Feasibility Study
• Suppose after graduating, you want to establish
a coffee shop. After calculating your would-be
business costs, what else do you need?
• You need to know where to locate your business
and how much it costs, the time and money on
obtaining permits, the goods to offer and the
marketing strategies on how to get people to
patronize your business.
• You need to determine whether a project is
workable and financially worthwhile before you
spend large amounts of money on it. In short,
you need to conduct a feasibility study.
What is a feasibility study?
• This is a systematic analysis of all factors that
influence the probability of success of a specific
undertaking. It is designed to determine whether
a project is feasible, and if found feasible, to find
out the degree of probability. It covers the
market, technical, financial and management
aspects of the business.
Parts of the Feasibility Study
• Chapter 1
▫ Introduction
▫ Statement of the Problem
▫ Significance of the Study
▫ Scope and Delimitation of the Study
▫ Definition of Terms
▫ Review of Related Literature and Studies
• Chapter 2
▫ The Marketing Aspect
• Chapter 3
▫ The Management Aspect
• Chapter 4
▫ The Technical Aspect
• Chapter 5
▫ The Financial Aspect
• Chapter 6
▫ The Socio-Economic Aspect
Chapter 1
• Introduction
 States the brief history of the line of business you are
planning to start.
 States an introduction of your product/business.
 States the reasons why you want to start the
business
• Statement of the Problem
 Enumerates the questions to be answered at the end
of the feasibility study
 Make atleast 3.
• Significance of the Study
 Enumerates the groups of people that will benefit
from the study.(atleast 3 groups of people)
 States the reasons how and why they will benefit
from your study.
• Scope and Delimitations of the Study
 This section states the focus of your study.
 This includes what you will and what you will not
include in your paper.
 You may include the products/services that you
will/will not offer in the business.
• Definition of Terms
 Defines terms used in your study, terms that have
specialized meanings which should be stated in
order not to have multiple interpretations.
Example:
Filmmaker. A person that directs or produces a film.
• Review of Related Literature and Studies
 Related Literature may be any article that can
support the validity of your paper. Give atleast 3.
 Relates Studies refer to any study/thesis that can be
a good basis of your study. Give atleast 2.
Chapter 2- The Marketing Aspect
 This is considered as the most indispensable part of a
FS.
 Objectives of the Marketing Aspect
1. To enumerate the opportunities and threats of the
business.
2. To classify the strengths and weaknesses of the
company.
3. To define the different factors in the external
environment that is expected to affect business
operations.
The Marketing Aspect
• Marketing analysis
 Why will your product/business be successful?
 What situations will affect the success of your
project?
• Opportunities
 What are the special characteristics of your product/
business?
The Marketing Aspect
• Threats
 What can be some problems encountered by the
business?
• Strengths
 How can the company compete with others?
• Weaknesses
What can be the loopholes of your product/ business?
The Marketing Aspect
• Demand Analysis
 Why will the consumers patronize your product?
 Are the consumers willing and have the capability to
pay for the product?
• Supply Analysis
 Who and where will your supply come from?
 Will there be enough supply to cater to your
demand?
Chapter 3- The Management Aspect
This chapter deals with the organization and it is in this
aspect that the proponents identify the key officers and
key personnel, basic considerations in forming
organization, form of ownership, organizational chart,
project scheduling and perform job analysis.
Objectives:
1. Identify the form of ownership to be adopted
2. Know the project originators of the business
3. Present job descriptions and job specifications of the
business.
The Management Aspect
• Project Schedule
 Divides each part of the plan into activities citing its
covered period as well as the tasks expected to be
finished in each activity.
 Ex. Activity 1: Feasibility Study Preparation
 Period Covered: June- September 2014
▫ In this period, the proponents spent their time collecting
data through researches, surveys, interviews, observations
and other possible ways to know the possible outcome and
viability of the proposed product.
The Management Aspect
Form of Business Ownership
Sole/partnership/corporation
Internal Organization
*Manpower/ Job Analysis
-states the qualifications and requirements for a
particular job (job title, description and job specification)
Ex: Job Title: Accounting Officer
Job Requirement:
-college graduate
-atleast 6 months experience as accounting officer
Job Description:
- handles the money received from day-t-day operation
of the business
- supervises the preparations of the statement of account
and maintain the accounting records.
Salary: 12, ooo php/month
Chapter 4- The Technical Aspect
This part determines the technical soundness of a business. It
gives all the details necessary for the business to operate.
Technical Specifications of the Product
What is the main product?
What is it made of?
