Running head: FEASIBILITY ANALYSIS 1 FEASIBILITY ANALYSIS Lashuna Boatman Professor Adrienne Garabedian BUS 402 11/16/2020 FEASIBILITY ANALYSIS 2 Feasibility Analysis In line with the previous discussion, Home Security Services Consultants are hoping to provide different security services such as a distress response team, guards, security cameras, and alarms. The company is basically set up as a home security organization, which provides a wide range of services, especially to its clients (Munsaka, 2013). As part of its mission, the security services firm mostly secures homes with cutting-edge security equipment, which allows the users to keep their homes secure even in remote positions. Allowing the owners to manage their premises despite their physical location is perhaps one of the Home Security Services' primary strengths. This analysis will reflect on some of the feasibility factors, including service feasibility, industry feasibility, entrepreneurial readiness, and financial feasibility (Munsaka, 2013). In project management, a feasibility analysis is simply a viability analysis of an idea. In most cases, it evaluates a preliminary study that could be undertaken when seeking to document a project’s viability. A feasible project such as the Home Security Services Consultants remains instrumental in generating adequate cash flow amounts and withstanding some of the risks, which are likely to be encountered (Miles, Mike, Haney, and Gayle Berens, 1996). In the end, the venture could be the starting point of a new franchise and expansion of the current business. Market Feasibility A market study in this perspective will start by analyzing some of the existing supply and demands for Home Security Services Consultants. The feasibility will typically evaluate the potential return based on the investment, market capture rate, absorption, and project’s timing (Munsaka, 2013). In this analysis, it will be important to start by cataloging some of the FEASIBILITY ANALYSIS 3 consultants' facilities before. In the feasibility study, it would be ideal to consider the capital costs when establishing a pro forma during the preliminary year of Home Security Services Consultant operations. A percentage of market analysis that can sometimes be analyzed separately, the marketability aspect, in this case, tends to evaluate the necessary prices, features, functions, and sizes demanded when capturing the market share. Service Feasibility Analyzing the service operational feasibility remains essential in gaining a perfect understanding of whether Home Security Services Consultants will solve some of the issues that homeowners are currently facing. Therefore, it would be vital to start by understanding how the system is likely to fit, especially in the daily operations (Munsaka, 2013). Apart from that, system analysts would need to analyze whether some of its procedures and practices are likely to support the new system. Implementing the new security system service is likely to increase security for the homeowners thus limiting intruders from the homes. Financial Feasibility In this analysis, the financial feasibility will be performed when testing whether the project (Home Security Services Consultants) returns tend to exceed opportunity costs. In this feasibility analysis, the idea is to test all project types, including the system types. However, a high risk analysis of the service will automatically necessitate an effective analysis before proceeding (Munsaka, 2013). Here, the financial feasibility will be done as soon as the preliminary development costs estimates are established. Assuming the market analysis and cost estimate based on the consultants is $ 750 million, it means that the feasibility will conduct an overall estimate of the financial returns. Here, financial feasibility is likely to approximate the value-based according to the market prices and the firm's current worthiness (Miles, Mike, Haney, and Gayle Berens, FEASIBILITY ANALYSIS 4 1996). Alternatively, the consultants can weigh the social benefits and costs and the monetary values involved. Further, it may outline the potential risks and success criteria of the new venture. Entrepreneurial Readiness Assessing the firm's readiness in what is known as entrepreneurial readiness entails accessing the actual duration that the project might take before completion. Here, system analysts will estimate how long the entire project is likely to take during the development. It can be noted that such a project is unlikely to be feasible based on the schedule in case the project is likely to be beneficial in terms of providing home security (Scarborough, Norman & Cornwall, 2015). Apart from that, the system analysts may need to establish whether the project’s deadline is desirable or mandatory. Unless the deadline is completely desirable, it is always advisable to convey an effective and functioning information system at least two months before the actual deadline. Based on a personal assessment, the business idea seems justifiable. As previously demonstrated, the company is seeking to provide a viable solution that aims to secure homes with cutting-edge security systems and equipment, allowing the users to check and secure their homes despite their location (Munsaka, 2013). Going by the feasibility analysis, the business idea would probably need some modifications to market feasibility and entrepreneurial readiness. As market feasibility demonstrates, the general drive for project profits is likely to limit the project as a whole. The project would need to reconsider its market approach to avoid altering or reconsidering the capital costs when establishing a pro forma during the preliminary year. FEASIBILITY ANALYSIS 5 References Munsaka, T. (2013). The Importance of Project Feasibility Study: With practical examples. Munich GRIN Verlag GmbH Miles, Mike E., Richard L. Haney, and Gayle Berens (1996). Real Estate Development Principles and Process, Second Edition, Washington, D.C., Urban Land Institute. Scarborough, Norman M., & Cornwall, Jeffrey. (2015). Entrepreneurship and Effective Small Business Management: Student Value Edition. Pearson College Div.
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