main purpose of economic justification - to bring to the investor the costs of the project, the payback time and performance.The difference between this document from the business plan is that it is prepared for the new product of an existing enterprise, so questions relating to market analysis, market research it did not set out.The economic justification, as a rule, provides a detailed description of the technology and equipment, as well as the reasons for their selection.
In compiling feasibility study is necessary to observe a certain sequence.It begins with the raw data, information about the market sector.Then describe the existing opportunities for the development of activities, sources of raw material reso
urces for business expansion, capital expenditures required to achieve the objective, the production plan, financial policy, as well as general information about the project.
Thus, the business case contains a description of the industry where the company operates, let to enter the type of products, the level of prices.The financial part of this document includes the terms of borrowing, sources of their coverage.Calculations are given in the tables, which reflect the cash flows.
In compiling feasibility study is necessary to study the current situation of the company, its place in the market, the technology used and the equipment.Furthermore, it should identify ways to improve the firm's profitability and business development, to predict the level of profitability that can be achieved in the implementation of the project, to study the necessary technical data to analyze the level of training of staff.You will also need to plan the implementation of the project cost estimates and plan cash flows, as well as provide an overall economic assessment of investments.
Tip 2: How to justify the project
Stage justify project is very important.While it may be possible to identify and correct the points which in the future may lead to failure.Pay particular attention to getting started early, and you will achieve the best results.
Define goals and objectives of the project justify .You need to answer the main question: whether the project is needed.Based on how well you worked and the idea will carry the benefits that can bring new business will be decided on the acceptance or rejection of the project .
Describe the essence of the project .Tell us what you plan to do and what goals being pursued.Explain how there was a need in the new case, and why was chosen this way.
conveyed to the reader or listener basic ideas and ways that will achieve results.Convince him that the chosen methods is most effective in this case.
Tell us about how much employees need to carry out your project , and what they should be training.The substantiation of the fact that the labor composition should be such.Shall describe in detail the functions of each member of the team.If you have oud nominations ozvuchte their names and surnames.In addition, members of the committee, or your leadership must know how to participate in the project will affect the substantive work of the employees.
Set ozvuchte sequence and timing of the project .Clearly list the main stages of its implementation.Then elaborate on each stage.Between the actions should be visible logical relationship to make it clear why one item is for others.Blurts real terms if it is problematic, not only the lowest possible call date of the project , better point and the maximum term.Explain the factors that may affect the execution of the job.
The calculation of material resources that will be involved in the project.Show what constitutes each item of expenditure.Before the presentation again recalculate all.Remember that if you made a mistake in calculations or miss some important article, it can lubricate all impression of the rest of your studies and would lead to the abandonment of the project .