What is a business plan?

A business plan is essentially a blueprint for a business and the best way to illustrate any business is by providing a business plan. For any travel you need to have a destination and the proposed path to reach it. So is a business also ‘the travel to success entrepreneurship’. Hence it’s important to develop a business plan to achieve whether the business is small, medium or large scale.
In the book The Entrepreneur’s Manual, Richard M. White, Jr. states that business plans are “road maps” for business creation: “You identify your origin, select a destination, and plot the shortest distance between the two points.”
A business plan also serves many other purposes:
· A business plan is a detailed blueprint for the activities needed to establish a business (i.e. product or service, the market demand, and the management of the business).
· A business plan is also the ‘yardstick’ by which a business owner measures success in meeting set goals and objectives.
· Also, a business plan is a tool for obtaining a loan from a lending agency, or for attracting venture capital.
What a business plan consists of?
There is no standard format for a business plan, but there are many common components of a business plan:
· Executive Summary : providing a general overview of the plan’s main points.
· Table of Contents : it’s the index of details of plan.
· Background and History: nature and basis of proposed business explained.
· Business Goals and Objectives: the set targets are listed in detail.
· Description of Products/Services: details of proposed products and services discussed.
· Market Description/Assessment: Feasibility is assessed comparing the market trends.
· Competition Assessment: status of the propped business in the regional market detailed.
· Marketing Strategies: plans proposed for the product marketing listed.
· Manufacturing Plans: Plans for the proposed manufacturing and capacities listed.
· Pro Forma Financial Analysis: Various financial details tabulated.
· Contingency Plans: Troubleshooting/preparedness plans devised in totality.

Many business plans will also include appendixes with additional information related to the business, its operations, its owners/managers, marketing/promotional plans, etc.

Business Feasibility Report

Business Feasibility Study
What is 'feasible'? It means ‘accomplishable’, ‘achievable’, ‘doable’ ‘realizable’. A business feasibility study is a useful place to start when considering purchasing a business or starting a business. Feasibility studies are an excellent way of making sure that you have a comprehensive understanding of the business environment and a realistic expectation of its potential.
Purpose of a feasibility study
The purpose of a feasibility study is to make an assessment about the overall potential of a business concept or project. So a feasibility study is a researched and written report on whether a business idea in its current form is achievable. In particular, a business feasibility study is used to assess the economic viability of your business concept before you start spending serious money and time.
Feasibility Study Importance
Nothing is right or wrong when evaluating the commercial and technical feasibility of a business. In the end, a feasibility study simply provides reasonable evidence that a business or project will succeed or fail and, various constraints and risk involved towards the potential profitability of the business. To undertake a business feasibility analysis it requires expertise, a daunting task, but surely a cost-effective first step. A comprehensive business or project feasibility study may be all that is needed to convince an investor or venture capitalist or lender to invest the money in the project.

SAFETY HAND GLOVES - FEASIBILTY REPORT

PRODUCT AND ITS USES

Industrial hand gloves are important protective apparel for workers in factories and work sites. Hand gloves are of various types and sizes. Fast moving sizes are 14", 16", 18" etc. The materials that go in the production of hand gloves vary from cotton fabrics and asbestos to variety of leathers. However due to statutory regulations asbestos became restricted material for gloves. Leather is supreme material in the production of hand gloves. Amongst leather chrome tanned split leather is predominantly in use possibly because of its cheap price and peculiar qualities needed for hand gloves as compared to other kind of leather. Chrome tanned split leather imparts special qualities to withstand roughness of the handling material and gives enough flexibility and softness for the hand to move in the gloves easily and swiftly while working in the workshop. Such industrial gloves are widely used in industry, Shipping and Railways. Due to rapid expansion of industrial sector the use of industrial hand gloves is expected to grow considerably.

MARKET POTENTIAL

There are no brand issues in this product. There is a good scope for starting new units for manufacture of industrial hand gloves as the domestic demand and supply gap is high. Fortunately the raw material is available in the country especially split leather due to increase in production of finished leather based on hides. Cotton is abundantly available locally and hence a hand gloves manufacturing unit is a viable unit. Cotton gloves are the cheaper type and leather ones are supreme priced. There exists export potential too depending on the quality maintained for seamless knitted industrial gloves with or without PVC dotting made of cotton, polyester, nylon polyamide, etc.

