FEASIBILITY STUDY General Format & Content Guide

Preliminary Section
a. Title Page Legal Requirements (pre-operation and operating period)
b. Approval Sheet Manpower Requirement (with compensation scheme)
c. Acknowledgment Machineries and Equipment
d. Table of Contents Raw Materials
e. List of Tables Utilities
f. List of Figures Waste and Waste Disposal Methods

Executive Summary Chapter IV – Management Aspect

Project Proponents Brief Chapter Description
Proposed Name of the Business Company Vision and Mission
Type of Business Organization Company Goals and Objectives
Location of Head Office and Factory Form of Business Organization
Market Feasibility Organizational Structure
Technical Feasibility Job Description and Specification
Management Feasibility Management Policies, Rules and Regulations
Financial Feasibility Management Control System
Socio-Economic Feasibility
Chapter V – Financial Aspect
Chapter I - Introduction Brief Chapter Description
Background of the Study/Rationale of the Study Total Project Cost
Statement of the Problem/ 5 Questions Source of Financing
Scope and Delimitations Financial Assumptions
Significance of the Study Projected Financial Statements
Definition of Terms Projected Statement of Financial Position
Projected Statement of Comprehensive Income
Chapter II – Market Aspect Projected Cash Flow Statement (with supporting
Brief Chapter Description schedules)
Demand Analysis (results of the market survey) Financial Ratios and Analysis (Quantitative & Qualitative)
Supply Analysis (results of the market survey) A. Ratio Analysis
Demand and Supply Analysis Solvency Ratios and Analysis
Industry Update (current market situation & industry, Profitability Ratios and Analysis
facts and Figures) Liquidity Ratios and Analysis
Competition or Competitors Profile (Major Players of the B. Investment Analysis
Industry) Net Present Value
Market Analysis (Opportunities and Threats) Internal Rate of Return
Specific Marketing Objectives Payback Period
Proposed Marketing Program C. Break Even Point Analysis
Product Strategy
Place/Placement Strategy Chapter VI – Socio-Economic Aspect
Price Strategy Brief Chapter Description
Promotion Strategy Social Desirability
Timetable of Action Plans/Marketing Activities Economic Contribution/Implication

Chapter III – Technical Aspect Chapter VII – Project Plan Implementation

Brief Chapter Description Functions/Duties and Responsibilities of the Proponents
Product/Service Description Gantt Chart/PERT-CPM
Production Process/Service Process (narrative)
Operations Flow (illustration) Chapter VIII – Conclusion and Recommendations
Production Schedule Conclusion (by Aspect)
Project Site ( with vicinity map) Marketing
Project Layout (Plant or Factory layout) Technical
Site Development Plan Management
Building and Facilities Financial
Floor Plan Socio-Economic
Electrical Plan Recommendations (by Aspect or as a whole)
Plumbing Plan

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FEASIBILITY STUDY General Format & Content Guide

Executive Summary
(Present rich support on each aspect to show that the business is feasible.)
Project Proponents
Name of the proponent-researchers
Proposed Name of the Business
Name of the business and brief description of the name as to how it was chosen or how it was
derived.
Type of Business Organization
State whether the business is a sole proprietorship, partnership or corporation
Location of Head Office and Factory
The location of the factory, if it is a manufacturing type of business, or the location of the
warehouse/s if the business set-up so suggests, is to be indicated here.
Market Feasibility
Highlight on:
The availability of demand and surplus of market demand over market supply (potential buyers
of the products/services)
Marketing edge over other competitors with respect to product, place, promotion and pricing.
Result of the market study (market profile: demographic, biographical, and psychological data)
Technical Feasibility
Highlight on:
Availability of raw materials and cost (in the locality)
Availability of manpower/skill and cost
Availability of machineries and equipment and cost
Capital outlay for facilities (buildings or structures) is within budget
Management Feasibility
Highlight on:
Attainability of VMGO
Management Policies, Rules and Regulations
Financial Feasibility
Highlight on:
Solvency
Profitability
Liquidity
Socio-Economic Feasibility
Strike on the social desirability as can be perceived by the majority of people. Stress on major
impact or contribution it would make to the people. Strive to emphasize on intangible aspects of
the project. Try to relate how the present project would invigorate commercial activities or spur
economic initiatives.

