since good planning is a pre

8/4/2019 Since Good Planning is a Pre

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Since good planning is a pre-requisite for survival and success of any business, ill like todiscuss how to write a good Feasibility Report today.

Without proper planning, a business may head towards failure if corrective measures arenot taken in time. A Feasibility Report is simply a Business Plan .

Feasibility Report is a detailed study that examines the profitability, feasibility andeffectiveness of a proposed investment opportunity.

The report, no matter how elaborate, should be prepared before one undertakes any business or expands the existing one. Feasibility Report can be prepared by the prospective investor or consultancy firms who charge fees depending on the value of the project and how elaborate is the proposed investment opportunity.

Based on the Feasibility Report, the entrepreneur can decide to accept or reject the project. If the project is viable and acceptable, the entrepreneur has to estimate initialcapital outlay and decide on where and how to raise the funds.
http://www.paloalto.com/business_plan_software/?affiliate=4e3a653f6fe2a&a_bid=21ed8c8f&a_rid=67605996


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Related Article:

Why Do You Need A Business Plan? Outline Of A Detailed Business Plan Planning For Success: Writing A Good Business Plan

The Uses of Feasibility Report

The Feasibility Report can be used by the entrepreneur in the following areas:

To meet the stipulated requirements of financial institutions. For instance, banksand other financial institutions giving loans to start a business executives demandsfor a Feasibility Report of the proposed investment.

To provide the basic information for effective decision making with respect to the proposed investment. By showing the market potentialities, technical andfinancial implications of the proposed opportunities, the feasibility report enable

the entrepreneur to accept or reject the project. To assist the entrepreneur in developing future plans for the organization. To serve as the basic for measuring the performance of the proposed business.

Components of a Feasibility Report

No two feasibility studies have identical components. However, there are certain criticalaspects that must be present in a good feasibility report.

These aspects include:

The nature of the business, Management, Teams, Financial and Economic Analysis andMarketing plan. In other words, the major areas covered by a feasibility study can bedivided into nine major areas namely:

1. Introduction2. Description of the business3. Market consideration A preliminary Evaluation4. Management Team5. Technical Specifications and Production plan6. Marketing Plans7. Examination of the critical risks and problems

8. Financial and Economic plans9. Evaluation and conclusion

Thank you for taking time to read through our post, your contributions through commentswould be greatly appreciated. Kindly share with others by inviting them to our website
http://www.entrepreneurshipsecret.com/why-do-you-need-a-business-planhttp://www.entrepreneurshipsecret.com/outline-of-a-detailed-business-planhttp://www.entrepreneurshipsecret.com/planning-for-success-writing-a-good-business-planhttp://www.entrepreneurshipsecret.com/why-do-you-need-a-business-planhttp://www.entrepreneurshipsecret.com/outline-of-a-detailed-business-planhttp://www.entrepreneurshipsecret.com/planning-for-success-writing-a-good-business-plan


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and also share using the social networking icons beside. In our next post, we would beexamining the major areas covered by a feasibility study in detail.

How to Prepare a Good Feasibility Report

Since good planning is a pre-requisite for survival and success of any business, ill like todiscuss how to write a good Feasibility Report today.

Without proper planning, a business may head towards failure if corrective measures arenot taken in time. A Feasibility Report is simply a Business Plan .

Feasibility Report is a detailed study that examines the profitability, feasibility andeffectiveness of a proposed investment opportunity.

The report, no matter how elaborate, should be prepared before one undertakes any business or expands the existing one. Feasibility Report can be prepared by the prospective investor or consultancy firms who charge fees depending on the value of the

project and how elaborate is the proposed investment opportunity.

Based on the Feasibility Report, the entrepreneur can decide to accept or reject the project. If the project is viable and acceptable, the entrepreneur has to estimate initialcapital outlay and decide on where and how to raise the funds.


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Related Article:

Why Do You Need A Business Plan? Outline Of A Detailed Business Plan Planning For Success: Writing A Good Business Plan

The Uses of Feasibility Report

The Feasibility Report can be used by the entrepreneur in the following areas:

To meet the stipulated requirements of financial institutions. For instance, banksand other financial institutions giving loans to start a business executives demandsfor a Feasibility Report of the proposed investment.

