Professional Documents
Culture Documents
Manual Ede 22032 If5i
Manual Ede 22032 If5i
Entrepreneurship
Development
(22032)
Semester- V
Scheme- I
Certificate
the term work in Entrepreneurship Development (22032) subject for the academic
Sign:
Name:
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ACADEMIC YEAR 20 - 20
Marks out of 50
Assessment Scheme
Experiment No. : 1
Title: Submit a profile summary about (500 words) of a successful entrepreneur indicating
milestone achievements.
THEORY:
‘I'm just lucky to be alive." Mark Zuckerberg, the 22-year-old founder and CEO of social-
networking site Facebook, is talking about the time he came face-to face with the barrel of a gun. It was
the spring of 2005, and he was driving from Palo Alto to Berkeley. Just a few hours earlier, he had
signed documents that secured a heady $12.7million in venture capital to finance his fledgling business.
It was a coming-of-age moment, and he was on his way to celebrate with friends in the East Bay. But
things turned weird when he pulled off the road for Zuckerberg got out of the car to fill the tank, a man
appeared from the shadows, waving a gun and ranting. "He didn't say what he wanted," Zuckerberg
says. "I figured he was on drugs." Keeping his eyes down, Zuckerberg said nothing, got back into his
car, and drove off, unscathed. Today; it is an episode that he talks about only reluctantly. (A former
employee spilled the beans.) But it fits the road he has taken--an adventure with unexpected, sometimes
harrowing, moments that has turned out better than anyone might have predicted. Zuckerberg's life so
far is like a movie script. A super smart kid invents attach phenomenon while attending an Ivy League
school--let's say, Harvard--and launches it to rave reviews. Big shots circle his dorm to make his
acquaintance; he drops out of college to grow his baby and Change the World as We Know It. Success
Stories | 6. Mark Zuckerberg - CEO, Facebook
4 2Just three years in, what started as a networking site for college students has become a go-to tool
for 19 million registered users, including employee’s government agencies and Fortune 500 companies.
More than half of the user visit every day. When a poorly explained new feature brought howls of
protests from users--some 700,000--the media old and new jumped to cover the backlash. But Facebook
Department of Information Technology
Government Polytechnic Washim Page 5
Zuckerberg's college-kid style reinforces the doubts of those who see the decision to keep
Facebook independent as a lapse in judgment. In less the reigning Web 2.0 titans have sold out to major
corporations: My Space accepted $580million to join News Corp., and YouTube took $1.5billion from
Google. Surely any smart entrepreneur would jump at a chance to piggyback on those deals. Looming
over the Facebook talk is the specter of Friendster, the first significant social-networking site. It
reportedly turned down a chance to sell out to Google in 2002 for $30 million which if paid in stock,
would be worth about $1billion today. Now Friendster is struggling in the Web-o-sphere, having been
swiftly eclipsed by the next generate of sites. The same thing could happen to Facebook. New social-
networking sites are popping up every day. Cisco
bought Five Across, which sells a software platform for social networking to corporate clients.
Microsoft is beta-testing a site named Wallop. Even Reuters is planning to launch its own online
face book, targeting fund managers and traders. So is Zuckerberg being greedy--holding out for a bigger
money buyout? If so, will that come back to haunt him? If not, what exactly is his game plan?
Zuckerberg’s answer is that he's playing a different kind of game. "I'm here to build something for the
long term," he says. "Anything else is a distraction." Hand his compatriots at the helm of the company-
-cofounder and VP of engineering Dustin Moskovitz, 22, his roommate at Harvard, and chief technology
officer Adam Angelo, 23, whom he met in prep school--are true believers. Their faith: that the openness,
collaboration, and sharing of information epitomized by social networking can make the world work
better. You might think they were naive, except that they're so damn smart and have succeeded in a way
most people never do. From a ragtag operation run out of sublet crash pads in Palo Alto, they now have
two buildings (soon to be three) of cool gray offices and employ 200 people who enjoy competitive
salaries and grown-up benefit packages--not to mention three catered meals a day with free laundry and
dry cleaning thrown in. And they continue to crank out improvements to a Web site that is in every
meaningful way a technological marvel. So how does Facebook make its money? Advertising and
sponsorships, mostly. Apple was an early backer, sponsoring a site for iTunes enthusiasts. JPMorgan
Chase and Southwest, among others, pay for similar programs.
"Flyers," the online version of the paper ads that students use to publicize events, also provide a
"The word--it applies a certain frame to thinking about things," he says, decompressing after a
long day of meetings. "If you sell your company that is the exit. That's just not how we think about it
He pauses, and then says with a sigh, "Okay, you have a Viacom, News Corp., and Yahoo. So you
compare and think, this [site] is social, sure, but we're Technology Company. What's in it for us? How
will this work?" The companywide focus is on innovation and engineering, and the commitment to
optimizing the user experience, he says. The goal is not to create a media company. It is not about selling
movies.
"There are ways that you could do it, but right now, we're focused on building this. And if you
look at the stats we have, it's been a good decision so far." But eventually? "At some point, it probably
makes sense to do something. But we're in no rush. “One clue to the company's future plans comes from
early investor Thiel, who has mentored Zuckerberg through the last year's swirl of acquisition talks and
rumors. Bottom line, Thiel asserts, "It’s much more valuable than anybody on the outside thinks." He
points to the growing user base and page views as evidence.
