Lecture 1 Definition of Business Feasibility Study

1. Lecture 1Definition of Business Feasibility Study Fanny Widadie, S.P, M.Agr

2. Education & Training • "A person who graduated, yesterday and stops studying today is uneducated tomorrow."

3. Fear & Wisdom • "To conquer fear is the beginning of wisdom." • (Bertrand Russell)

4. Feasibility Analysis: Testing an Opportunity • Discuss the importance of defining a prospective business by writing a clear and concise business concept. • Describe how a feasibility study can be used to test a concept in the marketplace. 5.1

5. Feasibility Analysis: Testing an Opportunity Business concepts need to be tested in the market. Once a concept is judged feasible, a business plan will help the entrepreneur develop a strategy for executing the concept. 5.1

6. 01 MATERIAL Studying mechanism Rule and studying discipline Definition and activity process Understanding “Business Feasibility Study” The importance of investing The reason studying Business Feasibility

7. 01  Understanding Business Feasibility Study  Investment understanding Based on William F. Sharfe,investmentis about sacrificing money now for the money in the future.  Kinds of investment : 1. real investment2. financial investment

8. 01 Project understanding GenerallyProjectis a kind of activity which involves many resources that are available within a particular bucket (organization) in a particular period of time to do an activity that has been assigned before or to achieve a particular goal.

9. 01  Project’s activities include : • Building of new facilities • Repairment of current facilities • Research and development  How do projects appear : • A market demand • To increase a product’s quality • Government’s activity

10. 01 Business Understanding Is an activity or effort that had been done to get benefit based on a purpose and the target business that was done in order to achieve profit according to the goal and the target aimed in many aspects, whether it be quantity or time.  Profit is the main reason within a business, whether it be short term or long term.

11. Developing a Business Concept Once you have a idea for a new business, define it by writing a clear and concise business concept. business concepta clear and concise description of a business opportunity; it contains four elements: the product or service, the customer, the benefit, and the distribution Section 5.1 Feasibility Analysis: Testing an Opportunity

12. 01 Understanding Business Feasibility Study  An thorough study of an activity or a business that would be undertaken, it is done so in order to decide whether the business is feasible or not to be undertaken.

15. 01 Factors That Causes Failure in Business Data and information that are not sufficient Not thorough Miscalculation Wrong direction of work Environment condition Element of deliberateness

16. 01 Preventing Business Failure Fulfilling and also the accuracy of data and information taken Specialist workers that are used are reliable and good Selecting the right methods and measuring tool. Loyalty from the Business Feasibility Study team

17. 01 Business Benefits Achieving profits  Providing employment Providing facilities  Opening geographic isolation Increasing unity and helping the solidity of development

18. 01 Economy Benefits Increasing amount of goods and services  Increasing the product’s quality Increase in devisa  Saving in devisa

19. 01 The Reason Studying Business Feasibility • Avoiding non-profitable risks • Makes planning easier • Makes initiating work easier • Makes watching over staff easier • Makes controlling easier

20. 01 Organizations that needs Business Feasibility Study • Business owners • Creditor • Government • The citizen • Management

21. 01 Aspects in Evaluation • Law aspect • Market and marketing aspect • Financial aspect • Technic/Operation aspect • Management/Organization aspect • Sosial economics aspect • Environmental issue aspect

23. 01 Evaluation aspect schemes Law Aspects Market & Marketing aspects Financial Aspects Feasibility Study Aspect Result Operation/Technical aspect Management aspect Social/Economic aspects Enviro aspects

24. 01 Steps in Business Feasibility Study • Acquiring Data and Information • Data Processing • Data analysing • Decision making • Reccomendation

25. 01 Steps of Business Feasibility Study Scheme Acquiring Data Processing Data Analysing not feasible Decission Making Abborted feasible Recomended Under Taken

26. 01 Data & Information Resources • Economic and business publication taken from newspaper and magazine • Indonesia bank publication, Unity of private national banks (PERBANAS) and other financial organizations • Badan Koordinasi Penanaman Modal (BKPM), Badan Pengelola Pasar Modal (Bapepam) • Biro Pusat Statistik (BPS) • Asosiasi Industri dan dagang yang membawahi jenis usaha yang sejenis • Lembaga-lembaga penelitian seperti LIPI ataupun swasta • Departemen Teknis. (mis: jika usaha pertanian maka dari Departemen Pertanian) • Universities dan TAFEs • Other official resources

27. 02 Thank You….See you on lecture number

28. Worksheet • Make Idea of Business in Agribusiness field and explain how the steps of feasibility analysis • Please write succincly the goal of each aspect in feasibility study outline

29. fanny.staff.uns.ac.id