25 May WHAT ARE THE FINANCIAL DYNAMICS AND OPPORTUNITIES?
. Has the research discovered any moral or ethical issues that you are uncomfortable with?
7. What technological changes are changing or emerging that may affect the business?
Financial Feasibility
1 What are the projected Revenues from the sale of your product or service?
• From the Market Research, what is the projected sales volume in “units sold?” and in “dollars sold”?
• From the Market Research, what is the selling price per unit?
• What is the total expected revenue?
2. What are the financial dynamics and opportunities?
• Costs Structure (per unit basis)
– Price per unit minus
– Variable Costs (Cost of Goods Sold & Controllable Costs) per Unit equal
– Gross Margin per Unit minus
– Fixed Costs per Unit equal
– Net Margin per Unit
3. Is it worthwhile financially?
• 1 Year Monthly Cash Flow Statement. (Completed in a spread sheet format so it can be built upon with new information)
• Ensure that you clearly show all assumptions for this statement.
4. How much investment is required?
• One Time Assets and Startup Expenses
– Plant & Equipment
– Leasehold Improvements
– Initial Inventories
– Research & Development
– Legal
– Experts
• Operating expenses prior to break even
5. What are the financial risks?
• Break Even Analysis Units to break even. (Total fixed costs from Income statement
divided by Gross margin per unit) Figure out on a monthly basis.
• Payback (Investment required divided by net margin per unit – Date when units calculated above are sold & collected.)
• Return on Investment (Yearly Net Profit divided by Total Investment required)
• Risk vs. Reward (Personal feelings of the risks and rewards)
• Opportunity Costs (Can you get a better return somewhere else?)
• Personal Financial Risk (What will you have to give up. Sign over mortgage etc.)
6. What are the possible sources of financing?
• Chances of getting the money?
• What will you have to give up?
7. General Financial Numbers that would indicate attractiveness of Venture
• Gross Margin 20 – 30% plus
• Net Profit Margin – 10 to 15%. Plus
• Return on Investment – 15% plus
• Payback – 3 years or less.
• Break even – 2 years or less
• Note: These numbers must not be looked at in isolation over a one year period. You need to look at the numbers over a 3 year period and as a whole, not just individually. Industry averages can be quite different.
Human Resource Feasibility
Questions:
1. What technical and management experience is required?
2. Who are the owners and what are their roles? (Entrepreneur, Manager, Tech. Expert)
3. What is the ownership structure?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.