"The people who understand the power are the users. The people who wanted the company
don't understand the power and don't want to pay enough for it. So we’re not going to sell. “He adds, "I
think the My Space sale was a giant mistake. The Flickr sale to Yahoo--a giant mistake." A better idea,
he believes, is to focus on the technology, which he says is the Facebook team's great strength, and
continue to grow the company. He points to a laundry list of benchmarks that they'd all like to see. "Can
we get to 35 million users this year?" Dominating another sector beyond the college crowd would be
key. "If we were to see that in the high school space, that would be very significant. “But Thiel is aware
of a ticking clock of sorts, determined by a Securities and Exchange Commission rule. "Once we get to
500 shareholders, we'll be forced into a situation where you have to give full financial disclosure," he
says. (Facebook employees have shares as part of their compensation packages.) Most companies that’s
where the hacking episode occurred. Harvard didn't offer a student directory with photos and basic
information, known at most schools as a face book. Zuckerberg wanted to build an online version for
Harvard, but the school "kept on saying that there were all these reasons why they couldn't aggregate
this information," he says.
"I just wanted to show that it could be done." So one night early in his sophomore year, he hacked
chronicled by The Harvard Crimson, Zuckerberg politely apologized to his fellow students. But he
remained convinced he'd done the right thing: "I thought that the information should be available."
(Harvard declined to comment on the episode.)Ultimately, Zuckerberg did an end run around the
administration. He set up the Facebook template and let students fill in their own information. The new
project consumed so much of his time that by the end of the first semester, with just two days to go
before his art-history final, he was in a serious jam: He needed to be able to discuss 500 images from
the Augustan period.
"This isn't the kind of thing where you can just go in and figure out how to do it, like calculus or
math," he says, without a trace of irony. "You actually have to learn these things ahead of time." So he
pulled a Tom Sawyer: He built a Web site with one image per page and a place for comments. Then he
emailed members of his class and invited them to share their notes, like a study group on cyber steroids.
"Within two hours, all the images were populated with notes," he says. "I did very well in that class. We
all did.Thefacebook.com, as it was originally called, launched on February 4, 2004.Within two weeks,
half the Harvard student body had signed up. Before long, it was up to two-third go public at that point.
"But our current bias is not to do it any sooner. “What seems most likely is some version of a publicly
traded Facebook, one that might emulate the quirky Dutch-auction IPO that Google filed in 2004. It
seems like a natural fit; Facebook admires the minimalist sensibilities of Google's design, its focus on
engineering, and the "do no evil" philosophy that, theoretically, at least, informs its business. Best of all,
if handled properly, an IPO keeps the founders firmly at the helm, just like Sergey Bring and Larry Page
at Google. And an IPO would seem to be a good fit for Ameritech Capital Partners, which participated
in the last round of financing for Facebook a year ago.
"Certainly most of our companies go through liquidity in the public markets," says Ameritech
founder Paul Madera. "Public markets seem to want to pay more than acquirers these days. “If Facebook
got a very large offer, they'd have to consider it, he says. "But today, any offer around a billion would
be way low." But Zuckerberg maintains that nothing is happening quickly. "It's a really big change if
you go public--all the regulations and stuff, so it's not something that you do lightly. “For now, the
company is on track to double its engineering team of 50 this year (check out the first step in the
application process atfacebook.com/jobs puzzles) as well as its 50-person customer-service group,
headed by Tom Enable, who ran global service operations for Palm and customer service for
walmart.com and MCI. His reps are mostly from top-shelf universities. (By my estimate, there's $5
million worth of tuition handling customer service at Facebook.)
New users keep flooding on board--100,000 signed on in a single day this past February. The college
markets in Canada and the UK have been growing almost 30% a month (Prince Harry and his girlfriend
are Facebook users, according to breathless reports in the British tabloids), and nearly 28% of all users
are now outside the United States. And slowly but surely, the site is adding older folks: 3 million users
are age 25 to 34, 380,000 are 35 to 44, and a pioneering 100,000 users are currently eligible for Medicare.
With stats like that, you can certainly see public-market investors Thirty-six months ago; Zuckerberg
was a college sophomore cruising out to California on summer break. Now he approves everything from
Conclusion: We prepared a profile summary (about 500 words) of a successful entrepreneur indicating
milestone achievements.
Experiment No. : 2
Title: Generate business ideas (product/service) for entrepreneurial and entrepreneurial
opportunities through brainstorming.
THEORY:
Trying to find a great business idea? Successful entrepreneurs use their imagination every day to make
new decisions to make the world a better place.
But how do they do it? The secret is, there’s no secret! However, here are seven ways to keep your
mind fresh and open so you can generate an idea for your own business.
1. Meet new people.
Seriously. Go out and meet new people to get out of your idea rut. Talking to new people who not
only don’t think like you but who don’t know how you think can help freshen up your brainstorming
process. Go to networking and learning events, talk to people outside your industry and/or strike up
a conversation with your existing customers.
2. Keep a “pain point” journal.
Successful companies all have one thing in common: they solve a problem. Companies like Google,
Netflix and Uber solved specific pain points in their marketplace and went on to achieve great things.
• I wish I could find information on a specific topic from various sources quickly.
• I wish I could rent movies and television shows directly from my television at a low cost.
• I wish there was a cheaper way to get a ride.
Ask yourself: What bugs me? Keep a journal where you write down your everyday frustrations.
Review the journal regularly and run it by others to see if it’s a pain point for them.
What product or service could you create that would solve that problem?
The famous restaurant and travel guide Zagat is an often cited example of finding a business in
something you love. The founders of Zagat, Tim and Nina Zagat, were lawyers who loved to eat out
at restaurants. In 1979, they started a newsletter asking their friends to rate restaurants. As the
newsletter got bigger every year, they began charging money for their work. In 2011, the company
was bought by Google. Not bad for a newsletter. Take an inventory of your hobbies and interests.
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Searching for a new business idea? Try tapping into your interests to see how to make a business out
of something you love.
4. Explore new ways of thinking.
New methodologies and ways of thinking are constantly evolving and some industries are better at
embracing them than others. Take design thinking for example. Design thinking is a mindset and a
methodology used to better understand problems and implement creative solutions, articulated first by
David Kelley, co-founder of the design firm IDEO. The company has designed products for iconic
brands such as Apple, Steelcase and Oral-B. Read up on alternative methodologies and learning
methods and apply them to your pain points journal. Or, apply to an alternative learning program such
as Studio [Y] if you’re at an inflection point and need a reboot, or explore entrepreneurial thinking
resources for a new learning style.
