AGECON 211 Practical 06: Collaborative Business Plan and Feasibility Study

B.Sc. (Hons.) Agriculture | Semester 3 | AGECON 211 | Practical 06

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Learning objectives

Generate and screen business ideas as a team, validate an offer and write a coherent business plan covering markets, operations, funding and risk.

Team organization

Form a small team and assign responsibility for customer research, technical operations, finance, marketing and coordination. Roles may overlap, but every deliverable needs an accountable person. Agree deadlines, decision rules, document versions and a fair method for recording contributions. Keep evidence in a shared project file.

Idea generation and screening

Start with observed problems: delayed machinery access, unreliable seedlings, post-harvest losses or limited local processing. Generate alternatives before choosing a favourite. Screen for customer need, founder capability, inputs, capital, feasibility and social or environmental effects. Apply transparent criteria and explain rejection of alternatives.

Validation procedure

1. Define the target customer and the problem in one sentence.
2. Interview potential users using neutral questions about present behaviour.
3. Map competing solutions and their prices, reliability and limitations.
4. Create a low-cost prototype or service demonstration.
5. Collect evidence of actual interest, orders or repeat use where appropriate.
6. Estimate unit economics and operational requirements.
7. Revise the model and document remaining uncertainties.

A small convenience sample can reveal problems but cannot establish statistically representative market demand. Report how participants were selected and avoid inventing survey results. Distinguish a respondent saying an idea is attractive from willingness to pay.

Business-plan sections

Include executive summary, team, value proposition, target audience, market size assumptions, competition, marketing mix, operational process, staffing, funding requirement, financial projections, milestones and risk management. Show how projected sales connect to reachable buyers rather than applying an arbitrary percentage to a very large market.

Illustrative service economics

A machinery-booking service receives ₹200 per completed booking and incurs ₹80 in variable coordination and travel cost. Contribution is ₹120 per booking. If monthly fixed costs are ₹12,000, break-even is 100 completed bookings. At 150 bookings, operating surplus before unlisted costs is ₹6,000. Cancellations, bad debts and seasonal demand can materially change the result.

Separately identify whether the business is an agent charging a booking fee or an equipment owner earning the full hiring revenue. Mixing these models inflates revenue and understates equipment or operator costs.

Risk and project milestones

List key risks, triggers, preventive actions, response owners and fallback options. Use milestones such as interviews completed, pilot tested, supplier verified and minimum repeat demand achieved. Agree a stop or redesign criterion before major spending.

Submission and assessment

Submit the written plan, evidence appendix, financial worksheet, presentation and individual contribution log. Assess customer evidence, internal consistency, realistic assumptions, teamwork and response to questions. Record both supportive and contradictory findings; a justified decision not to launch can demonstrate sound entrepreneurial judgement.

Revision and assessment

1. Compute contribution and break-even in the booking example.
2. Why distinguish agent and equipment-owner models?
3. Name four feasibility dimensions.

Answer guide

1. Contribution ₹120; break-even 100 completed bookings per month.
2. They have different revenues, assets, operating responsibilities, costs and risks.
3. Market, technical, operational, financial and institutional feasibility are relevant dimensions.

Independent English study notes for the topics listed in the AGECON 211 course index. Consult your prescribed university syllabus for official course wording and assessment requirements. Numerical cases are hypothetical learning examples.