Why You Must have Feasibility report Before Starting a business.

1. A feasibility study will help you to determine the profitability of the business venture. Before starting a business, seasoned entrepreneurs and investors would want to know if the business would be worth their time, effort and resources. It is worthwhile to know that many entrepreneurs have abandoned solid business ideas because the profitability could not be ascertained on conducting a feasibility study on the business idea.

2.A feasibility study will help prove to the entrepreneur, venture capitalists, lenders and investors the existence of the market, the liquidity of the business venture and the expected return on investment.

3.A feasibility study will help you identify the flaws, business challenges, strengths, weaknesses, opportunities, threats and unforeseen circumstances that might affect the success and sustainability of the business venture. Just like the case of my dads business, the business failure and loss of money would have been avoided if we had carried out a feasibility study. We simply jumped in based on someones recommendations because we were flushed with cash and we paid dearly for it.

4.Before starting a business, a feasibility study will enable you estimate the financial, human and technological resources that will be needed to ensure the successful launching of the business. Feasibility study helps to reveal the number and level of skill or unskilled workers to be employed and their salary scale.

5.Feasibility study will help you to determine the amount of capital required to start the business. It will also help you in establishing the budget plan, working capital and cash flow projections of the business.

Project report may have following information .

1. Description of the project. Introduction, Uses and Applications, Properties, Market Survey with future aspects , Present Manufacturers, industry profile .

2. Promoters, Management , man power tech & non tech , Proposed management arrangements, Description of technical arrangements (management, production, marketing, finance etc.).

3. Marketing : Basic market orientation: local, national, regional, or export/import . Projected service volumes, unit prices, sales objectives, and market share of proposed venture.

4. Production of project :- Technical feasibility, manpower, raw material resources, and environment: Brief description of project process. Comments on special technical complexities and need for know-how and special skills.Possible suppliers of equipment. Ideally three competitive quotations to be enclosed.Availability of manpower and of infrastructure facilities (transport and

communications, power, water, etc.). Proposed plant location in relation to suppliers, markets, infrastructure and manpower. Potential environmental issues and how these issues are addressed. Process Flow Sheet Diagram.

5. Finance :- Investment requirements, project financing, and returns, Estimate of total project cost, broken down into land, construction of buildings and civil works, plant and machinery, miscellaneous fixed assets, preliminary and preoperative expenses and working capital. Proposed financial structure of venture, indicating expected sources and terms of equity and debt financing. Type of financing (loan, equity, quasi-equity, a combination of financial products, etc.) and amount. Projected financial statement, information on profitability, and return on investment. Critical factors determining profitability. Cash Flow Statement ,Repayment Schedule, Interest Chart, Depreciation Chart, Projected Balance Sheet for 3/5 Years

6. Time table for project preparation and completion.

7. Guidelines, suggestions on marketing & marketing collateral and tools development. ------------------------------------------------------------------------------------------------------------

More About feasibility study report:A feasibility project report study is an evaluation and analysis of the potential of the proposed project which is based on extensive investigation and research to support the process of decision

making. Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained. As such, a well-designed feasibility study should provide a historical background of the business or project, description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, feasibility studies precede technical development and project implementation.

Objective of feasibility project report study: A feasibility study evaluates the project's potential for success; therefore, the perceived objectivity is an important factor in the credibility to be placed on the study by potential investors and lending institutions.[citation needed] It must therefore be conducted with an objective, unbiased approach to provide information upon which decisions can be based.

Few common factors of feasibility project report study Technology and system feasibility:The assessment is based on an outline design of system requirements, to determine whether the company has the technical expertise to handle completion of the project. When writing a feasibility report, the following should be taken to consideration:

A brief description of the business to assess more possible factor/s which could affect the study The part of the business being examined The human and economic factor The possible solutions to the problems At this level, the concern is whether the proposal is both technically and legally feasible (assuming moderate cost). Legal Feasibility:Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts. Operational Feasibility:Operational feasibility is a measure of how well a proposed system solves the problems, and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development. The operational feasibility assessment focuses on the degree to which the proposed development projects fits in with the existing business environment and objectives with regard to development schedule, delivery date, corporate culture, and existing business processes. Economic Feasibility:The purpose of the economic feasibility assessment is to determine the positive economic benefits to the organization that the proposed system will provide. It includes quantification and identification of all the benefits expected. This assessment typically involves a cost/ benefits analysis.

