The Feasibility Study serves as a complete project plan that covers all essential elements of establishing a K-12 school, including a five-year financial forecast. By contracting international market research companies to conduct extensive field research and analysis of the country's education sector, as well as the demographic and socio-economic status of the residents of the proposed area, AMSI is able to structure a positioning strategy - in terms of school size, curriculum, and tuition - that will ensure the sustainability and growth of the new school among other competitors within the area. The market research data is essential to the process of forecasting expected student enrolment numbers, upon which the financial projections are built.
In general terms, the elements of the feasibility analysis for a project covers the following:
Need Analysis: Pertinent questions that should be asked include:
- Is the need for a private school significant enough to justify the proposed project?
- Will the need still exist by the time the project is completed?
- What are the economic, social, and environmental impacts of this need?
- Work Process: The work process requirements of the project.
- Facilities and Services: A detailed technical study of the proposed project.
- Cost Estimate: Estimating project cost to an acceptable level of accuracy.
- Financial Analysis: An analysis of the cash flow profile of the project.
- Conclusions and Recommendations: Overall outcome of the project analysis.