5. Travel.
There’s a whole big world out there of great ideas that aren’t yet in your market. If you see an idea
you love in your travels, you can take it back home and give it a new spin that specifically addresses
the needs of your market or community. Even if you don’t find inspiration, traveling will help take
you out of your surroundings and refresh your system. There’s also places around the world that have
ideas waiting to be commercialized, such as in universities that have technology transfer offices. Take
an existing idea and launch it to market.
6. Go online.
Don’t waste your time looking at cat videos online. Fine, don’t waste all of your time looking at cat
videos online. Look up entrepreneurship and industry related communities. Go on Twitter and search
relevant hashtags to see what people are talking about. For example, if you’re interested in social
finance and social innovation, consider hashtags such as #impinv (impact investing), #socfin (social
finance), #socinn (social innovation), #susty (sustainability), #socent (social entrepreneur or
social enterprise) and #csr (corporate social responsibility). You might learn about new niche fields,
networking opportunities or other topics that might spark something. Become a student of your
industry and entrepreneurship.
Experiment No. : 3
Title: Undertake self-assessment test to discover your entrepreneurial traits.
THEORY:
If you have answered honestly1, and if your score is higher than 60 you are probably similar in many
ways to the “model entrepreneur.” A score lower than 60 does not mean that you should not attempt
to start a business. Many people who do not score high on assessments such as this are able to start
very successful businesses. One key to such success (regardless) of your score, is identifying “weakest
traits” (those traits listed above which have the lowest scores) and then implementing an improvement
approach2. However, before an improvement approach can be implemented it must be developed.
Congratulations on completing step one. Now, steps two through five will help you identify
improvement
approaches.
However, you may want to be aware from the start that if your lowest scores are towards the top of
the columns (above), then achieving significant improvement or finding an adequate compensation
approach may be very difficult – even more so if the traits happen to be towards the top of the left
column.
EIGHT STEPS
Entrepreneurial Self-assessment & Development
Here, steps two through five are addressed. Step two is simply a matter of listing the three traits
that you scored lowest on – these are the traits you will focus on either improving or finding a way to
compensate for. The means by which this is done is what we will term the Improvement
Step Six –
Being accountable to another person will help you achieve your goal for improvement or
compensation of the selected traits. An informal, yet effective means of employing this principle of
accountability is simply to share what you plan to do with another person, and then update them on it
occasionally. (This concept is termed, ‘voluntary accountability.’) The more they know about your
goals (even your action steps) the better. They may even be willing to follow-up with you regularly.
The first requirement here is selecting someone with whom you have a close enough
relationship that they talk to you openly and frequently. Below list the names of a few such individuals,
then place a check in the applicable columns to the right of their names to determine who may be of
most help (those with more checks should be asked first). While only one confidant is necessary, the
more the better.
Step Seven –
For each of the weak traits, make a list of action steps that will lead you in your improvement
or compensation approach to achieve your goal. For each step “who” and “when” should be specified.
The first action step for each approach will probably be to talk with the person(s) listed in step six to
share your goals and plans!
These action steps should be listed directly on the scheduling tool you currently use. A
scheduling tool is a calendar, day-planner, etc. If you do not have your scheduling tool with you (or if
the only “tool” you currently, use is your memory) then these steps may be listed on a separate piece
of paper. They may later be transferred to your scheduling tool. The table below will help you list
action steps.
Step Eight –
The eighth step is critical. Can you guess what it is? Simply apply your action steps to achieve your
goals – in a word, IMPLEMENT!
Experiment No. : 4
Title: Visit a bank/financial institution to enquire about various funding schemes for small-scale
enterprise.
Theory:
India was recently termed as the only, truly emerging market in the world at the moment. A part
of this growth is fueled by the micro, small and medium enterprises of the country. The SME sector
contributes over 40% of the total GDP and remains a critical source of employment for the India’s
growing population. Recognizing the importance of SME growth in the post-demonetization era, the
government has started some new business loan schemes and boosted other existing ones. Here are the
top five business loan schemes from the government of India that you can avail for small business
finance.
MSME Business Loans in 59 Minutes
Perhaps the most talked about business loan scheme right now is the ‘MSME Business Loans
in 59 Minutes’, a scheme first announced in September 2018. The loans under this scheme are given
for financial assistance and encouragement of MSME growth in the country. Both new and existing
business can utilize the scheme for a financial assistance up to ₹ 1 crore. The actual process takes 8-12
days to complete, while the approval or disapproval is granted within the first 59 minutes of application.
It is a refinancing scheme, wherein five authorized public sector banks will grant the funds. The interest
rate depends on the nature of your business and credit rating. No information has been given on
subsidizing the principal amount or interest subvention.
To apply for business loan under this scheme, you need GST verifications, Income Tax verifications,
bank account statements for the last 6-months, ownership related documentation, and KYC details.
More information on application and approvals can be sought by visiting the SIDBI portal for this
business loan.
MUDRA Loans
Micro-units Development and Refinance Agency (MUDRA) is an organisation established by the
government of India to provide business finance to micro-business units. The loans under the scheme
are given on the pretext of ‘funding the unfunded’. Since small companies and startups are often left to
their own devices for financing their venture, the government has created the concept of low-cost credit
to such undertakings. MUDRA Loans are also a refinanced business loans, approved and disbursed
through public sector banks, private sector banks, co-operative societies, small banks, scheduled
commercial banks and rural banks that come under the scheme. The loans are generally given to micro
or small businesses operating in the manufacturing, trading and services sector. The MUDRA
Loans are structured as under,
effective. For example, the refinancing and subsidy model used by the government takes away the
‘quick’ factor from business loans touted by the schemes. Since these loans are essentially funded by
the government sponsored banks, the turnaround time is in weeks or even months, which is detrimental
for a small business owner looking for quick business finance. Even the most ambitious of all these
schemes, the 59 Minutes Loan for MSMEs, takes up to 2 weeks in reality.
