Business Plan - Explained in an Easy Way

Three Things for 100% Business Success

Businesses can be on successful track if the reasons which lead them to fail are controlled appropriately.  Three positive reasons for business success are listed below. These may sound familiar to you and it may not be too late to manage them to boost your chances of success. 

1. Plan it Adequately.

There are many different perspectives on business plans. Some experts will tell you that you simply must have a formal, structured business plan.  The best solution is a simple business plan, a working document that gives you a foundation for your business, while helping you plan out the action steps you need to take.

You do need some kind of plan that outlines where you are, where you want to go and how you intend to get there. It ultimately doesn’t matter what this document looks like, as long as it gives you the direction you need.

2. Stop worrying about money.

It’s not surprising that many entrepreneurs get anxious and desperate about making money with the business and doing it fast because they don’t have big reserves of money.  But here’s the thing — most small businesses do not make money overnight.

In fact, most small businesses don’t make money in the first year, possibly even the first two years. You are going to need a financial plan to ease the transition to business owner.

You could also start the business on the side while continuing to work full-time, get a part-time job to make up the difference during the startup stage, or launch the business incrementally as you get your financial footing. 

There are a lot of options, and you need to explore them all and come up with a plan so you can put the financial uncertainty behind you. This is the only way you can approach your business and the money side of it unemotionally and avoid making bad decisions because you’re worried about money.

3. Do periodic reality Check.

Starting a business is an emotional process, and not just limited to money. You are passionate about something…so passionate that you want to turn whatever it is you’re doing into a business. That means you’re already emotionally invested, and it’s going to be hard to separate your personal feelings from your business. This isn’t always a bad thing, but it can cloud your objectivity and blind you to the reality of what you’re doing.

It can also weaken your ability to explore alternatives, try new approaches and even remember why you started your business in the first place.  Sometimes, you need to take a step back and get an aerial view of your business so you can make better decisions. If you can’t accomplish a reality check on your own, it may be time to call in a coach, partner, colleague, or even friends and family to help you take a look at what you’re doing, why you’re doing it and how you can do it better.

Above positive reasons can guide your business on to the right path. Take a few minutes to reflect on your business and see if any of these areas pose red flags for you. You may be able to head off a disaster with just a little conscious effort.

Project Feasibility Report - STRANDED STEEL WIRE ROPE

I.                    PRODUCT & USES

Stranded wire rope is manufactured by twisting or stranding together number of wire strands depending upon the stay wire requirements.  These wire ropes are prepared using either steel wire strands or galvanised steel strands suitable for the usage.  These are mainly used for Electricity poles, Telephone poles, Railway signalling purpose, stay wires for hoardings, cranes hoisting arrangements, rigging ropes, load slings, industrial hoisting equipment, etc.

II.                  MARKET POTENTIAL

Main users are Govt. depts. Like Electricity, Railways, Telephones & industrial establishments.  Due to the Smart city concept, lots of publicity hoardings are coming up in cities which also require lots of wire ropes.  With the infrastructure sector development in India, there is tremendous potential for this product.

III.                PRODUCTION

96 tons per anum.

IV.                PROCESS DETAILS

It is proposed to manufacture 7 strands wire rope of 7.77mm dia.  2.59mm wire rope is used readily available in coils from the supplier.  The thin wire is wound on the metal bobbin machine.  The bobbins are then mounted on the stranding machine and the wire rope is produced.  This is continuously wound on to wooden drum to the required length and then packed for dispatching.

V.                  QUALITY STANDARDS

The main requirement is tensile strength of the product.  Suitable and tested material needs to be used as raw strand material in producing wire rope.  Stands meeting ISI requirements to be used, and certified ropes to be supplied if the client requires so.

