Develop Business Plans
Business Plan for funding, ( banks, grants, financial providers)

A business plan accurately defines a business, identifies its goals and objectives, and serves as its resume. It supports the business to allocate resources properly, handle unforeseen circumstances, and make calculated business decisions.

Develop Marketing Plans 
A marketing plan accurately defines a business, identifies its goals and objectives, and serves as its resume. It supports the business to allocate resources properly, handle unforeseen circumstances, and make calculated business decisions.

Feasibility study

A feasibility study’s main goal is to assess the economic viability of the proposed business.  The feasibility study needs to answer the question: “Does the idea make economic sense?”  The study should provide a thorough analysis of the business opportunity, including a look at all the possible roadblocks that may stand in the way of the cooperative’s success.  The outcome of the feasibility study will indicate whether or not to proceed with the proposed venture.  If the results of the feasibility study are positive, then the cooperative can proceed to develop a business plan.

If the results show that the project is not a sound business idea, then the project should not be pursued.  Although it is difficult to accept a feasibility study that shows these results, it is much better to find this out sooner rather than later, when more time and money would have been invested and lost.

It is tempting to overlook the need for a feasibility study.  Often, the steering committee may face resistance from potential members on the need to do a feasibility study.  Many people will feel that they know the proposed venture is a good idea, so why carry out a costly study just to prove what they already know? The feasibility study is important because it forces the New venture company to put its ideas on paper and to assess whether or not those ideas are realistic.  It also forces the New venture company to begin formally evaluating which steps to take next.

The New venture company’s organizers will typically hire a consultant to conduct the feasibility study. Because the consultant is independent of the cooperative, he or she is in a better position to provide an objective analysis of the proposed venture.  The consultant should have a good understanding of the industry as well as the new generation cooperative model of business.  He or she should have previous experience in directly related work.  To get an estimate of the costs of a feasibility study, prepare a rough outline of the work needed to be done.  Contact several consultants and provide them with a copy of this rough draft to see what sort of estimates they give.  When the time comes to hire a consultant, prepare a formal request for proposals that outlines the information that is needed and send this to several consultants. 

It might be tempting to choose the lowest-cost consultant or a personal acquaintance of one of the New venture company’s organizers, but always remember that quality work is the most important factor when choosing a consultant.  Make sure that the consultant can provide an independent assessment of the business opportunity.  For instance, hiring an engineering firm or an equipment manufacturer to conduct market analysis may lead to biased results in favor of proceeding with the venture.  Engineering firms and equipment manufacturers may have an incentive to show positive results so they can obtain contracts with the cooperative once it chooses to start up operations.  Engineering firms and equipment manufacturers are needed in order to provide information about equipment requirements and costs, but an independent consultant should conduct the overall feasibility study.

A feasibility study should examine three main areas: 
 

• market issues

• technical and organizational requirements

• financial overview

Market issues:

The primary area that the feasibility study needs to address is potential market opportunities for the cooperative.  If an adequate level of demand does not exist for the product and the New venture company does not know how to differentiate its product so that it can compete with established industry players, then the proposed venture should not be pursued. 

Questions that need to be answered in this area of the feasibility study include: 
 

• What type of industry is the new venture company planning to enter?  What are its primary features?

• What are the possible target markets for the new venture company’s product?  What demographic characteristics do they possess?  How large are these markets?  Where are they located?  Is the market expected to grow in the future?

• Will the new venture company be competing in a mature industry or a growth industry?

• Who are the new venture company’s competitors in this market?  How large are these competitors?  How established are they?  How do they price their goods?  How will these competitors react to the entrance of the new venture company?

• How will the new venture company differentiate its product from those of its competitors? What are the competitors’ strengths and weaknesses, and how would the new venture company compare against them?  How does the new venture company plan on gaining market share?

• What is the projected market share for the new venture company?

Data that can help to answer these questions may be found in already-published information or through primary research activities such as market surveys conducted on behalf of the new venture company.  Relevant information may be found through various sources such as government statistical publications, trade journals, industry reports, or companies such as dun & bradstreet.  The internet has also opened up new routes to obtaining information.

The answers to market-related questions should help the new venture company develop realistic estimates of the projected demand for the new venture company’s product for the first several years of operation.  Based on this projected demand, the new venture company can determine its anticipated level of business volume, which is needed in order to design the processing facilities.  If the projected business volume is not large enough to justify a processing facility, then the project is not feasible.

Technological and organizational requirements:

This area concerns the internal set-up of the cooperative.  Questions to be answered in this area include: 
 

Plant and equipment issues:

• What type of equipment and technology will the business need to produce its product?  What are the costs involved?  This includes both the initial purchase and installation costs of the equipment as well as the operational costs of running the equipment.

• Who are the potential suppliers of this equipment? Where are they located?  What sort of service and warranties do they provide?  How long will it take to acquire the equipment and begin operations?

• Based on its projected business volume, how much raw product will be required by the new venture company?  What are the quality specifications?  Will the new venture company have a sufficient membership base that can provide the raw materials? 

• What are the possible locations for the new venture company’s facility?  What size of facility is needed?  What are the costs of the building?  Does the proposed location have adequate access to infrastructures and services such as major highways, railways, and utilities?  Will the new venture company build its own facility, or purchase an existing location?

• Where will the facility be located relative to the new venture company’s customers?  Who will be responsible for the transportation of goods between the facility and the market?  What are the transportation costs involved?

Managerial and organizational issues:

• Is the new venture company organizational structure the right one for this business?  How important are delivery contracts and a fixed source of supply to the success of the business?

• What qualifications are needed to manage these operations?  What are the key staff positions that need to be filled? 

• What type of experience should management have?  Are there potential candidates available to fill such positions?  What will be the cost factor involved in finding and retaining acceptable candidates?

Financial overview:

Based on the estimates that have been gathered from the preceding sections of the study, the new venture company needs to determine its overall financial situation.  Sources and uses of financing should be listed.  Questions such as the following need to be considered: 
 

• What are the total start-up costs required in order to begin operations?  For instance, what are the capital costs of the land, plant and equipment, and other start-up costs such as legal and accounting costs?

• What are the operating costs involved?  These include the daily costs involved in running the business, such as wages, rent, utilities, and interest payments on outstanding debt.  These will determine the cash flow requirements of the new venture company.

• Based on the estimated demand, what are the new venture company’s revenue projections?  How will the new venture company determine its pricing arrangements? 

• What are the possible sources of financing for the new venture company? Who are potential lenders?  What will be their required terms and limitations of borrowing?

• Based on the estimated revenues and costs, what is the projected profit (loss) of the new venture company?  What is the break-even point?

 

 

Business Development Services (BDS)

MTD  supports the new and existing business with Business Development Services, primarily through the capacity building of intermediary service deliverers but also through interventions to improve the way markets work. Over the years the MTD has developed considerable expertise, credibility, networks, tools and experiences that can assist governments, employers, workers and other development practitioners in their work.

Company Registration One day service 
We are able to register a company in South Africa for a flat fee. You will be required to fill out a questionnaire that will provide us with sufficient information to register the company. Out typical turnover time are 1 to 2 working days for shelve companies (pre-registered) and  newly registered customised companies. 

The main difference between pre-registered and customised companies is the fact that the you have the option to choose a name for the company. All companies in South Africa are able to change their name at a later stage and it is not compulsory to keep the same name for the existence of the company. 

This fixed price service includes the secretarial formalities related to the incorporation of a new business and the set-up of an electronic copy of the statutory books. (The fee will depend on your needs) Please enquire about our variable fee option to open a bank account for the company in South Africa.

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Alternatively give our sales team a call in South Africa on: 0867227594