Advice 1: How to write an economic justification

Economic feasibility is also called financial and economic evaluation, which is a form of impact assessment. It is used to estimate the changes of all cash net flows that arise as a result of the implementation of methods of state regulation, establishment of regulatory and legal documentation, corporate programs aimed at changes in economic-social structure.
How to write an economic justification
Instruction
1
Enter changes in the standards of technical regulation, and change industry norms, type of different technical regulations. This will help you to modify and redistribute the benefits, costs, and risks of the enterprise.
2
Guide the forecasting of change of all available factors (benefits, costs) for the design phase change to the standards of technical regulation. Rate the financial and economic result of the execution of these rules, ensure optimization of costs for compliance.
3
Adjust the direction of the standards development process and provide simulations of the effects of all development standards in the provision of enterprises and industries. Create a plan for more effective interaction of requirements on different levels of the structure of technical regulation.
4
Make all necessary calculations in the course of the forecasting of economic analysis associated with the transition to effect all the necessary changes in regulations, including: income, expenditures, budgets, costs, economic actors, costs to society, tax contributions, and fiscal efficiency.
5
Attach to the draft legal normative acts, which require implementation of the financial or material costs, financial and economic calculations.
6
Guide economic financial evaluation of the company. This will allow you to: provide early identification of political, administrative, economic effects and results.
7
Rate cash additional associated costs and identify the impact of the change on the financial position of the parties concerned. Then analyze the change of structure of costs, income and risks and evaluate the redistribution of benefits to all stakeholders.
8
Produce assessment previously conducted analysis of the economic justification. In this case you will get the data that was before the tests and after the change of all factors. Thus, rate the feasibility of the project in monetary terms, and give recommendations for improvement based on issues of cost optimization.

Advice 2: How to write feasibility study?

When creating a production company the entrepreneur in many cases it is necessary to be not only a business plan and feasibility study of the project. Very often this document is required when a firm seeks to implement new technologies and to obtain funding for the implementation of their goals.
How to write feasibility study?
You will need
  • the concept of the business project;
  • - the estimated data for the project.
Instruction
1
Learn the difference between technical and economic justification project (feasibility study) and a traditional business plan. The first document does not require high detail, its contents should reflect only parts of the whole business. In other words, to include in the feasibility study makes sense only to those estimates that are directly associated with the proposed project and describe anticipated changes in the company.
2
In the simplest case, take a basis of the feasibility study in detail and made a business plan, with the exception of some details, for example the marketing strategy, description of the service or product, a detailed analysis of the risk factors. Leave in the feasibility study the information that can help in assessing the results of innovation and to identify possible problem areas.
3
Examine the factors that directly affect the activities of the company, including analysis of financial performance. The numbers should show if investment in the proposed development, if require innovations mergers and acquisitions of companies, how the current credit demand. One of the purposes of writing a feasibility study – draft pick necessary equipment and appropriate technology.
4
Include in the feasibility study a brief summary of the proposed project, putting in it the basic essence of innovation. Justify the choice of a particular organizational decisions, activities, equipment and related technology. Complete document calculation of financial, labor, raw materials and other production requirements. The feasibility study should contain an indication of the amount of funds necessary for the implementation of the project and possible sources of funding.
5
Complete feasibility study by summarizing the results and formulation of conclusions. A potential investor should understand that the proposed project is economically feasible, and to develop the fullest possible picture of the structure of expected costs and when the calculated financial indicators with the planned income. For the lender is essential also, the calculation of the payback period of the business project.
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