Feasibility StudyStrategic PlanningSWOT

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• Feasibility Study/Strategic Planning/SWOT
• Is there a difference?

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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.

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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.

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SWOT, what is it good for?

• . Strengths Weaknesses
• Opportunities Threats

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• Possible Strengths
• Finance expertise.
• Innovation
• Proximity to raw materials
• Superior equipment
• And various other competitive advantages.

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• Possible Weaknesses
• No finance expertise
• Commodity product in a mature
• Remote or poor access location
• Broken down and obsolete machinery
• damaged reputation

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• 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

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• 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
  

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• 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.

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• 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.
• Dont get bogged down with short-term issues.
• Keep discussions focused and on target.

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• 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.

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• Financial and Business Planning

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• 80 / 50/ 30 Failure?
• Lack of Planning
• Lack of Experience
• Insufficient Capital

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• 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.

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• 8 Reasons to Write A Business Plan
• Build a case for funding of a start-up or
  expansion of an existing business.
• Identify and define goals, management, and
  operational strategies of a new or established
  business.
• Document the feasibility of starting a business
  or expanding.

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• 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.

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• CONTENTS
• Executive Summary
• Statement of Purpose
• Description of the Business
• Competition

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• CONTENTS
• Market Strategy
• Location
• Management
• Personnel
• Uses of Funds
• Appendices

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• Appendices
• Cash Flow Statement
• Balance Sheet
• Personal Business Tax Returns 3 years
• Personal Financial Statement
• Resume
• Equipment Lists
• List of Collateral

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• WWW.BPLANS.COM
• WWW.BUSINESSPLANS.ORG

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• Business Structures
• Sole Proprietorship
• Partnership
• Limited Liability Company
• Corporations

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• 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.

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• Partnership
• A relationship between two or more persons or
  companies doing business together

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• 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

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• 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 corporations debts and obligations are
  distinctly its own.

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• Commercial Lending Process
• 5 Cs of credit
• Character
• Capability
• Capital
• Conditions
• Collateral

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• 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

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• Capacity/ Cash Flow
• Managements 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

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• 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

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• Conditions
• (No Control)
• Are external variables, such as the state of the
  economy and the type of industry in which the
  clients business is a part.

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• 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