Techno viability study: the process you must know about

Techno-Viability Study:
The Process You Must Know About
© Rakesh Narula & Co. All rights reserved.

It is essential for any business to have sorted out a plan of action to be
considered as a viable candidate for a loan.
Banks are known to evaluate a business model in detail to ensure that the
business they are investing in, is as risk-free as possible. This is known as the
TEV study.
Take a look at the major points that are considered by banks for this
evaluation.
The business to be considered for a loan will be assumed to be a manufacturer
in this case.
The Beginning
• Before lending money to a business, it is essential to gather information
regarding their financial strength, the key employees, its brand value in
the market, etc. that adds it to the TEV study.
• Once this information is cleared out, the national and global market for
the business niche will be studied. The parameters to be considered are:
• The businesses competition
• Outline of the demand vs. supply chart
• Target audience
• After this, details of the product or service the business sells should be
examined. Its uses, users, applications, etc. will determine how wavering
the demand in the market is.

Evaluating the Technicalities
• Documentation of the manufacturing process is a must. This compilation
should also include the cooperation capacity between the various
departments up until the product is to send out. Details on how trained
and experienced employees are should be covered in the TEV study.
• The location of the project, connectivity to the main road and nearest
locality, amount of labour force, etc. will have to be checked to ensure
the project is viable.
• The layout of the project should have been designed by a certified
architect and approved by the local authorities. Storage for supplies and
the number of machines should be adequate enough to keep the project
running continually.
• The business should have all the required legal documents to begin the
production. These papers should also be a part of the report.

There are a few more things that will need to be added to the TEV study. It is
on the basis of all this information that one can determine the viability of the
business and the project.
Considering that this analysis is only for a manufacturer, the terms of
documentation shall change as the business profile changes.
Rakesh Narula & Co. is a leading valuation consulting firm that offers TEV study
services. RNC’s blend of proficient and highly competent Technical and
Commercial team facilitates Bankers and Investors to make suitable Lending /
Investment Decisions. Contact us now!

Techno viability study: the process you must know about

More Related Content

Recently uploaded

Featured

Techno viability study: the process you must know about