On the other hand, MSME finance by non-banking financial companies like Lendingkart is approved
and disbursed within 72 hours. This is done by combining business analytics and online technologies
for loan approval and disbursal instead of relying on paperwork and age-old processing techniques. For
instance, Lendingkart offers business loans online through their website or mobile app. Simply log-in
to apply for a business loan, get a same- day approval, accept the quote and upload your documents
digitally for verification. The entire process hardly takes 10-minutes of your time and the verification
is completed within 3 working days by Lendingkart. So, you have the funds ready for use within a
quarter of the time it takes a government scheme to disburse a loan.
To apply for a business loan with Lending kart in 3 simple steps, visit us at www.lendingkart.com.
Conclusion: Collected information about various funding schemes for small-scale enterprise.
Experiment No. : 5
Title: Collect loan application forms of nationalize banks/other financial institutions.
Theory:
Visited different nationalize banks/other financial institutions to Collect loan application forms
Experiment No. : 6
Title: Compile the information from financial agencies that will help you set up your business
enterprise.
Theory:
Conclusion: Compiled the information from financial agencies that will help to set up business
enterprise.
Experiment No. :7
Title: Compile the information from the government agencies that will help you set up your
business enterprise.
Theory:
The Venture Capital Assistance Scheme
Ministry of Agriculture and Farmers Welfare
Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC
to qualifying projects to meet shortfall in the capital requirement for implementation of the project.
Benefits
Help in assisting agripreneurs to make investments in setting up agribusiness projects through
financial participation
Provides financial support for preparation of bankable Detailed Project Reports (DPRs) through
Project Development Facility (PDF).
Eligibility
• Farmers
• Producer Groups
• Partnership/Proprietary Firms
• Self Help Groups
• Companies
• Agripreneurs
• units in agriexport zones
• Agriculture graduates Individually or in groups for setting up agribusiness projects.
Application Procedure
One can only apply online, offline application forms will not be accepted. Also, below are the checklist
before applying for the scheme.
Sno. Checklist
Equity Certificate:
a)C.A. certificate in case of Partnership or Proprietorship
firms.
b)Form-2(PAS-3), FORM-5(SH-7) and other documents in
5 lieu of FORM-23 filed with ROC for
Sno. Enclosures
Support for International Patent Protection in Electronics and & Information Technology (SIP-EIT)
Ministry Of Electronics & Information Technology
SIP-EIT is a scheme to provide financial support to MSMEs and Technology Startup units for
international patent filing to encourage innovation and recognize the value and capabilities of global
IP along with capturing growth opportunities in ICTE sector.
Eligibility Criteria
1. The Applicant should be registered under the MSME Development Act 2006 of Government of
India as amended from time to time as a MSME unit as per the criteria for such registration(the
applicant would be required to furnish the proof of such
registration).
2. The applicant should be a registered company under the Companies Act of Government of India
and should fulfill the investment limits in plant and machinery or equipment as defined in the MSME
Development Act 2006 of Government of India as amended from time to time(this criteria will be
ascertained from the proof of such registration and last audited balance sheet of the
applicant)
3. The applicant should be a registered STP Unit and should fulfill the investment limits in plant
and machinery or equipment as defined in the MSME Development Act 2006 of Government of India
as amended from time to time(this criteria will be ascertained from the proof of such registration and
last audited balance sheet of the
applicant).
4. The applicant should be a technology incubation enterprise or a startup located in an incubation
centre/ park and registered as a company (a certification from the incubation centre/ park in this case
is mandatory) and should fulfill the investment limits in plant and machinery or equipment as defined
in the MSME Development Act 2006 of Government of India as amended from time to time(this
criteria will be ascertained from the proof of such registration and last audited balance sheet of the
applicant).
8. Scanned copy in*.pdf format of The Details for Transfer of e-Payments have to be duly filled
up as per the format. Download format of details for e-transfer of
payments
9. Scanned copy in *.pdf format of Declaration Form dully signed and sealed.
(Download Declaration Form).
Conclusion: Compiled the information from the government agencies that will help to set up
business enterprise.
Experiment No. : 8
Title: Prepare technological feasibility report of a chosen product/service.
THEORY:
What is a feasibility study? As the name implies, a feasibility study is used to determine the
viability of an idea, such as ensuring a project is legally and technically feasible as well as
economically justifiable. It tells us whether a project is worth the investment in some cases, a
project may not be doable. There can be many reasons for this, including requiring too many
resources, which not only prevents those resources from performing other tasks but also may
cost more than an organization would earn back by taking on a project that isn’t profitable.
A well-designed study should offer a historical background of the business or project, such as
a description of the product or service, accounting statements, details of operations and
management, marketing research and policies, financial data, legal requirements, and tax
obligations. Generally, such studies precede technical development and project implementation.
A feasibility study evaluates the project’s potential for success; therefore, perceived objectivity
is an important factor in the credibility of the study for potential investors and lending
institutions. There are five types of feasibility study separate areas that a feasibility study
examines, described below.
1. Technical Feasibility - this assessment focuses on the technical resources available to the
organization. It helps organizations determine whether the technical resources meet capacity
and whether the technical team is capable of converting the ideas into working systems.
Technical feasibility also involves evaluation of the hardware, software, and other technol ogy
requirements of the proposed system. As an exaggerated example, an organization wouldn’t
want to try to put Star Trek’s transporters in their building currently, this project is not
technically feasible.
2. Economic Feasibility - this assessment typically involves a cost/ benefits analysis of the
project, helping organizations determine the viability, cost, and benefits associated with a
3. Legal Feasibility - this assessment investigates whether any aspect of the proposed project
conflicts with legal requirements like zoning laws, data protection acts, or social media laws.
