Question

In: Finance

You are a consultant who has been approached by a company about to embark on a...

You are a consultant who has been approached by a company about to embark on a project (identify any project of your choice). The client would like to prepare a document to be used for the purposes of ‘selling’ the project to potential financiers.

Prepare an information memorandum for the project to be presented to the potential financiers. Among others it should contain the following:

  1. The full business description of the project.
  2. An analysis of the key risks facing the project and the ways of mitigating the risks.
  3. The proposed financing structure and justification for using that particular structure.

    You are a consultant who has been approached by a company about to embark on a project (identify any project of your choice). The client would like to prepare a document to be used for the purposes of ‘selling’ the project to potential financiers.

    Prepare an information memorandum for the project to be presented to the potential financiers. Among others it should contain the following:

  4. The full business description of the project.
  5. An analysis of the key risks facing the project and the ways of mitigating the risks.
  6. The proposed financing structure and justification for using that particular structure.

Solutions

Expert Solution

Solution-

Project- Modes of Outsourcing under the name of "1 GOAL"

INFORMATION MEMORANDUM

Business Description- Modes of Outsourcing is a plan which has evolved from the need of other businesses to hire some extra manpower for their backstage task. We usually tend to forget the expenditures done on small bit of task but when we actually analyze those expenditures then they sum up to be a big amount which other organizations usually try to save. So, in order to save the expenditure of other organization for hiring extra manpower and also to save their time utilized in such activities we came up with an idea to supply manpower for a set goal of projects. we will get down in an agreement for a specific target to be acheived for other organization and our trained manpower will work accordingly.

SWOT Analysis of such plan-

Strength-

1. There is very least investment in this project which includes mainly investment towards marketing activities, initial investment on hiring an appropriate basic workforce than can get the ground job done, a proper setup of office and some miscellaneous expenses.

Weakness-

1. Initially we might have issues due to limitation of resources and manpower to work on project but the good thing is this plan prospers if the already recruited manpower works well and are influencing in nature.

Opportuanity-

1. This project mainly deals with direct marketing plan from which most the organization keep a distance but we as a mediator will get down in that mud on behalf of those organization.

Threat-

1. Customers attitude towards the product to be marketed can play as a bigger threat.

Key Risk-

1. Cusomer's attitude towards the project.

2. Winning project from reputed organization.

3. Abiity to meet the timeline will decide the payment

Steps to mitigate the Risk-

1. Proper marketing activities can change the mindset of customers then we can plan visit on one to one basis.

2. If there is financial solvency shown from financer as a support then chances of winning project increases

3. If we negotiate with our profits and hire more manpower then timeline is just a number

Financial Structure-

There won't be any fixed assets to be bought while variable asset would include-

Rented Office space

Rented Hardware to work

Salary of Manpower group of 10 people (including 2 supervisor, 4 field executive, 1 data entry operator, 2 project seekers and work for application for new projects, 1 person to deal with administration and other miscellaneous bills and activities)

Rented 2 Cars for field visits

Pre- Approved budget for Marketing Activities

Miscellaeous Expenses (including dress for field exceutives, etc)

Apart from the above expenses which are variable in nature and are enough for this project to survive, we need a support in showing the statement of solvency with our company which will help us to gain trust of other orgaizations seeking help from companies like "1 GOAL".

******HOPE YOU LIKE IT *****


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