Project Feasibility Study

The term “feasibility study” is used as a convenient description for the output for the work done; users of this tool kit should not apply preconceived notions of what a feasibility study consists of. Stated as simply as possible, the work done here must show that the project:

i. Is in accordance with predetermined needs.

ii. Is the most suitable technical solution to the needs.

iii. Can be implemented within any capacity constraints of the Institution which operates.

iv. Has been subject to a due diligence that shows it is legally, physically and socially compliant.

v. Is fully coasted over the whole life of the project.

vi. Has taken due cognisance of the risks associated with its whole life cycle, and

vii. Is affordable to the institution responsible for the project in the context of the available budget.

The feasibility study guideline set out below is for a comprehensive document that, in many instances simply uses information already collected and set out as part of the steps carried out by the Institution. That said it is necessary to create a study that creates a holistic justification for the project and serves as a living document against which project deliverables are measured during procurement and even after implementation of the project.

A feasibility study needs to be authentic and thorough. It is the basis for government making an important investment decision, not just a bureaucratic requirement. Regardless of the term and scale of a project, there is a great deal at stake when the procurement choice is made, and long-term implications.

1. It provides information about costs (explicit and hidden), and gives an indication of whether costs can be met from within institutional budgets without disruptions to other activities.
2. It allows for the identification, quantification, mitigation and allocation of risks.
3. It prompts institutions to consider how the project will be structured.
4. It identifies constraints, which may cause the project to be halted.
5. It ensures that the project is developed around a proper business plan.

A feasibility study is an evolving, dynamic process. While it is used to justify what is developed and at what cost (the investment decision) it is also used throughout the procurement phase to check that the project is being developed in accordance with the original assumptions and, where change is necessary, it is also used to manage the change.

Importance of Keeping Accounting Records

Generally, there are various advantages which arises out of keeping accounting records, some of the advantages are of the following. These are;

It helps in measuring performance;

Accounting record keeping aids a business owner to determine how far the business has gone since its commencement. That is, it helps the owner to know whether the business is growing or not. The performance of a business is usually determined through the calculation of the profit. For example a business with an increase in its annual profit will be deemed to be growing and vice-versa.

It aids business planning;

It is a truism that knowing where you are is a prerequisite to knowing where you want to be. If a business present position is not known, then to plan for the business will be a fairy tale. Therefore, keeping of the financial activities of the business in place helps in planning for the future growth of the business.

It helps business owners to have control over their businesses;

Control is the ability or the authority to manage things. But having control over a business means having control mostly over the financial affairs of the business. But if accounting records are not kept and maintained by a business owner, how can he/she confidently have full and adequate control over the financial affairs of the business which can spell doom for the business.

It aids decision-making;

This mean, it helps a business owner to make quality decision that will bring about improvement in his / her business. The major aim of keeping accounting records is to ensure that accurate information are available to facilitate informed judgements in respect of the activities of the business.

Advantages of Ratios Analysis

Ratio analysis is an important and age-old technique of financial analysis. The following are some of the advantages / Benefits of ratio analysis;

i.     Simplifies financial statements: It simplifies the comprehension of financial statements. Ratios tell the whole story of changes in the financial condition of the business.

ii.       Facilitates inter-firm comparison: It provides data for inter-firm comparison. Ratios highlight the factors associated with successful and unsuccessful firm. They also reveal strong firms and weak firms, overvalued and undervalued firms.

iii.     Helps in planning: It helps in planning and forecasting. Ratios can assist management, in its basic functions of forecasting. Planning, co-ordination, control and communications.

iv.      Makes inter-firm comparison possible: Ratios analysis also makes possible comparison of the performance of different divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in the future.

v.       Help in investment decisions: It helps in investment decisions in the case of investors and lending decisions in the case of bankers.

Limitations of Ratios Analysis,
The ratios analysis is one of the most powerful tools of financial management. Though ratios are simple to calculate and easy to understand, they suffer from serious limitations.

Limitations of financial statements;

Ratios are based only on the information which has been recorded in the financial statements. Financial statements themselves are subject to several limitations. Thus ratios derived are also subject to those limitations. Example, non-financial changes are not relevant by the financial statements. Financial statements are affected to a very great extent by accounting conventions and concepts. Personal judgement plays a great part in determining the figures for financial statements.

Comparative study required;

Ratios are useful in judging the efficiency of the business only when they are compared with past results of the business. However, such a comparison only provide glimpse of the past performance and forecasts for future may not prove correct since several other factors like market conditions, management policies. All these can affect the future operations.