PROJECT ESTIMATE
· 25 days per month on single shift a day basis presumed.
· manpower required is mainly unskilled and semi skilled labour.
· Market target to be local industry 75% sales.
· Techno economically viable unit is 15,000pairs per month for small scale unit.

PROFIT
Profit per anum INR 4,42,980 & Net Profit Ratio 10.7%
RATE OF RETURNS : 28.3% BREAK EVEN POINT : 52.3%

For more details and help you shall contact lotuslinks@gmail.com

Project Feasibility Report of Acid Slurry

ACID SLURRY
PRODUCT AND ITS USES
Washing compounds basically made from oils and caustic soda but resulting soaps have lesser washing capabilities in hard water. Synthetic detergents started replacing soaps gradually due to their effective washing in hard water too. Synthetic detergents not only used for washing purpose but also used in textile industry and pesticide formulations.
Irrespective of consumer brand, all the synthetic detergents in the market are made from acid slurry as the base raw materials.
MARKET POTENTIAL
There is an ever increasing demand for synthetic detergents day by day in the domestic market. Large scope is there for synthetic detergents in the small scale sector. There are many small scale units manufacturing detergent powders and bars targeting the local markets. Acid slurry being the main raw material for detergents finds ready market.
PROJECT ESTIMATION
· Manufacturing process is a batch production.
· 25 days per month on single shift a day basis presumed.
· manpower required is mainly unskilled labour.
· Market target to be local area 75% sales and local industry 25% sales.
· Techno economically viable unit is 120tons per anum for small scale unit.

PROFIT ANALYSIS

Capital investment is approx. INR35lakhs.

Net profit ratio 13.3% ; Rate of returns - 27.9%; B.E.P. - 37.65%

For more details and help you shall contact lotuslinks@gmail.com

STEPS TO BUSINESS LOAN

STEPS TO BUSINESS LOAN
You have a great idea to start a business. You are fully dedicated to make it a successful venture. But you also need money, may be in the form of a loan. A Business Loan for a start-up is not that easy to get. You need to prepare a good feasible business plan for lender’s approval. Here are some important steps one needs to take for a start-up loan:
1. MARKET ANALYSIS: As part of the business plan, you should include a detailed analysis of the market, trends, customer base, the volume of industry. Your expected market share and cash flow in the first few years which could be translated into estimated profit returns is utmost important. This helps your lender to assess how much you understand the market and industry, and in turn your repayment potential.
2. FUNDS DISTRIBUTION: make estimates as exactly as possible so as to justify the funds requirements for each type of purchase. Every penny accounted for adequately allocated resources leads to a more feasible business plan. Prioritization of funds requirement helps your lender assured of the investment returns.
3. EXPERIENCE BOOST: Never hesitate to share your experience through the business plan. Any type of experience is counted whether it’s managerial, technical or commercial since it helps you to handle business challenges.
4. PERSONAL STAKE: lenders expect you to make a financial commitment to the business and inject your own cash into your new business. If you show confidence in your new business by investing in it yourself, your lenders would also show confidence in your business plan.
So, for a successful business loan, gear up yourself with a detailed business plan presentation to the LENDER.Good luck

Project Feasibility Report of Printing Ink

PRINTING INK
PRODUCT AND ITS USES
Printing industry has grown four fold in the recent years. Use of print media in different walks of life has increased with the increase in standards of living. With the growing demand for packaging industry, demand for printing inks is on the continual rise.
Latest trends in printing technology lead to the requirement of wide spectrum printing inks and the industry has good potential for young entrepreneurs.
Typograhic, Planographic and Intanglio are the three types of printing inks in both liquid and paste forms. Paste form is used for offset, screen and letter press printing whereas liquid type is used in newsprint, gravure and flexographic printing.
MARKET POTENTIAL
There is an increasing demand for printing ink day by day due to the growth in print media industry. Large scope is there for printing ink in domestic and petty printing sector. Due to the gap in supply and demand in the local markets, a small scale unit in each city is economically viable.
PROJECT ESTIMATION
· Manufacturing process is partly continuous though the production is batch wise.
· 25 days per month on single shift a day basis presumed.
· 2/3 manpower required is unskilled labour.
· Market target to be local print industry for 60% sales.
· Techno economically viable unit is 100tons per anum for small scale unit.

