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PROJECT/MARKETASSESSMENTANDFEASIBILITYSTUDY
ONBEHALFOF
__________________________
SUBMITTEDBY:
Date
TABLEOFCONTENTS
Page
TransmittalLetter
IINTRODUCTION1
IIPROJECTTEAM2
A.GENERAL
B.PERSONNEL
IIIPROJECTMETHODOLOGY4
IVPROJECTSCHEDULE10
VPROFESSIONALFEESANDEXPENSES11
VIREFERENCES12
VIIRESUMES13
APPENDIX1BUSINESSPLANANDSPREADSHEETFORMATS
Proponent
Peace
Project Study Proposal
Page 1
IINTRODUCTION
__________________________hasrequestedaproposaltoperforma
project/market assessment and feasibility study of a (peace
project)in(location)toprovide_____________.
The organization has identified a potentially viable (peace
project) and requires assistance in the project/market
identification and assessment, possible venture partner
selection, infrastructure, operational requirements, and
management of the new project. ________________ may have the
opportunity to undertake a major (peace project) to meet
identified needs however such direction has not been
rationalized.
In order to establish a business plan to take advantage of
potential opportunities/meet identified needs, ____________
wishestohave:
(1)arigorousanalysisofthemarketfor(peaceproject)
andrelatedservices.
(2) identification, and assistance with the selection of,
jointventurepartners(ifapplicable).
(3)acomprehensivereviewforeachservicelineandopinions
on market assessment and promotional activities and
productpricing,plusanassessmentoftheiroperating
processesandtechniques.
(4)abusinessplandevelopedtorecommendandactivatethe
changesnecessarytointroducethenewoperationsandto
achievepotentialprofitability.
Any investment decision regarding the future development of
(peaceproject)willrequireavalueaddedapproach. Thismust
be based on excellent operational intelligence. Operational
plansandinvestmentlevelswillbedependantonawelldefined
market/projectprofile.
We appreciate _____________'s interest in regards to the
developmentofaviable(peaceproject),itscontributiontowards
thelocalcommunity,thecurrentinvestmentin__________andthe
desiretoattractfinancingforthepossibleexpansionofthis
job people building enterprise. Our proposal outlines our
comprehensiveapproachtotheanalysisof____________'scurrent
project/market opportunities and mapping out a successful
businessplan.
Proponent
Peace
Project Study Proposal
Page 2
IIPROJECTTEAM
A.GENERAL
1.NameandaddressofHeadOffice:
2.Mailingaddress:
3.TeamMembersandLocation:
Technicalexpert
Financialexpert
Constructionexpert
Other
B.KEYPERSONNELSUMMARY
1.
Proponent
Peace
Project Study Proposal
Page 3
IIIPROJECTMETHODOLOGY
PURPOSE
The purpose of the project is to evaluate the project/market
opportunitiesofthe(peaceproject),todevelopawelldefined
market profile in the (location) on which to base operational
decisions, to assist the key stakeholders (including joint
venture participant and potential financiers) in assessing
whethertheyshouldprovidefinancingtotheorganization.
Keytothisprojectwillbetherationalizationoflocal/public
involvementinamajorpeaceprogram,andtheexpectedbenefits
compared to costs. In preparing this proposal our team has
considered the current environment in (location), (peace
programs/ services) to existing markets, and the current
political(other)climate.
Ifthroughthemarketassessmenttheopportunityisproventobe
viable,theorganizationanditskeystakeholdersrequirealong
termbusinessplanfortheoperationthatcanbeusedtoattract
investmentcapitaland/orfinancing.
OURAPPROACH
Phase1MarketAssessment
1.1Projectstartup
Assoonaswereceiveyourauthorizationtoproceed,wewillset
up a meeting between ourselves and your designated
representatives.Thepurposeofthismeetingwillbeto:
!
!
!
!
Confirmtheworkprogram
Finalizethe(consulting)contract
Agree on meetings, reporting requirements and project
billings
Obtain any background information, existing resource
material and list of key people to be contacted and/or
interviewed.
1.2Initialorientationandplanning
Theobjectivesofthisworkelementare:
!
Toallowustoreviewreadilyavailablematerialandplan
thescopeanddepthofourresearch,interviewsandfield
work to produce the results expected within the available
timeandbudget.
Proponent
Peace
Project Study Proposal
Page 4
Amongthemattersconsideredwillbe:
!
thescopeoftheengagementtoensureacommonunderstanding
ofwhatistobeincludedin,andpossiblyexcludedfrom,
theproject;
!
staffingplans;
!
theproposedplanandtimingforconductingtheprojectand
coordinationwithyou;
!
linesofcommunicationforpurposesofdirectenquiriesand
reportingduringtheengagement;
!
any possible special instructions with respect to the
engagement;
!
significantrecentdevelopments;
!
overviewofcurrentstatus;
!
issuesencounteredtodate.
AnoverviewoftheworkprogramisshowninExhibit1.
1.3Project/MarketResearchandAssessment
a) Project/Market assessment The definition of key
users/marketswillbecriticaltomakingadeterminationofthe
feasibility of the different potential opportunities of the
(peaceproject).Elementsofthisphaseshouldatleastinclude:
!
researchingandidentifyingmarketsforthespecified(peace
project)servicesinthe(location)overatenyearplanning
horizon.
b)Service/ProductPlanningWewillreviewindustryinformation
Proponent
Peace
Project Study Proposal
Page 5
1.5Completionofinterimreport
Proponent
Peace
Project Study Proposal
Page 6
Aninterimreportismadeattheendofthedataaccumulation,
and
market analysis stage. At this time an evaluation will be
undertaken.Thetermsofreferencemayberevisedasaresultof
the interim review with you or you may wish to terminate the
projectatthisstage.
