1. Micro Hydro Power Management
Recommended Steps
in Business Development
- a Check List

2. Content of Presentation
Recommended steps
Market Assessment
Business Type Assessment
Production Process Examination
Resource Need Assessment
Investment Requirements
Impacts on the Environment
Detailed Feasibility

3. Recommended Steps Assessing the market potential
Assessing specific business forms / niches
Examining specific production processes and services which may be viable
Assessing the man power and natural resource requirements
Assessing the overall feasibility of the business
Assessing required investment
Assessing potential impacts on the environment

4. Market Assessment What should be considered? Market area? Far or near?
Who are the consumers? What is their capacity to absorb the product / services ?
How to sell?
How to promote?
Is there serious competition ? How many ?
What is the market chain? Who are the middlemen?
What is the competitor’s pricing strategy?

5. Business Type Assessment
Things to consider are:
Type of business: service or product?
Location - production site / office suitable / available etc.
Past experience with running an enterprise ?
Is it dependant or does it require involvement of other businesses ? How would such an arrangement work?

6. Production Process Examination
What is the technology ?
Is it reliable ?
Can local manpower operate or repair it ?
What about spare parts ?
What is the normal production rate ?
How much energy does it require ?
How much energy per unit product is required ?
Manpower required ?
Etc.

7. Resources Need Assessment
Is capable local manpower available ?
Is local managerial capacity available ?
What are the labour costs ?
What raw materials are needed?
How much do they cost ?
Where can raw materials be sourced ?
Are the raw materials available locally ?
How much is needed per unit product ?
What are the transport costs ?

8. Investment Requirements
What are the investment costs ?
What do they cover ?
Production equipment
Man power
Raw materials
Promotion
Marketing and distribution
Where to access funding ?
Can this be repaid (financial viability) ?

9. Impacts on the Environment
Are formal approvals required – if so how are these obtained ?
Are there any impacts on the community ? New job opportunities ?
Are there any impacts on the environment ? Positive / negative ?
Does the community accept the existence of the business ?
Are there any cultural issues to be considered ?
How can the community participate / be integrated ?

10. Detail Feasibility
Detail feasibility means the management has to calculate in detail the financial and technical feasibility of the proposed enterprise
The parameters of feasibility are:
Potential market product absorbance
Investment requirement
Man power plan
Raw material availability
Production & operational costs and other costs

11. Detail Feasibility The parameters of feasibility are: Pricing strategy
Cash flow projection
Calculation of payback period
Calculation of net present value and internal rate of return
Impacts on the environment
Etc.
The result of the feasibility study will be critical in mobilizing finance, which ultimately determine whether the proposed venture will materialize or not