FEASIBILITY STUDY

Net present value should be positive

i. Market analysis
a. Demand
b. Target Market
c. Competition- scanning and mapping
d. Market outlet or market channel
ii. Technical and Production analysis
a. Facilities and equipment
b. Labor and management- staff, skills
b.1 business organization
b.2 involving stakeholders
c. Input- know-how, where to get materials
iii. Financial analysis
a. Start up cost
b. Operating cost – fixed expenses, labor cost, constant, water, electricity, ,
VARIABLE COST
c. Financing- loan , interest,
a. prepare a projected income statement
d. Revenue and profitability – estimates of production, selling, minus the
production costs/interest/ bottom line profit

iv. Management
Template:

Executive Summary

Molave is a medium sized deciduous tree with an open wide-spreading crown; it

usually grows up to 30 metres tall, occasionally to 38 metres. The bole is up to 125cm in
diameter and sometimes buttressed. The bole can be branchless for up to 20 metres,
though it is often much shorter and crooked.This is the dominant timber species in
monsoon forest in the Philippines, where it is widely harvested from the wild.

Description of Products/Services

Tree needs

 2m within a row 2-6 m distance between rows

 Annual temperature: 22 – 32 degrees Celsius
 Tolerant of most soils
o Prefers soils with limestone
 Pruning during dry season (to avoid injury)
 Removal of infected or infested vegetation
 Grows slowly
 If growing own seedlings, it is ready for field planting once it is 65 cm in height (8-
9 months)
 Can tolerate brief flooding but not drought (requiring constant irrigation if drought
does happen)

Price per Seedling

 Shopee: 60 – 110 Php

 Lazada: 105- 120 Php

Price per seed

 Shopee 4.5 – 4.9 Php

 Timber

 Grows to around 25 – 30m in total height in 20 years

 5 – 10m in merchantable height (height starting from the stump to a part in the
trunk where it is too thin to sell)
o 16 -32 ft height
 35 - 150 cm in diameter
o 1.1 – 4.9 ft diameter
o 12 -59 in

Uses

 Construction
 Ship building
 Railroad ties
 Sculpture
 Furniture making
 Flooring
 Windowsills
 Frames of windows
 Good in controlling soil erosion

Technology Considerations

Product/service Market Place

Marketing Strategy

Market Strategy

Organization/Strategy

Schedule

Financial Projections
Findings and recommendations

1. technology

2. Marketing

a. market conditions/health- growth or decline stage5, 10, 15 25 year grwthforcast

competition, who dominant players, strengths/weaknesses of other players

b. operational requirements: securing raw materials, equipemtn, capital expenditures,

financing options, supplier terms, customer terms – the cash flow

c. market demand-distinguishing product offered, pricing, payment terms, market

receptive

3. Organizations

4. Financial

7 Steps for a Feasibility Study

1. Conduct a Preliminary Analysis. ...

2. Prepare a Projected Income Statement. ...
3. Conduct a Market Survey, or Perform Market Research. ...
4. Plan Business Organization and Operations. ...
5. Prepare an Opening Day Balance Sheet. ...
6. Review and Analyze All Data. ...
7. Make a Go/No-Go Decision. ...
8. Feasibility Report Template
Sources:

 BINHI, “Vitex Parviflora”, 2018

o https://binhi.ph/tree/molave/
 ITTO “Molave (Vitex Parviflora)”
o http://www.tropicaltimber.info/specie/molave-vitex-pinnata/
 Research Information Series on Ecosystems, “Moluccan sau and Molave”, 2008
o http://erdb.denr.gov.ph/wp-content/uploads/2015/05/r_v20n3.pdf
 LOMOSBOG, N.T. and GAMIL, N.S., 2015. Characterization of Potential Molave
(Vitex parviflora Juss.) Mother Trees in Lila, Bohol, Philippines. International
Journal of Environmental and Rural Development, 6(2), pp.11-16.
 Stuartxchange, “Molave”, 2019
o http://www.stuartxchange.org/Molave

 The Philippine Star, “Tree of the month(PART1) Molave Vitex Parviflora Physical
Characteristics.”, 2012
o https://www.philstar.com/cebu-news/2012/11/05/863537/tree-month-part1-
molave-vitex-parviflora-physical-characteristics
 Useful Tropical Plants “Vitex Parviflora”, 2019
o http://tropical.theferns.info/viewtropical.php?id=Vitex+parviflora
 Kuya Jan’s experience with molave trees in Paroir