sample of feasibility business plan

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ENTR 2P91: Entrepreneurship

• Feasibility Reports & Business Plans
• Startup Ecosystem
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• Organizational Feasibility
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Sample Feasibility Reports

Business plans - samples, business plans - writing, books on preparing business plans.

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• Find Academic Research
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Sample academic feasibility reports can be found by searching Google Scholar using the keywords business feasibility report  or business feasibility study. For example:

• The UBC public bicycle system feasibility study (Adam Cooper, UBC School of Community and Regional Planning)
• Feasibility study for renovating an old barn into a tasting room for K-Dot winery (Kendall Ott, California Polytechnic State University)
• Feasibility study for a brewpub (John Gallante and Daniel Price, California Polytechnic State University)
• A Feasibility study for establishing a sustainability consulting firm (Susan F. Mathieu, Simon Fraser University)

The following resources provide additional guidance on conducting your feasibility analysis and writing it up:

• Feasibility Study Outline (Iowa State University Extension & Outreach)
• Full Feasibility Analysis (Pearson Education) (PDF) Tools and templates for conducting a full feasibility analysis including: product/service, industry/market, organizational, financial and an overallassessment. Originally published as Appendix 3.1 of the textbook "Entrepreneurship: successfully launching new ventures" by Bruce Barringer and Duane Ireland.

The following sources contain sample business plans for different types of small businesses:

• Business Plans Handbook Series (Gale Ebooks Database)
• Bplans.com - sample plans
• Writing a Business Plan: An Example for a Small Premium Winery (Cornell University) (PDF) more info... close... An Extension Bulletin prepared by Mark E. Pisoni and Gerald B. White, Charles H. Dyson School of Applied Economics and Management at Cornell University.

The following sources provide guidance on writing business plans and may also include a sample plan or template.

• Writing your business plan (Canada Business Network)
• Essential Elements of a good business plan (US Small Business Administration)
• Planning for success: your guide to preparing a business & marketing plan (PDF file)

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• Last Updated: Nov 28, 2023 1:09 PM
• URL: https://researchguides.library.brocku.ca/ENTR2P91

19 Best Sample Business Plans & Examples to Help You Write Your Own

Published: August 21, 2023

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

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Reading sample business plans is essential when you’re writing your own. As you explore business plan examples from real companies and brands, you’ll learn how to write one that gets your business off on the right foot, convinces investors to provide funding, and confirms your venture is sustainable for the long term.

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But what does a business plan look like? And how do you write one that is viable and convincing? Let's review the ideal business plan formally, then take a look at business plan templates and samples you can use to inspire your own.

Business Plan Format

Ask any successful sports coach how they win so many games, and they’ll tell you they have a unique plan for every single game. The same logic applies to business. If you want to build a thriving company that can pull ahead of the competition, you need to prepare for battle before breaking into a market.

Business plans guide you along the rocky journey of growing a company. Referencing one will keep you on the path toward success. And if your business plan is compelling enough, it can also convince investors to give you funding.

With so much at stake, you might be wondering, "Where do I start? How should I format this?"

Typically, a business plan is a document that will detail how a company will achieve its goals.

• Outline your idea.
• Pitch to investors.
• Secure funding.
• Get to work!

You're all set!

Click this link to access this resource at any time.

Fill out the form to get your free template.

Most business plans include the following sections:

1. Executive Summary

The executive summary is arguably the most important section of the entire business plan. Essentially, it's the overview or introduction, written in a way to grab readers' attention and guide them through the rest of the business plan. This is important, because a business plan can be dozens or hundreds of pages long.

Most executive summaries include:

• Mission statement
• Company history and leadership
• Competitive advantage overview
• Financial projections
• Company goals

Keep in mind you'll cover many of these topics in more detail later on in the business plan. So, keep the executive summary clear and brief, including only the most important takeaways.

Executive Summary Business Plan Examples

This example was created with HubSpot’s business plan template:

And the executive summary below tells potential investors a short story that covers all the most important details this business plan will cover in a succinct and interesting way.

Image Source

Tips for Writing Your Executive Summary

• Clearly define a problem, and explain how your product solves that problem, and show why the market needs your business.
• Be sure to highlight your value proposition, market opportunity, and growth potential.
• Keep it concise and support ideas with data.
• Customize your summary to your audience. For example, emphasize finances and return on investment for venture capitalists.

Check out our tips for writing an effective executive summary for more guidance.

2. Market Opportunity

This is where you'll detail the opportunity in the market. Where is the gap in the current industry, and how will your product fill that gap?

In this section, you might include:

• The size of the market
• Current or potential market share
• Trends in the industry and consumer behavior
• Where the gap is
• What caused the gap
• How you intend to fill it

To get a thorough understanding of the market opportunity, you'll want to conduct a TAM, SAM, and SOM analysis and perform market research on your industry. You may also benefit from creating a SWOT analysis to get some of the insights for this section.

Market Opportunity Business Plan Example

This example uses critical data to underline the size of the potential market and what part of that market this service hopes to capture.

Tips for Writing Your Market Opportunity Section

• Focus on demand and potential for growth.
• Use market research, surveys, and industry trend data to support your market forecast and projections.
• Add a review of regulation shifts, tech advances, and consumer behavior changes.
• Refer to reliable sources.
• Showcase how your business can make the most of this opportunity.

3. Competitive Landscape

Speaking of market share, you'll need to create a section that shares details on who the top competitors are. After all, your customers likely have more than one brand to choose from, and you'll want to understand exactly why they might choose one over another. Performing a competitive analysis can help you uncover:

• Industry trends that other brands may not be utilizing
• Strengths in your competition that may be obstacles to handle
• Weaknesses in your competition that may help you develop selling points
• The unique proposition you bring to the market that may resonate with customers

Competitive Landscape Business Plan Example

The competitive landscape section of the business plan below shows a clear outline of who the top competitors are. It also highlights specific industry knowledge and the importance of location, which shows useful experience in this specific industry. This can help build trust in your ability to execute your business plan.

Tips for Writing Your Competitive Landscape

• Complete in-depth research, then emphasize your most important findings.
• Compare your unique selling proposition (USP) to your direct and indirect competitors.
• Show a clear and realistic plan for product and brand differentiation.
• Look for specific advantages and barriers in the competitive landscape. Then, highlight how that information could impact your business.
• Outline growth opportunities from a competitive perspective.
• Add customer feedback and insights to support your competitive analysis.

4. Target Audience

This section will describe who your customer segments are in detail. What is the demographic and psychographic information of your audience?

If your immediate answer is "everyone," you'll need to dig deeper. Ask yourself:

• What demographics will most likely need/buy your product or service?
• What are the psychographics of this audience? (Desires, triggering events, etc.)
• Why are your offerings valuable to them?

It can be helpful to build a buyer persona to get in the mindset of your ideal customers and be clear on why you're targeting them.

Target Audience Business Plan Example

The example below uses in-depth research to draw conclusions about audience priorities. It also analyzes how to create the right content for this audience.

Tips for Writing Your Target Audience Section

• Include details on the size and growth potential of your target audience.
• Figure out and refine the pain points for your target audience , then show why your product is a useful solution.
• Describe your targeted customer acquisition strategy in detail.
• Share anticipated challenges your business may face in acquiring customers and how you plan to address them.
• Add case studies, testimonials, and other data to support your target audience ideas.
• Remember to consider niche audiences and segments of your target audience in your business plan.

5. Marketing Strategy

Here, you'll discuss how you'll acquire new customers with your marketing strategy. You might consider including information on:

• The brand positioning vision and how you'll cultivate it
• The goal targets you aim to achieve
• The metrics you'll use to measure success
• The channels and distribution tactics you'll use

It can help to already have a marketing plan built out to help you with this part of your business plan.

Marketing Strategy Business Plan Example

This business plan example includes the marketing strategy for the town of Gawler. It offers a comprehensive picture of how it plans to use digital marketing to promote the community.

Tips for Writing Your Marketing Strategy

• Include a section about how you believe your brand vision will appeal to customers.
• Add the budget and resources you'll need to put your plan in place.
• Outline strategies for specific marketing segments.
• Connect strategies to earlier sections like target audience and competitive analysis.
• Review how your marketing strategy will scale with the growth of your business.
• Cover a range of channels and tactics to highlight your ability to adapt your plan in the face of change.

6. Key Features and Benefits

At some point in your business plan, you'll review the key features and benefits of your products and/or services. Laying these out can give readers an idea of how you're positioning yourself in the market and the messaging you're likely to use . It can even help them gain better insight into your business model.

