Lxtriv BUSINES PLAN PREPARATION Ep Parad : ire and val testi two catia judge est ar cost equi eat ee de ity study should provide aistoia beckground of Avett east nf tert or Ser Our thease Sansandrmanagerent markeingresearch Sa drag requements and 188 obligation, and pales Fos pecde tec telopment and projec implementation est students the poets potential for ces therefor a et ganinprartactornthecrebity othe stdyor rae tessa lndngnsttutins Imus therefore becondited aa bhctngunaedspproahoprovieinormaton upon which Ueconscan based Investment proposals avling huge capital oly are inary trscmle Therefore bore strings poe propsa necessary {nd mperietofind os wet the same feasible on svanalsirand evaluation proposed rjett deeming eesti Tenyecrtnemmen deen doc il » yaaa agent ea cael in the organization. It is also a measure of how people feel about the system/ project 2 Ser scy pean cl Schedles i measure o ow ime 3 how reasonable the projet 4 Economie est f a measur ofthe cst project or solution. fie om aes 3.1 Types of Feasibility Angygig sis eastlty can Be scrsne on (i) Financial Feasibility (uy Commercial Feastbity (us) Technical Feasibility (iw) Economie Feasibility {p) Social Feasbilty (vf) Environmental eat (vit) Legal feasibility (ei) Operational feasibility ix) Schedule feasibility (4) Market and realestate feasibility (at) Resource feastbilty ach one is being discussed in bef below: ( Financial Feasibility: In order to ascertain financial vai, finan cial projections are madeand on the basis of such projections which ‘need to be objective and realistic, the followings broad parameters fre evaluated for determining the Feaxity ofthe project 4 Return on Investment + ayback period of the outlay 4 Internal rate of return + Profitability index. In case of a new project, nancial ibility can be Judged onthe following parameters 4 Toa esintedostofthepiet ox Financing of the projctin terms ofits capital strut, 9° RES Spon het leon 4 Existing investment by the promoter in any ober busines 4 Projected cash flow and proitaility ‘The finanetal viability of a project should Information yall details ofthe asetsto be anced and how Equa assets are : 4 Rate of conversion to casliquidty lowing parameters: provide the following saanPara 74 (ot) Legal (itt) Operational feasibility -Operatonal fe ‘UsT:HUSINESS PLAN PREPARATION aa particular are/reson have igaifient impact on the exten of ‘nenterprise Therefor, itisnecessary to ascertain heenvironmeny ‘ability aswell The parameters considered are 4 Overall protection of public and environmental health 4 fective reduction of hazardous wast oxcty, mobility ang volume. 4 Long-term and short-term effectiveness of envitonmental polices ofthe company 4 Potential consequences of the remedial measures taken for protecting environment bly shouldfirstbe determined whether the propose rojectconflcts wth egal requirements and ifthe proposed venture $aceeptablein ccordanceto the as ofthe land. The projet tern Jas fo make a thorough analysis ofthe legal issues surrounding tie projet eros several dimensions. A detaled epal due dilgenes Should be done to ensure that al forsceable legal requirements, ‘which havent or will at bo deal wih, other appraisal exercises sxe met forthe development ofthe projet ‘Themain objectives ofthe lea easly analysis areas follows, 4 Tocasure tht th project islegally doable; 4 Tofaciaterskmanagementndicatingtherisksandobstaces that need tobe adaresed within the technical analyse, the financial model and/or te Value for Money analysand + Toavoid tothe extent posible major problems inthe projet’ developnentaamplementaion,speliingthe requirements that need tobe consider at subsequent stages of the PPD Process. [public private parinership] 7 : tonal eastyithenemurot how swell proposed sistem soles the problems, and fakes advantage ‘ofthe opportunities identified during scope detintion and how i sates the requirements ented inthe requirements analss phase of system development. The operational feast assessment focuses onthe degre to which he proposed development projets {sh hex snes ernment and eject al ‘etard 10 developent schedule, delivery date, corporate cule and existing business processes, ev tte ao Tocnsur succes desired operational outcomes must be inpated uring designanddeveopmen. Theseineludesuchdesgn dependent Paracas relay, raintatabity, supportable pt ST SOURCES Ces egy produtbilly,dsposbiy, ‘These parameters ae equnes of design if desired opened 2b schedule feasibility. 