Feasibility Study of (Business) in (Location)

PROJECT SUMMARY
NAME OF FIRM
LOCATION
PROJECT DESCRIPTION
HIGHLIGHTS OF MAJOR ASSUMPTIONS:
A. MARKET STUDY
B. TECHNICAL STUDY
C. FINANCIAL STUDY
SUMMARY OF FINDINGS AND CONCLUSION
I. MARKET STUDY

A. Product description and market situation

B. Target market

Table 1. Projected number of customers

Year No. of Customers

C. Demand

Potential Market Demand

Potential Demand = N x %W x AQP x SR

Where:
N - number of potential buyers
%W - percentage of potential buyers (willing to buy)
AQP - average quantity of product bought
SR - substitution rate (10% standard)
 Table 2. Projected demand of existing product (example: snack item)
Year Demand

Table 3. Demand for generated product/service

Year Demand

D. Supply

Table 4. Supply of existing product

Year Supply

E. Demand-Supply Analysis

Table 5. Demand-Supply Analysis

Year Demand Supply Gap

F. Prices

Table 6. Prices of substitutes

Product Size Price
 G. Marketing Program
a. Packaging
b. Distribution Channel
c. Pricing Strategies
d. Promotion tools us

II. TECHNICAL STUDY

A. Production Flow/Service Process Flow

B. Plant size and Production Schedule (for products and services)
Table 7. Production schedule
Year Production (Units)

C. Raw Materials schedule

Table 8. Raw materials
Items Description Quantity Unit Cost Annual Total Cost
(units)

Total

D. Building, Machinery, Equipment, Utensils, Furniture, and Fixtures

Table 9. Building, machinery, equipment, furniture, and fixtures
A. Equipment
Unit Item Cost
 Sub-total
B. Building
C. Tools/ Utensils

Sub-total
D. Furniture and Fixtures

Sub-total
Total

Depreciation schedule
Table 10. Depreciation (straight-line)
Items Estimated Life Cost Yearly
Span Depreciation

Total

E. Waste Disposal
Table 11. Waste disposal
Year Unit Sales

Table 12. Indirect raw material

Items Description Quantity Unit Cost Annual Total Cost
(units)
 Total

F. The Plant Location

G. Plant Layout

H. Labor Requirements
a. Direct Labor
Table 13. Job description of direct labor
Labor No. of Workers Weekly/Monthly Annual Labor
(Hire) Wage Cost

Total

Table 14. Indirect Labor

Position Qualifications Monthly Salary Annual Salary

Total

I. Production Cost
Table 15. Production Cost
Year 1 Year 2 Year 3 Year 4 Year 5
Direct Materials
Direct Labor
Sub-total
Manufacturing Overhead
Indirect labor
Indirect Materials
Utilities
Repair and maintenance
 Taxes and licenses
Land rent
Insurance
Miscellaneous
Sub-total
Administrative and
marketing costs
Office supplies
Promotion and
advertising
Transportation
Sub-total
Total

III. FINANCIAL STUDY

A. Major assumptions
B. Total Project Cost and Sources of Financing
Table 17. Total project cost
Year 1 Year 2 Year 3 Year 4 Year 5
Fixed Cost
Building
Equipment
Utensils
Furniture and
fixtures
Sub-total
Production Cost
Direct materials
Direct labor
Manufacturing
overhead
Administration
and marketing
cost
Sub-total
Total

Table 18. Loan schedule

Year Annual Interest Principal Outstanding
Payment Balance
 Beginning
1
2
3
4
5

C. Financial Statements
Table 19. Projected sales
Year Cost Production Break-even Mark-up Sales

Table 20. Projected cost of goods sold.

Year 1 Year 2 Year 3 Year 4 Year 5
Materials purchased
Materials Inventory
Add: Begn’g inv.
Less: Endn’g inv.
Materials used
Direct labor
Manufacturing overhead
Indirect labor
Indirect materials
Utilities
Repair and
maintenance
Taxes and licenses
Insurance
Miscellaneous
Sub-total
Total Production Cost
Add: Begn’g inv.
Less: Endn’g inv.
Cost of goods sold

Table 21. Income statement

Table 22. Balance sheet
Table 23. Cash flow statement

D. Financial Analysis
a. Liquidity
b. Debt-service ratio
c. Profitability ratio
d. Return on investment analysis
 Return on investment (ROI)
 Payback period (PP)
 Net present value (NPV)
e. Break-even Analysis
 Price
 Volume

IV. ORGANIZATION AND MANAGEMENT

A. Organizational structure
B. Duties and responsibilities

Table 24. Projected compensation

Position Qualifications Duties and
responsibilities

V. SOCIO-ECONOMIC STUDY
VI. CONCLUSION AND RECOMMENDATION