Chapter I - Introduction

Background of the Study/Rationale of the Study (see Lecture)

Provide literature reviews on the business, current market observations or trends and rationale
for selecting or choosing the kind of business.
Statement of the Problem
Draw comprehensive questions on each of the five major chapters of the study, that is,
marketing, technical, management, financial, and socio-economic aspects.

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FEASIBILITY STUDY General Format & Content Guide

Scope and Delimitations

Observe the suggested content. It is advised that variables selected and determined for the
study, sources of data, method(s) to be used in data gathering and analysis, timeframe, and
constraints that might be encountered in the conduct of the investigation.
Significance of the Study
Identify individuals, groups or organizations who/which can directly gain from the conduct of
the study and clearly rationalize how each would be benefited.
Definition of Terms
Define concepts or terms which are highly technical or scientific in nature and which are
mentioned in the manuscript of the study. Other terms may be conceptually defined if
necessary illumination and understanding of the readers is desired.

Chapter II – Marketing Study

Brief Description of the Chapter

State the content of the chapter or what can be read in the whole chapter.

Objectives of the Market Study

Research Methodology

Results and Discussion

Demand Analysis
Present past demand data. Past data refers to secondary data readily obtainable from private
organizations and government agencies related to sales of a particular product or services in a
particular period of time. These data are also called as service statistics. In its absence, present
demand data through survey may be opted and result from the same shall be presented and
discussed.

The past data relates to product consumption evidenced by sales records of a business entity
similar to the proposed business feasibility study.

In the absence of past demand data, present demand data may be obtained or studied.

In-depth analysis and sensitivity analysis of the demand and supply values would be desirable to
be provided. Factors that may affect the demand and supply or the interaction of the market
forces may very well animate the discussion.

Tabular presentation with corresponding narrative discussion or explanation is desired.

Table 1.1 Demand of Mangoes for Year 2011-2015 (in tons)

Year Local Foreign Total

Fresh Dried
20011 12,040 6,088
20012 12,989 8,123
20013 13,877 9,987
20014 14,689 10,766
20015 15,399 12,131
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FEASIBILITY STUDY General Format & Content Guide

Source: Bureau of Agricultural Statistics, Guimaras

Supply Analysis
Present past supply data. Present supply data may suffice the absence of past supply data.

Table 1.1 Supply of Mangoes for Year 2003-2008 (in tons)

Year Local Foreign Total

Fresh Dried
2003 12,040 6,088
2004 12,989 8,123
2005 13,877 9,987
2006 14,689 10,766
2007 15,399 12,131
Source: Bureau of Agricultural Statistics, Guimaras

* Present data that relate to purchase volume, size, and frequency.

(see Lecture)

Demand and Supply Analysis

The demand and supply analysis provide an illustration that demand exceeds supply. It is
important to show that demand overwhelms supply or potential demand is expected in
particular period or forthcoming period. Certainty and details may be shown.

In this section, the past demand and supply are shown and projected. Several methods are
available. (see Lecture)

Year Demand Supply Demand-Supply Gap Percent

Unsatisfied
(D-S/D)
Fresh Dried Fresh Dried Fresh Gap
2017 12,040 6,088 10,653 5,455
2018 12,989 8,123 10,990 6,773
2019 13,877 9,987 11,568 8,913
2020 14,689 10,766 12,543 9,443
2021 15,399 12,131 13,881 10,229
2008
2009
2010
2011
2012

As mentioned, in the absence or in supplement of the past demand and supply data, discussion
of the results of the market survey as to present market demand and supply data may be
presented.

Industry Study and Update

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FEASIBILITY STUDY General Format & Content Guide

Researcher should be able to identify which industry category the business belongs. In addition
to this, current economic features, market size and growth rate, geographic scope, number of
sellers and buyers, pace of technology change, competitive forces, and drivers of change should
be given attention in the local setting and abroad.

Competition or Competitors Profile

Attention should be focused on the local competitors or those competitors who would have
direct effect on the slice of demand of the product or service of the business within the range or
magnitude of the target market identified. Their company size, both structural and financial,
should be noted. Careful discussion of their capabilities for expansion, their manpower
strengths (i.e., managers or consultants), their innovative strengths and weaknesses are
essential key points.