Key Features and Benefits Business Plan Example

The example below outlines products and services for this business, along with why these qualities will attract the audience.

Tips for Writing Your Key Features and Benefits

• Emphasize why and how your product or service offers value to customers.
• Use metrics and testimonials to support the ideas in this section.
• Talk about how your products and services have the potential to scale.
• Think about including a product roadmap.
• Focus on customer needs, and how the features and benefits you are sharing meet those needs.
• Offer proof of concept for your ideas, like case studies or pilot program feedback.
• Proofread this section carefully, and remove any jargon or complex language.

7. Pricing and Revenue

This is where you'll discuss your cost structure and various revenue streams. Your pricing strategy must be solid enough to turn a profit while staying competitive in the industry. For this reason, you might outline:

• The specific pricing breakdowns per product or service
• Why your pricing is higher or lower than your competition's
• (If higher) Why customers would be willing to pay more
• (If lower) How you're able to offer your products or services at a lower cost
• When you expect to break even, what margins do you expect, etc?

Pricing and Revenue Business Plan Example

This business plan example begins with an overview of the business revenue model, then shows proposed pricing for key products.

Tips for Writing Your Pricing and Revenue Section

• Get specific about your pricing strategy. Specifically, how you connect that strategy to customer needs and product value.
• If you are asking a premium price, share unique features or innovations that justify that price point.
• Show how you plan to communicate pricing to customers.
• Create an overview of every revenue stream for your business and how each stream adds to your business model as a whole.
• Share plans to develop new revenue streams in the future.
• Show how and whether pricing will vary by customer segment and how pricing aligns with marketing strategies.
• Restate your value proposition and explain how it aligns with your revenue model.

8. Financials

This section is particularly informative for investors and leadership teams to figure out funding strategies, investment opportunities, and more. According to Forbes , you'll want to include three main things:

• Profit/Loss Statement - This answers the question of whether your business is currently profitable.
• Cash Flow Statement - This details exactly how much cash is incoming and outgoing to give insight into how much cash a business has on hand.
• Balance Sheet - This outlines assets, liabilities, and equity, which gives insight into how much a business is worth.

While some business plans might include more or less information, these are the key details you'll want to include.

Financials Business Plan Example

This balance sheet example shows the level of detail you will need to include in the financials section of your business plan:

Tips for Writing Your Financials Section

• Growth potential is important in this section too. Using your data, create a forecast of financial performance in the next three to five years.
• Include any data that supports your projections to assure investors of the credibility of your proposal.
• Add a break-even analysis to show that your business plan is financially practical. This information can also help you pivot quickly as your business grows.
• Consider adding a section that reviews potential risks and how sensitive your plan is to changes in the market.
• Triple-check all financial information in your plan for accuracy.
• Show how any proposed funding needs align with your plans for growth.

As you create your business plan, keep in mind that each of these sections will be formatted differently. Some may be in paragraph format, while others could be charts or graphs.

Business Plan Types

The formats above apply to most types of business plans. That said, the format and structure of your plan will vary by your goals for that plan. So, we’ve added a quick review of different business plan types. For a more detailed overview, check out this post .

1. Startups

Startup business plans are for proposing new business ideas.

If you’re planning to start a small business, preparing a business plan is crucial. The plan should include all the major factors of your business. You can check out this guide for more detailed business plan inspiration .

2. Feasibility Studies

Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization.

3. Internal Use

You can use internal business plans to share goals, strategies, or performance updates with stakeholders. Internal business plans are useful for alignment and building support for ambitious goals.

4. Strategic Initiatives

Another business plan that's often for sharing internally is a strategic business plan. This plan covers long-term business objectives that might not have been included in the startup business plan.

5. Business Acquisition or Repositioning

When a business is moving forward with an acquisition or repositioning, it may need extra structure and support. These types of business plans expand on a company's acquisition or repositioning strategy.

Growth sometimes just happens as a business continues operations. But more often, a business needs to create a structure with specific targets to meet set goals for expansion. This business plan type can help a business focus on short-term growth goals and align resources with those goals.

Sample Business Plan Templates

Now that you know what's included and how to format a business plan, let's review some templates.

1. HubSpot's One-Page Business Plan

Download a free, editable one-page business plan template..

The business plan linked above was created here at HubSpot and is perfect for businesses of any size — no matter how many strategies we still have to develop.

Fields such as Company Description, Required Funding, and Implementation Timeline give this one-page business plan a framework for how to build your brand and what tasks to keep track of as you grow. Then, as the business matures, you can expand on your original business plan with a new iteration of the above document.

Why We Like It

This one-page business plan is a fantastic choice for the new business owner who doesn’t have the time or resources to draft a full-blown business plan. It includes all the essential sections in an accessible, bullet-point-friendly format. That way, you can get the broad strokes down before honing in on the details.

2. HubSpot's Downloadable Business Plan Template

We also created a business plan template for entrepreneurs.

The template is designed as a guide and checklist for starting your own business. You’ll learn what to include in each section of your business plan and how to do it. There’s also a list for you to check off when you finish each section of your business plan.

Strong game plans help coaches win games and help businesses rocket to the top of their industries. So if you dedicate the time and effort required to write a workable and convincing business plan, you’ll boost your chances of success and even dominance in your market.

This business plan kit is essential for the budding entrepreneur who needs a more extensive document to share with investors and other stakeholders. It not only includes sections for your executive summary, product line, market analysis, marketing plan, and sales plan, but it also offers hands-on guidance for filling out those sections.

3. LiveFlow’s Financial Planning Template with built-in automation

This free template from LiveFlow aims to make it easy for businesses to create a financial plan and track their progress on a monthly basis. The P&L Budget versus Actual format allows users to track their revenue, cost of sales, operating expenses, operating profit margin, net profit, and more.

The summary dashboard aggregates all of the data put into the financial plan sheet and will automatically update when changes are made. Instead of wasting hours manually importing your data to your spreadsheet, LiveFlow can also help you to automatically connect your accounting and banking data directly to your spreadsheet, so your numbers are always up-to-date.

With the dashboard, you can view your runway, cash balance, burn rate, gross margins, and other metrics. Having a simple way to track everything in one place will make it easier to complete the financials section of your business plan.

This is a fantastic template to track performance and alignment internally and to create a dependable process for documenting financial information across the business. It’s highly versatile and beginner-friendly. It’s especially useful if you don’t have an accountant on the team. (We always recommend you do, but for new businesses, having one might not be possible.)

4. ThoughtCo’s Sample Business Plan

One of the more financially oriented sample business plans in this list, BPlan’s free business plan template dedicates many of its pages to your business’s financial plan and financial statements.

After filling this business plan out, your company will truly understand its financial health and the steps you need to take to maintain or improve it.

We absolutely love this business plan template because of its ease-of-use and hands-on instructions (in addition to its finance-centric components). If you feel overwhelmed by the thought of writing an entire business plan, consider using this template to help you with the process.

6. Upmetrics’ Sample Business Plans

If you are looking for an industry-specific business plan template for your business, Upmetrics has a library of 400+ sample business plans has templates for almost every business type.

This template helps you create a detailed plan without missing out on any critical information. Simply download the sample plan, import it into your editor/doc, and follow the step-by-step instructions to write your plan.

This library of sample business plans is an excellent choice for small business owners with limited resources and no prior business or financial planning experience. The well-structured template has all the essential sections as well as step-by-step instructions to prepare a comprehensive business plan.

7. Harvard Business Review’s "How to Write a Winning Business Plan"

Most sample business plans teach you what to include in your business plan, but this Harvard Business Review article will take your business plan to the next level — it teaches you the why and how behind writing a business plan.

With the guidance of Stanley Rich and Richard Gumpert, co-authors of " Business Plans That Win: Lessons From the MIT Enterprise Forum ", you'll learn how to write a convincing business plan that emphasizes the market demand for your product or service. You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of our favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

8. HubSpot’s Complete Guide to Starting a Business

If you’re an entrepreneur, you know writing a business plan is one of the most challenging first steps to starting a business. Fortunately, with HubSpot's comprehensive guide to starting a business, you'll learn how to map out all the details by understanding what to include in your business plan and why it’s important to include them. The guide also fleshes out an entire sample business plan for you.

If you need further guidance on starting a business, HubSpot's guide can teach you how to make your business legal, choose and register your business name, and fund your business. It will also give small business tax information and includes marketing, sales, and service tips.

