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Business Planning: Steps and Importance of Feasibility Study

This article provides an overview of business planning and the importance of conducting a feasibility study before starting a project. It covers the steps involved in project planning, analyzing the internal and external environment, setting corporate objectives, formulating strategies, and conducting a cost-benefit analysis. The article also explains the purpose and benefits of a feasibility study and the types of feasibility analysis. Additionally, it discusses the role of a project report and its significance in obtaining financial support.

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Business Planning: Steps and Importance of Feasibility Study

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  1. Module - III Project Planning Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  2. PROJECT PLANNING Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  3. meaning Business Planning refers to deciding in advance in respect of business activities. • What is our present position • What should be our future position • What should be done to reach our future position Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  4. STEPS 1. Analysis of Internal Environment - quality of manpower, machines, labour- management relations, working conditions, etc. 2. Analysis of External Environment – government policies, competitor’s strategies, customer preferences. Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  5. 3. Set Corporate objectives – SMART , short term medium term, long term. Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  6. 4. Formulate strategies - Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  7. Analysis of plans – cost benefit analysis • Selection of best strategy • Implementation – • Review Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  8. What is a Feasibility Study? • A feasibility study is an analysis of the viability of an idea through a disciplined and documented process of thinking through the idea from its logical beginning to its logical end. • A feasibility study provides an Investigating function that helps answer “Should we proceed with the proposed project idea? Is it a viable business venture?” • A feasibility study should be conducted to determine the viability of an idea BEFORE proceeding with the development of a business. Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  9. Why do a Feasibility Study? • Provide a thorough examination of all issues and assessment of probability of business success • Give focus to the project and outline alternatives • Narrow business alternatives • Surface new opportunities through the investigative process • Identify reasons NOT to proceed • Enhance the probability of success by addressing and mitigating factors early on that could affect the project • Provide quality information for decision making • Help to increase investment in the company • Provide documentation that the business venture was thoroughly investigated • Help in securing funding from lending institutions and other monetary sources Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  10. Areas /Types of feasibility Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  11. Project Report • A project report is a written document containing complete information about the proposed project. • It is useful for obtaining loans and advances from banks and financial institutions • It gives a clear picture about the project and acts like a reference guide during the execution of the project. Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  12. Project Report Contd…. • The various aspects of the project include analysis of market, technology, finances, manpower, production facilities etc. • It is helpful to various parties including financial institutions, government authorities, investors and entrepreneur himself. • It is required to be submitted to the government authorities wherever necessary for various government clearances. Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

  13. Industrial Testing Labs Clinical Laboratories Industrial Photography Photographic Labs / Processing Labs. Cold Storage Services / Milk Chilling / Milk Processing. Washing and Laundry Services / Dry Cleaning. Motor Cycle Repairing. Super Markets. Shops , Offices , Show Rooms , Training Centres of Professionals. Resorts and Travel Agents. List of Service Sector activities covered under Medium Enterprises - Services Mrs. Gracy D'souza, Assistant Professor J. M. Patel College of Commerce

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