A PROJECT FEASIBILITY STUDY ON THE

ESTBLISHMENT OF WOODEN FURNITURE

SHOP IN LIBERTAD TUNGAWAN ZAMBOANGA
SIBUGAY
Researchers:
Caballida, Lailanie Y.
Espares, Kimberly B.

Tagod, Ilyn P.
 Objectives Of The Study

To determine Feasibility on the Establishment of Wooden Furniture Shop in Libertad,

Tungawan Zamboanga Sibugay. Maintaining the highest quality of our product and being a
leading manufacturer in the industry.
1.To determine supply and demand gap on wooden furniture products in Tungawan,
Zamboanga Sibugay.
2. To obtain technical know-how on furniture woodworking.
3.To determine profitability of the business through financial ratio indicators .
PROJECT FEASIBILITY STUDY
 DESCRIPTION OF THE PROPOSED PROJECT

• The proposed project will produce different types of wooden furniture such as;
bed sets, dining sets, door sets, center and side table, office tables with chair, sala
sets and divider.
• The proposed project will use a high quality of wood that is very durable even in
a long period of time.
• The proposed project cares and protects the environment and its natural resources
so we will going to support reforestation.
• The project will cater the growing needs of the local wooden furniture market.
 MARKETING ASPECT

Overview of the Industry situation

Description of the Market
Demand and Supply Perspective
Description of the Product
Competitive Strength
Projected Demand and Sales
 OVERVIEW OF THE INDUSTRY SITUATION

The proposed wooden furniture business is an ideal market for a furniture business and is
located at the center of Libertad, Tungawan Zamboanga Sibugay that is convenient to
everyone. In this area there is no wooden furniture existence yet. People in this area not
only have a work but also they have a business that can afford to spend their money in
willing to buy the product which is wooden furniture.
 DESCRIPTION OF THE MARKET

• The proponent of the proposed business must have the desired creativity as to be able to
provide quality service to the customer.
• The business aims to market the product in the people of Tungawan.
• The target market of the business is the newlyweds and teachers because they are the
ones who mostly purchase and in need of furniture which translates to a constant
demand interestingly.
• Within a market businesses are faced by direct competitors .In the entire municipality it
only has two existing furniture shops. With regards to our consideration about our
competition, we considered them as the proposed projects competitors.
 DEMAND AND SUPPLY PERSPECTIVE

• The annual demand and supply from 1 year up to year 5 was obtained based on the gathered
data or sample. Based from the obtained demand, and supply it was distributed to every
product in order to determine its demand , supply and gap.
• Based on the consolidated data the demand per product is 314
• Based on the consolidated data the supply per product ; dining set and sala set is 139, door
set is 217, divider is 183, office table with chair is 95, bed set is 179, center and side tables is
29.
• Based on the consolidated data gap per product; dining set and sala set is 175, door set is 97,
divider is 131, office table with chair is 219, bed set is 135, center and side tables is 285.
 DESCRIPTION OF THE PRODUCT

• Dining set is compose of dining table with 6 chairs which feature similar o
complementing designs and the price is 20,500 pesos.
• Sala set is a set of furnishing for a living room compose of 1 center table, 2 long
chairs, and 2 single chairs with the price of 20,500 pesos.
• Door set is a solid wood door is made from a single piece of the same variety of wood
and different designs with the price of 5,000 pesos.
• Divider is a partition screen that can have in order to utilize each and every corner of
the house efficiently. It is very functional and stylish, items to be keep in homes with
the price of 12,500 pesos.
• Bed set is a wooden bed that is incredibly durable and not easily damage. It’s a queen
size bed and 2 drawers in the side of it with the price of 5,500 pesos.
• Office table with chair is a 1 flat table with 1 chair and is flexible for academic and
professional or domestic activities such as, reading, writing or using equipment like
computer with the price of 5,500 pesos.
• Center and side table is a 1 side table and 1 center table with the price of 5,500 pesos.
 COMPETITIVE STRENGTH

• The proposed business is both online and physical business which help the business
capture both markets.
• There is a timeline of the product making when will be completed, high quality wooden
furniture who offers 7 varieties of products with a very reasonable price, sustainability
and eco-friendly.
• One of the advantages of this proposed business is the location because, it is located at
the central part of Tungawan Municipality and is a busy area, it is the very first business
build in that area with fewer competitors.
 PROPOSED MARKETING STRATEGIES

• The proposed business plans to execute a broader marketing strategy, not simply to
build name recognition and awareness but also to build deeper relationships with the
target customers whom they will believe will help promote the business.
• To reach the target customer group we use a mix of the ff. marketing methods such
as print advertising and social media platforms, this strategies is to inform the
customers and develop a connection between what they want and what the business
can offer.
 PROJECTED DEMAND AND SALES

The projected demand is derived from the data discussed in the consolidated data from the
target markets specifically the teachers and newly weds, where the projected demand is a
total of 144 units sold in all of the types of products in a year one with a total sale of
1,525,500.00.Projected Demand
Types of Product Year 1 Year 2 Year 3 Year 4 Year 5
Dining Set 22 22 22 22 22
Sala Set 20 20 20 20 20
Door Set 22 22 22 22 22
Divider 25 25 25 25 25
Office table with chair 15 15 15 15 15
Bed Set 25 25 25 25 25
Center and side tables 15 15 15 15 15
 TOTAL PROJECTED SALES

