Types of feasibilty
- 1. ENTREPRENEURSHIP Presented to :- Dr Seema Singh
- 2. GROUP MAMBERS NAME ROLL NUMBER SUMIT 355 ANKUSH 354 BANTI 319
- 3. WELCOME TO OUR PRESENTATION
- 5. ◦CONTENTS WHAT IS FEASIBILTY STUDY WHY DO FEASIBILTY STUDY MARKET FEASIBILTY TECHNICAL FEASIBILTY FINANCIAL FEASIBILTY
- 6. FEASIBILTY STUDY ◦ Feasibility study Is an analysis of the viability of an idea . ◦ It an analysis of all possible solutions to a problem and a recommendation on the best solution to use . ◦ Is a formal study to decide what type of system can be developed , which best the needs of the organization . ◦ A feasibility study is essentially a process for determining the viability of a proposed initiative or service and providing a framework and direction for its development and delivery .
- 7. WHY DO FEASIBILITY STUDY ◦ To find a solution that is cost effective from a business perspective ◦ To find a solution that is well recognized ◦ To find out the probable market for the product ◦ To find out the opportunities and threats as presented by environment . ◦ To determine the probable income of operating the project. ◦ To show the contributions the project can offer to the society , among other.
- 8. TYPES OF FEASIBILITY STUDY MARKET TECHNICAL FINANCIAL ORGENIZATIONAL STRUCTURE
- 9. MARKET FEASIBILTY ◦Market Analysis :- The first step is to estimate the potential size of the market for the product proposed in the project and get an idea of market share that is likely to be captured . ◦Market and demand analysis are concerned with two board issues ◦What is the likely aggregate demand for the product/service. ◦What share of the market can be captured .
- 10. MARKET ANALYSIS
- 11. PROCESS ◦ Analyze the market ◦ Develop market strategy and concept ◦ Identify the site ◦ Feasibility analysis ◦ Approve a preliminary design ◦ In- depth financial study ◦ Analysis of cash flow ◦ Technical feasibility of the site ◦ Service to be offered ◦ Identify areas ◦ Funding sources ◦ Calculator fees ◦ Data ◦ Development factors ◦ Selecting alternative sites ◦ Superior site ◦ Option on land ◦ Local zoning and building
- 12. TECHNICAL FEASIBILITY ◦Technical feasibility assessment is focused on the present technical resource available in the organization . ◦It studies if the technical resources including the technical team are capable of converting the ideas into working system. ◦It also evaluates the hardware and the software requirement of the proposed system .
- 14. PRIMARY TASK OF TECHNICAL FEASIBILITY Primary task of TF is Blueprinting a) Manpower Needs b) Resources and design c) Provide design alternatives d) A choice of available technologies & cost estimates for each alternative
- 15. MAIN COMPONENT OF TECHNICAL ANALYSIS ◦ There are following main component or section of technical analysis ◦ Manufacturing process/technology :- For manufacturing a product often two or more alternative technologies are available , for example ◦ Soap can be made by the semi-boiled process or the fully boiled process ◦ Soda can be made by the electrolysis method or the chemical method.
- 16. LATEST DEVLOPMENT ◦ The technology adopted must be based on the latest developments to time to time . ◦ Old technology in Agriculture field
- 17. NEW TECHNOLOGY IN AGRICULTURE FIELD
- 18. LOCATION AND SITE ◦Location and site of any company or project is very essential part of technical feasibility . ◦The choice of location and site follows an assessment of demand , size and input requirement of any project or company. ◦Location and size are closely inter related
- 19. MACHINERIES AND EQUIPMENTS ◦ The requirement of machineries and equipments is dependent on production technology and plant capacity it is also influenced by the which types of project. ◦ The equipment required for the project may be classified into the following types. ◦ Plant process equipment ◦ Mechanical equipment ◦ Electrical equipment ◦ Internal transportation system
- 20. EXAMPLE OF AGRICULTURE EQUIPMENT FOR AGRICULTRE PROJECT OF ANY FIRM
- 21. FINANCIAL FESIBILITY ◦A financial feasibility study projects how much start-up capital is needed , sources of capital , return on investment , and other financial considerations . The study considers how much cash is needed where it will come from and how it will be spent . The study is an assessment of the financial aspects of something.
- 23. COMPONENTS OF FINANCIAL FEASIBILITY ANALYSIS Total Start-Up Cash Needed Financial Performance of Similar Businesses Overall Financial Attractiveness of the proposed Venture
- 24. TOTAL START-UP CASH NEEDED ◦ Total start-up cash needed ◦ The first issue refers to the total cash needed to prepare the business to make its first sale. ◦ An actual budget should be prepared that all the anticipated capital purchases and operating expenses needed to generate the first in revenues. ◦ The point of this exercise is to determine if the proposed is realistic given the total start-up cash needed.
- 26. FINANCIAL PERFORMANCE OF SIMILAR BUSINESSES ◦ Estimate the proposed start-up financial performance by comparing it to similar already established business . ◦ There are several ways to doing this all of which involves a little ethical detective work ◦ First there are many report available , some for free and some that require a fee , offering detailed industry trend analysis and reports on thousands of individual firm. ◦ Second , simple observational research may be needed. For example owners of new venture fitness drinks could estimate their sales by tracking the number of people who patronize similar restaurants and estimating the average amount each customer spends.
- 27. Overall Financial Attractiveness of the proposed Venture ◦A number of other financial factor are associated with promising business start-up ◦In the feasibility analysis stage , the extent to which a business opportunity is positive relative to each factor is based on an estimate rather than actual performance . ◦The table on the next slide list the factor that pertain to the overall attractiveness of the financial feasibility of the business idea.
- 28. ORGANIZATIONAL FEASIBILITY ◦ Outlines alternative business model (how the business will make money) ◦ Identify the proposed legal structure of the business ◦ Identify any potential joint venture partners , alliances or other important stakeholders. ◦ Identifies availability of skilled and experienced business manager. ◦ Outline the governance , lines of authority and decision making structure .
- 31. ENTERPRISE LEVEL ORGANIZATION STRUCTURE MANAGER FINANCE /ADMIN STAFF PRODUCTION PROCESSING MARKETING
- 33. MANAGEMENT PROWESS ◦ A firm should candidly evaluate the prowess or ability , of its management team to satisfy itself that management has the requisite passion and expertise to launch the venture. ◦ The passion that the solo entrepreneur or the founding team has for the business idea . ◦ The extent to which sole entrepreneur or the founding team understanding the market in which the firm will participate.
- 34. RESOURCE SUFFICENCY ◦An assessment of whether an entrepreneur has sufficient non financial resource to launch the proposed business.