VI.                LAND & BUILDING

VI	COVERED  300sq.m Shed Rent		30,000.00 ₹
VII	MACHINERY & EQUIPMENT
	Bobbin winding M/C with elec
	Wire Stranding M/C
	Weighing M/C- 2ton
	Handtools
	Office furniture
	Electrification at10%
	SUB TOTAL		5,25,000.00 ₹
VIII	RAW MATERIALS(PER MONTH)
	G.I.wire 2.59mm	5,28,000.00 ₹
	SUB TOTAL		5,28,000.00 ₹
IX	STAFF & LABOUR(PER MONTH)
	MANAGER
	SUP
	FOREMAN
	SKILLED-2
	SEMI SKILLED -2
	HELPERS-8
	CLERK
	MESSENGER
	SUB TOTAL
			86,250.00 ₹
X	MISCELLANEOUS(PER MONTH)
	ELECTRICITY
	CONSUMABLES
	LUBRICANTS
	TRANSPORT
	PACKING
	RENT(VI)
			70,000.00 ₹
XI	WORKING  CAPITAL (PER MONTH)
	VIII	5,28,000.00 ₹
	IX	86,250.00 ₹
	X	70,000.00 ₹
			6,84,250.00 ₹
XII	TOTAL CAPITAL INVESTMENT
	VII	5,25,000.00 ₹
	XI QUARTERLY	20,52,750.00 ₹
			25,77,750.00 ₹
XIII	COST OF PRODUCTION (annual)
	RECURRING EXP.	82,11,000.00 ₹
	INTEREST ON CAPITAL	3,86,662.50 ₹
	DEPRICIATION	52,500.00 ₹
			86,50,162.50 ₹
XIV	SALES (PER ANUM)
	PROD1-PERTON55Kx190	1,04,50,000.00 ₹
			1,04,50,000.00 ₹
XV	PROFIT CAL
	PROFIT PER ANUM		17,99,837.50 ₹
	PERCENT OF SALES	17.22%
	ROI	69.82%
XVI	BEP ANALYSIS
	ANNUAL FC
	RENT(VI)	14,400.00 ₹
	INT	3,86,662.50 ₹
	DEP	52,500.00 ₹
	SALARIES	4,31,250.00 ₹
	MISCELLAENIOUS	3,50,000.00 ₹
			12,34,812.50 ₹
	B.E.P	40.69%

Cost analysis was based on the prices available at the time of feasibility report preparation which may be different from present prices.   This report made public to help the budding entrepreneurs to understand the project basics.  For more latest details you may contact lotuslinks

Hello Budding Entrepreneurs!

Hello Budding Entrepreneurs!

Good day to you all!

Finally Lotus team is back in India after completing its target projects abroad.  This made us more satisfied at work but still am missing my links with you all which is leaving a gap in my achievements at heart.

Here i am back with you.

Last Sunday, incidentally was FATHER'S DAY and my daughter gave me a gift ' a hand made name plate' which made me so happy at my heart.  During the discussion she told that she was missing as a guide since she wanted a project feasibility report for a small online craft sales biz.  I gave her the report and then i realized what I am missing... my blogging on PROJECT FEASIBILITY REPORTS  which was keeping me LINKED to you all which i enjoy a lot.

So here I am to continue my linking with you all who are looking for some info.

Very soon I am going to post some PROJECT FEASIBILITY REPORTS regularly.

See you very soon.

Hello from Chief Consultant

Hello friends!

Lotus Links missed you all a lot.

We had been busy out of India for quite a long time and couldn't do much on sharing feasibility reports with you all.

Various project executions have been seeing the end of the day and we are proudly finishing our target dates in line with our client requirements all the while.

I am glad that lotus team  back on its track with fan sharing and letting me find some time to pen here again.

So I am with all of you again.

Thanks one and all for being patient with me.  And news from my side is I am coming up with all new project feasibility reports  very soon.  Please  keep checking my blog.

Have an excellent day!

Business after college education

A fresh graduate from college has a big way ahead.  There are two options at his hand ‘to work for someone or to be on his own’.  Real thinking needs to be done to choose one option or the other.  Those who like to play safe would most probably choose to work while some with risking inclination would go for entrepreneurial way and start their own business.  

