WHAT IS A FEASIBILITY STUDY?

 As the name implies, a feasibility study is an analysis of the viability of an idea. The
feasibility study focuses on helping answer the essential question of “should we proceed
with the proposed project idea?”
 The process of determining whether an entrepreneur’s idea is a viable foundation for
creating a successful business.
 A Business Feasibility Study can be defined as a controlled process for identifying
problems and opportunities, determining objectives, describing situations, defining
successful outcomes and assessing the range of costs and benefits associated with several
alternatives for solving a problem.

IMPORTANCE OF BUSINESS FEASIBILIBILITY STUDIES:

 Feasibility studies address things like where and how the business will operate.
 Provide in-depth details about the business to determine if and how it can succeed,
and serve as a valuable tool for developing a winning business plan.
 An effective way to safeguard against wastage and further investment of resources.
 Develop marketing strategies to convince an investor that the business is worth
considering as an investment.
 Helps in finding a cost-effective way to market and sell the products and services.

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THE CONTENTS OF A FEASIBILITY STUDY:

Chapter I - Business Profile

The Business Profile talks about the business entity itself including the primary
information. This primary information includes the introduction of the company, business name,
business logo, business tagline, the mission, vision, objectives and the target location.

Chapter II – Economic and Market Aspect

The Economic and Market Aspect describes the industry, current market, anticipated and
potential buyers, etc.. It includes the demand analysis, survey result which is very essential,
market conditions like the competitors analysis and target market, and lastly the SWOT analysis.

Chapter III – Technical Aspect

The Technical aspect details how the business will operate and deliver a product or
service (i.e., materials, transportation, technology needed, etc.). It includes the facilities and
layout, the floor plan, the equipments for each facility, and the legal requirements necessary to
operate the business.

Chapter IV – Organizational Aspect

The Organizational Aspect defines the structure of the business and the manpower
requirements. It talks about the Employees, Management and Business Partners. It includes the
job description and job specifications of the potential employees.

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Chapter V – Marketing Aspect

The Marketing Aspect can be considered as one of the important part of a feasibility
study. It measures how the company will be known in the areas where it is planning to serve. It
also involves the complete description of the product lines and services that the company will
offer in the market. This chapter also includes pricing strategy as well as the promotional
strategies needed in marketing the products and services.

Chapter VI – Financial Aspect

The Financial Aspect shows the source of capital of the business, the Start-Up Expenses,
the projected Cash Flow within the first twelve months of operation, the projected Balance sheet
for three consecutive years, the projected Income Statement for three consecutive years, Return
of Investment and the Payback Period. This will show if the business will be profitable or not
and if the payback period would be fast or slow.

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 TABLE OF CONTENTS:

Title Page
Approval Sheet
Acknowledgement
Executive Summary
Table of Contents
List of Figures
List of Tables

Chapter I: Business Profile

Introduction
Company Profile
Business name
Business Logo and Tagline
Mission Statement / Vision / Objectives

Chapter II: Economic and Market Aspect

Demand Analysis
Survey Result
Market Condition
Target Market
Competitors Analysis
SWOT Analysis

Chapter III: Technical Aspect

Facilities and Lay-out

Floor Plan

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 Equipments
Furniture and Fixtures
Legal Requirements
Production / Transaction Process
Standard Operating Procedures

Chapter IV: Organizational Aspect

Business Structure
Manpower Requirements
Working Schedule
Compensation and Benefits
Rules, Regulations and Prohibitions
Employee’s Contract

Chapter V: Marketing Aspect

Product Lines and Services Offered

Pricing Strategies
Advertising and Promotions

Chapter VI: Financial Aspect

Start-Up Expense
Projected Cash Flow
Projected Balance Sheet
Projected Income Statement
Return on Investment/ Payback Period

Appendices
Curriculum Vitae

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 Sample Formats:

Approval Sheet:

Sample Formats:
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Presentation of Survey Results:

Sample Formats:

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Competitors Analysis:

Product/
Number of Operating Price
Competitors Location Services
Employees Hours Range
Offered

List of Equipments and Machineries:

Machineries Name Quantity Supplier Cost Depreciation

Vacuum cleaner 1 ACE Hardware Php 6,000.00 Php 1,000.00

with Blower

TIPS / REMINDERS

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Before you register your business with the DTI, you should be ready with your proposed
business name. The following are guidelines for an acceptable and not acceptable business name:

Acceptable business names:

 The root word or words of the name shall be considered.

 Describes the nature of business
 Comprised solely of letters and/or numerals
 Punctuation that are part of English and Filipino language

Names that are not acceptable:

 Those which are or whose nature of business is illegal, offensive, scandalous, or contrary
to propriety.

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  Those which are identical or which nearly resemble business names already registered
with government office authorized to register names.

(Visit https://www.bnrs.dti.gov.ph/web/guest/search to check the availability of the

chosen business name)

 Names composed purely of generic words.