Let’s say an organization wants to construct a new office building in a specific location. A
feasibility study might reveal the organization’s ideal location isn’t zoned for tha t type of
business. That organization has just saved considerable time and effort by learning that their
project was not feasible right from the beginning.
5. Scheduling Feasibility - this assessment is the most important for project success; after all,
a project will fail if not completed on time. In scheduling feasibility, an organization estimates
how much time the project will take to complete.
When these areas have all been examined, the feasibility study helps identify any constraints
the proposed project may face, including:
The importance of a feasibility study is based on organizational desire to “get it right” before
committing resources, time, or budget. A feasibility study might uncover new ideas that could
completely change a project’s scope. It’s best to make these determinations in advance, rather
than to jump in and learning that the project just won’t work. Conducting a feasibility study is
always beneficial to the project as it gives you and other stakeholders a clear picture of the
proposed project.
Overview
A 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 natural 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.
A well-designed feasibility study should provide a historical background of the business or project, a
description of the product or service, accounting statements, details of
the operations and management, marketing research and policies, financial data, legal requirements
and tax obligations. Generally, feasibility studies precede technical development
and project implementation.
A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an
important factor in the credibility of the study for potential investors and lending institutions. It must
therefore be conducted with an objective, unbiased approach to provide information upon which
decisions can be based
Formal definition
A project feasibility study is a comprehensive report that examines in detail the five frames of analysis
of a given project. It also takes into consideration its four Ps, its risks and POVs, and its constraints
(calendar, costs, and norms of quality). The goal is to determine whether the project should go ahead,
be redesigned, or else abandoned altogether
The five frames of analysis are: The frame of definition; the frame of contextual risks; the frame of
potentiality; the parametric frame; the frame of dominant and contingency strategies.
The four Ps are traditionally defined as Plan, Processes, People, and Power. The risks are considered
to be external to the project (e.g., weather conditions) and are divided in eight categories: (Plan)
financial and organizational (e.g., government structure for a private project); (Processes)
environmental and technological; (People) marketing and sociocultural; and (Power) legal and
political. POVs are Points of Vulnerability: they differ from risks in the sense that they are internal to
the project and can be controlled or else eliminated.
The constraints are the standard constraints of calendar, costs and norms of quality that can each be
Department of Information Technology
Government Polytechnic Washim Page 35
Experiment No. : 9
Title: Prepare financial feasibility report of a chosen product/service.
Theory:
What is a feasibility study? As the name implies, a feasibility study is used to determine the
viability of an idea, such as ensuring a project is legally and technically feasible as well as
economically justifiable. It tells us whether a project is worth the investment in some cases, a
project may not be doable. There can be many reasons for this, including requiring too many
resources, which not only prevents those resources from performing other tasks b ut also may
cost more than an organization would earn back by taking on a project that isn’t profitable.
A well-designed study should offer a historical background of the business or project, such as
a description of the product or service, accounting statements, details of operations and
management, marketing research and policies, financial data, legal requirements, and tax
obligations. Generally, such studies precede technical development and project implementation.
A feasibility study evaluates the project’s potential for success; therefore, perceived objectivity
is an important factor in the credibility of the study for potential investors and lending
institutions. There are five types of feasibility study separate area s that a feasibility study
examines, described below.
1. Technical Feasibility - this assessment focuses on the technical resources available to the
organization. It helps organizations determine whether the technical resources meet capacity
and whether the technical team is capable of converting the ideas into working systems.
Technical feasibility also involves evaluation of the hardware, software, and other technology
requirements of the proposed system. As an exaggerated example, an organization wouldn’ t
want to try to put Star Trek’s transporters in their building currently, this project is not
technically feasible.
2. Economic Feasibility - this assessment typically involves a cost/ benefits analysis of the
project, helping organizations determine the viability, cost, and benefits associated with a
3. Legal Feasibility - this assessment investigates whether any aspect of the proposed project
conflicts with legal requirements like zoning laws, data protection acts, or social media laws.
Let’s say an organization wants to construct a new office building in a specific location. A
feasibility study might reveal the organization’s ideal location isn’t zoned for that type of
business. That organization has just saved considerable time and effort by learni ng that their
project was not feasible right from the beginning.
5. Scheduling Feasibility - this assessment is the most important for project success; after all,
a project will fail if not completed on time. In scheduling feasibility, an organization estimates
how much time the project will take to complete.
When these areas have all been examined, the feasibility study helps identify any constraints
the proposed project may face, including:
The importance of a feasibility study is based on organizational desire to “get it right” before
committing resources, time, or budget. A feasibility study might uncover new ideas that could
completely change a project’s scope. It’s best to make these determinations in advance, rather
than to jump in and learning that the project just won’t work. Conducting a feasibility study is
always beneficial to the project as it gives you and other stakeholders a clear picture of the
proposed project.
Overview
A 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 natural 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.
A well-designed feasibility study should provide a historical background of the business or project, a
description of the product or service, accounting statements, details of
the operations and management, marketing research and policies, financial data, legal requirements
and tax obligations. Generally, feasibility studies precede technical development
and project implementation.
A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an
important factor in the credibility of the study for potential investors and lending institutions. It must
therefore be conducted with an objective, unbiased approach to provide information upon which
decisions can be based
Formal definition
A project feasibility study is a comprehensive report that examines in detail the five frames of analysis
of a given project. It also takes into consideration its four Ps, its risks and POVs, and its constraints
(calendar, costs, and norms of quality). The goal is to determine whether the project should go ahead,
be redesigned, or else abandoned altogether
The five frames of analysis are: The frame of definition; the frame of contextual risks; the frame of
potentiality; the parametric frame; the frame of dominant and contingency strategies.
