thorough feasibility study explores many aspects of a project proposal, offering a multifaceted perspective on its potential.
Market Viability:
This looks at the Dubai market for your goods or services. Is there an actual need? Who are your prospects and clients? How does the competitive environment appear? This would also include examining business demographics, available resources, and gaps in specialized services for a new institution.
Technical Feasibility:
Is it possible to construct or carry out your suggested project using the resources and technologies already available? This would evaluate the feasibility of the site, the availability of materials, construction techniques, and utility access for large-scale real estate development.
Financial Feasibility:
The economic core of the study is financial feasibility. In-depth cost analysis of startup, operating, and capital expenses, expected income, funding needs, break-even calculations, and ROI are all included. This would also cover projecting development expenditures, customer acquisition costs, and projected subscription or ad income for a new tech initiative.
Operational Feasibility:
Is your company able to successfully oversee and maintain the project? This component examines your supply chain, operational procedures, staffing requirements, and current resources. A new manufacturing facility would evaluate its labor, logistics, and production capacity.
Legal and Regulatory Feasibility:
This key element ensures that your project complies with all applicable local laws, rules, licenses, and permits in Dubai and the United Arab Emirates. Serious penalties and delays may result from ignoring this.
Avoiding Expensive Errors and Improving Decision-Making
Getting a feasibility study is a calculated decision that has a significant influence on the course of your project. You may reduce risks before they become more serious and save a significant amount of time and money by anticipating possible difficulties and obstacles.
To avoid suffering large losses, it offers unbiased information to assist you in determining whether to move further with a project, change your approach, or give up completely. A clear understanding of resource requirements helps allocate cash, time, and human resources more effectively.
A feasibility report is effective in persuading lenders, investors, and other stakeholders of your project and the quality of your due diligence. A data-driven business plan is built from the insights of the feasibility study.
Real-World Use Cases
A feasibility study was conducted by a developer based in Dubai to determine the level of demand for a high-end residential complex. A quicker sell-out resulted from their plans being modified in response to a void they saw in the mid-range housing market.
An entrepreneur in the healthcare industry contemplated starting a specialty clinic. They were able to shift to a more successful outpatient model after a feasibility study identified a saturated market and regulatory constraints.
A fintech company was planning to introduce a platform for mobile payments. They were guided to narrow their niche and get a first-mover advantage by a feasibility study that revealed intense competition and regulatory obstacles.
WBS Advisory: Your Strategic Partner for Insightful Feasibility Study
Starting a new business in Dubai or the UAE requires planning and accuracy. Our area of expertise at WBS Advisory is offering thorough feasibility study consulting services. Our team of knowledgeable feasibility study experts in Dubai is well-versed in the local market dynamics, legal environment, and subtleties unique to the industry that can make or break a project.
Being one of the top feasibility research firms in Dubai, we want to give you the knowledge you need to make informed decisions that will eventually save you regret, time, and money.
FAQs
Is a feasibility study different from a business plan?
Yes, they are different. A feasibility study evaluates if a project is viable and worth pursuing. On the other hand, a business plan outlines how a viable project will be executed, once feasibility is confirmed.
Can WBS Advisory assist with projects outside of Dubai but within the UAE?
Absolutely. Our feasibility study consultants in UAE provide services across all Emirates, using our understanding of regional markets and regulations.
Is the initial consultation free?
Yes! We offer a no-obligation, free consultation to assess your needs and explain how we can help.