CAPITAL INVESTMENT
Estimated capital investment: approximately INR 98,44,000/-
COST OF PRODUCTION
Estimated Cost of production Per anum INR 2,56,91,420/-
TURNOVER
Estimated sales income of 90T @ 33,000: INR2,85,00,000/-
PROFIT
Rate of Returns : 28.53%
B.E.P. : B.E.P 44.4%
For more details and help you shall contact lotuslinks@gmail.com

Third anniversary

Hi Visitor,
Good day to you!

We are glad to announce that Lotus Links celebrating its 3rd Anniversary today. We take this opprotunity to thank all our well wishers and supproters.

As a dedicated tchnocrats team 'LOTUS LINKS' once again takes oath to continue its support to budding entrepreneurs as it has been doing since the day one. Due to the organizational work situations, Lotus Links condensing the techno feasibility details of Feasibility Reports a little on the blog. Nevertheless, Lotus Links assures you that details will be provided on individual request.

Raising our slogan " Totality is our Speciality" once again

With best regards,
Chief Executive

Being Your Own Boss

Being Your Own BOSS!!!
Human wants to be independent always by all means. It’s the same reason anyone wants to be an entrepreneur, primarily for independence and the opportunity to be my own boss. A person, being his own boss, can enjoy the freedom to give shape to his own dreams and aspirations. There are both risk and rewards but there is no hierarchy and office politics to cruise through for a boss.
Entrepreneurship has the potential to teach real-life skills. Every aspiring entrepreneur, who is fully engaged in growing his business, is learning in one year what others may gain in several years of corporate working life.
CHANGE-GAME : A person want to be an entrepreneur cannot look for a smooth ride. It’s the uncertainty swells an entrepreneur needs to navigate through. So an entrepreneur needs to accept every change in his journey and adapt himself to that change effectively.
MENTOR MARK : Entrepreneurship doesn’t follow any critical path. One can be passionate about his own ideas than others. Entrepreneur needs to rely on his own conviction though there are enough around to inspire with. Advice from those who are experienced always could make valuable difference. Hence never hesitate to take a clue.

CENT PER CENT : Once a decision made then put cent per cent into it. Before the decision, understand the expectations of your family and loved ones, because that defines how far you are ready to go and whether it is really worth it for you. Just be clear about the reason you are taking up entrepreneurship and be ready to act on your convictions, the rest will follow.

Passion as Business

MAKE YOUR PASSION AS YOUR BUSINESS
“WITH PASSION, MAN IS MORE SUCCESSFUL”
Everyone, starting a business, wants to do something he is good at and sell. Simply manufacturing and selling is not one man work as it involves manpower and other resources. But the fruits of the business sure belong to one man ‘the entrepreneur’. So when any one wants to start a business, the first question comes across is what to start?
Every entrepreneur wants to be successful but only a few are more successful because of their passion. Exploring avenues of creativity and finding your passion is the Success key. Your passion is likely the quickest route to launch a successful business.
So uncover your passion through some exploring process that leads to your successful business.
EXPLORER 1
Even at the age of forty some people like to play loads of video games. You know the reason why? It’s because they enjoyed playing games a lot when they were children. It’s true that we were disconnected a lot from what we loved to do as children.