This comprehensive guide will walk you through the process of starting a business, in addition to writing your business plan, with a high level of exactitude and detail. So if you’re in the midst of starting your business, this is an excellent guide for you. It also offers other resources you might need, such as market analysis templates.

9. Panda Doc’s Free Business Plan Template

PandaDoc’s free business plan template is one of the more detailed and fleshed-out sample business plans on this list. It describes what you should include in each section, so you don't have to come up with everything from scratch.

Once you fill it out, you’ll fully understand your business’ nitty-gritty details and how all of its moving parts should work together to contribute to its success.

This template has two things we love: comprehensiveness and in-depth instructions. Plus, it’s synced with PandaDoc’s e-signature software so that you and other stakeholders can sign it with ease. For that reason, we especially love it for those starting a business with a partner or with a board of directors.

10. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers several free business plan templates that can be used to inspire your own plan. Before you get started, you can decide what type of business plan you need — a traditional or lean start-up plan.

Then, you can review the format for both of those plans and view examples of what they might look like.

We love both of the SBA’s templates because of their versatility. You can choose between two options and use the existing content in the templates to flesh out your own plan. Plus, if needed, you can get a free business counselor to help you along the way.

Top Business Plan Examples

Here are some completed business plan samples to get an idea of how to customize a plan for your business. We’ve chosen different types of business plan ideas to expand your imagination. Some are extensive, while others are fairly simple.

Take a look.

1. LiveFlow

One of the major business expenses is marketing. How you handle your marketing reflects your company’s revenue. We included this business plan to show you how you can ensure your marketing team is aligned with your overall business plan to get results. The plan also shows you how to track even the smallest metrics of your campaigns, like ROI and payback periods instead of just focusing on big metrics like gross and revenue.

Fintech startup, LiveFlow, allows users to sync real-time data from its accounting services, payment platforms, and banks into custom reports. This eliminates the task of pulling reports together manually, saving teams time and helping automate workflows.

When it came to including marketing strategy in its business plan, LiveFlow created a separate marketing profit and loss statement (P&L) to track how well the company was doing with its marketing initiatives. This is a great approach, allowing businesses to focus on where their marketing dollars are making the most impact.

"Using this framework over a traditional marketing plan will help you set a profitable marketing strategy taking things like CAC, LTV, Payback period, and P&L into consideration," explains LiveFlow co-founder, Lasse Kalkar .

Having this information handy will enable you to build out your business plan’s marketing section with confidence. LiveFlow has shared the template here . You can test it for yourself.

2. Lula Body

Sometimes all you need is a solid mission statement and core values to guide you on how to go about everything. You do this by creating a business plan revolving around how to fulfill your statement best. For example, Patagonia is an eco-friendly company, so their plan discusses how to make the best environmentally friendly products without causing harm.

A good mission statement should not only resonate with consumers but should also serve as a core value compass for employees as well.

Outdoor clothing retailer, Patagonia, has one of the most compelling mission statements we’ve seen:

"Together, let’s prioritise purpose over profit and protect this wondrous planet, our only home."

It reels you in from the start, and the environmentally friendly theme continues throughout the rest of the statement.

This mission goes on to explain that they are out to "Build the best product, cause no unnecessary harm, and use business to protect nature."

Their mission statement is compelling and detailed, with each section outlining how they will accomplish their goal.

4. Vesta Home Automation

This is the kind of business plan you need when applying for business funds. It clearly illustrates the expected future of the company and how the business has been coming along over the years.

This executive summary for a smart home device startup is part of a business plan created by students at Mount Royal University . While it lacks some of the sleek visuals of the templates above, its executive summary does a great job of demonstrating how invested they are in the business.

Right away, they mention they’ve invested $200,000 into the company already, which shows investors they have skin in the game and aren’t just looking for someone else to foot the bill.

5. NALB Creative Center

This fictional business plan for an art supply store includes everything one might need in a business plan: an executive summary, a company summary, a list of services, a market analysis summary, and more. Due to its comprehensiveness, it’s an excellent example to follow if you’re opening a brick-and-mortar store and need to get external funding to start your business .

One of its most notable sections is its market analysis summary, which includes an overview of the population growth in the business’ target geographical area, as well as a breakdown of the types of potential customers they expect to welcome at the store. This sort of granular insight is essential for understanding and communicating your business’s growth potential. Plus, it lays a strong foundation for creating relevant and useful buyer personas .

It’s essential to keep this information up-to-date as your market and target buyer changes. For that reason, you should carry out market research as often as possible to ensure that you’re targeting the correct audience and sharing accurate information with your investors.

6. Curriculum Companion Suites (CSS)

If you’re looking for a SaaS business plan example, look no further than this business plan for a fictional educational software company called Curriculum Companion Suites. Like the business plan for the NALB Creative Center, it includes plenty of information for prospective investors and other key stakeholders in the business.

One of the most notable features of this business plan is the executive summary, which includes an overview of the product, market, and mission. The first two are essential for software companies because the product offering is so often at the forefront of the company’s strategy. Without that information being immediately available to investors and executives, then you risk writing an unfocused business plan.

It’s also essential to front-load your company’s mission if it explains your "Why?" In other words, why do you do what you do, and why should stakeholders care? This is an important section to include if you feel that your mission will drive interest in the business and its offerings.

7. Culina Sample Business Plan

Culina's sample business plan is an excellent example of how to lay out your business plan so that it flows naturally, engages readers, and provides the critical information investors and stakeholders need. You can also use this template as a guide while you're gathering important details. After looking at this sample, you'll have a better understanding of the data and research you need to do for your own business plan.

8. Plum Sample Business Plan

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How to Make a Feasibility Study for a Business Easily

Definition of the feasibility study for business.

What is the feasibility study for business? How is the feasibility study different from the ordinary business plan? Definition: A feasibility study is a documented result of marketing and practicality studies justifying the feasibility of implementing an investment project, selecting the most effective organizational, technical, and economic solutions for commissioning new developments or reconstruction and modernization of existing production facilities. A feasibility study, if necessary, is included in the composition of the business plan.

Having thoroughly studied this “problem,” we came to the strange conclusion that a feasibility study is simply a “stripped-down” semblance of a business plan, and in some cases, it is a business plan called a “feasibility study,” and no more. Before you find out how to make a feasibility study for a business, it is also important to learn what is the aim of creating this document.

The Aim of the Feasibility Study

Knowing the aim is important if you want to understand how to do a feasibility study for a new business. The main aim of this type of business paper is to make an analysis of demand for products, goods, and services planned for production. The main goal of entrepreneurial activity is profit making. When planning the planned transaction, you should first of all determine the amount of profit you can expect, and make sure that the project can bring the desired profit. It is important to take into account the time factor, as well as in general when creating a business plan. In other words, along with the magnitude of the expected profit, it is necessary to know how it will be distributed over time and whether the profit will be too late, taking into account the entrepreneur’s need for money and the impact of inflation.

Peculiarities of the Feasibility Study

The business plan and feasibility study differ in their structure. So the business plan has a clear structure which must be adhered to; the same can not be said about the feasibility study. As a rule, the structure of the feasibility study depends on the specific investment project. For example, if a feasibility study is prepared for a newly established enterprise, then its structure should contain all the most important aspects of the activity of this enterprise. If the investment project involves the renovation and reconstruction of the company’s fixed assets, then in this case special attention should be given to the assessment and efficiency of capital expenditures.

Now that you know the definition, the aim, and the particularities of a feasibility study, it is time to learn how to make feasibility report for business.

Feasibility Business Plan Writing Steps

• Write the business description with key success factors. The beginning of any feasibility study is the presentation of the company, which reflects its main characteristics, the degree of technology it is equipped with, the share of the market, and a brief financial analysis of the company.
• Describe the product/service and its benefits. Write why your product or service is the best choice on the market.
• Point out target market feasibility, demand and supply analysis, and location.
• Quantitative and qualitative requirements to material resources and labor funds are determined. Possible ways of supplying raw materials and/or components are reflected. The level of training of personnel participating in the implementation of the investment project is determined.
• Consider government regulations and technology costs. Calculate the costs associated with research and production in this investment project. In the case when a feasibility study is developed for a manufacturing enterprise, the factory cost of the future product is calculated by the method of increasing the cost calculations for one product-unit.
• Carry out an analysis on competitive advantage and entry barriers. Try to find methods of working that your competitors use.
• Think about technical feasibility, resources, and work force. You should describe the level of technological potential of the enterprise.
• Write on sales forecast, profitability, and financial viability. You should make a calculation of financial indicators of profitability and sustainability of the project.
• Describe marketing potential and strategy, advertising, and pricing. Include data of marketing research in the areas of the consumer market, counterparties, the surrounding business environment, and production conditions.
• Talk about possible risks. Include technical and financial risks.
• Summarize and conclude the feasibility study of business.

