Services
Heartland Agdeavor Association offers many services, two of which are Feasibility Studies and development of Business Plans.
Many potential business ideas for value added
agricultural commodities come before the membership of Heartland Agdeavor
Association. Discussions among members lead to the assignment of priorities
to the flow of ideas and the highest priority ideas often merit further
development by commissioning a feasibility study.
Click here to see a
schematic of how decisions are made for new projects.
A project feasibility study
identifies a range of possible alternatives
and potential issues while forming a foundation for the business. Each
feasibility study will address issues that influence the success of the
project and assess the advantages and disadvantages of each alternative
so they can be ranked. The feasibility study includes a cost and benefit
analysis and results in the development of a feasibility report.
The feasibility study helps decision makers about continuing to develop
the project or to terminate it. In all instances, the feasibility study
narrows range of alternatives and assesses each alternative while proposing
solutions to issues raised.
- Identify and evaluate the alternatives
A feasibility study examines all possible alternatives. Each alternative is methodically reviewed and evaluated. - Ranking the alternatives
The alternatives identified should then be ranked according to the objectives of the potential investor group given the project constraints and other external issues impinging on the outcome of the project. Key indicators in the feasibility study include return on investment, internal rate of return, payback period, net present value calculations, and evaluation of environmental impacts. - Developing a path for action
The feasibility study should result in a clear definition of future directions. In some cases, this could include termination of the project.
Many factors are critical to the success of a new business or the expansion of an existing one. Factors such as personnel, management, location, timing, and financial leverage ultimately may determine the success or failure or a new or expanded business. Business plans are prepared as an integral ingredient of obtaining debt capital for a start-up business and as information for potential investors. The business plan is essential as the step just prior to launch of a new business. Potential lenders or investors wish to evaluate their risk based upon a full consideration of the challenges that the business may face in the future. The business plan becomes the focal point for this type of communication. A good business plan will clearly communicate both the strengths and weaknesses of the planned business. To lenders and potential investors, the business plan divulges the full and complete operations of the new business. A logical and reasoned business plan communicates to lenders that the proposed management of the new business is capable, organized and prepared. Details of the content and protocol of business plans, along with Internet sites that are helpful, are available from this Ohio State University publication entitled "Business Plan Assistance on the Web".
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