PROJECT FEASIBILITY STUDY

MARKET ANALYSIS
In order to identify the market for one’s product/service market analysis is a study of knowing who all comprise your customers, for this you require information on:
• Consumption trends.
• Past and present supply position
• Production possibilities and constraints
• Imports and Exports
• Competition
• Cost structure
• Elasticity of demand
• Consumer behavior, intentions, motivations, attitudes, preferences and requirements
• Distribution channels and marketing policies in use
• Administrative, technical and legal constraints impinging on the marketing of the product
FINANCIAL ANALYSIS
Financial analysis is to ascertain whether the proposed project will be financially viable .In a financial appraisal certain aspects has to be looked into:
• Investment outlay and cost of project
• Means of financing
• Projected profitability
• Break- even point
• Cash flows of the project
• Investment worthiness judged in terms of various criteria of merit
• Projected financial position
BUSINESS PLAN
• The business plan is a written document that serves as a road map in the entrepreneur’s journey from start-up to project implementation.
• It describes all the relevant elements involved in starting a new business enterprise.
• It is often an integration of functional plans such as marketing, finance, manufacturing and human resources.
• Potential investors and suppliers too are interested in a business plan, as it can prove helpful in taking decisions.
IMPORTANT OF BUSINESS PLAN
Business plan is important due to the following reasons:
• It helps the entrepreneur to decide where he wants to go.
• It helps him to determine the viability of the venture.
• It provides guidance to the entrepreneur in planning realistic goals and targets, in organizing and even in identifying possible roadblocks.
• It is a pre-requisite to obtain finance.
BUSINESS CONSTITUTION
Forms of Organization
• Sole Proprietor
• Partnership
• Company
• Co-operative
• Clearances and Approvals

BANK ASSITANCE
Small Industries Development Bank of India (SIDBI)

National Bank for Agriculture and Rural Development (NABARD)

All India Development Banks(IDBI,ICICI)

State-level Institutions(SFC)
REGISTRATION

Registration entitles you to avail of the privileges available for the small-scale industries and facilitates easy access to land, utilities and other facilities.

The registration of Small Scale units is done in two stages
(a) Provisional registration –This is made before the unit is set up.
(b) Permanent registration-This is given when the unit goes into production.