Analysis of Feasibility Plan Example

This feasibility plan template is used to analyze credit risks and prospects. We recommend you to develop your own feasibility study in accordance with the following analysis. Preparation of the feasibility study and its creation will be much easier if you read through the following analysis of one of feasibility plan examples .

Feasibility Study Writing Tips

• If you want to know how to make feasibility study for small business, you should understand that each business project begins with the initiation, identification of the main tasks and objectives, and the preparation of the feasibility study. After the feasibility study has been developed, the management team of the company decides: – The project is rejected because it is inexpedient and unprofitable. – The project is deferred until the necessary information is clarified. – The project is approved and submitted for review and approval by the investor or creditor. – The project is approved and passed to the project manager for its implementation.
• The initiator and the project manager participate in the preparation of the feasibility study. The initiator is the representative of the business unit – he or she manages all stages of the project implementation and is responsible for the targeted use of the financing allocated for the project.
• It is important to understand that only top managers fully know all the topical issues on the introduction of innovations and the tasks the company is faced with. Therefore, it is best to develop a feasibility study on your own, without the help of outsiders. A special role in this matter is the preservation of information about the project, as a document of strategic importance.
• The feasibility study can be developed both in the format of an independent document and be included in the business plan and other developments. The compiled feasibility study in different companies looks different: in some firms it is 1-2 sheets of A-4 format, and some firms approach the development of a feasibility study in the most responsible way, involving professionals of various specializations in this process – in this case the final type of feasibility study is a set of documents.
• The time of performance of the feasibility study is determined by: – the degree of detail in the presentation of the document; – the volume of the planned functionality required for the preparation and implementation of the plan; – readiness and relevance of necessary legal documents; – presence of necessary employees for development of the company.
• It is not difficult to compile a feasibility study of a business or its modernization, if you adhere to two specific factors: dependence on the case and the requirements put forward by the party for which the document is drawn up. A case is a specific project. So, for the introduction of a single product or service there will be one volume and format, and for the implementation of a global project to open a production complex, the scale of calculations and their estimates will be completely different.
• It is important to understand that in developing a feasibility study, the requirements for this document depend on the subject or object which approves the project. For example, for the feasibility study of credit or investment capital, it is necessary to show more carefully the calculations of the economic efficiency of the project, and for modernization of production carried out with the company’s own money, greater attention is paid to marketing analysis and consumer characteristics of products.
• Any feasibility study methodology should reflect both fixed costs and non-recurring expenses, and also have a calculation of the profit received under different conditions of demand. It is important that the feasibility study depicts an overall assessment of the implementation of the business project.

Mistakes in Feasibility Study

• Forgetting about the marketing block or including unnecessary details in it. The marketing block should describe all the relevant details and circumstances related to the impact on the market and the reaction of the market in connection with the implementation of the business project. This block should describe what competitive strategy will be chosen and why it will lead to success, and which companies will gain competitive advantages.
• Forgetting to describe the technology of production of goods or services, the organization of production processes, as well as other important parameters for achieving the basic production indicators – assortment, cost, terms, and quality. The production and technological block should describe how the production of products (services) will be organized and the provision of the necessary raw materials, components, and goods.
• Forgetting to describe the enterprise management system, the investment development plan, as well as all the necessary parameters related to the recruitment, training, and management of the work force.

Now you know how to do a high-quality feasibility study which can help you to get better results in your business. If you want to learn more information about other types of business papers, check out our blog for more information.

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Feasibility analysis for new businesses

Feasibility analysis involves assessing your new business idea in detail to determine if it will be viable. This can build on any initial research you've already done.

A feasibility analysis helps you consider the costs and activities required to set up and run a business, and how to make an informed decision about whether to start a business and how to do it.

Most importantly, it will give you a picture of the costs involved that you'll need to consider and the revenue and profit you can realistically expect to generate.

To determine if your business idea is practical and achievable, there are areas you can investigate and study.

Ask yourself these practical questions and how they relate to your situation as a starting point.

• Is the business logistically achievable?
• Does current technology meet your needs?
• What are the risks?
• How will your products or service differ from what is on the market?
• What is the trajectory of the market?
• Do you have the finances to make the business achievable?
• Is there a time constraint for establishing the business?

How to analyse the feasibility of your business

To conduct a feasibility analysis, you will need a detailed understanding of:

• your business idea, product or service
• the nature of the market
• the needs of your customers
• the costs involved and the revenue you are forecasting
• your business model and plan
• the human resources and skills available to support the business.

A feasibility analysis – to provide details for a formal business plan – may be necessary when preparing a pitch to investors, lenders or potential partners for your business, and when applying for government funding.

Steps for feasibility analysis

Follow these steps to analyse the feasibility of your business.

• the financial feasibility of starting the business (read below)
• the legal requirements for operating it
• the operational capacity as outlined in your business plan .
• Research the industry, market, customers, business model and staffing – how will they affect the feasibility of your business?
• Review your research findings to determine if the business idea, product or service is viable.

Types of feasibility analysis

There are different types of feasibility analysis that you can use. Each type will focus on a specific part of your business operations.

Use this type of analysis to determine if your business has adequate economic resources to meet its goals (e.g. funding, capital, profit).

• What is the financial position of the business?
• Is the business able to access necessary funding?
• Can the business make a profit?
• Does the business have enough money to meet its obligations?

Use this type of analysis to determine if your business successfully meets the necessary legal requirements to operate (e.g. business registrations, permits and licences).

• Does the business have all relevant registrations, licences and permits in place?
• Does the business have access to legal advice as necessary?

Use this type of analysis to determine if your business has the operational resources it requires to be successful (e.g. business structure, premises, suppliers, human resources and equipment).

• Is the business structure confirmed?
• Are the business premises and location suitable?
• Does the business have access to a variety of suppliers?
• Does the business have the necessary staffing and equipment to operate?

Include feasibility analysis in your business plan

The business plan template contains an action checklist that you can use to help assess your business's financial, legal and operational feasibility.

Read more about writing a business plan .

Financial viability

Financial viability is your business's capacity to generate enough income to meet its operating costs while maintaining required service levels.

Make sure you've calculated the costs required to start your business and that you have funds to cover these.

To assess the financial viability of your business, consider if your business:

• is profitable
• can give you an income, salary or return on investment
• is meeting all business obligations
• has adequate cash resources
• could sustain operations through a phase of no profit.

Assessing your business's financial viability

You will need to:

• calculate key profit figures
• determine the break-even point of your business
• develop a cash flow statement and use it to estimate how long the business can survive without making profit

Your cash flow, key profit figures and budget will contribute to your business plan. You might choose to compile this financial information yourself or work with a financial adviser.

For more information, see:

• budgets and forecasts
• cash flow management
• working with accountants, bookkeepers and tax agents .

Starting lean

'Starting lean' describes the method for starting a business or introducing a product or service as efficiently as possible.

Starting lean can help you to determine the feasibility of your business while minimising costs, time commitment and resources.

Starting lean may involve:

• scheduling a research phase early in your start-up preparation before the business opens or new product launches
• starting with a concept or product that can be developed and tested quickly and at low cost – this will help you validate the level of demand in the market before making a larger financial commitment
• continuing the testing phase for as long as necessary – viability increases when you make improvements between a series of tests, as opposed to a one-off test.

When the business concept, idea or product is validated, you can proceed to establishing your business.

Product and service viability

Product and service viability is a type of analysis that looks specifically at considerations associated with business products and services, rather than the business itself.

Product viability refers to the potential that business products have to generate demand in the market and be profitable.

To help you determine if a product is viable, consider the following:

• Is the product safe?
• Will the product fit into the market?
• How quickly can we get the product into the market?
• Does the current product need to be improved?
• How will you manage the research and development?
• Can you partner with industry or research partners to innovate? Take the innovation readiness quiz .
• Do you have the time and money available to innovate?
• Is there a gap in the market for this product?
• Do you have the funding to develop the new product?
• How will you manage and protect intellectual property ?

Long-term viability of products and services

It can be beneficial to consider the long-term value of your business products or services when determining their viability and how much to invest in production or marketing.

