Factors That Can Affect a Financial Viability Assessment
Providing a financial viability assessment is one of the most important elements in evaluating new projects and investments. At Blackacre Surveyors, we know that the viability of a project and whether it is worth investing time and money in depends on the investment’s objectives. Objectives of investment include assessing profits, growing a business, and sustainability in the long run. These are the questions, concerns and deciding factors in your financial viability assessment. Let’s explore its important components.
Market Conditions
It’s no wonder that meeting market conditions is a critical success factor for your project. You will launch it in a market environment with particular forces that can determine profitability. We can help you check current market conditions. Based on our research about your project’s domain, we create a picture of potential risks and rewards and a chart of your project’s expected short- and long-term value.
Project Costs
Prices for any work must be estimated before it can go ahead. A project can come to nothing if unexpected costs are incurred or your budget needs to be higher. At Blackacre Surveyors we undertake a cost analysis of everything that needs to be done before the project goes ahead, including labour and materials, equipment and compliance. Then, you will know if your initial budget’s costs match the work’s real cost. If necessary, projecting workforce numbers allows you to make corrections well before the numbers are implemented.
Revenue Projections
A revenue projection is key to any financial forecast. It will directly affect the question of viability, so we will estimate potential revenue streams through an analysis of expected market share and pricing strategy. If need be, we include projections for revenue variation to ensure that the viability assessment is based on realistic assumptions and is grounded in reality.
Operational Efficiency
The profitability of a project can be raised by raising operational efficiency. Your projects will last longer, you will spend less on them, and you will be able to sell more the more productive you are. Therefore, implementing productivity-maximising and waste-minimising processes while keeping the project compliant with technical requirements is key. During our assessments, we look at the skill level of the workforce, the synergy of technologies and process optimization. This way, we show you, in clear detail, what will be happening in terms of running costs in the future and how they will affect your profitability.
Financial Risks and Liabilities
The financial viability assessments of the risks created by economic factors such as interest rate fluctuations, credit risk and other financial risks attached to the request; and examination of any five-year debt payments that may be connected to the request – or any other debt currently owed. Complications arising from potential litigation, as well as a cost-benefit analysis of the investment project requested – an assessment of whether the benefits of a project match the potential risk and cost involved. A risk register and mitigation plan are compiled based on this assessment – a review and assessment of the risks that could affect your request, along with a plan on minimising the impact of these risks. At Blackacre Surveyors we pull in all the disparate pieces of information together – prepare the case – and arrive at an informed decision, considering all possible outcomes.
Regulatory and Legal Factors
The possibility of changing regulations and increasing compliance costs can affect the business’s viability. Although the industry regulation process is complex, unpredicted changes in tax laws and procedures relating to environmental standards can affect your business operations, bridging the financial gap only by chance. Apart from helping you create a sustainable source of profit, our economic viability study incorporates potential guidelines that consider requirements related to current regulations, estimation of compliance costs in the future, and the possible effects of legal changes.
Funding and Financing Options
The financial situation of your development project and its sustainability over time will be much influenced by the financing and funding you decide upon for it. Some uses of money are dubbed “equity capital,” some “debt,” and others are hybrids. All of these methods come with a cost, and some involve obligations. We will help you evaluate financing strategies so that you choose what will be the most financially efficient yet will put the least stress on your resources.
Final Thoughts
The result of the financial viability assessments is a fundamental pronouncement for you to decide on the probability of success of your project. We analyse the market conditions, operational efficiencies, financial risks, and regulatory impacts, and we monitor the occurrence of follow-up events that determine the probability of success.
At Blackacre Surveyors we are ready to make sure your project is profitable for you. Contact us now at 0203 476 9561 or go to info@blackacresurveyors.com to see how we can help build your investment portfolio.