The four Ps are traditionally defined as Plan, Processes, People, and Power. The risks are considered
to be external to the project (e.g., weather conditions) and are divided in eight categories: (Plan)
financial and organizational (e.g., government structure for a private project); (Processes)
environmental and technological; (People) marketing and sociocultural; and (Power) legal and
political. POVs are Points of Vulnerability: they differ from risks in the sense that they are internal to
the project and can be controlled or else eliminated.
The constraints are the standard constraints of calendar, costs and norms of quality that can each be
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Feasibility factors
Resource feasibility
This involves questions such as how much time is available to build the new system, when it can be
built, whether it interferes with normal business operations, type and amount of resources required,
dependencies, and developmental procedures with company revenue prospectus.
Financial feasibility
In case of a new project, financial viability can be judged on the following parameters:
• Total estimated cost of the project
• Financing of the project in terms of its capital structure, debt to equity ratio and promoter's share
of total cost
• Existing investment by the promoter in any other business
• Projected cash flow and profitability
The financial viability of a project should provide the following information:
• Full details of the assets to be financed and how liquid those assets are.
• Rate of conversion to cash-liquidity (i.e., how easily the various assets can be converted to cash).
• Project's funding potential and repayment terms.
• Sensitivity in the repayments capability to the following factors:
• Mild slowing of sales.
• Acute reduction/slowing of sales.
• Small increase in cost.
• Large increase in cost.
• Adverse economic conditions.
In 1983 the first generation of the Computer Model for Feasibility Analysis and Reporting
(COMFAR), a computation tool for financial analysis of investments, was released. Since then, this
United Nations Industrial Development Organization (UNIDO) software has been developed to also
support the economic appraisal of projects. The COMFAR III Expert is intended as an aid in the
analysis of investment projects. The main module of the program accepts financial and economic data,
produces financial and economic statements and graphical displays and calculates measures of
performance. Supplementary modules assist in the analytical process. Cost-benefit and value-added
methods of economic analysis developed by UNIDO are included in the program and the methods of
major international development institutions are accommodated. The program is applicable for the
analysis of investment in new projects and expansion or rehabilitation of existing enterprises as, e.g.,
in the case of reprivatisation projects. For joint ventures, the financial perspective of each partner or
class of shareholder can be developed. Analysis can be performed under a variety of assumptions
concerning inflation, currency revaluation and price escalations.[
Experiment No. : 10
Title: Prepare a set of short term, medium and long term goals for starting a chosen small scale
enterprise
THEORY:
Business owners develop plans to reach their overall goals, and they usually find it useful to separate
planning into phases. This allows you to track immediate improvements while evaluating progress
toward eventual goals and targets. The different time frames of the planning process place the focus
on time-sensitive aspects of the company's structure and environment. You can differentiate planning
based on the time frames of the inputs and expected outcomes.
Many businesses develop strategic planning within a short-term, medium-term and long-term
framework. Short-term usually involves processes that show results within a year. Companies aim
medium-term plans at results that take several years to achieve. Long-term plans include the overall
goals of the company set four or five years in the future and usually are based on reaching the medium-
term targets. Planning in this way helps you complete short-term tasks while keeping longer-term
goals in mind.
Short-Term Planning
Short-term planning looks at the characteristics of the company in the present and develops strategies
for improving them. Examples are the skills of the employees and their attitudes. The condition of
production equipment or product quality problems are also short-term concerns.
To address these issues, you put in place short-term solutions to address problems. Employee training
courses, equipment servicing and quality fixes are short-term solutions. These solutions set the stage
for addressing problems more comprehensively in the longer term.
Medium-Term Planning
Medium-term planning applies more permanent solutions to short-term problems. If training courses
for employees solved problems in the short term, companies schedule training programs for the
medium term. If there are quality issues, the medium-term response is to revise and strengthen the
company's quality control program.
Where a short-term response to equipment failure is to repair the machine, a medium-term solution is
to arrange for a service contract. Medium-term planning implements policies and procedures to ensure
that short-term problems don't recur.
Long-Term Planning
In the long term, companies want to solve problems permanently and to reach their overall targets.
Long-term planning reacts to the competitive situation of the company in its social, economic and
political environment and develops strategies for adapting and influencing its position to achieve long-
term goals. It examines major capital expenditures such as purchasing equipment and facilities, and
implements policies and procedures that shape the company's profile to match top management's ideas.
When short-term and medium-term planning is successful, long-term planning builds on those
achievements to preserve accomplishments and ensure continued progress.
Revenue Goals and Supporting Goals
If your long-term revenue goal is to double revenue by the end of the current fiscal year, another
example of a supporting short-term goal is to contract an advertising consultant for one month to help
you analyze and capitalize on your customer's buying trends. Another short-term goal example is to
spend the next month learning your primary competition and brainstorming on what you offer that
they don't. You can us this research and design a new advertising campaign that highlights the unique
points about your business or products.
Customer Service Goals
One long-term goal for customer service would be achieving at least 95 percent positive customer
feedback. An example of a supporting short-term goal is to redesign the customer service research
process to include new questionnaires and incentives, such as monthly drawings for free products or
discounts on future purchases for customers who take the time to respond.
Employee Appreciation Goals
Some businesses establish a long-term employee appreciation goal of awarding an employee of the
year award to the employee who provides the most creative input during the year in terms of practical
ideas to improve the company. Supporting short-term goals are to award employee of the month
designations each month throughout the year to mark the progression of creative input, and to include
more employees in the reward process than is possible with a single annual award.
Community Outreach Goals
Building the company's name recognition within the community through community outreach projects
is a popular long-term goal for businesses. Examples of short-term supporting goals are to reward
employees who volunteer with designated community programs with additional time off, bonuses or
gift cards. Another short-term supporting goal is to choose one or two high-profile annual charity
events to sponsor.
