your journey to success - tamkeen · | your journey to success 12 is a type of bar chart, developed...

YOUR JOURNEYTO SUCCESSFeasibility, Strategy and Business Planning

2| Your Journey to Success|

INTRODUCTIONPlanning and setting achievable targets based on market research is important to any business, large or small.

To enable an existing business, or start up business, to be successful it is important to research and plan effectively.


BUSINESS PLANHow will it be achieved in detail?

STRATEGYThe key objectives to drive the business plan and achieve the goal.

FEASIBILITYWhat is the existing market and competition like, and what are the costs?

PLANNINGWhere is the business presently and where does it want to be?


Feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained.

It’s important to look critically at a business idea when determining if it is worth investing your time and money. A feasibility study covering a particular aspect of business can help to reveal if your idea has a good chance of success.

FEASIBILITY STUDY

“Feasibility is defined as the state of something being possible or suitable”


. Market feasibility

01. What is the demand for your products or services?

02. What type of customers will buy your products or services?

03. The number of potential customers, who they are and their location.

04. Why will your products or services appeal to potential customers?

05. How do you intend to sell your products or services?

06. Who are your competitors?

1. THE ROLE OF FEASIBILITY STUDY

FEASIBILITY STUDY

07. Do your products or services fill a need not already met by your competition?

08. How do your products or services rate in terms of price and quality compared to your competitors?

09. What are the strengths and weaknesses of your main competitors?

10. What is your unique selling proposition?

11. Are there any barriers toentering the market?

It is necessary to have a clear idea of the market. A market feasibility should cover the following:


01. How much money do you need to make to meet your living expenses?

02. How long do you expect to be in business before you make you first sale?

03. How much money do you need to start up?

04. How do you intend to fund the business during the start up phase?

05. Estimate your fixed for example: rent, and variable costs such as Electricity bill.

If a market feasibility shows a positive market to enter considerations should then be given to the commercial aspect of the business.A commercial feasibility should cover the following:

You should also consider the following as part of your feasibility:

01. Are there any regulatory requirements you must satisfy?

02. Do you need to obtain protection for your intellectual property?

FEASIBILITY STUDY

06. What price would your customers pay for your products and services?

07. What is your sales forecast?

08. What is your breakeven point?

09. How long will it take to reach breakeven sales volume?

10. How much working capital will you need to sustain operations?

11. Return on investment.

12. Cash flow analysis.

03. What factors could potentially delay your business?

04. Do you have the required skills to get the product or service to the market?

. Commercial feasibility

. Other considerations


. Clear Project Description

. Financial Projections

A recap of the project as it is defined for the study can help stakeholders understand the questions asked and the results generated. Stating the project description in very basic terms removes uncertainty about a project for stakeholders who might otherwise be unfamiliar with the ideas the project represents.

More than ever, Investors and CFOs pore over the financials in a feasibility study to make sure that projects can generate the kind of scalable profits that warrant their approval. Expert project managers emphasize the break-even analysis, a timeline view of the moment a project can pay for itself.

Reviewing the strengths, weaknesses, opportunities, and threats faced by a project helps decision makers focus on the big picture. In some organizations, leaders may not want to approach a new market unless they know they can dominate it. Other companies prefer to focus on profits gained instead of market share. Either way, the challenges faced should be clearly defined, along with the consequences of failure.

. Competitive Landscape

FEASIBILITY STUDY

2. 5 STEPS OF A FEASIBILITY STUDY


Summarizing all of the previous feasibility study steps, the recommendations and findings can shape the outcome of a project proposal. Instead of simply stating a “yes” or “no” answer to the question of project approval, this section offers how to enhance a project by pointing out areas of opportunities.

. Recommendations & Findings

. Operating Requirements

When following this set of feasibility study steps, authors can use this point in the report to stay clear, focused, and unbiased about a project’s real needs. Project managers that understate the physical and fiscal resources required for a new product or service often end up with failed projects or unfulfilled promises.