Ratios alone are not adequate;

Ratios are only indicators; they cannot be taken as final regarding good or bad financial position of the business. Other things have also to be seen.

Problems of price level changes;

A change in price level can affect the validity of ratios calculated for different time periods. In such a case the ratio analysis may not clearly indicate the trend in solvency and profitability of the company. The financial statements, therefore, be adjusted keeping in view the price level changes if a meaningful comparison is to be made through accounting ratios.

Lack of adequate standard;

No fixed standard can be laid down for ideal ratios. There are no well accepted standards or rule of thumb for all ratios which can be accepted as norm. It renders interpretation of the ratios difficult.

Limited use of single ratios;

A single ratio, usually, does not convey much of a sense. To make a better interpretation, a number of ratios have to be calculated which is likely to confuse the analyst than help him in making any good decision.

Personal bias;

Ratios are only means of financial analysis and not an end in itself. Ratios have to interpret and different people may interpret the same ratio in different way.

Incomparable;

Not only industries differ in their nature, but also the firms of the similar business widely differ in their size and accounting procedures. It makes comparison of ratios difficult and misleading.

The Advantages of Using a Project Plan

Every company spends time trying to improve their operations in order to make them more efficient and profitable. This typically involves implementing new projects to create new products or bringing a new process or procedure on line. If a company enters into these projects without an idea or plan as to how they will actually work, the projects are often doomed to fail. Creating and following a project plan helps the project succeed. 

Goal setting;
The biggest advantages of having and following a project plan are documenting the project on paper and specifying an end goal. If the project is documented, everyone involved knows exactly what the project will consist of and exactly what new process or product they should have at the end of it. After the major goal has been set, the project manager can set smaller goals which will all feed into the larger goal. This creates a master timeline for the project completion and helps various departments who are working on it stay on the same page.

Costs;
Once the project has been documented with a goal and timeline in mind, it is important to keep track of the costs associated with the project itself. A budget is usually determined at the start of any project, because without a plan the project manager has no idea if the project is coming in over or under budget. By following the project plan, management can set costs for each section of the project, track what those expenditures are, and hold employees accountable for any overage. Also, employees who are working on the project will know how much they are allowed to spend on developing their area.

Productivity;
Another good reason to follow a project plan is so that management can accurately determine which employees are needed to work on any given section. It can act to free up company resources to get the most productivity out of the workers. For example, if there is a financial component to the project, the accounting department may need to get involved. Without a plan, the accounting department may end up constantly giving out the requested information throughout the entire process, taking up time of the entire department. With a project plan, management can see exactly when those figures will be needed and how many people will be needed to gather that information. It makes the company more efficient while conserving productivity.

Why Do I Need to Market Myself And My Business?

You started your business because you are really good at what you do. You have a unique passion, gift, and talent that no one else has. And because no one else has your exact gifts and talents and what comes easy to you doesn't come easy to them, they need you.

1.      They need you to help them by sharing your expertise, knowledge, and skill.

2.      They need your services and products.

3.      They need you to market yourself and to market your business.

But here’s the problem. No one can do business with you if they don’t know you exist.

You can’t help them improve their life or their business with your products, programs and services if they can’t find you. Marketing your business and yourself is just as much about helping other people as it is about marketing your products and services.

You owe it to your future prospects, customers, and partners to create a marketing strategy your business. You owe it to them to spread the word about your expertise and skill. By investing in your business and marketing yourself, you are;

1. Doing yourself a favour, you are creating an opportunity to educate your target market on how you, your products, and services can help them change their ways and achieve their goals.

2. Doing your audience a favour, you are making it easier for them to find you, to find your valuable information, and to get help.

Be ready to take risk.

Without "RISK" there will be no business. Setting up any kind of business requires you to have capital to invest. You may have to buy stocks for a shop or building materials for construction. 

This capital can be secured either from your own savings or by borrowing from a bank, financial institution, relatives or even friends. Some NGOs are starting to organize and train youth economic groups and provide capital or 'soft loans' that is, loans with no or little interest. 

This is to encourage youth to start informal economic ventures and create self-employment.

Why You Need Business Development Consultant to Succeed in Business?

Building a successful business is not individual effort; it requires a collective effort and teams usually consist of internal and external specialists. While your internal team is made up of individuals who are working within your own business, you may make up your team outside of the bankers, auditors, consultants, or even financial advisor.

Do you really need a consultant for small businesses? 
This is a question many entrepreneurs looking for an answer. For many startup companies, can do the services of a consultant seems like an added cost, but keep in mind that the successful operation of the business easier with the help of professionals right. Small Business consultants only designed to help you grow successfully through sound advice.

