C5: What is a financial feasibility study?
C6: Sales scenarios and projecting
cash flow • Financial feasibility study - assessment used to
determine if a business idea is viable.
• Sales scenario - a way of predicting future • Helps an entrepreneur decide whether to proceed
sales situations to prepare for a response with a project by comparing total costs against
expected revenues.
from your market. C5: Sustainable
• Cash flow projections - there must always be
money available to buy ingredients, profitability
packaging, fuel, electricity and water. C6: Best sale
scenarios, worst Sustainable profitability
sale scenarios and • Sustainable profitability - the ability of a
Sample
Determine selling price and profit
• Home-based - double the total cost (100%
mark-up).
cash flow
projections
•
business to maintain consistent production
and sales levels over the long term without
running out of cash.
Be capable of overcoming financial setbacks.
• Rented premises - lower your mark-up
Summaries after sample
•
percentage to remain competitive (70-80%).
%
.
Start-up needs
• Home-based - water and electricity supply, sinks, and work
Production costs surfaces; fridges, stoves, sewing machines, or overlockers;
production-specific items; phone/fax machines and
• Home-based - raw ingredients or fabrics, plus consumables;
designated storage areas, and initial stock needed to create
your own time spent working and wages paid to any employees;
your first batch of products.
communication expenses; electricity costs, and fuel costs.
• Rented premises - location costs and deposits; costs
• Rented premises - monthly rent; electricity and water costs;
associated with hiring staff, and vehicles and cash registers.
communication lines; cleaning costs, and labour.
• .
Copyright © www.summariessa.co.za (DO NOT COPY)
GR12 CS T1-T1 Mind Map Focus
,Sample
Summaries after sample
, C20: Using water sustainably C19: Main sources of electricity supply
• Shortage of water in SA - low rainfall, uneven distribution • Fossil fuels:
and economic barriers. o Formed from organic remains of prehistoric
• Safe water - good-quality water must be free of plants/animals.
pathogens and have a zero count of faecal organisms like o Non-renewable – used quicker than they are
E. coli. formed.
• Causes of decline in clean water - increased pollution,
destruction of river catchments, and lack of maintenance • Regenerative energy:
on municipal purification systems. o Solar power – energy generated from the sun.
o Wind power – energy generated from wind.
C19: Sustainable o Hydropower – energy generated from falling
Pollution of water consumption of water.
o Bioenergy – energy generated from biomass.
• Water pollution – any chemical, physical or electricity
Sample •
biological change in the quality of water that has a
harmful effect on any living organism that uses it.
Causes - urbanisation, mining, energy use,
accidental spills, deforestation, damming of rivers,
C20: Sustainable
consumption of
water Responsible use of electricity
Summaries after sample
and the destruction of wetlands, runoff containing
• Switch off lights when leaving rooms.
insecticides and heavy metals.
• Insulating ceilings can save up to 16% of energy.
• .
• Set geyser temperatures to 60°C, insulate pipes,
and install low-flow showerheads.
The responsible use of water • Use pressure cookers or hotboxes for long-cooking
meals.
• Regularly read your water meter and study
• Only run full dishwashers.
monthly municipal bills to identify consumption
• :
patterns.
• Use low-flow shower heads or tap aerators.
• Turn off taps while brushing teeth or shaving.
• Plant indigenous species, use mulch to retain The use of gas in households as a source of energy
moisture, and avoid watering during the
hottest or windiest parts of the day. • Uses – cooking (fast, efficient and controllable) and water heating
• Grey water can be used for gardening. (cost-effective and energy-efficient).
• . • Check for rust/dents and ensure connections are secure.
• Flame must be blue with yellow tips.
• .
Copyright © www.summariessa.co.za (DO NOT COPY)
GR12
CS T1-T5 Mind Map Focus
C6: Sales scenarios and projecting
cash flow • Financial feasibility study - assessment used to
determine if a business idea is viable.
• Sales scenario - a way of predicting future • Helps an entrepreneur decide whether to proceed
sales situations to prepare for a response with a project by comparing total costs against
expected revenues.
from your market. C5: Sustainable
• Cash flow projections - there must always be
money available to buy ingredients, profitability
packaging, fuel, electricity and water. C6: Best sale
scenarios, worst Sustainable profitability
sale scenarios and • Sustainable profitability - the ability of a
Sample
Determine selling price and profit
• Home-based - double the total cost (100%
mark-up).
cash flow
projections
•
business to maintain consistent production
and sales levels over the long term without
running out of cash.
Be capable of overcoming financial setbacks.
• Rented premises - lower your mark-up
Summaries after sample
•
percentage to remain competitive (70-80%).
%
.
Start-up needs
• Home-based - water and electricity supply, sinks, and work
Production costs surfaces; fridges, stoves, sewing machines, or overlockers;
production-specific items; phone/fax machines and
• Home-based - raw ingredients or fabrics, plus consumables;
designated storage areas, and initial stock needed to create
your own time spent working and wages paid to any employees;
your first batch of products.
communication expenses; electricity costs, and fuel costs.
• Rented premises - location costs and deposits; costs
• Rented premises - monthly rent; electricity and water costs;
associated with hiring staff, and vehicles and cash registers.
communication lines; cleaning costs, and labour.
• .
Copyright © www.summariessa.co.za (DO NOT COPY)
GR12 CS T1-T1 Mind Map Focus
,Sample
Summaries after sample
, C20: Using water sustainably C19: Main sources of electricity supply
• Shortage of water in SA - low rainfall, uneven distribution • Fossil fuels:
and economic barriers. o Formed from organic remains of prehistoric
• Safe water - good-quality water must be free of plants/animals.
pathogens and have a zero count of faecal organisms like o Non-renewable – used quicker than they are
E. coli. formed.
• Causes of decline in clean water - increased pollution,
destruction of river catchments, and lack of maintenance • Regenerative energy:
on municipal purification systems. o Solar power – energy generated from the sun.
o Wind power – energy generated from wind.
C19: Sustainable o Hydropower – energy generated from falling
Pollution of water consumption of water.
o Bioenergy – energy generated from biomass.
• Water pollution – any chemical, physical or electricity
Sample •
biological change in the quality of water that has a
harmful effect on any living organism that uses it.
Causes - urbanisation, mining, energy use,
accidental spills, deforestation, damming of rivers,
C20: Sustainable
consumption of
water Responsible use of electricity
Summaries after sample
and the destruction of wetlands, runoff containing
• Switch off lights when leaving rooms.
insecticides and heavy metals.
• Insulating ceilings can save up to 16% of energy.
• .
• Set geyser temperatures to 60°C, insulate pipes,
and install low-flow showerheads.
The responsible use of water • Use pressure cookers or hotboxes for long-cooking
meals.
• Regularly read your water meter and study
• Only run full dishwashers.
monthly municipal bills to identify consumption
• :
patterns.
• Use low-flow shower heads or tap aerators.
• Turn off taps while brushing teeth or shaving.
• Plant indigenous species, use mulch to retain The use of gas in households as a source of energy
moisture, and avoid watering during the
hottest or windiest parts of the day. • Uses – cooking (fast, efficient and controllable) and water heating
• Grey water can be used for gardening. (cost-effective and energy-efficient).
• . • Check for rust/dents and ensure connections are secure.
• Flame must be blue with yellow tips.
• .
Copyright © www.summariessa.co.za (DO NOT COPY)
GR12
CS T1-T5 Mind Map Focus