4 ni (9) SSmpleted efor i i ct al fal Jong the system willtake to develop aod pets tang given time period singsomemakei determine whether the deadines re mendaten oe achelting ere rerced Nhe th vest techniques Ke PERE & (4) Market ana realestate fessblty- Mack feasity studies testing eographilocatonsforaralsatedecepsenehe ed usually ivolveparcelsofrealeatcland Derdaren ee ee imarkst tudes to determine the be lean wins ensinae andtotesallemativelanduses forgiven paress este, require developers ta complete feast stun blr thy vl approvea permit pplication fore. conmerel tals uacturing. housing fice or mites projet Marke Fey takes into account the importance ofthe bases nthe sete (at) Resource easily. This involves question sichashowmchtine is avaable to ul the new system when con be ui which i interferes with normal busines operations te ad aout of resources req dependence, and developmental proces siege eC here are resources necesary to compete any pri importanteoucesikchuman rane rien on resource ete, are taken care of by indulging in complete research on feasibility of the resources needed to complete the project. 1.4.2 Steps involved in Conducting a Feasibility seat oe {> cont rcsry Ai Te rina ran oe Conde» Pn ete eine aie el eset 2 ep ae cr role sey {5 posible by answering Clloeng questions LParad Luar BUSINESS PLAN PREPARATION ma ve a currently unserved need? 4 Doos the practice er dl tng market in which demang 4 Does the practice serve an xis exceeds spp? , «+ Canthepracticesuccesilyeompetewithessing practices? Are capital requirements for entry of continuing operations tmnvallabe or unaffordable? 4 Doanyfactorspreventcifecivemarketingtoanyorallreferal {Piheinformatingatheredsofarindcatesthattheeaas potenti then tis continued witha deta Fast study. (1) Prepare a Projected Income Statement - Anticipated income must over dtect an indice cot takingint account the expected in ome gronthearve Working bakwardfrom heanticipatedincome, the revenue necesary Io generate that Income can be derived order bald projected income statement. Factors that detecmning this statement ae services povided fees for service, volume of serves, an adjustments fo revente te (i) Conducta Markt Servey «A good markt survey is ruc I the ‘lanes cannot perform hs survey an ouside frm should bebired, Thepriary objective of a market survey a realistic projection of reves The malo step inlae 4+ Defining the geographic influence onthe market + Reviewing populaon trends, demographic Features, cultural factors and purchasing poses inthe community. ‘Analyzing competing services inthe community o determine ther major strengths and weakaesses. Factors to consider Include pricing, product lines, sources of referral, lation, romotionalactviesqualiy oserviceconsumerloyeliyand ‘atfaction and sales 4 Determining total volume inthe market area and esti ‘expected market share. ete and ee + Estimating mrketespansonopport tone lence rica Pe responsens (0) Plan Busines Organization an Sate ng mean 0d Opens At his point, he sulfcent depth to determine the techie Co ee Planned in technial fealty and costs involved in startup, fixed nye ellos necessary dvcp ge a on Exes 4 Equipment ans For 4 Merchandising methods + Facil location and design & layout 4 Availablity and cos of personnel ‘© Supply availabilty (e~, vendors. pri or ranched pes YT ng sched ase # Overheads 1) Prepare an Opening Day Balance Sheet (0 Sheet shoul fet the paces ec oe age ee ly as possible atthe time the practice begins, before the practise generates income. Prepare a Ist of assets required for race tperations. The lst shoud include tem, source cet and crate financing methods Necessary assets include everything fom cash necessary for working capital to buildings and land, Although the resulting lists rather spl, the amount of efor: required maybe extensive. Liabites to Beineured andthe insstment reqred by thepracticemustasobeclarfed Thesis needtoecosdeed ‘© Whether to lease or buy land bung, and equipment Method to finance asset purchases 4 Way to finance accounts receivable (ei) Review and Analyze All Data - The planner should determine it ‘any data or analysis performed should change any ofthe preceding analyses. Basically this step means i based on the principle “Step bback and rfleet one more time.” Re-xamine the Projected income Statementand compare withthe is of desiredassets andthe Opening Day Balance Sheet. Iti good to find out that all expenses and liabiliies inthe Income Statementarerefeingreaicexpectatons, Riskand.contingenciesare Analyzedfor Considering telikeinood significant changesin thecurrent marketthat coudalter projections, (olf) Make “Go/No Go" Decision or Green/ted signal dessins . taandanalysis Miter nara pea Ate gees fr a rc gh sr fei dere el eee pc en aterm | to following questions Inclada anewers to following 4 ‘scanned vetn vamscarnerPart ‘ge ss PAN PRRARATON 200 4¢ Is there a commitment to make the necessary sacrifices in te, effort and money? {Wil the acy satisfy long-term aspirations? 