SIDF Feasibility Study Slides 2, RIO, Business

SIDF Feasibility Study Slides 2.pdf

1. Feasibility Study

Open Enrolment Programs 2022

Fayyaz Mahmood
FCCA (UK) MBA, PGDip

16-17 August 2022

2. Course Contents

Module 4: Financial Study
Financial impact of the Market & Tech. Needs
Variable and Fixed Costs
Cash flow
Financial Projection
Payback and breakeven point
Funding

Module 2: Market Study

Module 5: Reporting
Market Research

+ Feasibility Report Writing

Customer Needs 5 + Case Studies

Market Positioning
Product comparative advantage
Strategic Analysis

Module 3: Technical Study
Technology (opportunities & Limitations)
Standardization
Technical Requirements
Human Resources Requirements
Production Requirements

3. Feasibility is all about understanding RISK

RISK (cu
MANAGEMENT
PROCESS

CONTROLS

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4. Nature of Appetite

5. Risk
Averse

Itis the unwillingness
to take high risks
during the
implementation of
the strategy or the
direction of certain
‘types of risks due to
the inability to control
their results, or the
high cost of treating
‘them, or the nature of
the risk.

General Trends in
Risk Appetite Statement

Risk
Tolerant

Itis the willingness
to risk that is based
on dealing with risks
at the time they
occur without
setting limits or prior
restrictions, taking
into account the
‘maximum risk
tolerance and the
nature and size of
the activity.

Its the willingness
10 take risks at the
appropriate level to
ensure the
implementation of
the strategy with
the desired results
and to control and
monitor the results
of these risks.

Risk
Aggressive

Itis the desire to
take high risks
during the
implementation of
the strategy in order
to achieve higher
results or obtain a
competitive position
and expecting high
costs of addressing
these risks.

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6. The BusinessIdea

Selecting the Focusing on The origin of
right idea the need the need

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7. The business idea:
D Why it did not exist?

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8. Process of the
Feasibility Study

Market
Study

Technical
Study

Financial
Study

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lia!

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9. Module 4: Financial Study
Module 1: Introduction Financial impact of the Market & Tech. Need:
What is feasibility study? Variable and Fixed Costs:
Why do we need Feasibility Study? Cash flow
Types of Feasibility Studies. Financial Projection
Process of the Feasibility Study Payback and breakeven point
Funding

Module 5: Reporting
+ Feasibility Report Writing
5 + Case Studies

Module 3: Technical Study

+ Technology (opportunities & Limitations)
3 + Standardization

+ Technical Requirements

+ Human Resources Requirements

+ Production Requirements

10. 1 Market Research
3 Market Position
Strategic Analysis

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11. Market Research

Finding the needed market information

Governments agencies Market analysis reports Field research of the target
reports customers

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12. Customers Needs

For a successful business, customers’ needs should be addressed and
customers pain-points should be solved

Goal1

Goal2

Goal3

Goal 4

Identify the target customers .... 4 aspects ... Time —
Mindset ~ need - location

Customer Pain-points

Current competitors, products, alternatives

Customer buying behavior — decision
making process ... etc

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13. Market Positioning

High Price

Y Industry type
Y Market competition roles ©
/ Gapsin the market =
Market demand
Alternatives ?

Low Price

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14. Market Research (Challenges)

+ Competitors’ Pricing

Pricing

+ Fixed and Variable costs

+ Margin (profit)

+ Market size

+ Production capacity

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15. Strategic Analysis:

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16. Business Process (comparative advantage):

‘Online Food Delivery Process

HUNGER
STATION

17. Market Study

+ gt 8

Alternatives Buying Decision Supply and Demand

Competitive Advantage Current Sales

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18. Course Contents

Module 1: Introduction
+ What is feasibility study?

+ Why do we need Feasibility Study?
+ Types of Feasibility Studies.

+ Process of the Feasibility Study

Module 4: Financial Study

Financial impact of the Market & Tech. Needs
Variable and Fixed Costs

Cash flow

Financial Projection

Payback and breakeven point

Funding

Module 2: Market Study Module 5: Reporting

Market Research + Feasibility Report Writing

Customer Needs + Case Studies
Market Positioning 5

Product comparative advantage
Strategic Analysis

19. Technology (opportunities & Limitations)

B .

|

Technical Requirements

B

Production Requirements

|

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lai

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20. Business Process (comparative advantage):
A technical feasibility study helps find the answers to the following questions:

Is it possible to develop the product with the available technology in the
company?

