When youre done with your business feasibility study and you find that your business idea

is feasible, the next step is to write your business plan. Writing a business plan is important, as it will be your guideline in running your business. Your business plan should explain exactly how you will run your business, with all the exact figures including the capital needed to start the business. You should also provide the calculation of payback period in your business plan. You can use all the calculation that you put in your business plan to do a review on your business in the future. You can compare the figures in your business plan to the figures that you currently have to see whether your business is running better or at least just as planned, or not. If you dont have enough capital to start your business and you plan to attract some investors, you need to put some extra efforts in writing your business plan. Investors are investing their money to get profit, so they would need to see an excellent business plan before they decide to invest in a business. Your business plan should explain how your business can generate profit, how long will the investors get their return of investment, and how much profit they will get. In short, you should try to see from the investors point of view when you write the business plan. Labels: business plan

Calculation of Payback Period

Payback period is the time that we need to get the return of investment that can repay the amount of our initial investment. The calculation of payback period is simple. For example, when we invest $7500 in a business that gets $2500 per year, we would have a three year payback period. In calculation of payback period, the time value of money is not taken into account. Payback period is simply being used to measure how long a business takes to pay for itself. Even though payback period has some limitations, it is being widely used as a method of analysis (especially by people who are running small businesses) because of its simplicity. In any kind of business, shorter payback periods are better than longer payback periods. However, in the calculation of payback period, the time value of money, risk, opportunity cost, financing, or other important considerations are not taken into account. Labels: Payback Period

Feasibility Analysis for Small Business

Most people want to have their own small business. Unfortunately, we can see that many of them are failing. The failures of small businesses are caused by many different things. One of the things that can cause a small business to fail is the lack of feasibility analysis. Before starting their own small business, people need to perform a simple feasibility analysis. The main objective of the analysis is to see whether the business idea is worth pursuing. The following are several things that people should do when doing their feasibility analysis: Labels: Feasibility Analysis

Financial Feasibility Study

In order to know whether a proposed project is financially feasible or not, a financial feasibility study needs to be conducted. In a financial feasibility study, we analyze the total costs of a proposed project (including all construction costs and operating costs) and the potential revenues that the project can get. If the potential revenues of the proposed project can cover all of the costs, then the project is financially feasible. Labels: Financial Feasibility Study

Feasibility Study Template

I am preparing a business feasibility study template, and it should be ready in a few days. The template is only a rough draft actually, just to give the basic idea of how to make a feasibility study report. When its done, I will put the download link here and you can download it for free. My template is just a basic template. If you need a professional feasibility study template, you can buy one here.

New-product Forecasting
To predict the degree of success that a new product will likely to enjoy in the market, we need to do newproduct forecasting. Quantitative forecasting methods are not suitable for predicting the success of new products, because they depend on a historical data. To make forecasts for new products, judgmental methods are better because there are many uncertainties and few known relationships. However, there are many ways to make reasonable forecasts for new products. They usually include both qualitative judgments and quantitative tools of one type or another. Labels: Forecasting

Economic Feasibility Study

Economic analysis is used for evaluating the effectiveness of a proposed system. This method is also known as cost/benefits analysis. The procedure is to determine the benefits and savings that are expected from a proposed system and compare them with the costs. If the benefits outweigh the costs, then the decision is made to design and implement the proposed system. C. Technical Aspect The bag is created for enhancing desirable human values such as increased comfort and improved quality of life. The product will provide lumbar binder fitted to the body waist, which will offer some trunk support through elevation on intra abdominal pressure and will serve to remind us of proper posture. It will also provide back support for the spine. This support is made up of 0.4 cm thick and 2.5 cm wide flat-bar aluminum material. Its height varies in three different sizes, 12, 14 and 16 inches. This is based on the length of spine from Thoracic level 3 (T3) to lumbar Region five (L5) of our target market. The manufacturing process is based on the usual process done by any bag manufacturing in the province, which is by the use of high-speed electrical sewing machine. The molding process of the aluminum back support is done by a hydraulic press. The whole production operation is estimated to have a standard time of 353.2455 minutes, including pattern making. But in case of mass production, this process will be eliminated and the total production time will be 104.8455 minutes or 1.75 hours. The plant size or plant capacity is measures based on the machine used. The plant will have the capacity of 10,080 units/day. The production schedule will be 10% of the average market share every year to provide safety stocks in case any increase in demand arises. The plant is located at Paniqui Productivity Center, Brgy, Samput, Paniqui, Tarlac. This building is divided into two parts. The first part has already been leased and the proponents will lease the southern part The building has a floor of 630 sq.m and has a monthly rental of Php 20.00 per square meter. It is a 4 1/2 drive from our suppliers and 30 minute away from our target market. It is along McArthur Highway, which makes it accessible to public transportation. Paniqui is known for its sewing business, so laborers with that particular skill will not be a problem. Nearby towns could also provide manpower for the plant. The water requirements will only be minimum and will be supplied by the Paniqui Water District. The power consumption will be generated from the Tarlac Electric Corporation (TARELCO). The plant will not provide toxic wastes. Only excess fabrics will the wastes, and these will be sold to some backyard manufacturing that produce tokens and small purse for different occasions. . The final location of the business will be at the Common Terminal, Balanga City, Bataan. 2. Raw materials will be obtained during its freshness and nearness to the source which is Elizabeth Supermarket in Balanga City itself. 3. The management will provide cleanliness of the stall, especially the food for satisfaction of customers.