Total Projected
Sales
Y1 Y2 Y3 Y4 Y5

Dining set
451,000.00 473,000.00 497,200.00 521,400.00 547,800.00
Sala set
410,000.00 430,000.00 452,000.00 474,000.00 498,000.00
Door set
110,000.00 116,600.00 121,000.00 127,600.00 134,200.00
Divider
252,000.00 327,500.00 345,000.00 362,500.00 380,000.00
Office table with
chair 82,500.00 87,000.00 91,500.00 96,000.00 100,500.00
Bed set
137,500.00 145,000.00 152,500.00 160,000.00 167,500.00
Center and Side
Table 82,500.00 87,000.00 91,500.00 96,000.00 100,500.00

1,525,500.00 1,666,100.00 1,750,700.00 1,837,500.00 1,928,500.00

 TECHNICAL ASPECT

Process flow
Location/Project Site
Pre-Operating Expense
Product Cost Breakdown
Fixed Asset and Other Production Supplies
Working Capital Requirement
Estimated Project Cost
 Diagram 1

PROCESS FLOW

Diagram 1
LOCATION/PROJECT SITE
 PROJECTED PRODUCTION SCHEDULE

Products Lead Time in Units Quantity Produced in One

Weeks Year

Dining Set 3 1 144

Sala Set 2 1 144

Door Set 1 1 144

Divider 2 1 144

Office table with chair 2 1 144

Bed Set 3 1 144

Center and Side table 3 1 144

 PRE-OPERATING EXPENSE

To operate legally, the production of wooden furniture must be registered as a legal

business. Business permit, DTI and DENR from the office of permit and a license to
operate in the Municipality of Tungawan Zamboanga Sibugay and Barangay. Business
clearance from the office of barangay Libertad are the required licenses to operate. Other
expenses are shop renovation, will be secured for the next five years if the business
continues to operate and will be a candidate for expansion.
Registration of the Business (BIR) (DENR)

(DTI)(Mayor's Business Permit) 6,000

Shop Renovation 10,000

Total Pre-Operating Expense 16,000

 PRODUCT COST BREAKDOWN

Office Table with Chair Bed Set

Materials Amount Materials Amount

Finishing nails 50 Finishing nails 100

Epoxy 160 Epoxy 160

Easy Tile 50 Easy Tile 100

Kalsomine powder 25 Kalsomine 25

Lacquer Sanding sealer 300

Lacquer sanding sealer 300

Lacquer thinner 400

Lacquer thinner 400

Tinting color 60
Tinting color 60

Top coat/ Hudson 250

Top Coat 250

Sand Paper 70 Sand Paper 70

Wood 1,200 Wood 1,200

Electric current Used 50 Electric current Used 50

Labor 1,100 Labor 1,100

Total 3,715 Total 3,715

 Dining Set Sala Set
Materials Amount Materials Amount

Finishing nails 150

Finishing nails 150
Epoxy 600
Epoxy 600

Easy tile 200

Kalsomine powder 25

Lacquer sanding sealer 2,200

Lacquer thinner 800

Easy tile 200

Kalsomine powder 25 Tinting color 60

Lacquer sanding sealer 2,200

Topcoat/Hudson 300
Lacquer thinner 800

Tinting color 60 Sandpaper 70

Topcoat/Hudson 300
Wood 4,500
Sandpaper 70
Electric current used 80
Wood 4,500

Electric current used 80 Labor 4,100

Labor 4,100
Total 13,085
Total 13,085
Center and Side table
Door set
Materials Amount Materials Amount

Finishing nails 50 Finishing nails 50

Epoxy 160 Epoxy 100

Easy tile 50 Easy tile 50

Kalsomine powder 25 Kalsomine powder 25

Lacquer sanding sealer 300 Lacquer sanding sealer 250

Lacquer thinner 400 Lacquer thinner 200

Tinting color 60 Tinting color 60

Topcoat/Hudson 250 Topcoat/Hudson 70

Sandpaper 70 Sandpaper 70

Wood 1,200 Wood 1,200

Electric current used 50 Electric current used 50

Labor 1,100 Labor 1,000

Total 3,715 Total 3,125

 Divider
Materials Amount

Finishing nails 100

Epoxy 300

Easy tile 100

Kalsomine powder 50

Lacquer thinner 800

Lacquer sanding sealer 900

Tinting color 90

Sandpaper 200

Glass 1000

Handle 130

Catches 50

Hinge 50

Wood 2,400

Electric Current used 50

Labor 2,500

Total 8,720
FIXED ASSETS AND OTHER PRODUCTION
SUPPLY
WORKING CAPITAL REQUIRMENTS
ESTIMATED PROJECT COST
 ORGANIZATIONAL MANAGEMENT ASPECT

• The proposed business will be partnership and have one investor.

• There will be one employee with a salary of P 4,000 monthly.
• There will be six furniture maker they have 20% of the sold items.
FINANCIAL ASPECT
ESTIMATED PROJECT COST
ASSUMPTION USED
PROJECTED STATEMENT OF FINANCIAL
POSITION
PROJECTED STATEMENT OF FINANCIAL
PERFORMANCE
PROJECTED STATEMENT OF CASH FLOWS
PROJECTED STATEMENT OF CHANGES IN
EQUITY
BREAK-EVEN ANALYSIS
PAYBACK PERIOD
SENSITIVITY ANALYSIS SUMMARY
CONCLUSION
THANK YOU!!!