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Presentation 26

This feasibility report analyzes funding options for initial costs of a project. It evaluates revenue and cost projections, market demand, competition, and return on investment. It also assesses technical, operational, and funding resources required. Potential funding sources include venture capital, angel investors, government grants, and loans. The report highlights existing subsidies and recommends an approach combining self-funding and angel investors to access external funding while minimizing risks.

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0% found this document useful (0 votes)
21 views20 pages

Presentation 26

This feasibility report analyzes funding options for initial costs of a project. It evaluates revenue and cost projections, market demand, competition, and return on investment. It also assesses technical, operational, and funding resources required. Potential funding sources include venture capital, angel investors, government grants, and loans. The report highlights existing subsidies and recommends an approach combining self-funding and angel investors to access external funding while minimizing risks.

Uploaded by

arnel tanggaro
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A Feasibility Report on

Initial Funding Cost of


Master Bunks
The study will involve comprehensive research and
analysis of the project's financial projections,
Abstract including revenue and cost estimates, as well as
an assessment of the market demand,
competition, and potential return on investment.
Additionally, the study will analyze the project's
feasibility from a technical and operational
standpoint, evaluating the resources,
infrastructure, and manpower required.
Furthermore, the study will explore potential
funding sources, including venture capital firms,
angel investors, government grants, or loans,
identifying their investment criteria,
requirements, and expectations. It will also
highlight any existing grants or subsidies
available for similar projects or ventures.
INTRODUCTION
Executive Summary

+ This feasibility study explores the potential for


governmental and insurance involvement in
providing initial funding for various projects.
The study aims to assess the viability, benefits,
and challenges associated with these funding
models and provide recommendations for
implementation.
+ .Assessing the potential and practicality of

PURPOSE securing money for a particular project or


enterprise in its early phrase is the goal of a
feasibility assessment on initial funding. This
report is a crucial tool for decision-makers to
use when deciding whether to finance or
invest in the proposed project, such as
investors or financial institution.
Furthermore, it aims to offer a thorough
evaluation of a proposed project or initiatives
in order to assess its viability. In this
instance, the feasibility study will
concentrate on assessing the project's early
finance necessity.
+ The report may examine at alternative funding

Problem sources or procedures in the event that the planned


project has trouble securing the required initial funds.
The project's funding options may be highlighted,
including possible agreement, grant, loans, and other
forms of financing.
+ Finding the market demand for a proposed product or
service is one of the study's essential components.
Getting initial investment could be challenging if
there isn't enough market demand. Investors and
lenders frequently seek out firms with distinct target
market and clients who are willing to pay for product
and services. It would be challenging to persuade
investors to offer finance if the feasibility study
indicates that there is little to no demand for the
proposed good and services.
Grants and + Governmental involvement can boost the
Government project's legitimacy and draw in more secure
capital and can act as a reliable and on going
source of funding for initiatives. Public-
Private collaborations can also boost
productivity and lower project risks and
expanding the sources of funding.
Participating in insurance can improve a
project's financial viability and make it easier
to get financing from other sources.
+ Lack of essential infrastructure, such as old
Provisions technology or substandard equipment, can be
caused by insufficient funding. This may
result in system breakdowns, or other
operational problems, which could have an
adverse effect on business's overall level of
customer service. The ability of a company
to invest in staff training and development
initiatives may be limited by funding
limitations. Employees might not have the
appropriate training and expertise to provide
high-quality service as a result, which could
lead to dissatisfied and a drop in overall
service quality
DISCUSSIONS
Raising capital Raising capital for a startup on initial funding is
crucial for several reasons:
for sartups
FINANCIAL STABILITY
Startups often have significant upfront costs
before they can begin generating revenue.
Raising capital provides the necessary funds to
cover expenses such as product development,
market research, hiring employees, acquiring
equipment or technology, and securing office
space. Adequate capital ensures the startup has
a solid financial foundation to navigate the
initial stages of business.
Business Growth
+ Capital infusion enables startups to invest in growth strategies and
seize market opportunities. It allows them to scale their operations,
expand into new markets, develop new products or services, invest in
marketing and sales efforts, and build a strong customer base. Without
sufficient funding, startups could struggle to compete and grow in a
competitive business landscape.
Attracting Investors
+ Investors are more likely to provide funding if a startup already has some initial
capital. This initial funding demonstrates that the entrepreneur is committed to
their venture and has a personal stake in its success. It also indicates that the
startup has potential and is capable of attracting investment. By raising capital on
initial funding, startups increase their chances of attracting further investment
from venture capitalists, angel investors, or institutional investors.
Building a team
+ Hiring talented and experienced employees is essential for the success of any
startup. Raising initial capital allows the startup to offer competitive salaries,
stock options, and other incentives to attract top talent. A strong team is crucial for
executing the startup's business plan, developing innovative products, and driving
growth.
Self-Funding
+ Self-funding refers to the practice of using personal funds or
resources to finance a business or project during its initial
stages. It means that the entrepreneur or business owner
relies on their own savings, investments, or assets rather
than seeking external resources of funding such as loans or
investments from external parties. It can be advantageous as
it allows the entrepreneur to have complete control over the
business and its operations, and also eliminates the need to
pay interest or give away ownership stakes to investors.
Angel Investors
+ When it comes to initial funding, angel
investors play a crucial role for startups.
They fill the gap in funding that may exist
between the founders' personal savings and
the point where the company is mature
enough to attract larger investments from
venture capitalists or other institutional
investors.
Capitalization Table
SHAREHOLDERS Total Value of Holdings % of Holdings

Shareholder 1 1,200,000.00 40%

Shareholder 2 900,000.00 30%

Shareholder 3 300,000.00 10%

Shareholder 4 300,000.00 10%

Shareholder 5 300,000.00 10%

Total 4,000,000.00 100%


Venture Capital + Venture capital firms can provide more
significant amounts of capital in
exchange for equity. However, they
often require a proven business model,
strong growth potential, and a higher
degree of control over the business.
Startups with high growth prospects
are more likely to be considered by
venture capitalists.
Bank Loans + Traditional bank loans are a viable option for
entrepreneurs with a solid credit history and
collateral. However, they may involve longer
approval processes, strict repayment terms,
and high interest rates, making it less
suitable for startups or ventures with limited
assets. A bank loan on initial funding refers
to obtaining a loan from a bank or financial
institution to cover the initial costs or
expenses associated with starting a business
or project
Conclusion
MAJOR CONCERN
+ This feasibility study highlights the potential implications and
challenges associated with offering a decreased quality of service for
initial funding. Decision-makers should carefully weigh the
advantages against the long-term sustainability of the business before
implementing such a strategy.
Recommendations
Obtaining initial funding is an essential step for any venture's success.
This feasibility report has analyzed various funding options, weighing
their pros and cons. The recommended approach of combining self-
funding and angel investors provides a feasible and balanced solution.
The venture can leverage personal resources while also accessing
external funding, minimizing risks, and optimizing the chances of a
successful launch.

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