HomeFinancial ReportingRatio AnalysisAccountingCompliancesUtilitiesArticles
Before Starting the Project
Following general guidelines will be helpful to the entrepreneurs  for starting a new project
A.      Prepare a business case for the project
a.   What type of products/ services you propose to deal in
b.   What is the demand supply gap for the proposed product
c.   What will be the lifecycle of the proposed product
                              i      Threats from the technology up gradation
                             ii      Possibility of newer and smarter product outplaying your products
                            iii     What are the substitutes available
d. What is your capital investments
e. What will be the Return on Investments
f.  What will be the pay-back period
B.      Select appropriate Constitution
a.   Constitution should be
                           i.      Easy for formation
                          ii.      Ensure the continuity and perpetual succession
                         iii.      Tax effective
                         iv.      Provide scope for expansion
                          v.      Acceptable globally
C.      Registrations and Government Consents
a.       Study the licenses, consents from Government bodies, approvals from trade associations etc well in advance
b.      Comply with the related conditions well in time, to avoid delays and penal actions by the government departments.
D.      Technical Support
a.       Ensure that the technology is the latest
b.      Conduct the due diligence of the machinery supplier
c.       Will your machinery capable of up gradation without extra costs
d.      Sources of Raw Material
e.      Ensure Balanced plant capacity, avoid extra and idle capacity in any of the divisions, processes
E.       Manage your finances
a.       Assess your creditworthiness well before you start a project.  You will surely get benefits in the Rate of Interest if your            financial standing is    satisfactory
b.      Debts shouldn’t be disproportionate to the Equity
c.       Do not stress your resources
d.      Keep margin  for Cost escalations
e.      Select a banker who will support you in the long run.
foter hisaabkitab logo
Craft logo
               copyrights © 2013- 2014