| Deliverable (1): Marketing Study | ||
| 1 | Target market analysis | Identification of the target market and customers, competitors, competition, existing market mix, demand and supply structure analysis, market size estimate, average market growth, market attractiveness, influences, trends, key challenges and opportunities, etc. |
| 2 | Internal and external environment analysis | Conducting SWOT and external analysis to identify opportunities and threats, gap analysis, risks analysis, etc. Also, running a market attractiveness analysis using Porter’s Five Factors Analysis model. |
| 3 | Preparing the project business concept | Identifying the problems/gaps/opportunities, crafted solutions, products, market mix, value propositions, competitive advantages, target segment, target market, size of the target market, market share, market potential growth, associated business/market risks, and justifications for the project. |
| 4 | Testing the project concept (Desirability or demand test) | Interviewing potential customers and collecting their feedback on the project concept. We need to ensure that our market mix offer (product, pricing, promotion, and distribution channels) has a sufficient demand in the target market before we create the company. |
| 5 | Preparing the marketing and sales strategy for the project | It includes information on the tested project concept, mission and vision, strategic direction (e.g., differentiation, low cost, intensive technology, and targeting niche market), market positioning (e.g., the position of the project in terms of price, quality, market share, brand etc, relevant to competitors), strategic objectives, strategies or initiatives, action plan, KPIs, and metrics for at least three years (target sales, market mix, annual growth, market share, served customers, promotion and distribution budget, etc.). |
| 6 | Sales and costs budget | Projection of annual sales (quantity and value), promotion and distribution budget for 5 minimum years. |
| Deliverable (2): Raw Materials and Factory Supplies | ||
| 1 | Raw materials | Identifying the raw material items, their technical specification, annual purchased quantity, sources, costs, and the raw materials budget for at least five years. |
| 2 | Factory supplies | Identifying the factory supplies (e.g., all items other than direct raw materials like syringes, needles, hoses, bags, packaging, maintenance oils, cleaning products, etc), their technical specification, annual purchased quantity, sources, their costs, and the budget of factory supplies for at least five years. |
| 3 | Non-factory supplies | Identifying the non-factory supplies (e.g., these include all supplies that staff require to work like food and beverages, uniforms, medicines, accommodation supplies, etc), their technical specification, annual purchased quantity, sources, their costs, and the budget of non-factory supplies for at least five years. |
| 4 | Spare parts | Identifying spare part items, their technical specification, annual purchased quantity, sources, costs, and the budget of spare parts for at least five years. |
| 5 | Raw materials and factory supplies budget | Projection of annual requirements of raw materials, supplies, and spare parts (quantity and value) for 5 years, and annual budget for 5 years. |
| Deliverable (3): Project Location and Land | ||
| 1 | Project location | Assessment of project location options and selection based on criteria including how near it is to the infrastructure, building requirements, target market, distribution channels, suppliers, efficient operation, costs and profitability, future growth, etc. |
| 2 | Requirements for the project location | Identifying the requirements of location that may include the size of the area to suit the factory and other premises of the project, technologies, loading and unloading, storage area, laboratory requirements, civil and electrical, internet, utilities, etc. |
| 3 | land costs | Exploring location options and the cost of the land may include the cost of preparing the land for building the project. Or the renting options and estimating the cost of the land rent for at least 5 years. |
| Deliverable (4): Production Technology, Laboratories, Quality Control, and Building | ||
| 1 | Production program and design capacity | Identifying the production program of the factory to meet the sales and marketing strategy, which includes the list of products, their specifications, sizes, formulas, quality, the scope of uses and instructions, generic or patented items, ways of acquiring patented licenses if any, production design capacity per product item or machinery/production line based on one shift basis of eight hours. High-level briefing on the production inputs to reach the full production design capacity like raw materials, other supplies requirements, manpower, utilities, etc. Also, identifying the levels of production efficiency and productivity of the factory and wastes. |