To provide the basic information for effective decision making with respect to the proposed investment. By showing the market potentialities, technical andfinancial implications of the proposed opportunities, the feasibility report enablethe entrepreneur to accept or reject the project.

To assist the entrepreneur in developing future plans for the organization. To serve as the basic for measuring the performance of the proposed business.

Components of a Feasibility Report

No two feasibility studies have identical components. However, there are certain criticalaspects that must be present in a good feasibility report.

These aspects include:

The nature of the business, Management, Teams, Financial and Economic Analysis andMarketing plan. In other words, the major areas covered by a feasibility study can bedivided into nine major areas namely:
http://www.entrepreneurshipsecret.com/why-do-you-need-a-business-planhttp://www.entrepreneurshipsecret.com/outline-of-a-detailed-business-planhttp://www.entrepreneurshipsecret.com/planning-for-success-writing-a-good-business-planhttp://www.entrepreneurshipsecret.com/why-do-you-need-a-business-planhttp://www.entrepreneurshipsecret.com/outline-of-a-detailed-business-planhttp://www.entrepreneurshipsecret.com/planning-for-success-writing-a-good-business-plan


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1. Introduction2. Description of the business3. Market consideration A preliminary Evaluation4. Management Team5. Technical Specifications and Production plan

6. Marketing Plans7. Examination of the critical risks and problems8. Financial and Economic plans9. Evaluation and conclusion

Thank you for taking time to read through our post, your contributions through commentswould be greatly appreciated. Kindly share with others by inviting them to our websiteand also share using the social networking icons beside. In our next post, we would beexamining the major areas covered by a feasibility study in detail.

Why Do You Need A Business Plan?

In developing a business idea , there is a need for potential entrepreneur to adopt acarefully moderated and intelligent approach.

Business Plan (or Feasibility Report)Planning is a process that never ends for business. It is extremely important in the earlystages of any venture when the entrepreneur will need to prepare a preliminary business

plan .


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There are different types of plans that may be part of any business operation. Theseinclude financial plans, marketing plan, human resource plan, production plans, sales

plans etc. Plans may be short term or long term or may be strategic or operational.Whatever the type of plan or the function, plans have one important purpose; to provide

guidance and structure to management in a rapidly changing market environment.

A Business Plan on the other hand is a written document prepared by the entrepreneur that describes all the relevant external and internal elements involved in starting a new venture . It is often an integration of functional plans such as marketing, finance,manufacturing and human resources. It also addresses both short term and long termdecision making for the first three years of operation. Thus, the business plan, or roadmap, answers the strategic questions of Where am I now? Where am I going? And how will I get there? Potential investors, suppliers and even customers will request or requirea business plan.

Preparing a Preliminary Project Proposal This should be structured according to the following key headings, keeping each sectionas brief as possible. If a heading is not relevant to the project, simply ignore the unrelatedheading.

1. Background : in this section, establish the context of the project by giving an accountof the problem it is trying to address.

2. State of the art : give an overview of existing and emerging technology in the field,including an account of rival technologies and a comparison of the advantages anddisadvantages of the various options.

3. Proposal : give an overview of the proposed project and the approach, i.e. the activitieswhich will be undertaken to achieve the project objectives. Clearly establish the researchelement or novelty component in the proposal.


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4. Consortium : give an overview of the proposed manpower and establish the requiredability to carry out the project successfully (e.g. skills, competencies, etc.)

5. Objectives and Deliverables: Identify (1) the objectives and (2) the deliverables of the proposed project.

6. Competitiveness : if applicable, establish the competitiveness or advantages of the proposed solution compared to other solutions, whether these already exist or are still being researched.

7. Cost : give an overview of the project cost (including start-up cost and working capitalrequirements).

8. Impact : this section should include:

1. Markets and Uses : identify possible uses and markets for the deliverables of the

project.2. Benefits and Beneficiaries : identify the beneficiaries of the projects results (e.g.the project participants, the general public, third parties) and the manner in whichthey will benefit.

