Group Activity 2.

2: The Pre-Feasibility Study

Once the important decision has been made, your group has to accomplish the four parts of the pre-
feasibility study. The group’s output should follow the format below:

Pre-Feasibility Study Sample Format

A. Market Potential
1. Target Market (Describe in detail who your targeted customers are.)
2. Competition Assessment (Describe who your competitors are. Identify their strength and
weaknesses.)
3. Estimated Market Share and Sales (What portion of the market can your business
attract? Based on this, come up with a monthly sales forecast.)

B. Technology Assessment and Operations Viability (Accomplish the Operations Viability

Assessment Table for the business proposal. What outcomes are desired by customers? What
process and inputs are necessary to achieve these outcomes?)

C. Investment Requirements and Production/Servicing Costs

1. Investment Requirements (Identify the pre-operating costs, facilities investments, and
working capital investments needed to jumpstart your business.)
2. Production/Servicing Costs (Identify all operating costs. What is the total monthly
operational cost of running the business?)

D. Financial Prospects (Create a monthly income statement based on the estimated operating
costs and sales forecasts.)

Each should be backup with research. In Part A, for instance, you may want to visit your Barangay or
Municipality/ city hall to get data on demographics. To get details on operations and finance, you may
need to talk to entrepreneurs or industry experts. If setting an appointment with the experts is too
difficult, there is still a wealth of information that is easily accessible on the internet. Just make sure that
your sources are trustworthy.

To make the project easier, you may choose to subdivide the group into three units: marketing,
operations, and finance. The marketing unit can focus on Part A, operations unit of Part B, and Finance
unit on Parts C and D.