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.
Thursday, July 19, 2012
Tuesday, July 17, 2012
SAFETY HAND GLOVES - FEASIBILTY REPORT
PRODUCT AND ITS USESIndustrial 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.
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.
· 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%
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
Thursday, July 12, 2012
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.
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
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
Subscribe to:
Posts (Atom)