3. Roadmap : give an indication regarding what further steps, effort, costs andtimeframes are necessary before tangible benefits can be realized from thedeliverables or results of the project (unless these are realized within the lifetimeof the project).

4. Spillover Benefits : identify any secondary benefits of the project (e.g. facilitating participation in funding programs, improving Maltas ranking, strengtheningMaltas reputation in a particular area, etc.)

Preparing a Detailed Business PlanStages of writing a business plan are; After deciding to go into business, before startingthe business and when updating is required.

Business plans can be written for retail business, wholesale business, service business,manufacturing and any other type of business.

A business plan is written by:

Identifying all the questions that could be asked about the business.

Determining what further information needs to be gathered to answer all thequestions. Obtaining all the necessary information. Comparing various alternatives Making a decision on each question.

A business plan should:


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Have a good appearance Provide an index Provide a summary Number each copy Be signed to show who is submitting it.

Depend on the nature of the business.

A business plan should be organized to carry a cover page, table of contents, executivesummary, business description, marketing plan, organizational plan, operational plan,financial plan and appendices.

Outline of a typical business plan

1. Title : Feasibility study Report on______________________ Commissioned by_________________________ 2. Project consultants

3. Table of contents: Executive Summary The Report Project Background Objective of study Project description and Loan advancement Promoter Location

Market and marketing plan Potential customers Competition Pricing Sales Tactics Advertising and Promotion Distribution.

Technical Feasibility and management plan:

Factory Machinery Overhead charges Packaging materials Raw materials Manpower and Labour costs.

Financial Projection/Feasibility:


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Overview on capital requirement Financial plan Projected cash flow Projected profit and loss account Projected balance sheet

Break-even analysis Source and application of funds

Organization Plan:

Form of ownership Identification of partners/Principal shareholders Authority of Principals. Management team background Roles and responsibilities of members of organization

Assessment of Risk: Evaluate weakness of business New technologies Contingency plans.

Schedules :

12 months projected sales 12 months projected purchase Fixed Assets and depreciation schedule

Profitability index

Note: We would be giving out a FREE sample detailed Business Plan that you cancustomize and use for developing your business idea soon.


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Planning For Success: Writing A Good Business Plan


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Trying to start a business without a plan is like trying to build a house without a blue print or going on an unknown journey without a map. While it is possible to start a business without a plan, but your chances of success are much greater if you have a plan.On the long run, preparing a business plan will save you time and money by assisting youto form a reasonable and sound blueprint before spending your time, money, energy and

resources on an idea that may not work.

A business plan will also give you the confidence that you will need if you are going toapproach banks for a business loan.

No doubt, writing a business plan is time consuming but the time invested will definitely pay off later. It is an investment that you will profit from in the future.

What is a business plan?A business plan is a step-by-step approach for fine-tuning your business ideas and puttingthem on paper. It is composed of several sections explaining important elements of the

business plan such as the description of your product or service that you will sell, howyou will market, what types of tools of technology will be used etc. The plan is alsosupported by financial statements that illustrate for example Sources and Uses of Funds,Profit and Loss, Balance Sheet/Income Statement etc.

While it is helpful to ask for assistance in writing the business plan, you should befamiliar with the plan yourself since you will be the one to implement the business once itstarts.

A business plan serves two important functions:

as a road-map or blueprint to follow in operating your business. as a tool that you can use in. obtaining financing.


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Why plan ahead?Business plan will show if the business is a good one. To know whether business canmake profit in future. To have an idea of the sales and cost your business can expect.

A business plan enables the owner of the business to focus on every part of the business

one step at a time this will enable the operator to see clearly which aspects of the business require improvement.

A business plan is critical when applying for a bank loan. A well prepared plan convincesthe bank that you know your business and you have a plan to succeed.

The plan will chart for your business cash flow i.e the money that comes in and goesout of the business. This is to make sure that you always have on hand enough cash for the business to grow and thrive.

Who reads the business plan?

YOU : The business owner in order to help clearly chart the progress towards profit. It serves as a checklist to make sure that you have thoroughly plan everystep of the business.