Make a list of all the things you remembered enjoying as a child and think over them whether you enjoy them the same now too? Then question yourself whether those passions can become part of your choice now?
EXPLORER 2
Make a big board or poster with new business in the center and place images, sayings, articles, any inspirations as a cluster around the new business.
When you surrounded yourself with images of your intention ‘what you want to create and what you want to become?’ your passion grows big.
As you are more focused on the board, you would surely recognize the missing one and could find ways to realize your vision.
EXPLORER3
Start doing what you love even though there was no business plan written down. Do what you enjoy even you haven’t figured out how to launch it into a profit spinner. Test what it is like work in an area you are passionate about. By this you can establish a network and ask for feedback that is a lot helpful in refining your business plan.
It's a way to not only show the value you would bring, but you can also get testimonials that will help launch your business when you're ready to make it official.

EXPLORER4
Identify similar persons and study their success. Study the successful people in the area you want to pursue. During the economic slump many people keep away from stock markets but a few enter and succeed. So figure out how and why they are successful when others running away and then devise a plan for your successful business entry.
"It's not the plan that is creative; it's the process that you go through that opens up so many possibilities."

EXPLORER5
Your mind needs sometimes rest from thinking as it’s bogged down with loads of ideas and plans. Take a break by putting away business mode and get into leisure mode by taking up hobby for some time.
After taking a mental vacation, start fresh again reviewing your ideas and plans. Missing links would be visible clear now as your mind could see creative connections that we often neglect to notice.

Project Feasibility Report of Sodium Silicate

Last week LOTUS LINKS came up for a request from a follower regarding a chemical used in paper and packaging industry. Here is SODIUM SILICATE feasibility study for those interested.

SODIUM SILICATE

PRODUCT AND ITS USES
Sodium Silicate is a colourless compound of oxides of sodium and silica. It is soluble in water and has a range of chemical formula varying in sodium oxide (Na2O) and silicon dioxide or silica (SiO2) contents or ratios. Aqueous solution of sodium silicate is called water glass.

Sodium silicates are produced in the form of a variety of compounds by proportionating the reactants.
1) Na2O.1.6SiO2 to Na2O.4SiO2 are known Sodium Silicate as colloidal silicates. These are sold as 20% to 50% aqueous solutions called water glass.
2) Sodium metasilicate has the ratio of Na2O.SiO2 and is a definite crystalline compound, which forms various hydrates.
3) Substances having higher sodium oxide content are sodium squisilicate 1.5Na2O.SiO2 and sodium orthosilicate 2Na2O.SiO2.
4) The more alkaline silicates including sodium metasilicate (Na2O.SiO2) are crystalline materials with definite structures and characteristic properties. These are used chiefly as cleaners and detergents. The more siliceous sodium silicates are glasses, typical non-crystalline solid solutions, which are important mostly for their adhesive and binding properties.

MARKET POTENTIAL
It is soluble in water and it is prepared by reacting silica sand and sodium carbonate at a high temperature ranging from 1200 to 1400OC. Sodium silicate has variety of uses and has got ready demand in the market.

It is used in manufacturing silica gell, soaps, detergents, fire proofing compounds, as a preservative, cement binder. It also used as a fluxing material in welding electrodes, ceramics and metal pickling. Due to its variety of industrial applications, sodium silicate has good demand in the domestic market itself.
MANUFACTURING PROCESS
Sodium carbonate and silica sand are the basic raw materials in sodium silicate manufacture. Depending on the end product requirement the ratios of raw materials varied. Measured quantities of raw materials mixed and charged into the melting furnace and reacted materials form a glass melt at elevated temperatures around 1325o C. The fused melt is collected in a stream from the furnace and fed continuously to cooling moulds on conveyor. The melt cools to a semi transparent solid.
Alternately the stream could be directly fed to the water making sodium silicate solution with steam. The solution thus obtained is clarified and adjusted to desired specific gravity (40Be is the popular one). Dry powdered sodium silicate is produced by solidifying the above liquid suiting the requirements of end product.

Final product is packed in drums/containers as per customer requirement. Drums should be properly marked with product name and Grade.

