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Micro Hydro Power Management

Micro Hydro Power Management. Recommended Steps in Business Development - a Check List. Content of Presentation. Recommended steps Market Assessment Business Type Assessment Production Process Examination Resource Need Assessment Investment Requirements Impacts on the Environment

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Micro Hydro Power Management

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  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

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