Cohousing-L Mailing List: Re: Proforma, Feasibility Study, Business Plan, Proposal

[Mac & Sandy Thomson (ganesh]

On 07/17/03 Maggie Dutton wrote:
> Anyway...I sure wish this list would pick up on this subject thread like it
> does on so many others.  It's been like getting a University Education in
> Cohousing.

Maggie,

Congratulations on the positive feedback you've gotten so far from the
non-profit developer.  Coho-l was similarly VERY valuable to me back when I
was working as the project manager here at Heartwood Cohousing.

I think the terms you're asking to have defined can mean different things to
different people, but I'll take a shot at defining them.

Proforma - I think this simply means a budget, in which you estimate how
much money you will bring in (from sales of homes, grant money, interest
income, etc) and how much money you will spend (for buying land,
engineering, consultants, building homes, financing, marketing, contingency,
etc, etc, etc).  The amount you bring in needs to equal or exceed the amount
you spend.

Feasibility Study - This is a study you conduct early on to determine (as
best you can) if the project you have envisioned will fly.  The budget
(proforma) would certainly be a part of the study.  The feasibility study
would also look at political approvals (zoning), marketing (Can you attract
enough members in your area at the price you'll sell your homes for?),
financing (Can you get the necessary grants and loans?), and any other
factors which could make or break your project.

Business Plan - We didn't have any reason for a business plan at Heartwood
and I've never written one, but I think it's basically a report (maybe 20 -
100 pages?) on what you expect your business to be and why you expect it to
thrive.  Your 'audience' for a business plan might be anyone who would get
significantly involved in the business:  investors, bankers, etc.  In my
mind, the business plan might be very similar to the feasibility study, the
difference being that the feasibility study is something you want to do for
your own benefit, whereas the business plan is something you do to present
your project to others.

Proposal - I don't have any definition unique to cohousing development for
'proposal'.  I'd just say it's a suggested idea your putting forth for
consideration.

I hope this helps,
Mac

-- 
Mac Thomson

Heartwood Cohousing
Southwest Colorado
http://www.heartwoodcohousing.com


"Ask yourself whether you are happy, and you cease to be so."
       - John Stuart Mill
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