BANK OFFICIALS : Before Bankers make decisions whether to or not to lendyour business money, they want to know that you have a sound business plan to

prove that it is a good idea. On the basis of a well thought out business plan, banks are more secured in their knowledge that you will invest the loan wisely.

BUSINESS PARTNERS: You may decide to expand and bring in new partners.Before potential business partners invest, they will want to read the business planin order to evaluate the investment.

How to Consolidate and Expand A Business Enterprise

Today, I want to introduce us to the essential strategies needed for consolidation andexpansion of a business enterprise.

Since every business enterprise is required to develop its own strategies for consolidationand expansion, which may be different from another enterprises strategies even if theyare both operating same type of business. The reason being that these strategies should beable to meet the aims and objectives of establishing the business in order to achieve thetype of image it wishes to project to its customers.


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Strategy for consolidation or expansion of a business links present situation of the business with expected status of the business in future. A strategic plan that will take intocognizance the vision and mission of the business outfit needs to be developed. Visionstates where the organization wants to go in the future while mission statement givessummary of the beliefs of the organization and where it is now.

A strategic plan comprises the action that the enterprise needs to take to achieve itsvision. It is a long term planning that may involve additional fund for human resourcedevelopment, technological changes and new market penetration. Developing a strategic

plan is easy when changes in the business environment are revolutionary and predictable.It will be possible to extrapolate what the future is likely to be and set strategic vision for the expected best or worst scenario. A well developed strategic plan is set to extrapolatethe present business condition into some time in the future with some factor(s) added totake care of growth and development.

In our next post, we would analyse business enterprise development stages. Stay tunedThanks for reading

Understanding Business Enterprise DevelopmentStages

Business strategic plans vary depending on the business enterprise development.


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There are generally four distinct stages, but not all of them are relevant to all companies.

Birth Stage

This applies to start-up business outfit, which are still battling initial stage problems. It

may also apply to well established ones that are launching new products/services or entering new markets. The company needs the ability to take quick decisions and act fastto capitalize on available market opportunities. It also needs to work very close with itscustomers to publicize the product or service.

Consolidation and Expansion Stage

This is the stage of rapid development. The enterprise has to evaluate its policies and processes. This is to make sure that it has effective control in place for next stage of growth. The enterprise will continue to work with its customers for maximum coveragein its chosen market to achieve high market share.

Diversification Stage

This is the stage at which the company should adopt strategy that will allow it tocapitalize on its main product and also to grow in some related areas. This may be theway the company can grow bigger since it is likely that its main market is alreadysaturated. Diversification is an attempt to reduce risk of dependency on a single product,specific customers or particular market segment. Meanwhile, it is better to targetdiversification towards maximizing available opportunity at acceptable risk.

Decline and Renewal stage

Actually no business outfit plans to reach a stage of decline but it is an occurring phenomenon. In this type of situation, the company needs to develop a strategy that willenable it to survive and grow again. It is important that the strategy should explore all


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available opportunities and not over-biased towards avoiding risk with a view that it isthe best way to survive.

How to Consolidate and Expand A Business Enterprise

Today, I want to introduce us to the essential strategies needed for consolidation andexpansion of a business enterprise.

Since every business enterprise is required to develop its own strategies for consolidationand expansion, which may be different from another enterprises strategies even if theyare both operating same type of business. The reason being that these strategies should beable to meet the aims and objectives of establishing the business in order to achieve thetype of image it wishes to project to its customers.

Strategy for consolidation or expansion of a business links present situation of the business with expected status of the business in future. A strategic plan that will take into

cognizance the vision and mission of the business outfit needs to be developed. Visionstates where the organization wants to go in the future while mission statement givessummary of the beliefs of the organization and where it is now.

A strategic plan comprises the action that the enterprise needs to take to achieve itsvision. It is a long term planning that may involve additional fund for human resourcedevelopment, technological changes and new market penetration. Developing a strategic

plan is easy when changes in the business environment are revolutionary and predictable.


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It will be possible to extrapolate what the future is likely to be and set strategic vision for the expected best or worst scenario. A well developed strategic plan is set to extrapolatethe present business condition into some time in the future with some factor(s) added totake care of growth and development.