FEASIBILITY STUDY


SWOT Analysis is a “simple but useful framework for analyzing your organization’s strengths and weaknesses, and the opportunities and threats that you face. It helps you focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you”

FEASIBILITY STUDY

3. SWOT ANALYSIS

1. Know-how, Information2. Distinctive characteristics3. Assets 4. Geographical location5. Capability, abilities6. Value, brand

1. Adjustment in the environment 2. Major customers reduced 3. Raw material, energy and transport costs 4. Solid competition5. Opponents new products and innovation6. Modification in technology7. Fashion8. Seasonality

1. Breach in skills, knowledge2. Financial issues3. Market awareness4. Reputation5. Unfortunate location6. Leadership & management Staff de-motivation

1. Strategic associations, . achievements2. Expand the business3. Gain from new trends4. Product growth5. Fresh & innovate markets6. Cut costs7. Be quicker and more enhanced8. Creativity

. Strengths

. Threats

. Weaknesses

. Opportunities


Planning is an ongoing process that revolves around organizing and thinking clearly about the essential activities used to attain a desired aim or objective. It involves creating and maintaining a plan. Planning has a detailed progression and is crucial for various occupations (mainly fields such as management, business, etc.). In each field, there are several categories of plans that aid establishments in the management of efficiency and effectiveness.

PLANNING


Date Key event Other events

2nd July Hold planned meeting Receive project status report Issue detailed plans for each department

6th July Decide venue Assess suggestionsAgree on appropriate venue

Used for planning on going work and one-off projects. The purpose is to highlight the dates on which key events are planned to occur and the activities which require completion prior to that date.

1. PLANNING PROCESSThe planning process needs to identify and sequence the activities needed to implement your objectives. The basic method to achieve this is to produce a list of ‘things to be done’. The list will be revised, added to, regrouped or broken down into more detail as the plan develops until it gives the order and breakdown of the tasks required to complete to achieve the objective.

Methods for setting out a plan of activities:

. Key events chart

PLANNING


Is a type of bar chart, developed by Henry Gantt in the 1910s, that illustrates a project schedule. Gantt charts have become a common technique for representing the phases and activities of a project work breakdown structure (WBS).

A flow chart made up of arrows and nodes representing each activity.

8.6.2017 8.13.2017 8.20.2017 8.27.2017 8.3.2017 8.10.2017 8.17.2017

Task 1

Task 2

Task 3

Task 4

Task 5

. Gantt chart

. Network diagrams

Logic Sequence

Fill kettle with water

Put strainer in cup

Put milk in cup

Pour tea

Remove strainer from cup

Enjoy and relax

Infuse tea (brew)

Empty KettleStart

Finish

Boil water

Warm teapotAdd tea leavesAdd boiled water

Get cups and saucers

Get sugar and milk

PLANNING


3. Have you allocated the right task to the right individual within the team?

4. What help do you need and where can you source it?

The most important aspect of putting the plan together is allocating the appropriate task to the person with the required skills. (Click Belbin for more details)

1. Who has the skills and experience to handle the responsibility or task competently and efficiently?

2. Who will find the responsibility or task useful for their development?

Identifying the key events and deadlines.

Estimating the time for each different activity.

Identifying workload and required resources.

Prioritizing activities which are critical.

2. PLANNING IN BUSINESS HELPS YOUPlanning gives a structure to check progress and focuses attention on

PLANNING

moredetails

http://www.belbin.com/




STRATEGICPLAN

A s t r a t e g i c p l a n a s s i s t s i n communicating with the organization, its aims, and the actions which contribute to accomplishing goals.

A business strategy typically is a document that clearly articulates the direction a business will pursue and the steps it will take to achieve its goals. In a standard business plan, the business strategy results from goals established to support the stated mission of the business. A typical business strategy is developed in three steps: analysis, integration and implementation.

Integrating a business strategy usually is one of many steps in a larger business planning process. A business plan begins with an overall vision. From the vision, a mission statement for the business is constructed, usually the shorter and more precise the better. A mission leads to specific goals the business will achieve to accomplish its mission and that in turn leads to strategy to achieve goals. Specific tasks are usually then developed to support the business strategy.

STRATEGY


This is harder than is looks. Some people see themselves how they WANT to see themselves, not how they actually appear to others. Many small businesses get caught in this same thinking.