Consider the following:

• Will your products and services be viable in 5–10 years or will trends diminish their value?
• Are the products and services dependent on other products and services (e.g. maintenance, parts, servicing requirements)? If so, will those still be available in 5–10 years?
• Can your products and services adapt to industry changes and meet market needs in new ways in the future (e.g. integrate with new technologies, such as renewables)?
• What capital requirements will be needed in the long term?
• Will the potential income be worth the capital investment?

Customer needs now and in the future

Customers are the end-users of your products and services. Considering both the current and future needs of your customers is key to determining if your business idea, product or service is feasible.

To help ensure that your customer needs are met, consider:

• conducting usability testing—the process of testing a product or design with a group of users that are representative of your target customers
• implementing universal design principles—used to ensure products and services are accessible to the widest range of customers.

Customer feasibility checklist

You can use the following checklist to help you consider if your business idea, product or service will be feasible.

• Will you conduct usability testing?
• Will you apply universal design principles?
• How will your pricing affect the size of the market?
• How will competitors affect your price position in the market?
• Will the customer need to purchase maintenance packages or pay for regular upgrades?

Business model considerations

A business model outlines the core attributes of a business. It defines the business products and services, target market and costs, and details a high-level strategy for how the business plans to make a profit.

You should consider the long-term operation of the business when assessing its feasibility – the business must be viable in the start-up phase and be able to maintain this viability into the future.

• The ownership structure of the business – is it fit for purpose? Could it be changed to better suit your business goals?
• The capital required from lenders or investors – what capital do you need to make your business profitable in the short and long term?
• The distribution channels available – do you have channels available to distribute your products and services efficiently?
• The potential to licence or sell products and services in the future – will you require specific licences to sell your products and services? Will you be able to meet the necessary requirements?
• The future export potential – will you export your products or services? If so, are they any existing or potential trade barriers?

Choosing the ideal team

Part of analysing a business's feasibility is analysing its human resources. You should consider the attributes people, within and outside the business, should have to help your business succeed.

• The owner or director is responsible for the business.
• Are they the right person to manage and lead the business now and in the future?
• Will they be the best person to help the business grow or will you need more people to provide support?
• What kind of capital does your business need?
• Equity partners might help you reach your business goals.
• Make sure you have identified the amount of equity you are prepared to give to others before engaging in partnership discussions.
• Your staff are vital to your business success.
• Both managers and general staff are needed to lead and operate the business.
• Think about the staff you have and the staff you may need in the future.
• Independent contractors can help you meet specialist needs in both the short and long term.
• Consider the potential skills gaps within your business and opportunities for outsourcing.

Other key people may benefit your business and help you build capacity for growth and improvement, such as:

• researchers
• financial advisers
• intellectual property specialists
• accountants
• bookkeepers
• IT specialists
• advertising and marketing managers.

Also consider...

• Learn about marketing and customer research .
• Understand the process of researching customers .
• Read customer stories from the Entrepreneurs’ Programme .
• Find out about Australian Government grants and programs .
• Read about the Advance Queensland initiative .
• Get export support .
• Learn about grants for innovation .
• Take the business readiness health check .
• Understand patents .
• Last reviewed: 10 Oct 2022
• Last updated: 10 Oct 2022

Barbra Dozier's Blog

Just another wordpress.com weblog, business proposal and feasibility study.

BUSINESS PROPOSAL AND FEASIBILITY STUDY

(Your name)

(Your institution)

(Your instructor’s name)

(Your course)

Table of contents

Executive summary 3

Introduction 3

Business History 5

Description of business 6

Market and industry analysis 7

Description of the products 9

Objectives and goals of the company 10

Competition and competitive advantage 11

Operational plan 11

Marketing plan 13

SWOT Analysis 14

Ownership and Management structure 15

Benefits created by the company to the Canadian citizens 17

Financial plan 18

Revenue and cost estimation 18

Sales projections 18

Cost estimation 21

Implementation strategy 21

Internal control plan 22

Projected income statement 23

Cash flow forecast 25

Forecasted balance sheet 27

Ratio analysis 28

References 30

Executive summary

African food production companies are almost non-existent in the region of Quebec in Canada. On the other hand, the population of Africans living in Canada is increasing on a daily basis. One of the most treasured meal ingredients especially in West Africa is Gari which is a type of meal made from cassava, the other common ingredient is red palm oil which is used by Africans, South Americans as well Asians from the South East Asia as cooking oil and also for its medicinal qualities. Cassava and yams flour as well as Raw Cassava and yams are also among Africans’ favorite meals. Therefore the idea of manufacturing these products in Quebec and Canada as a whole provides a lucrative business opportunity as shown by this Business Proposal.

The proposed manufacturing company shall assume the name Divine Seal International and shall be setup at an initial cost of $400,000 in the Montreal metropolitan area of Canada. The company is expected to start its operations on January 1 st 2012 and due to the large market for its products, it is expected to break even in the second year of operation. The company shall employ 30 members of staff at the initial stages and this number is expected to increase as the company’s operations expand and this and other operational areas of the company indicates that the benefits presented to the Canadian population are enormous.

Introduction

Gari is a major staple food in West Africa and according to African foods 2011; it constitutes a daily meal to more than 150 million people across the world. Gari can be prepared in several ways and the end result can be a snack, a whole meal or a biting. For instance, Gari can be mixed with cold water and eaten as a snack on a very hot day, it can be cooked into dough like meal that is known as eba or gari foto and eaten with stew like fish stew, chicken stew or other African vegetable stews or soups. Gari is most popular in Ghana, Siera Leone, Nigeria, Ivory Coast, Liberia, Mali, Guinea as well as other West African states (African Foods, 2011)

Red Palm Oil is a traditional fat that is used as for its medicinal qualities and also as cooking oil. The red palm oil is commonly used in Egypt as a sacred food. The oil is also very common in West African countries especially Ghana, Nigeria, Guinea, Ivory Coast etc. The oil comes from a fruit that is referred to as oil palm whose scientific name is Elaesis Guineensis and it grows in West African Coast lines as well as other tropical areas in Africa. The oil palm also grows in South America and South East Asia where tropical climates are found (Bruce, 2010).The palm oil is used as cooking oil in preparation of foods and it is very common in West Africa where it is used as the main cooking oil and for its nutritional and healing properties, it is used to boost the immune system and health of the West African population as well as inhabitants of other areas where it is commonly used (Bruce, 2010).

Raw Cassava and Yam are also known for their nutritional value and are very common in the West African states. Cassava and Yam flour on the other hand is a very common staple food in West Africa and it is used to prepare dough like meal that is served with stew or African vegetable soup. It is also very common in East and Central African countries (Ciacco and Appolonia, 1978).

The region of Quebec had a total of over 7.5 million inhabitants as at the end of 2006, 25%of this population lives in Montreal due to its diverse cultural vitality, open society nature, economic strength and dynamism as well as low cost of living. Montreal city generates over 1.1 million jobs and as such it is home to a big proportion of immigrants into the Quebec region. According to the 2001 Census, over 70% of Quebec’s immigrants live in the Montreal area and they account for 28% of the total population of Quebec (Government of Quebec, 2006). Immigrants from Africa into Quebec account for 12.4% of the total immigrant population of Quebec according to the 2001 census. By January 2006, 28.7% of the total visas issued to immigrant individuals into Quebec were from Africa and the majority of those were from West Africa (Government of Quebec, 2006).

As a result of this huge immigrant population of West Africans and Africans in general into Quebec especially the Montreal region, this business proposal seeks to open a new business in Quebec’s Montreal region under the Entrepreneurial immigration program. The business shall be involved in the production of Gari which is a West African Tropicana corn flakes meal that is common among West Africans as mentioned above. The business shall also produce Red palm oil which is common cooking oil and is also used for its medicinal properties by West Africans; finally the business shall produce raw and processed Cassava and Yam flour which is a staple food of West Africans to be supplied to the growing population of West Africans and other Africans living in Quebec region of Canada. The business shall target the Africans living in Quebec and eventually shall spread to other regions of Canada and eventually to South America and the United States of America.

The business is already operational in Africa where it was incorporated in the year 2007 and a new branch was opened in Malaysia which was incorporated in the year 2011. The name of the business shall be ‘Divine Seal International’.

Business History

The proposed business of manufacturing Gari, red palm oil, raw and processed cassava and yam flour started in Africa when the company to manufacture the above mentioned products was incorporated in the year 2007. In 2011, the company expanded its network in 2011 by opening a branch in Malaysia a country that is located in the South East Asia where the tropical climate is also common and such, the population of Malaysia use the Palm Oil as cooking oil and also for its medicinal value. The Gari and cassava and yam flour is also a common meal in Malaysia and other South East Asia countries therefore the branch is expected to do very well in that region.