| 2 | Technology options and selection | Identifying the technology requirements to achieve the production program (e.g., machinery, equipment, tools, other technology auxiliaries, specification, automation levels, running costs, etc), collecting at least two acceptable offers of technology, assessing technology options (based on criteria like regulatory license, reputation, references, specifications, recommendations, quality, reliability, cost of production, cost of technology, maintenance, compatibility with marketing requirements, simplicity, etc) and deciding on the best technology, profiling the full description of the chosen technology, inputs, outputs and speed, specifications, the name of the supplier or suppliers, origin, costs, justifications of selection, etc. |
| 3 | Product and technology license | Where-ever there is a license requirement for producing a product or using technology, the study must identify this license scope, conditions, terms, costs, the way of acquiring (e.g., lease or buy or joint venture, etc), and any other legal requirements. |
| 4 | Factory license and products registration | Set a plan showing the regulatory requirements and steps for qualifying the factory for the GMP licensing and registration products in the country of origin. |
| 5 | The production process, layout and drawings | Identifying the factory layout, the production-line layout, the production process and flow, production drawings, etc. High-level briefing in the processes required to produce and pack products. |
| 6 | Civil, electrical, mechanical, and digital engineering works | Identifying all the engineering works necessary to install and operate the production technology, schedule of implementation, and the total costs. |
| 7 | Building and Facilities | identifying the building drawings (high-level) for the factory, stores, labs, R&D, etc, and the cost of building the project and facilities, building schedule, furniture, electrical, water, and internet supplies. Estimating the total costs of the building and facilities. |
| 8 | Laboratory, quality control, and R&D equipment and facilities | Identifying all the laboratory, quality control and R&D equipment and facilities, including their total costs. |
| 9 | Production management system | Preparing the high-level production system, including information about the production flow and recipes, product specification and formula, storage conditions, raw materials, manpower, quality metrics, quality check, quality plan, control and assurance, etc. |
| 10 | Technology contracting, delivery period, testing, commissioning, installing and trial operation | Identifying the details of the technology options offered, contracting requirements (high-level), the time required to prepare the technology and transportation to the buyer destiny, testing, commissioning, installation, and trial operating. Estimating the associated cost of transportation, testing, commissioning, installing and trial operation. |
| 11 | Estimating the factory running costs (for standard in-house production lines) | Estimating the annual factory costs (direct and indirect) that include the cost of raw materials, factory supplies, spare parts, manpower, utilities, factory overheads, etc for at least five years, and the cost of products (based on factory costs). |
| 12 | Estimating the cost of the production technology, laboratory, quality, building and facilities | Estimating the total cost of the production technology, laboratory, quality, building and facilities of the project. |
| 13 | Secondary-packaging plan | A brief plan on running the secondary packaging stage, including the plan period (1-2 Yrs), factory running costs ($/Yr), fixed asset costs (incl. packaging machinery costs, R&D facilities, stores, other fixed asset requirements), items and quantity to outsource, the cost of outsourcing items, raw material packaging requirements and costs, etc. |
| Deliverable (5): Human Resources | ||
| 1 | Organizational structure | Drawing an organizational structure showing the departments, sections, roles, management levels, communication flows, no. of headcounts, etc. Exploring structure options and choosing the fit structure based on well-defined selection criteria. |
| 2 | Jobs structure | Listing all jobs required by the project, their managerial levels, grades, salary and benefits, job description, headcounts, recruitment plans, etc. |
| 3 | Staff salary and benefits | listing all jobs, their grades, salary, benefits, and other costs (yearly for five years). |
| 4 | Staffing schedule | Showing the schedule for recruiting staff. |
| 5 | Training requirements | Setting a plan to train staff according to the job competency framework and staffing skills assessment. This plan should show the training plan, execution, criteria of assessment, and the training cost a year for five years. |
| 6 | Human resources manual | Developing a human resources manual comprising policies and procedures to govern all human resources issues like org. structure, jobs structure, staff salary and benefits, staffing schedule, training requirements, recruitment, promotion, authorities and responsibilities, overtime compensation, vacation, performance evaluation, termination, etc |
| 7 | Staff costs | Estimating the annual cost of staff for at least five years. |
| Deliverable (6): Digital Technology Transformation | ||