There could be many reasons for the young to start on their own, but surely there will be an inspiration for their goal.  The inspiration could be Bill Gates,  Anji Reddy, Brian Wong, Ms.Carol Tice, JRD Tata, Dheerubhai Ambani and the list is not limited to these only.

What you need to start on your own?

If you want to start a small business on your own, you need to make a business plan, make some finance related decisions, fulfill local govt. requirements, marketing your product and finally delivering the product pleasing your customers.

What ever the ideas you have may be, put all of them on a paper and analyse them carefully till you get a feasible business idea.  Then devise a plan based on the idea to make is sustainable in terms of time and money.  you got a basic business plan for the kick start.

Raising start-up capital is becoming relatively easier due to the large number of venture capitalists surging apart from recent aggressive banking.  If you got a feasible business plan, it’s no difficult to obtain a bank loan.  As you make trails for the loan, you also need to take care of local govt. requirements for your proposed business.

The execution of the business plan is utmost important than establishing the business.  For this one needs to concentrate a lot on the product marketing.  You should have a executable marketing strategy for your product which results in attracting and keeping your customers.   The more satisfied your customers are, the more profitable your business would be.

Never mind you just graduated from the college, gear up for the growth and success race by becoming yourself a model entrepreneur.

Cold storage feasibility report

PRODUCT AND ITS USES India is a very big country with vast variety of soils.  Variety of fruits and vegetables are produced seasonally.  Fish, etc.,  are another source of seafood from vast marine zone available.  Thus the produced being perishable in nature needs to be stored properly for the non-seasons.    Present production of these perishable commodities in India is more than 130 million tons, but about 22% of this product is estimated to be perished.  Keeping in view of the population growth in india, it is utmost important to utilize these perishable commodities with cent percent efficiency as the demand is ever increasing. Cold storages are the prime infrastructure for these perishable commodities preservation.  Establishment of cold storages help the nation in controlling the market prices and also the farmer is benefitted as his produce gets a suitable market at a later time.  Commercially apples, potatoes, dry chillies, jiggery, oranges and eggs are stored on large scale.  Other processed or semi processed foods like fruit juices, fish, meat, dry fruits are also stored in clod sotrages.

MARKET POTENTIAL Cold storages are essential for the preservation of perishable commodities.  These can solve bottlenecks in transportation, marketing period, processing delays.  The development of cold storages thus have important role in wastage control of perishable commodities and market price control. There is sufficient demand for the cold storage industry in india including the remote villages.  The Villages welcome cold storages as they could better their future.

MANUFACTURING PROCES Storages spaces are segregated based on the temperatures maintained.  Well insulated chambers of ceiling and partition walls a must as the efficiency depend directly on the insulation quality.  Wooden crates or bags used to store the goods and the temperature and humidity in chambers is to be maintained based on the stored product.

PROJECT ESTIMATION 300days per anum of three shift working as due to continued storage of products. Chambers or rented out to farmers or traders. Ice Block manufacturing is planned as an ancillary. Ammonia Refrigeration Plan is considered.

LAND & BUILDING 400sq.m area with built up area of 250sq.m.  for storage and utilities.

MACHINERY &EQUIPMENT: Cold storage plants are available with suitable capacities on turnkey basis.

RAW-MATERIALS Though there is no raw materials required for the process, maintenance consumables required.

UTILITIES Power requirement would be 60HP; 100qmec pump set; diesel generator for power interruptions

MISCELLANEOUS EXPENSES Manpower requirement as the unit being labor oriented.  Office furniture, fixtures, security arrangements

CAPITAL INVESTMENT Estimated capital investment: approximately INR72,00,000

COST OF PRODUCTION Estimated Cost of production Per anum INR 18,96,000/-

TURNOVER Estimated sales income of 100T @ 2,200 & ice 60T @2,000 : INR40,80,000

PROFIT Profit per anum INR 28,08,580/- & Net Profit Ratio 9.8%

RATE OF RETURNS :       %

BREAK EVEN POINT :   B.E.P  48%

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