“Do you need a consultant to grow successfully?” 

Well, my answer a resounding “yes”; especially if you want to save time and money while performing different movements. Where instead of asking if consultant will add value to your business, a question better to ask: “How can business consultant to add value to my business? In the answer to that, here are some reasons and ways adviser business development business can add value to your business.

There are about six (6) reasons why you need services of a consultant so as to develop your business. These reasons are of; 

Business consultant can bring you a new perspective.

Savvy business people know that there are some factors or issues or flaws that exist within a commercial company that can not be noticed by the executives, and business owners. It takes a trained eye and unbiased professional to spot such issues or defects. Often, that can help a consultant to point out some shortcomings existing or potential in your own business. Consultation can not disclose something that you might not consider to be useful to the success of your project.

A consultant can help you avoid some of the errors that make the most of the entrepreneurs in business.

Remember that the work of consultants in the business with other persons from abroad, giving them an unbiased look at the foundations of many companies. Based on this accumulated experience, business development adviser can help you to avoid making the same mistakes that other business owners paid him on the spot and correct.

Business development consultant with valuable contacts and experience diverse.

A Business Development Consultant qualified small business on your team can bring your extensive experience. Even if you have particular strength in the field of industry or your own business, could come consultant on board a team with not only a new perspective, but also a proven track record of success. Most consultants in the development of small businesses have different affiliations or have multiple network connections that can help you in different ways nutrition and growth of your business. Communicate with other people will allow your business to learn new things and especially when dealing with challenges.

Hiring a consultant can save you money.

A small business can benefit from access to business development consultant on a pay-as-you-go; This is usually cheaper than paying large fees for services that may not provide a firm or individual full-time. Contracting with a business development consulting firm will allow you to create the contract and the budget. Some even offer to pay for the results of pricing to help reduce your risk.

Develop a business adviser can give you measurable results.

Business numbers game and results, and that when considering hiring a consultant to develop a business; you have to think about the results. A business development consultant can show you where they think they can help you achieve success. Of course, you must have the measurements so you can see if you are putting money worth it.

A business development consultant can help in planning a strategy for growth.

Starting a business can be difficult, particularly in areas that have poor government support, lack of infrastructure and many bureaucratic red – tape. Management of a business can be hard for any investor who lacks experience in doing business in the region has. If you are a new investor who inexperienced with your country or state commercial law and morality, then a business development consultant can greatly help you in planning tactics for growth. With the assistance of an expert, will show the services and products that will allow you to save not only on the cost of marketing, but also time.

As a final note, I want to state clearly that it would be foolish of you to just hire business consultant without having the desired result in mind or task of the consultant to implement. Also, you should bear in mind that the job consultant and business just spot your problems and offer advice or solutions. Implementation of such advice or solution is only your responsibility as a regulator.

What are the Benefits of Registering a Business?

Anyone can decide one day to start operating as a business. That entire person has to do is provide a product or service to another person that produces a profit to be "in business." While registering a business with the state or local government isn't necessarily required to complete business transactions, it is a smart choice for a new entrepreneur for a variety of reasons.

Establishing business Bank Accounts

You need to provide proof that your business is properly registered with the state to open a business bank account. A business bank account is an important asset to a small business because you can separate your personal activities from your business activities. It is also more professional to give your clients a business name for payment instead of your own full name.

Getting Loans

When you apply for small business loans, you're going to have to prove that you're actually a business. Lenders and investors will ask to see your business registration along with other application requirements before approving you for a loan. If you apply for a credit card as a business, creditors may also ask to see your registration paperwork.

Reputation with Customers

Customers and clients, especially people you've never worked with before, need assurance that you are a legitimate business. A potential client may suspect your business of being a "fly-by-night" operation if your company isn't properly registered. When a business is on file with the state, it could put your clients at ease when making a decision about whether to spend money with your company.

Supplier Arrangements

A registered business also makes you eligible to receive supplier discounts that you wouldn't normally receive as an unregistered operation. Suppliers commonly reserve wholesale rates for business owners who can show official paperwork from the state. Also, if you plan to try to get government contracts for your company, a business registration is one of the first requirements.

Hiring Employees

A business registration allows you to hire full-time employees and pay them in accordance to state laws. When you register your business with the state you'll receive a state identification number that allows you to route state taxes on the employee's behalf. So if you plan to hire on employees to your business, it's best to take care of registering your business with the state before you even start the search for worker.