Components of A Good Business Succession Plan

A business succession plan is an important component of any business strategic planning process. It is important for the following reasons.

A poor management transition plan can have a negative impact on businessresults and can even result in business failure.

The value of your business may represent a substantial source of income inretirement. Proper succession planning can therefore help ensure that risks to

your retirements capital are minimized as you approach the end of your career. If you hope to leave your business continued by one or more family members, you

will likely need to co-ordinate your business plan with your estate plan. You will also want to explore any tax deferral opportunities that could benefit you and other family members.

An unforeseen event such as the death or disability of you or a business partner could lead to business chaos without proper planning and financial protection.

Advance planning can therefore help ensure that you, your family and your business are all properly protected through good times and bad.

The Components of Business Succession Plan


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1. Establish Goals and ObjectivesThe owners personal goals and vision for the business and his / her future role in itsoperation must be established. The establishment of clear goals and objectives provides a

base on which the succession planning process will develop.The items to be included are the following:

Owner retirement goals Family member goals Goals of other stakeholders (partners, shareholders, employees, etc). Goals relating to what is to happen in case of illness or death of the business

owner.

2. Family Involvement In Decision Making ProcessMany of the problems that arise relating to inheritance, management and ownershipissues will be alleviated when the family and all stakeholders involved in the decision-making process are kept informed of the decisions being made.

The issues to be addressed include the following: Communication Process for handling family change and disputes. Family vision for the business. Relationship between family and business.

3. Identify Successor(s)The issue of who takes over ownership and management of the business is addressed bythis section. It includes the following items:

Identification of potential successor(s). Training of the successor(s). Building support for the successor(s). Teaching successor to build vision for the business.

5. Estate PlanningThis is important if the business owner is planning to retire or is taking a precautionaryapproach to the future of the business in preparation for being unable to continueoperation of the business due to illness or death.

Estate planning is where outside advisors are necessary to ensure that all necessary issues

are properly addressed to maximize benefits to the business owner. Advisors to beconsulted include: lawyer, accountant, financial/estate planner and life insurancerepresentatives. Each advisor will have their own area of expertise and will be able to

provide necessary pieces of the puzzle.

The items to be considered in this section include:

Taxation


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Retirement income Provision for other family members Active and non-active family members. Other financial considerations.

6. Contingency PlanningThis has to do with what if scenarios and have a strategy outlined to deal with thesituation if it arises. It will not be possible to anticipate every situation that may occur,

but you can anticipate the more likely scenario and prepare for them.

A simple strategy may be to prepare a list of possible situations that could occur and fromthere identify what you would expect to do or have done.This method will cause you to look for solutions in advance rather than having to react ata time of stress or duress.

7. Corporate Structure And Transfer Methods

This has to do with a review and updating the organizational and structural plan for the business. The goals previously established followed by the choice of successor(s) willfactor into how the business should structure to the benefit of the owner and businessitself. If it worked, the past, the strengths and weaknesses of the successor need to beconsidered and a structure should be established to take full advantage of the strengthsand compensate for weaknesses. The items to be considered in this section include thefollowing:

Identify roles and responsibility Fill key positions Structure the organization based on who is to be the successor.

Take into consideration any potential roles for the retiring owner. Restructuring due to the owners multiple roles Lawyer to examine legal complication. Accountant financial issues. Financier to provide information to the seller.

8. Business ValuationThis step is taken to enhance the value of the business in order to make it more attractiveto potential buyers while maximizing tax benefits to the current owner.Some of the factors that impact the value of the business are:

What is to be sold? Where is the business located? Profitability Financing Inventory

9. Exit StrategyThis section addresses issues that have to do with the transition of ownership and


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removing yourself from day-to-day operations of the business. It involves the comparisonof alternatives and a framework for how to make your final choices. These issues includethe following:

Transfer method

Establish timelines The exit plan needs to be published and distributed to all persons participating inthe succession process.