A long-term goal regarding web traffic is to increase traffic to your company's site by at least 50
percent by the end of the current fiscal year. Supporting short-term goals are to research and purchase
web traffic analysis software to better pinpoint current traffic trends, to hire a web consultant for one
month to propose and implement programming changes to make the site appeal to a broader audience
than your traffic trend research suggests currently exist.
Another example of a short-term goal is to select a medium for advertising your site other than the
Web, such as a bus campaign where you advertise your site address on the side of city buses for one
month, or billboards, where you lease a billboard in a conspicuous place in town for one month.
Conclusion: Studied to prepare a set of short term, medium and long term goals for starting a chosen
small scale enterprise
Experiment No. : 11
THEORY:
Effective marketing starts with a considered, well-informed marketing strategy. A good marketing
strategy helps you define your vision, mission and business goals, and outlines the steps you need to
take to achieve these goals.
Your marketing strategy affects the way you run your entire business, so it should be planned and
developed in consultation with your team. It is a wide-reaching and comprehensive strategic planning
tool that: describes your business and its products and services explains the position and role of your
products and services in the market profiles your customers and your competition identifies the
marketing tactics you will use allows you to build a marketing plan and measure its effectiveness.
A marketing strategy sets the overall direction and goals for your marketing, and is therefore different
from a marketing plan, which outlines the specific actions you will take to implement your marketing
strategy. Your marketing strategy could be developed for the next few years, while your marketing
plan usually describes tactics to be achieved in the current year.
Your well-developed marketing strategy will help you realise your business's goals and build a strong
reputation for your products. A good marketing strategy helps you target your products and services
to the people most likely to buy them. It usually involves you creating one or two powerful ideas to
raise awareness and sell your products.
Developing a marketing strategy that includes the components listed below will help you make the
most of your marketing investment, keep your marketing focused, and measure and improve your sales
results.
To develop your marketing strategy, identify your overarching business goals, so that you can then
define a set of marketing goals to support them. Your business goals might include:
When setting goals it's critical to be as targeted as possible so you can effectively measure the
outcomes against what you set out to achieve. A simple criteria for goal-setting is the SMART method:
• Achievable - set objectives that are within your capacity and budget
• Relevant - set objectives that will help you improve particular aspects of your business
• Time-bound - set objectives you can achieve within the time you need them.
Define a set of specific marketing goals based on the business goals you listed above. These goals will
motivate you and your team and help you benchmark your success.
Examples of marketing goals include increased market penetration (selling more existing products to
existing customers) or market development (selling existing products to new target markets). These
marketing goals could be long-term and might take a few years to successfully achieve. However, they
should be clear and measurable and have time frames for achievement.
Make sure your overall strategies are also practical and measurable. A good marketing strategy will
not be changed every year, but revised when your strategies have been achieved or your marketing
goals have been met. Also, you may need to amend your strategy if your external market changes due
to a new competitor or new technology, or if your products substantially change.
Research is an essential part of your marketing strategy. You need to gather information about your
market, such as its size, growth, social trends and demographics (population statistics such as age,
gender and family type). It is important to keep an eye on your market so you are aware of any changes
over time, so your strategy remains relevant and targeted.
Use your market research to develop a profile of the customers you are targeting and identify their
needs.
The profile will reveal their buying patterns, including how they buy, where they buy and what they
buy. Again, regularly review trends so you don't miss out on new opportunities or become irrelevant
with your marketing message.
While you try to find new customers, make sure your marketing strategy also allows you to maintain
relationships with your existing customers.
Similarly, as part of your marketing strategy you should develop a profile of your competitors by
identifying their products, supply chains, pricing and marketing tactics.
Use this to identify your competitive advantage - what sets your business apart from your competitors.
You may also want to identify the strengths and weaknesses of your own internal processes to help
improve your performance compared with your competition.
List your target markets and devise a set of strategies to attract and retain them. An example goal could
be to increase young people's awareness of your products. Your corresponding strategies could be to
increase your online social media presence by posting regular updates about your product on Twitter
and Facebook; advertising in local magazines targeted to young people; and offering discounts for
students.
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Identify your tactical marketing mix using the 7 Ps of marketing. If you can choose the right
combination of marketing across product, price, promotion, place, people, process and physical
evidence, your marketing strategy is more likely to be a success.
In deciding your tactics, do some online research, test some ideas and approaches on your customers
and your staff, and review what works. You will need to choose a number of tactics in order to meet
your customers' needs, reach the customers within your target market and improve your sales results.
Experiment No. : 12
Title: Prepare a business plan for your chosen small-scale enterprise
EQUIPMENTS: Computer system with Microsoft MS - Word
Business Plan
OWNERS
Telephone: 222-333-4444
Fax: 111-222-3333
Email: xyz@example.com
I. Table of contents
Content Page No
I. Executive summary
II. General Company Description
III. Products and services
IV. Marketing plan
V. Operational Plan
VI. Management and organization
VII. Personal financial statement
VIII. Startup Expenses and Capitalization
IX. Financial plan
X. Appendices
XI. Refining the Plan
I. Executive summary
Write this section last!
We suggest you make it 2 pages or less.
Include everything that you would cover in a 5-minute interview.
Explain the fundamentals of the proposed business: what will your product be, who will be your
customers, who are the owners, what do you think the future holds for your business and your industry?
Make it enthusiastic, professional, complete and concise.
If applying for a loan, state clearly how much you want, precisely how you are going to use it, and
how the money will make your business more profitable, thereby ensuring repayment.
Mission Statement: Many companies have a brief mission statement, usually in thirty words or less,
explaining their reason for being and their guiding principles. If you want to draft a mission statement,
this is a good place to put it in the plan. Followed by:
Company goals and objectives: Goals are destinations -- where you want your business to be.
Objectives are progress markers along the way to goal achievement. For example, a goal might be to
have a healthy, successful company that is a leader in customer service and has a loyal customer
following. Objectives might be annual sales targets and some specific measures of customer
satisfaction.