Describe it physically together with its container (if, applicable)
Raw Materials
How are the raw materials bought/gathered?
Where do the materials come from? Why do you buy it
from there?
The Technical Aspect
Building and Facilities
Where will the operation of the business be? House? Building?
Is it rented or owned? How much?
Will it be bought or renovated? By how much?
Office and Plant Location
Where exactly will the location be?
Chapter 5- The Financial Aspect
This part shows the financial standing of the business and its
viability in the market.
Objectives:
Discuss the needed capital.
Discuss the projected income of the business.
Determine how many years it will take to recover the
investments.
The Financial Aspect
Statement of Assumption
Ex:
1. Projected sales is 80% of the projected production budget.
2. Sales and purchases are on account.
3. Account receivables are collected next month after the sales.
4. Accounts payables are paid next month after the purchases.
State the Cash Flows of the business:
• Capital
• Expenses
• Projected (Expected Income)
Chapter 6- The Socio-Economic Aspect
Ex:
Employment and Income:
The proponents decided to hire workers in the vicinity of
Tanay, Rizal which is also their target market. The business can
benefit the families by giving appropriate amount of salary with
favorable benefits that can help improve their standard of living.
Government
The business will fulfill its obligation by paying taxes
promptly and accurately. Also, the business can help people in
times of calamity by giving donations.
Chapter 6- The Socio-Economic Aspect
Ex:
Community:
The community can benefit from the business for the
owners can sponsor some of the community’s projects or have
some scholarship grants.
Social Implication
The business will help generate the income for the
community and at the same time, cultivate creativity of the
Filipino people.
Format
• Font Style & Size: Calibri, 11
• Spacing: 1.5
• Alignment: Justified
• Margin: Left:1.5” Right, Top & Bottom: 1”
• Folder: ordinary,paper, short
• –no slide, just staple
▫ AC 2Y2-2 Yellow
▫ AC 2Y2-4 Blue
▫ AC 2Y2-1 Violet
▫ BM 2Y2-1 Red
▫ BF 2Y2-1 Brown
Coolfix Salon
where grooming is a lifestyle
Proponents:
Kara Lopez
Alvin Javier
PSY 2Y2-1
Submitted to:
Ms. Lhara Laureta
Insert
Logo
Here

Feasibility study

  • 1.
  • 2.
    • Suppose aftergraduating, you want to establish a coffee shop. After calculating your would-be business costs, what else do you need? • You need to know where to locate your business and how much it costs, the time and money on obtaining permits, the goods to offer and the marketing strategies on how to get people to patronize your business.
  • 3.
    • You needto determine whether a project is workable and financially worthwhile before you spend large amounts of money on it. In short, you need to conduct a feasibility study.
  • 4.
    What is afeasibility study? • This is a systematic analysis of all factors that influence the probability of success of a specific undertaking. It is designed to determine whether a project is feasible, and if found feasible, to find out the degree of probability. It covers the market, technical, financial and management aspects of the business.
  • 5.
    Parts of theFeasibility Study • Chapter 1 ▫ Introduction ▫ Statement of the Problem ▫ Significance of the Study ▫ Scope and Delimitation of the Study ▫ Definition of Terms ▫ Review of Related Literature and Studies • Chapter 2 ▫ The Marketing Aspect • Chapter 3 ▫ The Management Aspect • Chapter 4 ▫ The Technical Aspect • Chapter 5 ▫ The Financial Aspect • Chapter 6 ▫ The Socio-Economic Aspect
  • 6.
    Chapter 1 • Introduction States the brief history of the line of business you are planning to start.  States an introduction of your product/business.  States the reasons why you want to start the business
  • 7.
    • Statement ofthe Problem  Enumerates the questions to be answered at the end of the feasibility study  Make atleast 3. • Significance of the Study  Enumerates the groups of people that will benefit from the study.(atleast 3 groups of people)  States the reasons how and why they will benefit from your study.
  • 8.
    • Scope andDelimitations of the Study  This section states the focus of your study.  This includes what you will and what you will not include in your paper.  You may include the products/services that you will/will not offer in the business. • Definition of Terms  Defines terms used in your study, terms that have specialized meanings which should be stated in order not to have multiple interpretations. Example: Filmmaker. A person that directs or produces a film.
  • 9.
    • Review ofRelated Literature and Studies  Related Literature may be any article that can support the validity of your paper. Give atleast 3.  Relates Studies refer to any study/thesis that can be a good basis of your study. Give atleast 2.
  • 10.
