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									Feasibility Study/Strategic
      Planning/SWOT
  Is there a difference?
      What is a Feasibility study?

A study that is provides focus on the
primary issues of a business idea. The
process takes a subjective look at any
“make or break” issues that would prevent
a business from being successful.
       Feasibility Study?

This analysis provides necessary
information that is used as the basis
for a business plan. Is the project
feasible? What flaws or barriers
would lead to failure? This
information provides the basis for
the marketing analysis and strategy
of the business plan.
 SWOT, what is it good for?

. Strengths       Weaknesses




Opportunities     Threats
         Possible Strengths:
•   Finance expertise.
•   Innovation
•   Proximity to raw materials
•   Superior equipment
•   And various other competitive
    advantages.
         Possible Weaknesses:
•   No finance expertise
•   Commodity product in a mature
•   Remote or poor access location
•   Broken down and obsolete
    machinery
•   damaged reputation
         Possible Opportunities:
•   High potential market – the internet
    or evolving country.
•   Creating strategic alliances
•   Transition into new markets
•   Global market
•   An unfulfilled niche in a a market
    segment
         Possible Threats:
• Entry of competitors into the
market
• Price wars
• Breakthrough in alternative or
competing product
• Language and cultural barriers
• Legal constraints or new taxes
for your product
A word of caution, SWOT analysis
is not a science with definitive
resolve and issues. Subjective
analysis can be dangerous as two
individuals can differ on the
version of SWOT. It is supposed
to draw discussion on the positive
and negative issues facing an
organization. The final answers
are not necessarily correct.
Important Considerations
•   Keep the issues realistic.
   Take an honest look in the
   mirror.
•   Think strategically. Where are
   we and where do we want to go.
• Don’t get bogged down with
   short-term issues.
•   Keep discussions focused and
   on target.
• Find benchmarks or and
competitive analysis to draw on
SWOT issues. Where are you
better or worse than your
competitors.
• Keep the analysis concise and
basic. Do not over analyze the
issues. All participant need to
understand the issues.
Financial and Business Planning
80% / 50%/ 30% Failure?

Lack of Planning
Lack of Experience
Insufficient Capital
What is a Business Plan?
 Conceptual – Collection of ideas and
  actions anticipated over the long term to
  ensure the economic success of the
  business.
 Physical – A document detailing the
  collection of ideas and actions to be
  taken. The document should include a
  detailed description of the business, the
  market, marketing strategies,
  management and organizational, and
  financial parameters.
8 Reasons to Write A Business Plan

1)   Build a case for funding of a start-up or
     expansion of an existing business.
2)   Identify and define goals, management,
     and operational strategies of a new or
     established business.
3)   Document the feasibility of starting a
     business or expanding.
4) Serves as a measure of performance and
  indicates a need for changes.
5) Enables a business to focus efforts to
  achieve key objectives.
6) Defines where a company is going and
  how to get there.
7) Determines the financial resources
  required
8) Gives you an objective, critical, and
  unemotional look at your business project
  in its entirety.
CONTENTS

Executive Summary
Statement of Purpose
Description of the Business
Competition
CONTENTS

Market Strategy
Location
Management
Personnel
Uses of Funds
Appendices
Appendices

Cash Flow Statement
Balance Sheet
Personal & Business Tax Returns
3 years
Personal Financial Statement
Resume
Equipment Lists
List of Collateral
BUSINESS NAME:STARTUP RESTAURANT                                   CONTACT PERSON: JOE ENTREPRENEUR
     ADDRESS:_________________________                             TELEPHONE #:
            _________________________                              PROJECTION BEGINS: MAY,2002

                        May-02       Jun-02    Jul-02    Aug-02     Sep-02    Oct-02    Nov-02    Dec-02    Jan-03    Feb-03    Mar-03    Apr-03
BEGINNING CASH           126100         8069      9058     10767      13196    16345      20214     25083     33552     38421    43290     48159
BANK LOAN, Note 1        180000
-REAL ESTATE ACQUISITION 250000
-REMODELING               14000
-EQUIPMENT, FIXTURES       8800
-ADVERTISING               1500
-INVENTORY&LICENSES        1800
-CLOSING COSTS            20000
CASH -ON -H AN D          10000        8069      9058     10767      13196     16345     20214     25083     33552     38421     43290     48159

REVENUES                    20000     21000     22000     23000      24000     25000     25000     30000     25000     25000     25000     25000

