They may complete the list if necessary, arrange them in order and present them as suggested below. This involves finding out whether the man or woman suggesting the activity has the required technical skills and, if not, whether they can acquire them rapidly. We would be heading for disaster if we undertook weaving or shoemaking, mechanics or masonry, dyeing or rice trading without prior preparation. We should not forget management skills, but we shall deal with this in the chapter on economic activity management. An activity that does not produce a profit runs at a loss.
Net profit is obtained by deducting overheads and depreciations from gross profit.
A carefully prepared estimated operating account enables us to determine whether an operation will be profitable before it is launched. This type of undertaking is often subsidized.