Gari is one of the most common meals or ingredients for meals in Africa, Gari and the food items it is used to prepare varies in names and ingredients among various African countries and its use goes back hundreds of years. In Eastern Africa, it is used to make a meal that is referred to as Ugali and it can be made from Gari, cassava and yams flour, sorghum flour, millet flour or corn flour, in West Africa it is commonly referred to as Eba or Gari foto and it is made from Gari or cassava and yams flour (African Foods, 2011).

Description of business

The proposed company shall take advantage of the business opportunity presented by the high number of West Africans in Quebec Canada and the rest of Canada as a whole. As a result of the Canadian Entrepreneurial Immigration program, the business is expected to have ready customers as a result of the West Africans’ love for their staple food and palm oil. The quality of products manufactured by Divine Seal International shall be unrivalled especially due to its attention to the African touch which Africans value more than anything in their food preparation processes. The business shall offer products that are known for their nutritional values and also medicinal values in the case of palm oil therefore boosting the health of the African Immigrants who’s main line of work in the Quebec region is labor intensive in nature thus requiring them to be strong enough physically and health wise (Government of Quebec, 2006). The business have been tried in Africa and Malaysia and proved to be a success especially due to the value placed on the products by their users.

The business shall have four major product lines namely; Gari Line that shall be involved in the production of Gari, Palm Oil product line that shall be involved in the production of palm oil, Raw Cassava and Yams product line and finally Cassava and Yams flour product which shall be involved in the production of cassava and yam flour.

Market and industry analysis

Quebec had a population of over 7.2 million based on the 2001 census and a population of over 7.5 million based on the 2006 population census. As mentioned above, more than 25% of this population lives in the Montreal area. Divine Seal International shall target the African community living in Quebec. The chart below shows the population of immigrants living in Quebec compared to the local population according to the 2001 population census, 2006 population census and the 2011 population estimates (Statistics Canada, 2011).

Based on chart above, the immigrant population of Quebec is equal to 28% of the total population based on the 2001 population census, this proportion increased to 31.4% based on the 2006 population census. Therefore the chart above indicates that among the over 7.2 million living in Quebec by the time the 2001 census was carried out, 2 million are immigrants (Government of Quebec, 2001). In the 2006 population census, the number of immigrants living in Quebec increased from 28% to 31.4% of total populations (Statistics Canada, 2006). This indicates that among the over 7.5 million people living in Quebec Canada by the time the 2006 census was carried out, over 2.35 million were immigrants (Statistics Canada, 2006). In April 2011, population estimates shows that the population of Quebec stood at over 7.9 million and around 35% of these are immigrants indicating that the total immigrant population in Quebec would be over 2.7 million (Statistics Canada 2011).

As shown in the table above, the proportion of Africans in the total immigrant population of Quebec was equal to 12.4% based on the population census of the year 2001. This indicates that since the total immigrants according to 2001 census were around 2 million in Quebec alone, the total Africans living in Quebec would be equal to 12.4% of 2 million which is equal to over 248,000. The 2006 population census indicated that the proportion of Africans in the Immigrants population increased to 28.7% meaning that among the over 2.35 million immigrants living in Quebec, over 670,000 are Africans (Statistics Canada, 2006). The 2011 population estimates indicates that the population of Africans among the Immigrants living in Quebec is over 32% indicating that among the over 2.9 million immigrants living in Quebec by April 2011, 32% were from Africa indicating that a total of over 900,000 Africans lived in Quebec and its environs (Statistics Canada, 2011).

The number of restaurants serving African cuisine in Quebec region most of which are located in the Montreal metropolitan area is around 10 with only two serving West African, Central and East African Cuisine. All the other restaurants focus on North African Cuisine which include Morocco, Algeria, Tunisia and Egypt etc most of whom are Arabic and as such do not closely match the African choice of meals (World web travel, 2011). This indicates that most Africans living in Quebec and most of Canada find it difficult to find a restaurant where they can enjoy their African meals which would not be complete without Gari or Gari foto and other African ingredients such as Red palm oil, cassava and yams flour as well as raw cassava and yams which are all treasured in Africa because of their nutritional value. Therefore manufacturing these products with a sole purpose of targeting this population will provide Divine seal international with ready market for her products.

Description of the products

The company shall produce a total of four lines of products which shall be as follows;

Gari; this is the principle line of business and the produced end product known as Gari shall be packaged in four different packets that shall be differentiated by weight. The smallest packet shall be a 0.5 kg packet, the next one shall be a 1 kg packet, the next packet shall be a 2 kg packet and the largest packet shall be a 5 kg packet of gari. The pricing of these products shall be as shown in the revenues and cost estimates section which has been done on a per kilogram basis.

Red Palm Oil; the red palm oil shall be the second line of production and shall be packaged in four distinct packaging differentiated by their volume. The smallest packaging shall be a 0.5 litres jar of palm oil, the next one shall be a 1 litre jar, the third one shall be a 2 litre jar and the largest one shall be a 5 litre jar of red palm oil

Processed cassava and yams flour; this shall be the third line of production and shall be packaged in four distinct packets differentiated by their weight. The smallest packet shall be a 0.5 kg packet, the next one shall be a 1 kg packet, the next one shall be a 2kg packet and the largest packet shall be a five kg packet.

Raw Cassava and Yams; this shall be the final product line which shall require very little resources in terms of production. The raw cassava and yams shall be bought from the foodstuffs market and packaged in 1kg packs that shall be sold at $1.5 per pack.

Objectives and goals of the company

The company’s main objective is providing the population of African descent living in the Quebec region of Canada with products that they envy in the preparation of their meals therefore helping them find their traditional delicacies even when they are far away from home.

The company’s growth objective is open other production plants in other cities of Canada within the first 7 years of operation in order to serve the African population living in Canada. The company intends to open production plants in the United States to serve the African population living in the United States and finally the company intends to open branches in South America. These objectives shall be achieved by focusing on the need to provide quality products to a population that already has a need to the company’s products but cannot readily find them in the market.

The company’s main goal is to gain a market share of at least 30 percent by the end of the fifth year of operation which shall help the company in its objective of becoming one of the leading African food production companies in North and South American region.

To achieve the above objectives, the company intends to take advantage of the low penetration of African foodstuff products into the Canadian market and also offer quality products that would not be easily rivaled by her potential competitors.

The company’s intent to expand into United States and South American represents its long term objective whose time frame is from year 10 which shall be achieved by ensuring that the products manufactured by the company are accessible by such markets in the short term.

Competition and competitive advantage

The Agricultural food industry is the second largest manufacturing industry in Canada employing over 291,000 Canadians According to (Invest in Canada 2011). The industry accounts for 14% of all Canadian Manufacturing shipments which are worth $83.3 billion or 2% of Canada’s gross domestic product (Invest in Canada, 2011). The country has over 6,700 food and beverage processing firms located in vast areas across the country. However, none of the 6,700 firms specializes in African food processing thus providing the company with a good competitive advantage to tap the unutilized market of African Food Products such as Gari, Red Palm Oil, Raw cassava and Yams as well as processed cassava and Yams flour. Canadian government encourages investment in the Agri-Food business by offering friendly and streamlined corporate taxes and regulations, high quality food inspection systems and excellent transportation networks that help to ensure that the products produced reach their intended market on time and at their best quality (Invest in Canada, 2011).

Operational plan

The company intends top setup its manufacturing plant in Montreal on a rented space that shall cost around $30,000 per month and shall be sourced from lucratively and strategically located facilities in eligible locations in the city of Montreal but the exact location of the manufacturing plant is yet to be determined. The manufacturing facility shall be comprised of a processing plant and a warehouse that shall be used in the storage of the finished products awaiting transportation to the market.

To help in making its operations a success, the company shall setup an office that shall be at the manufacturing plant at the initial stages of operation and shall employ a team of 5 management staff that shall be comprised of the general manager, the Finance and administration manager, the sales and marketing manager, the production manager and Information technology manager. The finance and administration, sales and marketing and information technology departments shall each have a total of five employees while the operations and production department shall have a total of 10 employees.

After the initial stages when the company will have stabilized, it shall eventually acquire an office complex close to the manufacturing plant that shall be used for office operations in order to help in effective distribution of the products to the market.

The company shall seek the services of an Attorney to help in the legal process of the setting up the manufacturing plant, setting up the personnel payment structures as well as helping in acquiring the required licenses to enable the company effectively and legally produce its products which are classified as food stuffs and as such require special licenses (Invest in Canada, 2011).

