1. Feasibility Study/Strategic Planning/SWOT Is there a difference?

2. What is a Feasibility study?
A study that is provides focus on the primary issues of a business idea. The process takes a subjective look at any “make or break” issues that would prevent a business from being successful.

3. Feasibility Study?
This analysis provides necessary information that is used as the basis for a business plan. Is the project feasible? What flaws or barriers would lead to failure? This information provides the basis for the marketing analysis and strategy of the business plan.

4. SWOT, what is it good for? . Strengths Weaknesses
Opportunities Threats

5. Possible Strengths:
Finance expertise.
Innovation
Proximity to raw materials
Superior equipment
And various other competitive advantages.

6. Possible Weaknesses:
No finance expertise
Commodity product in a mature
Remote or poor access location
Broken down and obsolete machinery
damaged reputation

7. Possible Opportunities:
High potential market – the internet or evolving country.
Creating strategic alliances
Transition into new markets
Global market
An unfulfilled niche in a a market segment

8. Possible Threats:
Entry of competitors into the market
Price wars
Breakthrough in alternative or competing product
Language and cultural barriers
Legal constraints or new taxes for your product

9. A word of caution, SWOT analysis is not a science with definitive resolve and issues. Subjective analysis can be dangerous as two individuals can differ on the version of SWOT. It is supposed to draw discussion on the positive and negative issues facing an organization. The final answers are not necessarily correct.

10. Important Considerations
Keep the issues realistic. Take an honest look in the mirror.
Think strategically. Where are we and where do we want to go.
Don’t get bogged down with short-term issues.
Keep discussions focused and on target.

11. Find benchmarks or and competitive analysis to draw on SWOT issues
Find benchmarks or and competitive analysis to draw on SWOT issues. Where are you better or worse than your competitors.
Keep the analysis concise and basic. Do not over analyze the issues. All participant need to understand the issues.

12. Financial and Business Planning

13. Lack of Planning Lack of Experience Insufficient Capital
80% / 50%/ 30% Failure?
Lack of Planning
Lack of Experience
Insufficient Capital

14. What is a Business Plan?
Conceptual – Collection of ideas and actions anticipated over the long term to ensure the economic success of the business.
Physical – A document detailing the collection of ideas and actions to be taken. The document should include a detailed description of the business, the market, marketing strategies, management and organizational, and financial parameters.

15. 8 Reasons to Write A Business Plan
Build a case for funding of a start-up or expansion of an existing business.
Identify and define goals, management, and operational strategies of a new or established business.
Document the feasibility of starting a business or expanding.

16. 4) Serves as a measure of performance and indicates a need for changes.
5) Enables a business to focus efforts to achieve key objectives.
6) Defines where a company is going and how to get there.
7) Determines the financial resources required
8) Gives you an objective, critical, and unemotional look at your business project in its entirety.

18. CONTENTS
Executive Summary
Statement of Purpose
Description of the Business
Competition

19. CONTENTS
Market Strategy
Location
Management
Personnel
Uses of Funds
Appendices

20. Appendices
Cash Flow Statement
Balance Sheet
Personal & Business Tax Returns 3 years
Personal Financial Statement
Resume
Equipment Lists
List of Collateral

25. Business Structures
Sole Proprietorship
Partnership
Limited Liability Company
Corporations

26. Sole Proprietorship
‘doing business as’ (d/b/a)
SIMPLE/ MINIMAL COSTS
Suited to the start-up of a one-person business. However, the single owner assumes all business responsibilities, including unlimited financial liability incurred by the business.

27. Partnership
A relationship between two or more persons or companies doing business together

28. Limited Liability Company
Built for the small business
LLC is an unincorporated business organization having liability for the contractual obligations and other liabilities of the business.
File Articles of Organization with the NYS Department of State

29. Corporations
A NY State Corporation is an entity separate and distinct from the individual(s) who own and manage the business.
Business corporations are operated for profit and are authorized to raise capital by selling shares of interest in the corporation.
A corporation’s debts and obligations are distinctly it’s own.

30. Commercial Lending Process 5 C’s of credit
Character
Capability
Capital
Conditions
Collateral

31. Character
Clients willingness and determination to meet loan obligations
Bankers are looking for individuals who will make every effort to repay a loan and will work openly and cooperatively with their banker if their business if experiences financial difficulties
Credit Reporting

32. Capacity/ Cash Flow
Management’s ability to generate enough cash to satisfy all obligations.
It is easier to evaluate the capacity of an established company. A banker looks at past financial performance and compares to other businesses in the same industry.
It is more difficult to evaluate the capacity of a new business. In this case, managerial experience and training are critical considerations.
Cash Flow projections

33. Capital
Funds available to operate a business, of which there are two primary considerations:
The amount of equity capital the owners have invested in the business and
How effectively the total capital, including creditor capital, is employed

34. Conditions
(No Control)
Are external variables, such as the state of the economy and the type of industry in which the client’s business is a part.

35. Collateral
A borrower may pledge collateral to offset weaknesses in the other Cs
Collateral provides the bank a secondary source of repayment if the primary source of repayment if the primary source of repayment does not materialize