What the study covers
- Site selection
- Production capacity
- Machinery & production lines
- Raw-material sourcing
- Capital & operating cost estimates
- Licences & regulations
What is a technical feasibility study?
The technical study is the backbone of any economic feasibility study. It turns a project idea into concrete execution requirements: what do we need to build and run the project, how much will it cost, and what could delay implementation? The entire financial study is built on its results, so any error in estimating equipment or production capacity flows straight into the expected profits and the payback period.
What does the technical study cover?
- Site selection: comparing the available locations by proximity to markets and raw materials, access to utilities and roads, land or rental cost, and environmental and regulatory requirements.
- Production capacity: sizing output or customer capacity to the demand identified in the market study, with a gradual ramp-up plan for the first years of operation.
- Machinery, equipment and production lines: technical specifications, local and imported alternatives, and their purchase, shipping, installation and maintenance costs.
- Raw materials and operating supplies: sources of supply, required quantities, alternatives and the risk of price swings.
- Buildings and fit-out: space requirements, a preliminary layout and construction or fit-out costs.
- Technical workforce: the operating structure, headcount, qualifications and hiring plan.
- Licences and regulations: the approvals required from the competent authorities, plus safety, civil-defence and environmental requirements.
Who needs a technical study?
Any investor planning a project that depends on specific equipment or operating processes — factories, farms, hospitals, hotels, restaurants or service centres. It is equally important when applying for a bank loan or presenting the project to partners, because lenders usually ask for documented technical estimates of the capital cost before they review an application.
How SCOOP prepares the technical study
We start with a session to understand your idea, objectives and budget limits. Our team then gathers data from suppliers and the relevant authorities, with site visits where needed, and compares the technical alternatives on cost, quality, ease of operation and maintenance. You receive a written report with capital and operating cost tables and clear recommendations, which we review with you before sign-off so it can feed directly into the financial study.
Deliverables
A detailed technical report, a list of the required equipment with estimated costs, set-up and operating cost estimates, a preliminary implementation timeline, and a list of the required licences with the steps to obtain them.
FAQ about the Technical Feasibility Study
What is the difference between the technical and the financial study?
The technical study defines what the project needs — site, equipment, raw materials and staff — and estimates what it all costs. The financial study takes those costs together with the sales forecast to calculate profits, cash flows and profitability indicators such as payback period and net present value.
Can I order the technical study on its own?
Yes. It can be ordered separately if you already have a market study or only need capital cost estimates. We still recommend linking it to a market study so that production capacity is sized to real demand.
How are equipment prices estimated?
We use indicative prices from suppliers and reliable market sources and, where useful, obtain preliminary quotations for the main equipment to improve accuracy.