The services of the Attorney are estimated to cost a one off fee of $5,000. The company shall also seek the help of an external accountant who shall help in the process of setting up the company’s accounting framework to help the finance department staff in efficient record keeping and financial reporting. The external accountant’s services are estimated to cost $10,000 per year in the initial stages of operation but this figure is expected to increase as the company’s operations expand. The company will also seek the services of a management consultant to help in designing management best practices within the organization so that the company leadership can operate at optimal capacity. The management consultant is expected to cost approximately $10,000 per year. Finally the company shall seek the help of a technology consultant to help in designing the manufacturing plant and linking it with a computerized system that shall help in running the manufacturing equipment. The technology consultant will help with yearly periodical maintenance of the manufacturing equipment and is expected to cost the company approximately $15,000 per year (Invest in Canada, 2011).

Marketing plan

The company’s main line of business shall be manufacture of Gari and Red Palm oil. Other products include processed cassava and yams flour and raw cassava and yams. These are popular African foodstuffs and as such the company shall start with the restaurants that serve African foods in Quebec to market its products. The African foods production market has a low penetration in Quebec and Canada as a whole especially due to the low number of Africans in those regions. However as shown by the population demographics in the market analysis section above, the number of Africans living in Quebec and Canada as a whole is increasing at a very high rate due to the skilled labor immigration program of that country. Therefore the potential that this market holds for production of African foods is quite enormous. As such, the company aims at targeting restaurants that specialize in African Cuisine. The most common of the restaurants that serve West African Cuisine including meals made from Gari and palm oil is Restaurant Chic Afric which is located on 1486 de I’Eglise in Montreal Quebec Canada. The restaurant is known for its wide range of dishes that feature Ivory Coast, Nigeria, Ghana and Burkina Faso delicacies that include Goat soup, Jollof rice, fufu which is dough like meal made from cassava and yam flour. Therefore this and other such restaurants will be the starting point in the marketing campaign of the company.

In addition to the restaurants mentioned above, the company shall vigorously employ other marketing methods using conservative cost estimates due to scarcity of funds. The company shall employ a marketing budget of $29,000 per month that shall comprise of marketing methods such as advertising through advertising agencies located in Quebec. The specific advertising agencies have not been identified but the cost of advertising using advertising agencies has been estimated at $5,000 per month for a conservative but visible advertising plan. The second advertising avenue that shall be used by the company is through its website where the cost of web design has been estimated at $5,000 per month, the third advertising avenue is through bill boards and merchandising displays in shops and supermarkets that has been estimated at $4,000 per month. The fourth advertising option is through media advertising where television, radio, online and print shall be used at an estimated cost of $5,500 per month. The company shall have a website that shall be designed and maintained at a monthly cost of $7,500 and finally the company shall use public relation avenues at a cost of $2,000 per month bringing the total marketing budget to $29,000 (Griffin, 2011)

SWOT Analysis

The company’s strengths, weaknesses, Opportunities and threats are as shown in the table below;

The above strengths, weaknesses, opportunities and threats shall form part of the basis of evaluating the business performance of the company in future (Hartline & Ferrell, 2010).

Ownership and Management structure

The company shall assume the form of a corporation whose liability shall be limited by shares. This indicates that the company shall assume the name Divine Seal International Ltd. The Corporation shall therefore assume the following management and organizational structure.

Board of Directors

General Manager

Finance and Administration Manager

Operations and Production Manager

Information Technology Manager

Sales and Marketing Manager

Production Engineer and 9 Operations and Production staff

Accountant and 4 administrative staff

4 marketers and sales staff

4 Computer specialists

Commission based external sales force

As shown in the organizational chart above, at the initial stages of operation, the company shall have a total of 30 members of staff who shall be distributed among four departments. The general manager shall be the overall head of the company and shall be in charge of the overall operations of the company. He shall report to the board of directors and shall sit in the board as the company’s principle officer.

The finance and administration manager shall be in charge of the overall financial operations of the company as well as administrative aspects of the business, he shall be assisted by the Accountant who shall be in charge of accounting aspects of the business and 4 other support staff who shall be apportioned among finance and administrative roles depending on the work load in each of the two sections of the department. The finance and administration manager shall report to the General Manager and shall be expected to possess high skills in financial and analytical matters as well as management skills.

The Operation and Production manager shall be in charge of overall technical aspects of manufacturing and production, the individual charged with this responsibility shall be expected to possess production engineering skills and expertise as well as managerial skills to assist him to effectively manage his team of 10 support staff who shall be charged with production and operational roles. The production and operational manager shall report directly to the General Manager.

The information technology manager shall be in charge of the information technology department and it shall be his responsibility to ensure that the integrity of the company’s information systems is protected at all times. The individual is expected to possess high skills in computer science and information technology necessary to understand computerized industrial processes so that he can liaise with the production team to ensure that the manufacturing process is as smooth and effective as possible and also to ensure that other computerized systems in the organization are optimal and effective. He shall be assisted by a team of five computer specialists and he shall report to the General Manager.

The sales and marketing manager shall be in charge of the sales and marketing department. It shall be his responsibility to ensure that the company’s visibility in the market is at its optimal best. The manager shall be assisted by five employees who shall be charged with sales and marketing roles in proportions that shall be determined by the workload in each of the two sections of the department. Since the company shall have an external sales team who shall be responsible for an estimated 20% of the company’s sales and shall be remunerated on commission basis, the sales and marketing manager shall be responsible for this team as well as the commission based sales avenue (Griddin, 2011).

Benefits created by the company to the Canadian citizens

As shown in the organizational structure above, the company shall offer a large pool of job opportunities to the Canadian citizens because it shall at least require 30 full time members of staff who shall be working at the company’s premises. The company shall also create indirect job opportunities from its distribution channels that shall include the external sales team. The company’s products are also not limited to the African population living in Canada but can also be used by Canadian citizens who might be interested in exploring other cuisines. The company’s advertising and marketing campaigns shall also create job opportunities for Canadian citizens working in the advertising and marketing agencies. Finally the company shall be involved in the corporate social responsibility activities that shall help in improving the lives of Canadian citizens among other members of the society in which the company shall be operating in (Griffin, 2011).

Financial plan

Revenue and cost estimation

The company is expected to cost an estimated start up cost of $400,000. However this amount is not enough to ensure that the company is running smoothly, therefore a short term loan of $300,000 has been suggested based on the strength of the company’s assets to take care of the company’s Working capital to avoid a situation of running out of cash to finance the company’s sales growth.

Sales projections

The company’s revenue estimates expected to be derived from the sale of the five products are $100,000 from the sale of Gari which is expected to increase at the rate of 2% per month. The expected revenues from the sale of Red Palm oil is $175,000 with an increase of 2% per month. The revenue from the sale of processed cassava and yam flour is estimated at $50,000 per month with a monthly increase of 2%. Finally the expected revenue from sale of raw cassava and yams is $15,000 per month with a monthly increase of 2%. These estimates are conservative in nature and are estimated at those levels in order to allow the market to acclimatize with the new product thus helping the company’s sales revenues grow at the estimated monthly rates as the product penetrates the market. The five products are packaged in different packaging sizes as shown in the product description segment above.

The revenue estimates are based on the assumption that the company shall sell a total of $10,000 kilograms of Gari in the first of operation at a price of $10 per kilogram. The sales volume is expected to increase at the rate of 2% per month while the price remains constant in the initial stages of operation. The sales volume of red palm oil shall be 5000 litres for the first month of operation at the price of $35 per litre. The sales volume is expected to increase at the rate of 2% per month while the price remains constant in the initial stages of operation. The sales of processed cassava and yams flour are expected to be 10,000 kilograms at a price of $5 per kilogram. The volume of sales is expected to increase at the rate of 2% per month while the price remains constant at the initial stages of operation. Finally the company expects to sell a total of 5,000 kilograms of raw cassava and yams at a price of $3 dollars per kilogram. The volume of the raw cassava and yams is expected to increase at a monthly rate of 2% while the price remains constant at the initial stages of the operation.

The above indicates that the total sales for the first month of operation shall be equivalent to $340,000. The cost of sales for the Gari product is expected to be 50% of total sales of Gari, the cost of sales of red palm oil are expected to be 50% of red palm oil’s total sales. On the other hand, the cost of sales for processed cassava and yams flour and raw cassava and yams is expected to be 40% of the total sales of processed cassava and yams flour and raw cassava and yams respectively.

The gross sales forecast, the gross profit and the net profit for the first year of operation are as shown in the year 1 financials at a glance chart below.