 Names by which by law or regulation cannot be appropriated.
 Distinguished or suggestive of quality of any class of goods, articles merchandise or
service.
 Abbreviation of names of any nation, inter-governmental or international organization
 Names which are misleading, deceptive or which misrepresent the nature of business

Things to Consider When Choosing a Location for Your Business

 Style of operation

Is your operation going to be formal and elegant? Or casual? Your location should be consistent
with your particular style and image. If your business is retailing, do you want a traditional store,
or would you like to try operating from a kiosk (or booth) in a mall or a cart that you can move to
various locations?

 Demographics

There are two important angles to the issue of demographics. First, consider who your customers
are and how important their proximity to your location is. For a retailer and some service
providers, this is critical; for other types of businesses, it might not be as important. The
demographic profile you have of your target market will help you make this decision.
Then take a look at the community. If your customer base is local, does a sufficient percentage of
that population match your customer profile to support your business? Does the community have
a stable economic base that will provide a healthy environment for your business?

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  Foot traffic

For most retail businesses, foot traffic is extremely important. You don't want to be tucked away
in a corner where shoppers are likely to bypass you, and even the best retail areas have dead
spots. By contrast, if your business requires confidentiality, you may not want to be located in a
high-traffic area. Monitor the traffic outside a potential location at different times of the day and
on different days of the week to make sure the volume of pedestrian traffic meets your needs.

 Accessibility and parking

Consider how accessible the facility will be for everyone who'll be using it--customers,
employees, and suppliers. If you're on a busy street, how easy is it for cars to get in and out of
your parking lot? Is the facility accessible to people with disabilities? What sort of deliveries are
you likely to receive, and will your suppliers be able to easily and efficiently get materials to
your business? Find out about the days and hours of service and access to locations you're
considering.
As with foot traffic, take the time to monitor the facility at various times and days to see how the
demand for parking fluctuates. Also make sure the parking lot is well-maintained and adequately
lighted.

 Competition

Are competing companies located nearby? Sometimes that's good, such as in industries where
comparison shopping is popular. You may also catch the overflow from existing businesses,
particularly if you're located in a restaurant and entertainment area. But if a nearby competitor is
only going to make your marketing job tougher, look elsewhere.

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  Proximity to other businesses and services

Take a look at what other businesses and services are in the vicinity from two key perspectives.
First, see if you can benefit from nearby businesses--by the customer traffic they generate--
because those companies and their employees could become your customers, or because it may
be convenient and efficient for you to be their customer.
Second, look at how they'll enrich the quality of your company as a workplace. Are other shops
and services you and your employees might want conveniently located?

 Ordinances

Find out if any ordinances or zoning restrictions could affect your business in any way. Check
for the specific location you're considering as well as neighboring properties--you probably don't
want a liquor store opening up next to your day-care center.

 The building’s infrastructure

Many older buildings don't have the necessary infrastructure to support the high-tech needs of
contemporary operations. Make sure the building has adequate electrical, air conditioning, and
telecommunications service to meet your present and future needs. It's a good idea to hire an
independent engineer to check this out for you so you're sure to have an objective evaluation.

 Utilities and other costs

Rent composes the major portion of your ongoing facilities expense, but consider extras such as
utilities--they're included in some leases but not in others. If they're not included, ask the utility
company for a summary of the previous year's usage and billing for the site. If you have to
provide your own janitorial service, what will it cost? What are insurance rates for the area? Do
you have to pay extra for parking? Consider all your location-related expenses, and factor them
into your decision.

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 PAPER FORMAT
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 Font: Times New Roman

12 points
Font Size:

1 inch, top and bottom

1 inch - right and 1.5 inches – left

Margins:
(Hint. In MS Word, select "Page Layout"; select 1 inch
(1") in the Top; Bottom; Right boxes; (1.5”) in the left box;
then ok.

All text should be justified

Justification

Print Color: Black for all the text; colored for all the figures

Double space
Line Spacing:

Include a Running Head (Header) and number all pages at

Page Numbers & the bottom right.
Running Heads

POWERPOINT PRESENTATION DURING DEFENSE

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  BUSINESS NAME me
 BUSINESS LOGO me
 BUSINESS TAGLINE me
 LOCATION MAP me
 VISION jhy
 MISSION jhy
 OBJECTIVES jhy
 TARGET MARKET vanessa
 SWOT ANALYSIS vanessa
 COMPETITORS ANALYSIS vanessa
 FRONT VIEW / FAÇADE OF THE STORE ram
 FLOOR PLAN ram
 OPERATION / PRODUCTION FLOW jayjay
 ORGANIZATIONAL CHART edlym
 SALARY TABLE edlym
 LIST OF PRODUCTS / SERVICES OFFERED (WITH THEIR
PRICES) kim rose
 START – UP COST me
 PROJECTED INCOME STATEMENT me
 PAYBACK PERIOD / ROI me

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