PRE-FEASIBILITY

STUDY,
FEASIBILITY
STUDY &
BUSINESS PLAN
 Opportunity
Seeking

 Opportunity
Screening

 Opportunity
Seizing
 a study to decide
- A preliminary study whether the
undertaken to identified project is a business plan is
determine, analyze attractive enough to made up of mostly
and select the best go for tactics and strategies
business scenarios. implementation to be implemented in
- Is an early stage of order to grow
analysis The feasibility the business.”
Designed to give basic
study helps
information Business plans are
Gives overview of the
determine whether
an idea or business is blueprints for
project`s logistics,
a viable option implementing actions
capital rquirements, key
challenges and other
that have already
information deemed It is filled with been deemed
important to decision- calculations, analysis feasible by the
making process. and estimated company's
projections management.
Opportunity:Growing Demand for
Motorcycle

 Business Options:

1. Establish a repair and vulcanizing shop

specializing in motorcycles

2. Establish a motorcycle distributorship

3. Establish a motorcycle rental shop

The Prefeasibility Study
 Generally, PFS consists of sector investment
options and priorities, scoping, delivery and
procurement options, governance,
implementation structure, cost estimates and
financing mechanisms. It outputs market
prospects, environmental, technical,
financial, and the SIA.

 While admittedly, the PFS will still be rough at

best, doing one is important for infrastructure
initiative.
Pre-FS
 PFS consists of sector investment
options and priorities, scoping,
delivery and procurement options,
governance, implementation
structure, cost estimates and
financing mechanisms. It outputs
market prospects, environmental,
technical, financial, and the SIA.

 PFS- 20-30% accuracy

 FS- 10-20% accuracy
Why PFS?
 It act as one of the 1st explorations of a
potential investment
 It take into account the factors that may
impact or interfere with the final project such
as community issues, geographic obstacles,
permit challenges, etc
 It describes the scope of the project, some of
its detailed designs, cost estimates, project
risks, safety issues,other important information.
Importance Of Pre-FS.
It helps entrepreneur to:
 (a) consider other solutions (is there other
“best value” option for achieving the same
objective;
 (b) use relatively small investment to
understand the solution and its chances of
success, before committing larger sums if a FS
was used;
 (c) Identify the most significant risks prior to
implementation;
 (d) check if the scope and definition are
sufficient reasons to do the project; and (e)
test the potential funder's interest and level of
commitment to see the project through.
What happen if results are
positive? Negative?
 Positive- the company will move on to the
next
 Negative- the company will head back to
the drawing board or abandon the
potential project
Major Steps in Pre-FS
OUTLINE OF PRE-FS
 B.1 Executive Summary-A Synoptic
Review of All the Essential Findings of Each
Chapter.
 B.2 Project Background and History:
 B.3 Market Analysis and Marketing
Concept:
 B.4 Material Inputs (Approximate Input
Requirements, Their Present and Potential
Supply Positions, and a Rough Estimate of
Annual Costs of Local and Foreign
Material Inputs):
OUTLINE OF PRE-FS
 B.5 Location, Site and Environment:

 B.6 Project Engineering

 B.7 Organization and Overhead Costs:

 B.8 Human Resources:

 B.9 Implementation Scheduling:

 B.10 Financial Analysis and Investment:

REFER TO MS WORD COPY OF
THE DETAILS OF PRE-FS
 Word for the Day
Never lose an opportunity of
seeing anything beautiful,
for beauty is God`s
handwriting..

(Those who listened will never lose

this opportunity.)

Thank you!!!
The Feasibility Study
 CONTENT:
CONTENT:  Executive
 Economic Analysis Summary
 Environmental  SWOT Analysis
Analysis  Profile of the LGU
 Social Analysis  Product or Service
 Legal Analysis Description
 Market Analysis  Marketing Analysis
 Technical Analysis  Marketing and
 Management Sales Strategy
Analysis  Management and
(Organizational Personnel Plan
and Operational)  Operational Plan
 Financial Analysis  Financial
 Conclusion and Projections
Recommendation And analysis