The sales forecast, the gross profit and the net profit for the first five years are as shown in the 5 year financials at a glance chart below.

The charts shown above indicate that the company will break even in the second year of operation.

Cost estimation

The capital expenditure is estimated at $400,000 which shall comprise of Facilities that comprise of building upgrades in order to accommodate the production equipment, fixtures, and plant, Equipment which shall comprise of machinery, furniture and motor vehicles, Computer hardware and software and telecommunications equipment.

The facilities are estimated to cost $178,000, the equipment is estimated at $205,000, and computer hardware and software and telecommunication systems are estimated at $17,000.

The personnel budget is estimated at $93,750 per month for the 30 members of staff who shall comprise of the management whose total costs shall be $20,833 per month, finance and administration staff whose total costs shall be $14,583 per month, the sales and marketing staff whose total cost shall be $14,583 per month, the operation and production staff whose costs shall be $29,167 per month and the information technology staff whose cost shall be $14,583 per month. The estimated staff costs shall be comprised of salary, benefits and payroll taxes. The external sales force shall be remunerated on commission basis at the rate of 15% of the sales made (Griffin, 2011).

The total marketing budget as indicated in the marketing plan section shall be $29,000 per month in the initial stages of operation and is expected to increase as the company grows. The machinery rentals shall include any machines that can not be acquired due to high cost or due to scarcity of funds in the short run.

Implementation strategy

The company shall acquire the premises and set up the manufacturing plant as well as the offices during the three month period to January 2012. By January 2012 the premises are estimated to be ready to accommodate the staff and the production equipment. The company shall be launched on 1 st January 2012 and start the production on the same day. The promotional and advertising campaign shall run concurrently with the production in order to ensure that the products being produced are visible and available in the market (Hartline and Ferrell, 2010).

The company shall have dedicated telephone lines and a website that shall ensure that orders are placed in real time and the customers are fed with information that they require about the products on a timely basis.

Once the company is operational, an interim audit shall be carried out after the first 6 months to determine if the company’s operations are going on as expected. Results of this audit shall be used to make necessary adjustments where they are required. After the first one year of operation, another audit shall be carried out to determine if the results of the first audit were sufficient and also adjustments shall be made using the results of this audit.

Internal control plan

The company shall employ a system of internal controls that shall ensure that the business is run smoothly and efficiently. The system of internal controls shall be designed to ensure that the responsibilities and duties assigned to each employee are carried out with optimal efficiency. A clear line of responsibility and departmental clearance requirements shall be drawn right from the General Manager down the organizational chart to the employees on the lowest levels of the chart.

The general manager in consultation with the respective manager and with the approval of the board shall be in charge of all capital acquisitions and changes in capital assets of the company. The general manager shall also be the custodian of company information meaning that the other employees are not authorized to speak on behalf of the company without direct authorization of the General Manager.

All payments exceeding $2,000 shall be authorized by the respective manager who is the head of the respective department. The amount that can be authorized by the head of department shall be reviewed from time to time by the board of directors depending on the level of transactions carried out by each department on a regular basis (Griffin, 2011).

The finance and administration department shall be responsible for the maintenance of proper books of account and with the assistance of the information technology manager shall design or acquire suitable accounting software that shall help in record keeping and ensure accounting errors are kept at the bare minimum or eliminated completely.

All the company’s computer systems and computer facilities shall be assigned to each employee by the information technology manager and he and the general manager shall be the custodians of all codes and passwords of the company’s systems (Griffin, 2011).

Projected income statement

The company’s projected income statement for the first year of operation on a month to month basis will be as shown in the table below.

As shown in the income statement above, the company’s sales shall increase at a rate of 2% per month indicating that the total sales for the first year of operation will be equal to $4,560,111; the total cost of sales will be equal to $2,192,877 indicating that the gross profit shall be equal to $2,230,431. The total expenses shall amount to $2,398,750 indicating that the company’s forecasted net loss shall be equal to $168,319 (Alvarez & Fridson, 2011).

The company’s five year forecasted income statements are as shown in the table below;

As shown in the income statements above, The Company will break even in the second year of operation and its sales and profits forecasts as well as expenses shall be as shown in the statements above. This indicates that the company will be making profits from the second year of operation onwards.

Cash flow forecast

The cash flow forecast for the first year of operation on a month to month basis is as shown in the cash flow statement below.

The forecasted cash flow statements for the first five years of operation shall be as shown in the table below.

Forecasted balance sheet

The company’s financial position as at the end of each quarter in the first year of operation shall be as shown in the balance sheet above.

The company’s forecast balance sheet as at the end of each of the first five years between year 2012 and year 2016 shall be as follows;

Ratio analysis

As shown in the ratio analysis table above, the company’s return on investment is expected to increase from -14.41% in first quarter of operation to 62.44% by the end of the fifth year of operation. The company’s return on sales is expected to increase from -8.9% in the first quarter of operation to 28.09% by the end of the fifth year of operation. The company’s return on assets is expected to increase from -14.41% in the first quarter of operation to 42.64% by the end of the fifth year of operation.

The company’s debt to equity ratio is expected to increase from 0.19 in year 2 to 0.46 by year 5. This is expected to increase the company’s leverage so as to take advantage of funds offered by lenders to expand its business as well as take advantage of the tax benefits associated with interest on debt to fund its capital structure.

The company’s current ratio is expected to decrease from 4.44 in year 2 to 2.99 in year 5 due to increased sales especially credit sales therefore reducing the company’s liquidity.

The cash turnover is expected to be high at the initial stages of operation but will reduce with time as shown in the table above and on the other hand the company’s working capital is expected to increase with the increase in sales (Alvarez and Fridson, 2011)

African Foods. (2011). African Foods: the home of African foods in the UK. Retrieved on 24 th November 2011 from http://www.africanfoods.co.uk/gari.html

Alvarez, F & Fridson, M, S. (2011). Financial Statement Analysis: A practitioner’s Guide. New York: John Wiley and Sons

Bruce, F. (2010). Red Palm Oil: A daily dose of vitamins from A cooking oil. Retrieved on 24 th November 2011 from http://www.coconutresearchcenter.org/article%20red%20palm%20oil.htm

Ciacco, C, F. & Appolonia, B, L, D. (1978). Baking studies with cassava and yam flour.1: Biochemical composition of cassava and yam flour. Department of Cereal Chemistry and Technology, North Dakota State University Journal 55(3): 402-411

Government of Quebec. (2006). The Montreal region at a glance. Retrieved on 24 th November 2011 from http://www.immigration-quebec.gouv.qc.ca/en/settle/montreal.html

Griffin, R, W. (2011). Fundamentals of Management. Florence: Cengage Learning.

Hartline, M. & Ferrell, O, C. (2010). Marketing Strategy. Florence: Cengage Learning.

Invest in Canada. (2011). Canada’s Agri-Food Industry Advantages. Retrieved on 25 th October from http://investincanada.gc.ca/eng/industry-sectors/agri-food.aspx

Statistics Canada. (2011). Quarterly demographic estimates. Retrieved on 24 th November 2011 from http://www.statcan.gc.ca/daily-quotidien/110622/t110622a2-eng.htm

Statistics Canada. (2001). Population and dwelling counts, for Canada, provinces and territories, 2001 and 1996 censuses – 100% data. Retrieved on 24 th November 2011 from http://www12.statcan.ca/english/census01/products/standard/popdwell/Table-PR.cfm

Statistics Canada. (2006). Population and dwelling counts, for Canada, provinces and territories, 2006 and 2001 censuses – 100% data. Retrieved on 24 th November 2011 from http://www12.statcan.ca/census-recensement/2006/dp-pd/hlt/97-550/Index.cfm?TPL=P1C&Page=RETR&LANG=Eng&T=101

World web travel. (2011). Travel restaurant guide to African cuisine in Montreal and the larger Quebec region. Retrieved on 24 th November 2011 from http://www.montreal.worldweb.com/RestaurantsBars/African/

4 thoughts on “ BUSINESS PROPOSAL AND FEASIBILITY STUDY ”

Lookin for a company like this to supply fresh casava and yam. My community has enough yam and casava to feed the whole of Africa.

Iam inspire about your plan.iam also doing the same gari in Ghana

if i want to start gari production now what are the step i need to take

THANK YOU VERY MUCH. I want a sample of a good business plan or proposal to be submitted to my Government on cassava and gari processing factory: pure water, bottle water and satchel water factory for assistance. My bank also need the same proposal or plan for financial assistance.

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