| 1 | Digital technology transformation plan | Drawing a plan for the project’s digital technology transformation, comprising information on the project requirements for the digital technology (e.g., communication, ERP, production, etc). |
| 2 | Cost of the digital technology transformation | Estimating the investment and annual operating costs for five years on the digital technology requirements. |
| Deliverable (7): Financial Viability Analysis and Funding | ||
| 1 | Assumption and financial inputs | Setting materialistic assumptions about the pricing of inputs and outputs (e.g., market prices), associated risks (e.g., business and financial risks), discount rate, continuity, growth rate, inflation, terminal values, basic accounting standards, etc. |
| 2 | Investment cost | Estimating the initial investment costs, including net working capital, fixed assets and pre-investment costs. |
| 3 | Operating costs | Estimating the annual operating costs for five years, including factory costs (direct and indirect), marketing and distribution costs, financial costs, depreciation, administration and management costs, etc. |
| 4 | Product cost | Setting cost accounting assumptions, estimating the direct cost of products (incl. raw material and direct factory costs) and total cost of products (incl. direct and overhead costs) based on different scenarios of capacity utilization and assumptions. |
| 5 | Income statement | Projecting the annual income statement of the project for at least five years, including the revenues, cost of goods sold, gross profit/loss, operating cost, financial costs, and net profit/loss. |
| 6 | Cash flow | Projecting the annual cash flow statement of the project for at least five years, including operating, investment and finance cash flows. |
| 7 | Balance sheet | Projecting the annual balance sheet of the factory for at least five years, including current assets, fixed assets, liabilities, loans, and equity. |
| 8 | Testing financial viability | Estimating the net present value (NPV), internal rate of return (IRR- for equity and investment), payback period, and average rate of return on investment (ROI). Running risk viability analysis, including the breakeven point and sensitivity analysis. Concluding a final viability decision and influences. |
| 9 | Cost of the project and funding | Estimating the initial investment cost and capital structure (loan and equity) of the project, funding as equity and loans, and the cost of funding. Running different scenarios for investment funding and recommending the best one. |
| 10 | Performance financial analysis | Running ratio analysis for the projected financial performances, including liquidity ratios, efficiency ratios, leverage ratios, and profitability ratios. Concluding financial performance indicators and assumptions. |
| 11 | Macro value-added analysis | Listing expected value added of the project to the macroeconomy and valuation, including employment, supplies, financing costs, profits, taxes (if any), import substitution, national security, etc. |
| Deliverable (8): Project Implementation Plan | ||
| 1 | Project business case | Writing the business case of the project, showing the feasibility study findings, business needs, justifications, project values, and viability. |
| 2 | Project charter | Signing a project charter to implement the project, including the sponsor’s name and role, appointing a project manager and his mandating duties and authorities, a summary of the project’s business case, project cost, and timelines to deliver. |
| 3 | Stakeholders | Identifying the key stakeholders (e.g. target customers, banks, licensing authorities, investors, debtors, etc) and their requirements. These requirements are about the scope of work, delivery schedule, risks, cost and funding, quality, etc. |
| 4 | Scope of work | Writing the scope of work for the project, including the end-product (creating the company and operating), deliverables (e.g., appointing project team, product regulatory license, technology licenses, other licenses, purchasing technology, delivery, installation and commissioning of technology, acquiring the land and building, raw material and other supplies, staffing, pilot operation of the company, etc), assumptions and constraints, etc. |
| 5 | Project schedule | Drawing a project schedule showing deliverables, timelines of delivery, resources, etc. |
| 6 | Project cost | Estimating the project cost (to deliver the project excluding the investment cost) and funding. |
| 7 | Project risk | listing all anticipated risks that may arise during the implementation phase till the end product is delivered (risk register), setting risk priorities, risk management strategy, etc. |
| 8 | Project Quality | Preparing the quality metrics, checks and resources to ensure the quality of deliverables. |
| 9 | Project teamwork | Identifying the teams required to deliver the project, including roles, qualifications, headcounts, responsibilities and authorities, communication, etc. |
| 10 | Project procurement | Listing all project procurement requirements, costs, and systems for administrating procurements for the project. |
Prepared by Munther Abdulrahman- Enterprise Expert
GrowEnterprise
Grow Enterprise 