    Chapter 2- TheMarketing Aspect  This is considered as the most indispensable part of a FS.  Objectives of the Marketing Aspect 1. To enumerate the opportunities and threats of the business. 2. To classify the strengths and weaknesses of the company. 3. To define the different factors in the external environment that is expected to affect business operations.
  • 11.
    The Marketing Aspect •Marketing analysis  Why will your product/business be successful?  What situations will affect the success of your project? • Opportunities  What are the special characteristics of your product/ business?
  • 12.
    The Marketing Aspect •Threats  What can be some problems encountered by the business? • Strengths  How can the company compete with others? • Weaknesses What can be the loopholes of your product/ business?
  • 13.
    The Marketing Aspect •Demand Analysis  Why will the consumers patronize your product?  Are the consumers willing and have the capability to pay for the product? • Supply Analysis  Who and where will your supply come from?  Will there be enough supply to cater to your demand?
  • 14.
    Chapter 3- TheManagement Aspect This chapter deals with the organization and it is in this aspect that the proponents identify the key officers and key personnel, basic considerations in forming organization, form of ownership, organizational chart, project scheduling and perform job analysis. Objectives: 1. Identify the form of ownership to be adopted 2. Know the project originators of the business 3. Present job descriptions and job specifications of the business.
  • 15.
    The Management Aspect •Project Schedule  Divides each part of the plan into activities citing its covered period as well as the tasks expected to be finished in each activity.  Ex. Activity 1: Feasibility Study Preparation  Period Covered: June- September 2014 ▫ In this period, the proponents spent their time collecting data through researches, surveys, interviews, observations and other possible ways to know the possible outcome and viability of the proposed product.
  • 16.
    The Management Aspect Formof Business Ownership Sole/partnership/corporation Internal Organization *Manpower/ Job Analysis -states the qualifications and requirements for a particular job (job title, description and job specification) Ex: Job Title: Accounting Officer Job Requirement: -college graduate -atleast 6 months experience as accounting officer Job Description: - handles the money received from day-t-day operation of the business - supervises the preparations of the statement of account and maintain the accounting records. Salary: 12, ooo php/month
  • 17.
    Chapter 4- TheTechnical Aspect This part determines the technical soundness of a business. It gives all the details necessary for the business to operate. Technical Specifications of the Product What is the main product? What is it made of? Describe it physically together with its container (if, applicable) Raw Materials How are the raw materials bought/gathered? Where do the materials come from? Why do you buy it from there?
  • 18.
    The Technical Aspect Buildingand Facilities Where will the operation of the business be? House? Building? Is it rented or owned? How much? Will it be bought or renovated? By how much? Office and Plant Location Where exactly will the location be?
  • 19.
    Chapter 5- TheFinancial Aspect This part shows the financial standing of the business and its viability in the market. Objectives: Discuss the needed capital. Discuss the projected income of the business. Determine how many years it will take to recover the investments.
  • 20.
    The Financial Aspect Statementof Assumption Ex: 1. Projected sales is 80% of the projected production budget. 2. Sales and purchases are on account. 3. Account receivables are collected next month after the sales. 4. Accounts payables are paid next month after the purchases. State the Cash Flows of the business: • Capital • Expenses • Projected (Expected Income)
  • 21.
    Chapter 6- TheSocio-Economic Aspect Ex: Employment and Income: The proponents decided to hire workers in the vicinity of Tanay, Rizal which is also their target market. The business can benefit the families by giving appropriate amount of salary with favorable benefits that can help improve their standard of living. Government The business will fulfill its obligation by paying taxes promptly and accurately. Also, the business can help people in times of calamity by giving donations.
  • 22.
    Chapter 6- TheSocio-Economic Aspect Ex: Community: The community can benefit from the business for the owners can sponsor some of the community’s projects or have some scholarship grants. Social Implication The business will help generate the income for the community and at the same time, cultivate creativity of the Filipino people.
  • 23.
    Format • Font Style& Size: Calibri, 11 • Spacing: 1.5 • Alignment: Justified • Margin: Left:1.5” Right, Top & Bottom: 1” • Folder: ordinary,paper, short • –no slide, just staple ▫ AC 2Y2-2 Yellow ▫ AC 2Y2-4 Blue ▫ AC 2Y2-1 Violet ▫ BM 2Y2-1 Red ▫ BF 2Y2-1 Brown
  • 24.
    Coolfix Salon where groomingis a lifestyle Proponents: Kara Lopez Alvin Javier PSY 2Y2-1 Submitted to: Ms. Lhara Laureta Insert Logo Here