For an accurate picture of where your business is, conduct external and internal audits to get a clear understanding of the marketplace, the competitive environment, and your organization’s competencies (feasibility study).

Focus on where you want to take your organization over time. This sets the direction of the enterprise over the long term and clearly defines the mission (markets, customers, products, etc.) and vision (conceptualization of what your organization’s future should or could be).

From this analysis, you can determine the priority issues—those issues are so significant to the overall well-being of the enterprise that they require full and immediate attention. The strategic plan should focus on these issues.

1. 5 STEPSSTRATEGIC PLANNING

. Determine where you are

. Idebtify what’s important

STRATEGY


Define the expected objectives that clearly state what your organization must achieve to address the priority issues.

This is how you’re going to get to where you want to go. The strategies, action plans, and budgets are all steps in the process that effectively communicates how you will allocate time, human capital, and money to address the priority issues and achieve the defined objectives.

It’s not over. It’s never over. To ensure the plan performs as designed, you must hold regularly scheduled formal reviews of the process and refine as necessary, at least once a quarter.

. Define what you must achieve

. determine who is accountable

. Review. Review. Review

STRATEGY


HOW DID WE DO?

HOW CAN WE IMPROVE?

WHERE DO WE WANT TO GO?

HOW DO WE GET THERE?

Goals

Desiredoutcomes

Measures& targets

Results

Strategies

MISSION

2. STRATEGICPLANNING CYCLE

STRATEGY


Business planning expresses your business aims, the tactics and support you’ll use to meet them, possible issues that may challenge your business and approaches to solve them, the business’s organizational structure and lastly, the venture’s capital required for financing.

BUSINESSPLANNING

WHY A BUSINESS PLAN?“Helping you to manage your business is another important purpose of a business plan. As a management tool, your business plan will help you evaluate your progress and provide insight into aspects of your business that need attention.”


To map the future

To support growth and secure funding

To develop and communicate a course of action

To help manage cash flow

The business plan needs to reflect the business at present and give details of the direction for the future. To enable the business plan to support the business growth both with funding and identifying capabilities required in the future, it is necessary to set clear, manageable goals to drive the business in the right direction.

To achieve this the plan will need to include all aspects of the financial, operational and business situation and show how these areas can demonstrate the capacity to manage the growth and development of the business, important if the plan is to be the key document to secure finance.

BUSINESS PLAN WILL ASSIST

1. CONTENT OF A BUSINESS PLAN

BUSINESS PLANNING


Acquiring investment capital

Growing their business

Securing a loan

Executive Summary

Company Background

Operations

Mission Statement

SWOT Analysis

Product Description

Financial Planning

Marketing Plan

Timeline

CompetitorAnalysis

0601

0702

0803

0904

1005

BUSINESSPLAN

This isn’t just our opinion! Business planning was proven to have a positive business impact in a study by University of Oregon Department Economics. The study shows that businesses with a business plan are 50% more likely to succeed in:

2. IMPACT OF BUSINESS PLANS

BUSINESS PLANNING


1. Gain an understanding of a basic feasibility study and how it drives the start up or growth of a business.

2. Research and document the feasibility of your selection of a suitable business.

3. Produce a SWOT analysis to identify areas for development.

4. Develop a business plan with clear goals and objectives and mechanisms to check the progress.

5. Write a strategy based on the feasibility and business direction identified in the business plan, this strategy needs to be integrated into the finished business plan.

Business Consultancy Scheme under the Business Development Program

It’s a co-financing program designed to support Bahraini enterprises who are willing to improve their business through growth and development project, by funding 50% of the approved total cost, and can be increased up to 80% should the business achieve or exceed its objectives in the long run. The scheme provides consulting service to help you get the key tools to determine your business and recommendations to improve the efficiency growth opportunities.

BUSINESS PLANNING

HOW CAN WE HELP

YOUR CHECKLIST

Tamkeen Customer Service Centers • Seef Mall Seef District• Sitra Mall • Enma Mall • Bait Al Tijjar

CONTACT US

Tamkeenbahrainwww.tamkeen.bh

1738 3333

support @tamkeen.bh

your journey to success - tamkeen · | your journey to success 12 is a type of bar chart, developed...

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