Project Plan

Lynda Drennan SwensonVolunteer in Africa

CNFA/CODESPA Madrid SpainApril 10, 2012

Agenda

• Association/Cooperative Mission Statement

• Association/Cooperative Vision Statement

• Strategies to move from Mission to Vision

Agenda

• Elements of the Project Plan• Summary• Description of the Association/Cooperative• Products and Revenue – current and potential• Customers – current and potential• Project Strategy and Implementation• Financial Statements and Analysis

Project Plan Financials

1) If the plan involves construction of a structure:• Material Costs• Labor Costs (“sweat equity” from Association)• Timeline with critical path elements• “Useful life” to determine depreciation expense

2) If the plan involves the purchase of a structure:• Rehabilitation Costs (materials and/or labor)• Timeline with critical path elements• “Useful life” to determine depreciation expense

Project Plan Financials

3) If the plan involves the purchase of equipment or vehicles:• Determine the cost• Timeline with critical path elements• “Useful life” to determine depreciation expense

Project Plan Financials

4) Determine if outside financing is required:• Source (commercial bank, SACCOS, NGO, etc)• Amount of financing required (initial, early

operational period, etc)• Term of financing• Interest rate• Repayment Structure

Project Plan Financials

5) Estimate Operating Expenses:Indirect/fixed Expenses• Labor costs (“sweat equity”?)• Utilities• Insurance and government regulations• Transportation• Other

Project Plan Financials

5) Estimate Operating Expenses continuedDirect/Variable Expenses• Cost of Goods Sold• Materials Costs• Labor Costs (“sweat equity”?)• Transportation• Other

Project Plan Financials

6) Create unit costs at volume levels• Cap Ex (if construction or purchase of structure,

equipment, vehicles, etc)• Fixed Costs• Variable Costs (constant unless volume

discounts)

7) Record and analyze market prices of products involved in project (average and variation)

Project Plan Financials

8) Actual sales and revenue of members – current and potential

9) If not available, estimate value:1. Number of members producing2. Number of bags/units sold per member3. Multiply 1 X 24. Selling price per bag/unit5. Multiply 3 X 4

Project Plan Financials10)Analyze breakeven volumes relative to potential

prices/cost structures11)Create a time line for operations• Activities which will occur each month• Revenue which will occur each month• Expenses which will occur each month• Loan payments which will occur each month• Net Cash Flow which will occur each month (+/-)• Accumulation of Cash which will occur each month

Project Plan Financials

12)Financial feasibility in short and long term13)Non financial impact in short and long term