To whom will you market your products? Your target market? (State it briefly here - you will do a
more thorough explanation in the Marketing section).
Describe your industry. Is it a growth industry? What changes do you foresee in your industry, short
term and long term? How will your company be poised to take advantage of them?
Your most important company strengths and core competencies: What factors will make the company
succeed?
What do you think your major competitive strengths will be?
What background experience, skills, and strengths do you personally bring to this new venture?
Legal form of ownership: Sole Proprietor, Partnership, Corporation, Limited Liability Corporation
(LLC)?
Why have you selected this form?
What factors will give you competitive advantages or disadvantages? For example, level of quality or
unique or proprietary features.
What are the pricing, fee or leasing structures of your products and/or services?
Notes on preparation:
No matter how good your product and your service, the venture cannot succeed without effective
marketing. And this begins with careful, systematic research. It is very dangerous to simply assume
that you already know about your intended market. You need to do market research to make sure they
are on track. Use the business planning process as your opportunity to uncover data and question your
marketing efforts. Your time will be well spent.
Start with your local library. Most librarians are pleased to guide you through their business data
collection. You will be amazed at what is there. There are more online sources than you could possibly
use. A good way to start is at the SBA site, http://www.sba.gov/; click the Outside Resources button
for a great collection of resource links. Your Chamber of Commerce has good information on the local
area. Trade associations and trade publications often have excellent industry specific data.
Primary market research means gathering your own data. For example, you could do your own traffic
count at a proposed location, use the yellow pages to identify competitors, and do surveys or focus
group interviews to learn about consumer preferences. Professional market research can
be very costly, but there are many books out that show small business owners how to do effective
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Customers
The description will be completely different depending on whether you plan to sell to other businesses
or directly to consumers. If you sell a consumer product, but sell it through a channel of distributors,
wholesalers and retailers, then you must carefully analyze both the end consumer and the middlemen
businesses to whom you sell.
You may well have more than one customer group. Identify the most important groups. Then, for each
consumer group, construct what is called a demographic profile:
Age Gender Location
Income level
Social class/occupation Education
Other (specific to your industry) Other (specific to your industry)
For business customers, the demographic factors might be:
Industry (or portion of an industry)
Location
Size of firm
Quality/technology/price preferences
Other (specific to your industry)
Other (specific to your industry)
Competition
What products and companies will compete with you?
List your major competitors: Names & addresses
Will they compete with you in across the board, or just for certain products, certain customers, or in
certain locations?
Will you have important indirect competitors? (For example, video rental stores compete with theaters,
though they are different types of business.)
How will your products/services compare with the competition?
Use the table called Competitive Analysis, below to compare your company with your three most
important competitors. In the first column are key competitive factors. Since these vary from one
industry to another, you may want to customize the list of factors.
In the cell labeled "Me", state how you honestly think you will likely stack up in customers' minds.
Then check whether you think this factor will be a strength of a weakness for you. Sometimes it is
hard to analyze our own weaknesses. Try to be very honest here. Better yet, get some disinterested
strangers to assess you. This can be a real eye-opener. And remember that you cannot be all things to
all people. In fact, trying to be so, causes many business failures because it scatters and dilutes your
efforts. You want an honest assessment of your firm's strong and weak points.
Now analyze each major competitor. In a few words, state how you think they compare.
In the final column, estimate the importance of each competitive factor to the customer. 1 = critical;
5 = not very important.
Table 1: Competitive Analysis
Products
Price
Quality
Selection
Service
Reliability
Stability
Expertise
Company
Reputation
Location
Appearance
Sales
Method
Credit
Policies
Advertising
Image
Having done the competitive matrix, write a short paragraph stating your competitive advantages
and disadvantages.
Strategy
Now outline a marketing strategy that is consistent with your niche.
Promotion
How will you get the word out to customers?
Advertising: what media, why, and how often? Why this mix and not some other?
Have you identified low cost methods to get the most out of your promotional budget?
Will you use methods other than paid advertising, such as trade shows, catalogs, dealer incentives,
word of mouth (how will you stimulate it?), network of friends or professionals?
What image do you want to project? How do you want customers to see you?
In addition to advertising, what plans do you have for graphic image support? This includes things
like logo design, cards and letterhead, brochures, signage, and interior design (if customers come to
your place of business).
Should you have a system to identify repeat customers, and then systematically contact them?
Promotional Budget
How much will you spend on the items listed above?
Before startup? (These numbers will go into your Startup budget.)
Ongoing? (These numbers will go into your Operating Plan budget.)
Pricing
Explain your method(s) of setting process. For most small businesses, having the lowest price is not a
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Production
How and where are your products/services produced?
Even with the best of research, however, opening a new business has a way of costing more than you
anticipate. There are two ways to make allowances for surprise expenses. The first is to add a little
“padding” to each item in the budget. The problem with that approach, however, is that it destroys the
accuracy of your carefully wrought plan. The second approach is to add a separate line item, which
we call contingencies, to account for the unforeseeable. This is the approach we
recommend, and you will see a “Contingencies” line in our spreadsheet.
Talk to others who have started similar businesses to get a good idea of how much to allow for
contingencies. If you cannot get good information, we recommend a rule of thumb that contingencies
should equal at least 20% of the total of all other startup expenses.
For this section, please refer to the Startup Expenses Spreadsheet.
Explain your research and how you arrived at your forecasts of expenses. Give sources, amounts,
and terms of proposed loans. Also explain in detail how much will be contributed by each investor
and what percent ownership each will have.
The 12-month projection is the heart of your financial plan. However, we provide this work sheet for
those who want to carry their forecasts beyond the first year. It is expected of those seeking venture
capital. Bankers pay more attention to the 12 month projection.
Of course, keep notes of your key assumptions, especially about things you expect to change
Conclusion: From this assignment, we studied requirements to start a small-scale business.
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