Conduct a feasibility study before establishing abroad

The Nordic Project Fund (Nopef) is part of the organization of the Nordic Council of Ministers. Nopef works to strengthen the international competitiveness of small and midsize companies. The fund provides loans with favourable terms for feasibility studies prior to international establishment or project export.

"During its 25 years in existence, Nopef has participated in approximately 4000 feasibility studies and each week, we play a hand in one realized Nordic project," says Ib Sønnerstad, MD and regional director for Sweden.
Nopef can co-finance feasibility studies aimed outside of the EU. Due to a national emergency the fund can though work in Romania and Bulgaria until the end of 2010.
"Nopef provides loans at up to 40 percent of the feasibility study budget. In most cases, the loan can be subsequently converted to support upon completion of the feasibility study," states Ib Sønnerstad.
A feasibility study is a vital first step in getting started in a new market. It can take between one and three years to conduct a feasibility study. The length of time is determined in part by the industry in question – the more strategic, the longer the study can take.
Ib Sønnerstad estimates that a feasibility study costs an average of about one million, but the final cost varies according to industry and feasibility study scope.
It is always wise to be open-minded and willing to adapt to a new society, language and conventions. Then you avoid unnecessary mistakes that can aggravate both the feasibility study and the future business potential.

Contact person:
Ib Sønnerstad
00358 9 6840570
ib.sonnerstad@nopef.com
www.nopef.com

Tip!

Conducting a structured feasibility study prior to deciding on establishment is a deciding factor for getting through the process efficiently. Take a systematic route from the start. Otherwise, the feasibility study will take longer and you will burn up a lot of money unnecessarily. On average, Nopef approves 75 percent of applications received. Nopef looks forward to receiving your application.