Proposed Marketing Program

Product Strategy
State or describe the unique features of your product that will make the buyers prefer it
over the competitor’s product. Strike on the utility or functionality feature of the
product, packaging sizes and design.

If the product is agricultural, describe its quality, usage, and benefits one may derive
from its consumption. If the product is processed, special ingredients and its benefit
may be mentioned.

If the product is technology-related, describe features as to its functionality and how

different or unique or what sets apart the product from the competitor.

The product category as to product-mix width (number of product) and product-mix

width (number of items per product line) may be noted if it is not demands importance
to the study.

Brand names to be adopted if required should be stated. Packaging details as to size,

packaging materials (plastic, carton, etc), and labeling and design (font style, size, and
color) are essential to be noted.

Place/Placement Strategy
Describe why is the place chosen. (Are the bulk of consumers present in the locale?)
Describe how the product will reach the consumers or buyers.
Describe the channel of distribution from the: manufacturer to consumer, manufacturer
to retailer to consumer, manufacturer to wholesaler to retailer to consumer)
Describe the storage space and indicate if it is owned or rented.

Price Strategy
Explain or provide basis for the product pricing (if it based on manufacturing cost,
competitor’s pricing, seasonality, based on quality, legal laws, etc.).

Likewise explain why the product is higher (if it is priced higher) than the competitors or
why it is lower (should the case be).

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FEASIBILITY STUDY General Format & Content Guide

Some reasons for high costing are that the product/s is/are designed for high-end
consumer and its (quality) make or craft. Lower pricing may be due bulk buying
discounts or designed for low-end consumers.

Pricing incentive scheme or strategy may likewise be discussed.

Promotion Strategy
Present the plan how the product will be made known to the consumer.
How the product will be conveyed? (Will it be through internet, broadcast, radio, mail,
posters, sales presentation, market demo, free samples, gifts, contest sponsors,
calendar, leaflets, etc)

Present the schedule of promoting the product and how much will be paid for each of
the promotional or advertising activity. Specify if there are promotional schemes
available like cash discounts, volume purchase discounts, or membership discounts.

Timetable of Action Plans/Marketing Activities

Indicate the Marketing Action Plans or Activities. A combination of narrative discussion and
tabular presentation would be desirable.

Chapter III – Technical Aspect

Brief Description of the Chapter

State the content of the chapter or what can be read in the whole chapter.

Product/Service Description
A detailed description of the product as to dimension, composition (mechanical, chemical,
physical properties), and quality specifications.

Agricultural products can be described as to its scientific names, specie, color, size, weight, and
other distinctive qualities. Its intended utilization or major use may be expounded and major
consumers may be specified.

Technological products can be described as to its modifications or unique or particular feature

which is not present or exceeds the competitor.

Service products can be described as to the service intended to provide, the system of providing
the service, the designs or the materials to be used.

Drawings, pictures, photo and others means of illustration may be provided.

Production Process/Service Process (narrative)

Describe the steps in the production process. Cite the equipment used in each step and its
corresponding capacity or the input quantity that can be processed in a period of time. Consider
also the maintainability of equipment and availability of spare parts.

If no equipment will be used, estimate the capacity of input one worker can process can or may
permit in a period of time.

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FEASIBILITY STUDY General Format & Content Guide

For service-oriented business, describe in detail the process from beginning to completion of the
service.

Operation Flow
A particular operation in the conduct of business or service should be illustrated for this
purpose. (A flowchart with description or explanation may be provided)

Production/Service Schedule
A. Manufacturing
For agricultural endeavors, state the intended volume or number of product to be
produced per season or time period appropriate for the kind of venture.

B. Trade
State the desired output per appropriate time basis (per hour, per day) with
consideration of the machine capacity.

Project Site (Store, Plant or Factory Site)

Provide the complete address of the site and total area size. State the factors why is/was the
site chosen. Discuss its conduciveness for service or production of the product. Elaborate on
future expansion potential.
Several reasons may be cited as it would specifically apply to the choice of the project store or
plant site, hence:
1. Accessibility – paved road/road network
2. Suitability to the kind of business (e.g. vegetation) or availability of factors (e.g.
irrigation, water supply)
3. Climate
4. Land/undivided tract of land
5. Proximity to market
6. Visibility
7. Geographical advantage to competing firms
Provide the vicinity map here.

