Project is a proposal for an investment to create, expand and/or develop certain facilities in order to increase the production of goods and/or services in a community during a certain period of time.
Steps to be followed by an entrepreneur
1. Collect maximum information about the project or products proposed to be manufactured
2. For the purpose, collect/prepare a project profile which would outline brief information on the project or products to be manufactured
3. Decide location where the project is likely to set up
4. Learn about the procedures and formalities required to be completed before taking up physical implementation of the project
Get a detailed project report prepared which interalia should include following components
• Market potential of the products to be manufactured
• Characteristics of the Location
• Land and building requirements
• Requirements and availability of Plant and Machinery
• Requirement of other utilities namely power, water, steam etc.
• Assessment of Working Capital requirements
• Technology tie-up
• Raw materials with specifications
• Manpower requirements
• Schedule of Implementation
• Estimates of Project Cost
• Tie up of means of finance
• Cost of Production and profitability
• Break even Point
• Internal Rate of Return
• Cash flow
• Debt service Coverage Ratio to establish financial viability
• Economic Benefits