According to IS381 there are two grades of Sodium silicate (Neutral and Alkali) in both liquid and sold forms. Depending on the industrial use, quality standard needs to be maintained as per customer requirement.
PROJECT ESTIMATION
· Sodium silicate manufacturing is a continuous process. Hence the unit to run 3 shift a day and 25 days a month (300 days a year).
· Plant erection estimated considering the pollution requirements of 60ft chimney. Any local law applicable to be taken into consideration prior to plant implementation.
LAND & BUILDING
1500sq.m area with 500sq.m built up shed
MACHINERY &EQUIPMENT: 1T/hr Glass Tank Furnace; Boiler & accessories; Agitator; storage drums; balance; test kit
RAW-MATERIALS
100tons/month Soda Ash & 175tons/month Silica Sand;
UTILITIES
20kVA power connection; 10QMEC water supply; 8KL/day furnace oil
MISCELLANEOUS EXPENSES
Office establishment, material handling, transportation, plant maintenance.
CAPITAL INVESTMENT
Estimated capital investment: approximately INR 98,44,000/-
COST OF PRODUCTION
Estimated Cost of production Per anum INR 25,69,1420/-
TURNOVER
Estimated sales income of 90T @ 33,000: INR2,85,00,000/-
PROFIT
Profit per anum INR 28,08,580/- & Net Profit Ratio 9.8%
RATE OF RETURNS : 28.53%
BREAK EVEN POINT : B.E.P 44.4%
For more details and help you shall contact lotuslinks@gmail.com

Project Feasibility Report of CSNL

CASHEW NUT SHELL LIQUID (CSNL)

PRODUCT AND USES
India being an agriculture based country has enormous potential of agro based products and by-products as industrial raw materials. Cashew Nut Shell Liquid (CSNL) which is a byproduct of cashew industry, is one such product with a good use as a chemical raw material.
CSNL is dark brown liquid extracted from the soft honey comb structure shell of cashew. The liquid contains natural phenols. CSNL has a variety of uses in chemical industry as it replaces synthetic phenols in preparing phenolic resins. It has many applications in polymer based industries namely paints and varnishes, plywood lamination resins, polyurethane based polymers, epoxy resins, cashew cements, foundry chemicals, rubber compounding. There are some tailor made polymer products for fishing industry and pesticide industry. Latest lab experiments revealed the use of CSNL as a raw material in the manufacture of bio-plastics.

MARKET POTENTIAL

There is domestic as well as export potential for this product. From 90s there has been a gradual increase in demand for CSNL in the domestic market as more and more manufacturing units set up based on CSNL raw material. Also the export potential is on a steady increase. Quality of the product is key for exports.

It is estimated that raw cashew nut produce in the country is around 2.15 lakh tons and at 10% recovery by weight, the production potential for C.N.S.L is as much as 21,500 tons. There is a good scope for CSNL production units due to demand from both indigenous and international markets.

MANUFACTURING PROCESS

By using oil extraction process, 10% by weight yield could be obtained most economically. Thus 100kg SCNL could be extracted per ton of shells using expellers. It is advisable that a small unit could be set up adjacent to each cashew processing unit to reduce the handling costs to make it an economically viable unit in view of indigenous and international demand for CSNL.

Quality standards shall meet stipulated by (IS 840:1964) or as per customer requirements for exports.

PROJECT ESTIMATION

The estimates made for techno feasible plant set-up. Unit is viable with 75tons per annum set up with standard type of manufacturing activity.

LAND & BUILDING

300sq.m area with 150sq.m built up shed

MACHINERY &EQUIPMENT

1T/hr Oil expeller ; 22leaf filter press; storage drums; balance; test kit

RAW-MATERIALS : 40tons shells/month

UTILITIES : 30kVA power connection; 2QMEC water supply;

MISCELLANEOUS EXPENSES : Office establishment, material handling, transportation, plant maintenance.

CAPITAL INVESTMENT : Estimated capital investment: approximately INR 11,50,000/-

COST OF PRODUCTION : Estimated Cost of production Per anum INR 25,75,955/

SALES INCOME : Estimated sales income of 90T @ 33,000: INR29,70,000/-

PROFIT : Profit per anum INR 39,4045 & Net Profit Ratio 13.27%

RATE OF RETURNS : 34.85%

BREAK EVEN POINT : B.E.P 58.6%

For more details and help you shall contact lotuslinks@gmail.com