Proposal: Guidelines and Samples

Your Guide for Proposals and Feasibility Study
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Some Questionnaire Guide in Feasibility Study Preparations

January 4, 2009, 3:29 pm
•What is the name of the firm? •Where is the location of head office and plant site? •Give a brief description of the project. •What are the assumptions being made including market projections, share and prices, investment costs, and method of financing? •Mention the summary of findings and conclusions regarding the market feasibility, technical feasibility and financial feasibility. •How shall the project be managed during the pre-operating period such as the firms or persons involved or to be involved in studying the different aspects of the project? •How shall the project be managed during the operating period including the type of business organization, organizational chart and function of each unit management personnel, duties and time to be devoted to the project, qualification and compensation? •What skills and corresponding numbers of labor are required such as qualifications, recruitment and training program, compensation, fringe benefits and facilities? •Include the time table of the project. •Indicate the annual volume of the domestic demand for the past 10 year? •Who are the major consumers of the product? •What is the projected annual volume of the domestic demand for the next 5 years? Also indicate the method used and factors considered in preparing the projection. •Who are the current and potential buyers of the product and where are they located? •What is the annual volume of the domestic supply for the past 10 years? •Who are the major producers of the product? •What are the prevailing prices of the product? •What are the present marketing strategies and practices of competitors? •What shall be adopted in the project as to the selling organization, terms of sales, channels of distribution, location of the sales outlets, transportation and storing facilities?
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Financial Study

December 28, 2008, 2:53 am
It is important if the proposed project is financially feasible, meaning the project cost is afford by the board or the company.  Also, it involves the thorough coverage of all the monetary information.  It covers the detailed information on the total project cost, initial capital requirements, sources of financing, financial statements and financial analysis.
The profitability level of the project is also defined such as the net income after taxes to the total investment. The identification of sources of financing is an essential element of feasibility study including the currency, security, repayment period, interest, and other features.
In addition, the financial health of the business is also assessed in the financial statements as well as the analysis showing the income, cash flow and balance sheets.  Other information such as break-even outputs, sales and prices, amount of sales required to earn a certain amount of profit and the cash payback period are also provided.
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Management Study

December 25, 2008, 2:59 pm
Management study involves the appropriate business organization such as the people who will be in-charge both before and after the operating periods of the enterprise as well as the function.
Factors to be determined in management study:
•pointing out the firms or personnel who will be involved in the operation of the project or enterprise •type of business organization •organizational chart •functions of each unit management personnel •skills and numbers of labor required as well the duties and time to be devoted in the project •qualifications, compensations, and fringe benefits of the personnel involved •facilities to be used •recruitment and training programs of the personnel •status and timetable of the project
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Technical Study and Feasibility Study

December 20, 2008, 1:36 pm
One of the major components of a project feasibility study is technical study.  In case of product proposal, a technical study identifies whether the product could be produced at the highest possible quality level with minimum cost.
Factors to be considered in technical study
•Composition of the product such as physical, mechanical and chemical properties should be described. •Manufacturing process include detail flow charts which indicate the material and energy requirement at each step and normal duration of the process. •Plant size and production schedule includes the production capacity of the plant and number of days the project shall operate per year and expected attainable yearly production. •Machinery.  The number specification, rated capacities, prices of equipment and auxiliary equipment should be considered.  Also, the availability of spare parts and repair services such as quotation from supplier, machinery guarantees, delivery, and terms of payment are other factors to be studied. •Plant location, layout and structure.  The location must be desirable in terms of distance to source of raw materials and markets. •Raw materials.  The availability, combination, current and prospective sources and costs of raw materials should be determined. •Utilities and waste disposal.  Here, it includes the specific utilities such as electricity, fuel, water, supplies and their respective uses, and quantity required.
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Market Study

December 16, 2008, 2:30 am
In preparing a proposal or feasibility study, it is important to conduct a market study to determine if the proposed project or idea is feasible in terms of market.
Market study recognizes whether there is adequate demand for the product and that the project shall enjoy competitive marketing position.
An investor is interested to invest in a business project with a minimal risk and a higher rate of return on investment.  However, the major consideration is where there is an ample demand for the product being produced or proposed to produce.
Steps in Market Study
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