Technical Feasibility:The technical feasibility assessment is focused on gaining an understanding of the present technical resources of the organization and their applicability to the expected needs of the proposed system. It is an evaluation of the hardware and software and how it meets the need of the proposed system. List in detail all the things you need to make the business work; Identify logistical and other business-related problems and solutions; Serve as a solid foundation for developing your business plan. Schedule Feasibility:A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. Schedule feasibility is a measure of how reasonable the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. You need to determine whether the deadlines are mandatory or desirable. Other feasibility factors:-

Market and real estate feasibility Market feasibility studies typically involve testing geographic locations for a real estate development project, and usually involve parcels of real estate land. Developers often conduct market studies to determine the best location within a jurisdiction, and to test alternative land uses for given parcels. Jurisdictions often require developers to complete feasibility studies before they will approve a permit application for retail,

commercial, industrial, manufacturing, housing, office or mixeduse project. Market Feasibility takes into account the importance of the business in the selected area. The project feasibility is estimated and the project scope is defined; Risks and benefits are identified; The project structure is elaborated; The project is roughly planned; The next project stage is planned precisely; Cost of the next phase is evaluated precisely and cost of the other phases - approximately; Functionality development priorities are defined; System creation risks are estimated. Resource feasibility This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies, Cultural feasibility In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered and these factors are to be well known. Further an enterprise's own culture can clash with the results of the project. Financial feasibility In case of a new project, financial viability can be judged on the following parameters:

Total estimated cost of the project. Financing of the project in terms of its capital structure, debt equity ratio and promoter's share of total cost. Existing investment by the promoter in any other business. Projected cash flow and profitability. The financial viability of a project should provide the following information. Full details of the assets to be financed and how liquid those assets are. Rate of conversion to cash-liquidity (i.e. how easily can the various assets be converted to cash?). Project's funding potential and repayment terms.

Sensitivity in the repayments capability to the following factors: Time delays. Mild slowing of sales. Acute reduction/slowing of sales. Small increase in cost. Large increase in cost. Adverse economic conditions. Market research study and analysis.

This is one of the most important sections of the feasibility study as it examines the marketability of the product or services and convinces readers that there is a potential market for the product

or services. If a significant market for the product or services cannot be established, then there is no project. Typically, market studies will assess the potential sales of the product, absorption and market capture rates and the project's timing. Pay terms: - 50% advance & 50% after completion but before delivery. My fees will be depend on scope of work . Time :20 to 90 days ( depend on size & complexity)

Deliverables per report :- 100 to 120 pages word document & 30 to 40 slides ppt Pay method: - cash deposit, net banking, money gram, western union.(any payment transfer fees charged by agency or bank need to be paid extra ) Above fees are for business feasibility report . It will not include any scope of work of production engineer /architect /astrologer/live market research etc .

Sample Index pages of reports:- ( cannot share actual reports of third party )

FEASIBILITY REPORT -2

Chapter 1

Executive Summary

1.1 Objectives of the report 1.2 Mission 1.3 Keys to Success Chapter 2 Company and Industry Profile 2.1 Company Summary 2.2 Company Ownership 2.3 Start-up Summary 2.3.1 Start-up Requirements 2.3.2 Start-up Funding 2.4 Company Locations and Facilities Chapter 3 Services 3.1 Competitive Comparison 3.2 Service Description 3.3 Macro-environment 3.4 Sales Literature 3.5 Fulfillment 3.6 Technology 3.7 Future Services

Chapter 4

Market Analysis 4.1 Market Segmentation 4.2 Target Market Segment Strategy

4.3 Market Needs 4.4 Market Trends 4.5 Service Business Analysis 4.6 Distributing a Service 4.7 Competition and Buying Patterns 4.8 Main Competitors Chapter 5 Strategy and Implementation 5.1 SWOT Analysis 5.1.1 Strengths 5.1.2 Weaknesses 5.1.3 Opportunities 5.1.4 Threats 5.2 Marketing Strategy 5.2.1 Pricing Strategy 5.2.2 Promotion Strategy 5.2.3 Positioning Statement 5.3 Sales Strategy Sales Forecast 5.4 Strategic Alliances 5.5 Corporate Social Responsibility

Chapter 6

Management Profile 6.1 Organizational Structure

6.2 Management Team 6.3 Personnel Plan 6.4 Training Chapter 7 Financial Plan 7.1 Key Financial Indicators 7.2 Projected Profit and Loss 7.3 Projected Cash Flow 7.4 Projected Balance Sheet 7.5 Business Ratios Chapter 8 Controls 8.1 Tracking Focus 8.2 Market segment focus 8.3 Customer Focus Appendices -----------------------------------------------------------------------------------------------------------Regards Prakash Bhosale Project report consultant |9222086563|8097027355|skype - ebrandingIndia