Wewillpreparewhatwerefertoasaprefeasibilitystudyonthe
identified(peaceproject)opportunitytoenableustoratethe
opportunitybasedonitsabilitytohelptheproponentachieve
itsgoals.
Theprefeasibilitystudywillincludeidentificationofthe
followingovera10yearperiod:
!
approximatemarketsize
!
operatingissuespeculiartothe(location)
!
estimatedmarketpenetrationandresultantrevenues
!
estimated product or service operating and administration
costs
!
estimatednetincome(loss)
!
investmentrequirementsandsources
!
sensitivityanalysisofbreakeven,paybackand/orreturnon
investment
!
abilitytomeetotherorganizationaldecisioncriteria
!
keysuccessfactorsthatarecriticaltoensuringeconomic
viabilityoftheproject
Our consultants will be available for the presentation of our
findings.
EXHIBIT1OVERVIEWOFWORKPROGRAM
Phase1Project/MarketAssessment
1.1Projectstartup
1.2Initialorientationandplanning
1.3Project/Marketresearchandassessment
1.4ConsiderationofJointVentureProposals
1.5Completionofinterimreport
Phase2FinancialFeasibilityandBusinessPlan
2.1Infrastructurerequirements
2.2Operationalrequirements
2.3Financialfeasibilityandfinancingplan
2.4Businessplan
2.5Implementationstrategy
2.6Reporting
2.7Ongoingassistance
Proponent
Peace
Project Study Proposal
Page 7
Proponent
Phase2FinancialFeasibilityandBusinessPlan
At this time, we would expect the Organization to decide on
whethertoproceedtotheBusinessPlanstageandourfocusfor
theremainderoftheproject.
2.1InfrastructureRequirements
During the first phase of the project we will have obtained
generalspecificationofequipmentand"plant"sizerequiredfor
theoperations. Inordertodevelopthebusinessplan,wewill
visitselectedsuppliersandobtainfixedpricequotationsbased
on the equipment needs identified based on project/market
potential.Wewillalsoenquireastospecialrequirementsthat
mayexist.
2.2OperationalRequirements
Uponcompletionoftheprefeasibilitystudy,wewillbeableto
review the legal implications and alternatives open to the
Organizationincludingincorporationofaneworganization,the
resultant tax implications, legal requirements as a result of
financing,applicableregulations,insurancerequirements,etc.
In addition, we will identify operational requirements as
follows:
!
!
2.3FinancialFeasibilityandFinancingPlan
Thefeasibilitystudywillincludeadetailedstudycoveringten
yearsof:
!
marketsize,marketpenetrationandresultantrevenues
!
growthpotentialandoptimalsizeofoperation
!
productorserviceoperatingandadministrationcosts
!
projectionsofannualprofitandlossandbalancesheetfor
10years
!
corporatetaximplications(ifany)
!
investmentrequirementsandsources
!
sensitivity analysis of break even, payback and return on
investment
!
othereconomicandsocialbenefits
!
identificationofthedegreeofsuccessinmeetingoriginal
objectives.
2.4BusinessPlan
Throughtheuseofacomputerspreadsheet,wewilldocumentthe
10
yearfinancialplanfor,andwith,officialsoftheOrganization
asfollows:
!
!
!
!
!
!
!
projectedincomestatements
projectedbalancesheets
projectedtaxpositions
cashflowforecasts(monthlyforoneyear)
amortizationtablesfordebt
assumptions
ratioanalysis
ThebusinessplanfortheOrganizationwillbedoneinaformat
suitable for taking to a bank or other funding/financing
institution. An example of the business plan and spreadsheet
formatsareprovidedinAppendix1.
2.5ImplementationStrategy
To be successful, all of the above must be turned into an
effectiveactionplan.Wewillidentifythefollowing:
!
!
!
!
!
timetablewithtargetcompletiondates
assignmentofresponsibilitiesforaction
stepbystepactionsrequired
whocanassistincompletingsteps(eg.typicalgovernment
officials,etc.)
monitoringsystemtoensuresuccess
Theactionplanwillbepresentedinsuchawaythatfacilitates
the development and full scale operation of the chosen (peace
project) opportunity. We will also complete the necessary
applicationforfunding/financing.
2.6Reporting
Oncewehavecompletedtheabovetasks,wewilldiscussourdraft
report with you to ensure its completeness and accuracy. Any
revisions will be made as necessary. We will be available to
discuss the application for financing with the appropriate
lendingagencyandmakerevisionsshoulditbefurthernecessary.
2.7Ongoingassistance
Wewillbeavailableforconsultationandadviceonanongoing
basisthroughout,andaftercompletionof,theproject.
IVPROJECTSCHEDULE
Assuming we are given approval to proceed with the project by
____________,wewouldschedulecompletiondatesasfollows:
Target
Date
Phase1MarketAssessment____________
Phase2FinancialFeasibilityandBusinessPlan____________
Thisprojectisscheduledforcompletionby______________.
VPROFESSIONALFEESANDEXPENSES
A.TIME
B.EXPENSES
VI.REFERENCES
Thefollowingreferencesmaybecontactedwithrespecttosimilar
workwhichwehaveundertaken:
VII.RESUMES
APPENDIX1
BUSINESSPLANANDSPREADSHEETFORMATS
Fortemplates:
Lotus123http://www.peace.ca/businessplan.123
Excelhttp://www.peace.ca/businessplan.XLS