10. Implementation And Follow-UpIt will be necessary to review your succession plan from time to time. A well prepared

plan will be done early and will require updating and revision as situation changes. It is astrategic planning document that must be dynamic and flexible. A specific period of theyear must be set aside to examine the succession plan and assess its applicability andaddress any changes that may impact your ability to implement the plan as required.

11. Conclusion At this stage of the planning process, you will be taking a final objective look at all aspects of your succession plan and determining your readiness and in manycircumstances your willingness to proceed with successor.

At this stage, you may wish to identify some of the criteria you will utilize in making the final decision to start the process of implementing your decision to transfer ownership of your business.

Get Free Updates On Entrepreneurship Secrets

Outline Of A Detailed Business Plan

Business plans usually consist of eight (8) sections as itemized below:

Cover Page Executive SummaryTable of Contents

It is useful to have one or two page Executive Summary of the Plan. The ExecutiveSummary is placed in front of the completed plan after the Cover Sheet. A Table of Contents is also useful in guiding the readers. However the Summary and Table of Contents are to be written after you must have completed the entire business plan.


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Sections Of The Business Plan

1. Introduction To The Business PlanThis section contains the following:

Name of the Business Purpose of the Business Legal form of the Business Business Owner(s) Amount and type of loan required Period loan will be repaid Purpose of the loan Expected results

2. Description Of The BusinessIn this section, you need to describe the basic idea about your business and how the ideacame into being. Why do you think the market need your product/service? Which groupof people will you offer your product or service? What are the appealing features of your

business over that of your competitors and why do you think you will be successful?

Detailed description of the business Research done on the business Appealing factors of the business Factors that will determine the success of the business.

3. Description Of Product Or ServicesThis section will contain the product(s) or services you will offer to the public. Specifythe products and how they are produced. How are they compared to similar products or services? Here you will also specify the quality of your products, differences as comparedwith those of your competitors.


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4. Key Personnel And Other Staff In this section of the plan, itemize the key people that will be involved in the productionand operation of your business. What are their qualifications and experience? If you arethe sole operator, what are your experiences, qualifications and skills?

Organization structure Job description of each employee Resumes (CVs) of Key personnel.

5. Marketing And SalesThis section will contain the following information: Who are your target market? Howmany people are there in the locality? What do you have to offer that is different fromyour competitors? What are the channels of promotion? What are your prices? Whatother marketing elements will distinguish your business?

Customers Competitors Location Advertising and Promotion Pricing Sales and Credit Terms Other marketing elements Estimated Sales

6. OperationsMaterials And Sources Of SuppliersThe purpose of this section is to determine what materials you will need for the businessand where you will get them. Without regular supplies it will be difficult if notimpossible to produce your goods for sale e.g. A bakery will not be able to bake withouta regular supply of flour.


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Equipment And ToolsHere you will have to list all equipments that you will need in the enterprise. Details andspecifications of the equipments should be included. If possible, you can include a

proforma invoice from the suppliers of the equipments as this is required by the Banks inevaluating application for credit.

Production TechnologyThis section is necessary for businesses involved in production or assembling of

products. Wholesalers, Retailers or Service businesses should skip this part of the plan.The purpose of the section is to explain the production process step by step from rawmaterials to finished product.

7. FinancesThis section will answer the following financial questions:

1. If you have a product, how much does it cost to produce?

2. What are your monthly expenses?3. What will you spend on advertisement, promotion and marketing of your product?

4. How much will your equipments cost?5. How much do you have to sell monthly to cover your costs?6. What do you expect your expenses to be for the next twelve months?

Sources and Uses of Funds Proforma Balance Sheet Profit and Loss (Income) Statement Proforma Cash Flow

Break-Even Analysis Major Risks and Assumptions

8. Supporting Documents/AppendicesThis is the last section of the business plan where supporting documents plus other usefulinformation are attached. If you claim in the plan that you have a piece of land, youshould attach a photocopy of the C of 0, title or registration in your name.

Samples of supporting documents in the Appendix are:

Resumes of Key Personnel

Past Financial Statements ( for existing businesses) Price quotations of equipments Brochures of Equipments C of O or Title of property Lease contract of land or building Business registration papers Addresses of Suppliers Personal Awards or certificates of Skills


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