7.4.3. Objectives of feasibility analysis Busincesesundertake feasibly studiestodctermineifaproposed strategic ‘ction is operationally wable and wil produce the desired resuls, The ‘ties enable company leaders to understand both positive and negative Inpacte before making a change ‘The main objectives of carrying uta feasblty analyst ae: (@ To determine the outcome ofthe propose action (i) To ascertain whether it projected revenue or I work as anticipated and generate the pated cost savings. (Gi) To deny the customers in the current and potential market (To kar more about eustomers' current and Future needs, (9 To gauge interest ofthe customer in the product or service that is being offered. (09 To determine whether the primary customers will ned the new produc o service and how much they ean and will pay. (i To determine ifthe product willbe satisfactory. (+) To ascertain company’s strengths, weaknesses and postion in the ‘marketplace a = zs joa & (4 Todeermin the Financial benefits ofthe ation vis cost (2) Togaugethe competitor’ srenthsand weaknessandtkecorective stlons whl caring ot tne feasty amps 7.4.4 Advantages of feasibility analysis Elev fcsbity studies en do more than just help execu lee sor than just hp executives choose Nhe projets to gree ight Manager need na esha sah ne cal wma lth ae dts shape th pt ng eee apes an generate crucial insight ‘en fearon 1) Man nda Dade, wheal demande fara pada gate shane ns ‘es lorinred rears eae th or praia cles! managerscanavoid spendingrecomen eee Projects wth ow impact and low dena aes ng Resouces. Dilly studies isthe opponent, Mth bay tudes ths oper Hage fea ue the current ra nd to esi scutes Sources. Feasiblity stu the need dies that recome fe Gieainkot Kian os cet SA oy (00 sity tang en ‘element FWY» Een for prod Ahi ayo spe i we sa tin a tration proce rage menace Dae ae Seco sate with stronger competitors Company kndes {Sale dcoveranpuenace sree cerns patents, or other intelectal propery rights eens. (Hep tn Masing a Tien Oo eet seanap t (ety ee aan ene ‘Sings lena prgeant nee ere in ‘use data generated by the study tohelpset milestones and desdboee, “gifted uel een, Ta 7.5 DESIGNING A FEASIBILITY REPORT tris ciated pan eee ai aero eee Te a asm te sca nat ree Saal aac oe ike eactron sees aioe epee 1 estny snd Rep ©) mene. sje at TEL Regiy Sey Ro Cae i ow ope tne anny tle ee ke eel ‘nome chan Ste eet somaya Same Fett Sb As ae att at cu fay son ne Project alternatives for the purpose of identifying ie et Flt alereas der feasible solution applicable to the project. Trey ses tel ein he Pe orem Pre.Charter Sub Phase In practice itsignfisthat the sponsor ean Proce ‘Scanned vit CSETPora 78 pry sts LAN PREPARATION 2 make necessary assignments 9 ‘wth deciding on projet investment and mak the project manager. (Gi) A well-written feasibility study report template helps in developing solutions fr Project Analysis (Go) FSR helps ink project efficiency to budgeted costs (0) Ithelpsin Risk Mtgationbecauset helps with contingency planning and rick treatment strategy development. (19 The report can be used by senior management to identify stalfing needs aswell as acquire and train necessary specialists 7.5.3 Steps in Writing A FSR (0 Wote Project Desrpton At this sep, you ned 0 cllet bce Eadie eect hese Ae Shean deco wilh the ede tokoow he purport co al nat (0 Dex Pose elitns-nthistep youre eqiredtopecfrm ‘alcatel ndaaiesdecpion pane wison incur { (uy ts Ertan Cea» Under tis le this hed step set and tine Stunna the eels Sa wring requreyoutoiveiaethe slain an pat the against a set of evaluation criteria, ‘etetesoh SE (6) Propo the Moat Feast Slaton Tea sly rr ht det rea el ay Company (Dkecptoupinalasrny Sexton bert Ferepo ah ‘Fike posi solaion enon ‘The next step for wing ine the most economal) le Slaton whch Tete he ect resourcesand (2) gate neadeAfer the eration ease soltion for his pet jo SOARES ge js identified arid sclected, so eat ted, 80 the Project tums to be cost-effective, orenily Ma a eta ty mye projec’ aim and stating the most feasible solution nt 7.5.4 Contents of « Feasibility Report ent of sample Feasii rie content ty report formated and ste Tas eling to range of requirements which may vary framers ation thes are common suppesions shee at Tile page oF Front Mater “To begin with wring a sample easy repo, fist you ne Creat a tile page tht prods a dese ye cont i os ng the name of he wer cna bps al atc ‘aiiztion for wich you are wing te epor Next, you mist icude ane st of coments tht proves Nadigs and pub-heatings sequenced te sme ya hey ae Strytured inthe report ody Alo sd af of a teal hs {ible gues jlustaons annexe eae eensedwiin thedocument Keep in mind thatthe ile rage shoul ote mambered and tat oSBore than #3 pages shoul be dodated othe front mate. (a9 Bos ofthe Report There ace many diferent sles and reqiement for fomatig Tree of eny stay reper tay diet set ak rere Wowever there are severaicommon soguisich ae sstollows: ve ach page ofthe prt body needs nine a cps eae pirate ie forthe repr. ie urs ome and page number ae ‘6 Sirctrethereprtbybenngrndaubhtinsaide State in te document cetet ema Ge sh ele 4 ake sure headings are pop Form Mas eee) on exch page «Can the same sj for headings throu template shuld ates “eNever se too larger oto sal ft ot Neon ok 1012 pend) out the ete report ‘Scanned wiih CamScanner