BEGINNING INV                4000      4000      4000      4000       4000      4000      4000      4000      4000      4000      4000      4000
+PURCHASES, Note 3           5800      5880      6160      6440       6720      7000      7000      8400      7000      7000      7000      7000
-ENDING INV                  4000      4000      4000      4000       4000      4000      4000      4000      4000      4000      4000      4000
COST OF GOODS                5800      5880      6160      6440       6720      7000      7000      8400      7000      7000      7000      7000
GR OS S P R OFIT            14200     15120     15840     16560      17280     18000     18000     21600     18000     18000     18000     18000

SELLIN G, GEN ER AL & AD MIN IST R AT IVE EXPEN SES
OWNER'S SALARIES            2000       2000    2000        2000       2000      2000      2000      2000      2000      2000      2000      2000
EMPLOYEE WAGES              4100       4100    4100        4100       4100      4100      4100      4100      4100      4100      4100      4100
UTILITIES                   2500       2500    2500        2500       2500      2500      2500      2500      2500      2500      2500      2500
TELEPHONE                     110       110      110         110        110       110       110       110       110       110       110       110
INSURANCE                   3000       1000    1000        1000       1000      1000          0         0         0         0         0         0
MISC SUPPLIES                 200       200      200         200        200       200       200       200       200       200       200       200
PROFESSIONAL FEES             200       200      200         200        200       200       200       200       200       200       200       200
TAXES                       2000       2000    2000        2000       2000      2000      2000      2000      2000      2000      2000      2000
ADVERTISING                   150       150      150         150        150       150       150       150       150       150       150       150
CREDIT CARD FEES              175       175      175         175        175       175       175       175       175       175       175       175
MISC EXP                      300       300      300         300        300       300       300       300       300       300       300       300
T OT AL SGA EXP           14,735    12,735   12,735      12,735     12,735    12,735    11,735    11,735    11,735    11,735    11,735    11,735

NEW LOAN AMORTIZATION
BANK LOAN, Note 1            1396      1396      1396      1396       1396      1396      1396      1396      1396      1396      1396      1396
N EW LOAN T OT AL           1,396     1,396     1,396     1,396      1,396     1,396     1,396     1,396     1,396     1,396     1,396     1,396

N ET PR OFIT (LOSS)        (1,931)      989     1,709     2,429      3,149     3,869     4,869     8,469     4,869     4,869     4,869     4,869

CASH POSIT ION              8,069     9,058    10,767    13,196     16,345    20,214    25,083    33,552    38,421    43,290    48,159    53,028
   WWW.BPLANS.COM

WWW.BUSINESSPLANS.ORG
Business Structures

   Sole Proprietorship
   Partnership
   Limited Liability
    Company
   Corporations
Sole Proprietorship
 ‘doing business as’ (d/b/a)
 SIMPLE/ MINIMAL COSTS
 Suited to the start-up of a
  one-person business.
  However, the single owner
  assumes all business
  responsibilities, including
  unlimited financial liability
  incurred by the business.
Partnership
 A relationship
  between two or more
  persons or
  companies doing
  business together
Limited Liability Company
 Built for the small business

 LLC is an unincorporated
  business organization having
  liability for the contractual
  obligations and other
  liabilities of the business.
 File Articles of Organization
  with the NYS Department of
  State
Corporations
 A NY State Corporation is an entity
  separate and distinct from the individual(s)
  who own and manage the business.
 Business corporations are operated for
  profit and are authorized to raise capital by
  selling shares of interest in the
  corporation.
 A corporation’s debts and obligations are
  distinctly it’s own.
Commercial Lending Process
5 C’s of credit
   Character
   Capability
   Capital
   Conditions
   Collateral
Character
 Clients willingness and determination
  to meet loan obligations
 Bankers are looking for individuals
  who will make every effort to repay a
  loan and will work openly and
  cooperatively with their banker if their
  business if experiences financial
  difficulties
 Credit Reporting
Capacity/ Cash Flow
 Management’s ability to generate enough
  cash to satisfy all obligations.
 It is easier to evaluate the capacity of an
  established company. A banker looks at
  past financial performance and compares
  to other businesses in the same industry.
 It is more difficult to evaluate the capacity
  of a new business. In this case,
  managerial experience and training are
  critical considerations.
 Cash Flow projections
 Capital
 Funds available to operate a
  business, of which there are two
  primary considerations:
 The amount of equity capital the
  owners have invested in the
  business and
 How effectively the total capital,
  including creditor capital, is
  employed
Conditions
(No Control)
 Are external variables, such as the
  state of the economy and the type
  of industry in which the client’s
  business is a part.
Collateral
 A borrower may pledge collateral to
  offset weaknesses in the other Cs
 Collateral provides the bank a
  secondary source of repayment if
  the primary source of repayment if
  the primary source of repayment
  does not materialize

								
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