Is the organization equipped with the necessary technology for product/service
delivary?

Are there employees who can deliver the product/service on time and within
budget using the available technology?

Does the client require specific technology, or is the client open to developing
the product, irrespective of the technology?

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21. Technical Study

Equipment and tools

a

Equipment Supplier Production Capacity Selection

A &

Process

Usability Compare alternatives

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22. Technical Study

Equipment and tools

Raw material needs consumption Suitability to business Price vs
needs Quality

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23. Human Resources Planning

EMPLOYEE

STRATEGIC _

OBJECTIVES * R M an TRAINING
© u HUMAN RESOURCE IF
AA . MANAGEMENT
SUCCESS or 4 EMPLOYEE

ae N RECUITMENT
(5) FG
BUSINESS

VALUE REWARDING

24. Human Resources Planning
*Operational Need vs Business Need
(deployment strategy)
*Organizational Structure

Utilization vs Rewards

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25. Technical Study

Market Aspects

oP

+ Target Market

+ Target Customer
segments

+ Target Pricing

+ Supply and demand

+ International
competition?

+ Barriers to entry?

+ Comparative advantage

+ Production rate vs
demand

+ Competitive advantage

+ Market competition
roles (needs)

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26. Course Contents

Module 1: Introduction

+ Whatis feasibility study?

+ Why do we need Feasibility Study?
+ Types of Feasibility Studies.

+ Process of the Feasibility Study

pedia 2: Market Study =
Market Research MadulstiBFREBÉPEwrting

Customer Needs

Market Positioning

Product comparative advantage
Strategic Analysis

+ Case Studies

Maduimäidsphejspbstunities & Limitations)

Standardization
Technical Requirements

Human Resources Requirements
Production Requirements

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27. Information for Financial Analysis

The Market Needs and Technical Needs feed the Financial study

Es

Market Needs Technical Needs Financial Study

„the proactive analysis of The process of proving that ... to distinguish real economic
market demand for a product or the concept is technically opportunities from investments
service.... possible... that could fail....

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28. Fixed vs Variable Costs

r

Fixed Costs vs. Variable Costs

DA

A 5 |
Fixed Costs | Variable Costs |
The costs associated with | The costs directly related |
your business’ product that to the sales volume of
must be paid regardless your business q
of how much you sell |
Rent for Delivery/ |
office space shipping charges
or storefront
Weekly payroll Sales
Es commissions

Equipment Advertising |
depreciation and publicity

29. Cash Flow

Successful new offering

Startups

Time

Early Late | Laggards
majority majority

Innovators | Early
adopters

a)
Valley of Death

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30. Financial Projection (Costs vs Sales)

unit 2022 Fv2023 Pro Fy2025

[Foutincome 5] a_i 080 ass
Payment feos {uso ga) Era avy (129990)

Hosting {uso} Gsm) WR Gr) (129,804)
Customer Suppor i) O case

Grose Prof so] EIRIEBEBEFGTFETEBBETTTEICHEBBETEZTE
% Net Raven pa 94.2% DE 34.456 34.6%
Paid Narking (uso, (141952) BR) (este) Mena)

(uso) (256,128) 88.661) Mais) Was)

Enginoarmg {uso} (40.475) (18209) — (649580) — (1050318)

Martino (uso) (286,000) (384850) 478.278) (37441)

Customer Suppor {uso} (14000) — (027) (174594) (183420)

Sales {uso} 421.125) (615800) (26972) (94:95)

Payot {uso} (1497.25) REIN) MT) 840,244)
Otherexpenses {uso (98,000) MB) as) (7018)

[EBITDA so) (9.669.173) (1.507.461) (623,554) 1.051.108
% Net Revenue pa CEE TE] 222% 21.2%

31. Payback and breakeven point

Sales ($)

Break-even Point Total Cost

20 Variable Costs

ee Fixed Costs

Units sold (8)

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32. Funding

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Government

Government
support schemes
(Monshaat,
SIDF..ete)

Venture Capitalists

Share your profit
with them (e.g.
svc)

Y

Partnership

Share your
‘ownership, riskand
profit with them

©

Loan

Banks proviate

égal
lai

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33. Funding

G@GGF

Government Venture Capitalists Partnership Loan
Use their own Use their own + Pitching Collateral
forms (online) forms + Convincing (2
min sales)
+ ROI
* Business

brochure

35. siDF (O)

pagmuull äselinli äyoitll gaia
AUDI INDUSTRIAL DEVELOPMENT FUND.

ODODBA sosa