car website launch
TRANSCRIPT
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Car Website Project
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A feasibility study is an analysis of the viability of an ideathrough a disciplined and documented process of thinkingthrough the idea from its logical beginning to its logical end.
Feasibility study is carried out in order to assess the viabilityof a new project
It is primary and most important thing in development of aproject
Feasibility study?
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• Gives focus to the project.
• Narrows the business alternatives.
• Identifies new opportunities.
• Identifies reasons not to proceed.
• Provides valuable information for “go/no go” decision.
• Increases probability of business success by identifyingweaknesses early.
• Provides documentation that the idea was thoroughlyinvestigated.
Reasons to do this Study
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Market Feasibility
Financial/Economic Feasibility
Organizational/Managerial Feasibility
Environmental feasibility
Legal feasibility
Types of Feasibility
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• A feasibility report is the results of a feasibilitystudy. This report details whether or not a projectshould be undertaken and the reasons for that
decision.
Feasibility Report
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1. Introduction/Executive Summary
2. Background
3. outline of project
4. Methodology/method of analysis5. Overview of alternatives
6. Conclusion
7. Recommendation
Report Content
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www.tailormadecars.com
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How Do we Work? Select the car of your choice
Choose the variant (if any)
Body Customization options
Vinyl & Graphics
Performance Upgrades (if applicable)
Save and notify
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The IT sector has contributed considerably to changing India’s imslow developing economy to a global player
According to IBEF, IT industry is set to touch 225$ billion by 2020
IT workforce will touch 30 million by 2020, becoming the highesemployer
Reasons for growth among people:
– Lifestyle of consumers
– Affordability
– Socialisation
Trends and Future prospects
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Innovation and Up gradation – It will be one of the mostimportant requirement for any car buyer and user
Preferences
₋ Hardware specifications and product features₋ Brand name
₋ Price
₋ Value added services
Meeting unfulfilled need
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Serial Product Price
1 Wheel 10,000
2 Front Bumper 12,000
3 Rear Bumper 12,000
4 Sides 7000
5 Front Lights 10,0006 Rear Lights 4000
7 Tinted Glass 20,000
8 Body Colour 75,000
Average Price 18,750
The marketing study
Demand estimation/ Projection of the Market demand
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The estimated population is about 25,000 families
We estimated that the target customers owns 1 car inaverage
Our estimated actual target customers will be around 10% ofthe customer’s pool
The marketing study
Demand estimation/ Projection of the Market
demand
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The marketing study
Demand estimation/ Projection of the Market
demandPopulation (n) 20,000
Sample accepted the concept (d) 5%
Universe (k) 1,000
Expected demand over 1st year
D(t)= K*X’
1000*18750
= 1,87,50,000
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Site internal preparations
Rent
The location will be rented by 8,000 per month.
Payment of 3 months in advance = 3 * 8,000 = 24,000
Construction costs:
Technical Study
Initial Costs
Item CostFloor preperations 10,000
Wall painting and preperations 4,000
Electricity preperations 3,000
Others 5,000
Total 22,000
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Site
external preparations
Advertising costs
Miscellaneous costs
Legal documents
Item Cost
Singage 3,000
Lights 1,000
Total 4,000
Item Price
Fire equipments 1,000
Workers uniform 1,000
Miscellanous 1,500
Total 3,500
Item Cost
Commercial registration and tax card & licence 7,000
others 500
Total 7,500
Total initial expense for Y0 254,580
Item Price
1000 coloured Flyers 2,000
Big Banners 2,000
Total 4,000
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Manpower structure and costs
Serial Job description Quantity Cost Tota
1 Supervisor (1500 LE) 1 18000
2 Skilled worker (750 LE) 1 9000
3 Worker (500LE) 2 6000
4 Social insurance 4 360
Total cost
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Cost of funds
Taxes
Cost of funds
Bank loan 260K over 5 years 11%
Principal 260,000
interst rate (annual) 11%
Interst amount (annual) 28,600
Duration (years) 5
Total interst 143,000
Administrative fees (1.5%) 3,900
Total 406,900
The loan will be amotrized 6,782 per month
Cost of funds 81,380 per year
Year Gross Profit Tax (18%)
2014 (254,580) -
2015 90,237 16,243
2016 108,880 19,598
2017 127,061 22,871
2018 144,302 25,974
2019 185,456 33,382
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Total yearly Cash flow
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Total yearly Cash flowYear Item Cash in Cash out
Cash in 354,645
Rent (+10%) 105,600
Salaries (+10%) 40,440
Raw materials (+5%) 22,932
Utilities (+2%) 13,056
Miscellaneous 1,000
Cost of funds 81,380
Net 354,645 264,408
1
Year Item Cash in Cash out
Cash in 389,400
Rent (+10%) 116,160
Salaries (+10%) 44,484
Raw materials (+5%) 24,079
Utilities (+2%) 13,317
Miscellaneous (+10%) 1,100
Cost of funds 81,380
Net 389,400 280,520
2
Year Item Cash in Cash out
Cash in 425,225
Rent (+10%) 127,776
Salaries (+10%) 48,932
Raw materials (+5%) 25,283
Utilities (+2%) 13,583
Miscellaneous (+10%) 1,210
Cost of funds 81,380
Net 425,225 298,164
3
Year Item
Cash in
Rent (+10%)
Salaries (+10%)
Raw materials (+5%)
Utilities (+2%)
Miscellaneous (+10%)
Cost of funds
Net
4
Year Item
Cash in
Rent (+10%)
Salaries (+10%)Raw materials (+5%)
Utilities (+2%)
Miscellaneous (+10%)
Rent advance payment
Cost of funds
Net
5
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Total aggregated income and expenditures for the
project over 5 years
Year Cash-in Cash-out Gross profit Tax (18%) Net profit
2009 0 254,580 (254,580) (254,580)
2010 354,645 264,408 90,237 16,243 73,994
2011 389,400 280,520 108,880 19,598 89,282
2012 425,225 298,164 127,061 22,871 104,190
2013 461,794 317,492 144,302 25,974 118,328
2014 524,123 338,667 185,456 33,382 152,074
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The financial study
Investment profitability analysis
R0 = ( 0-254580 ) / 254580 (100.0)
R1 = ( 354645-264408+28600 ) / 254580 46.7
R2 = ( 389400-280519+28600 ) / 254580 54.0
R3 = ( 425225-298164+28600 ) / 254580 61.1 R4 = ( 461794-317492+28600 ) / 254580 67.9
R5 = ( 524123-338667+28600 ) / 254580 84.1
Simple rate of return – SRR
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Payback period – PBP
Year Cash-in Cash-out Net profit accumulated
2009 0 254,580 (254,580) (254,580)
2010 354,645 264,408 73,994 (180,586)
2011 389,400 280,520 89,282 (91,304)
2012 425,225 298,164 104,190 12,886 2013 461,794 317,492 118,328 131,214
2014 524,123 338,667 152,074 283,288
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Net present value - NPV
Assume discount rate = 10%
Year Cash-in Cash-out Gross profit Tax (18%) Net profit
2009 0 254,580 (254,580) (254,580)
2010 354,645 264,408 90,237 16,243 73,994
2011 389,400 280,520 108,880 19,598 89,282
2012 425,225 298,164 127,061 22,871 104,190 2013 461,794 317,492 144,302 25,974 118,328
2014 524,123 338,667 185,456 33,382 152,074
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