Site Development Plan (with Store, Plant or Factory Layout)

Provide the details of developments planned or viewed to be necessary. Make sure that costing
is reflected in the project cost. Depreciation expense should it be recorded or treated as
Organizational Cost need to be recorded in the financial statement.

Scaled drawing or illustration of the perspective view (front, rear, side: left and right, and aerial)
should be provided or as deemed necessary.

For presentation, the following should be present. Costing of the same should be incorporated
in the total project cost.

1. Building and Facilities

2. Floor Plan
3. Electrical Plan
4. Plumbing Plan

Legal Requirements

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FEASIBILITY STUDY General Format & Content Guide

State the prerequisite or essential requirements before the establishment or putting up of the
business and the legal requirements during the operating period. Data with particular attention
to requirements and sequence or order of obtaining the licenses or permits should be given
importance. Corresponding cost per licenses or permits may be provided. Table is suggested for
presentation.

Machineries and Equipment

Present the machineries and equipment and the corresponding usage. A picture or illustration
should be provided for each of the items. The table below may be utilized for the said purpose.

Name Picture Description Quantity Unit Cost Total Cost

(use, rated
capacity)

In the appendices, indicate the machineries and equipment, the price, and where it was
canvassed.

Utilities
State what particular utilities will be needed and why such will be required.

For electrical consumption, provide a listing of equipments to be used. The computation of the
kilowatt costing using an electric cost factor below may be used and should be reflected on the
appendice.

*Kilowatt consumption per hour/1000kw = computed consumption x factor x no. of hours used
for a day

Table below for the same may be adopted or modified.

No. Description (Machinery or Kilowatt per Estimated Hours Total

Equipment requiring electricity) Hour Consumed per Consumption
Consumption month per Month
1
2
3

For water consumption, estimated usage per cubic meter may likewise be drawn through the
table. Rates per cubic meter consumption may be obtained from the current local water
provider.

Monthly rates and additional communication cost estimates can also be provided with the use
of table.

Raw Materials

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FEASIBILITY STUDY General Format & Content Guide

State what raw materials or supplies would be needed for the completion or processing of the
products or services. The use of table noting each description (or additional illustration through
drawings or pictures if available), usage or purpose to the completion of the product, and other
essential information may be described or provided.

Manpower Requirement
State the number and description How many and what particular jobs are needed or required.
State whether there would be a need for staff training. State what a particular skills are needed.
State basis for the salarization of staff.

Waste and Waste Disposal Methods

Mention the description of waste products, volume, schedule or time of disposal, site of
disposal, and the means of disposal. Likewise mention provisions for waste disposal site or
recovery site. Should there be treatment to waste, the process or method of the same should be
elaborated. Corresponding costs for the activity (cost of design, cost of infrastructure, and cost
of treatment) should not be overlooked. Architectural design or illustration should be provided
for the purpose.

In cases wherein waste products can be used for other purposes or can be sold, estimates as to
volume, estimate or current pricing, and realizable earning should be cited through the narrative
or the use table.

*Make sure that the disposal method adheres to what the law prescribes or that it will not be
inimical to society or community where the business operates.

Chapter IV – Management Aspect

Brief Description of the Chapter

State the content of the chapter or what can be read in the whole chapter.

Company Vision and Mission

State here the vision and mission of the business.

Company Goals and Objectives

State here the goals and objectives of the business.

Form of Business Organization

Describe the form of business organization (single, partnership, corporation, cooperative) and
its advantages or the reason why it was chosen.

Organizational Structure
Provide an illustration of the organization structure. A brief description may be provided to
describe the relationships.

Job Description and Specification

Describe the particular job descriptions and specifications of each of the particular positions
cited in the organizational chart.

Management Policies, Rules and Regulations

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FEASIBILITY STUDY General Format & Content Guide

State the designed policies, rules and regulations distinctively.

Management Control System

Describe the system of managing attendance, time-recording (logbook maintaining), job
evaluation, merit rating, employment testing and others. Transactional process illustration may
be provided.

CHAPTER V
FINANCIAL STUDY

Objective of the Financial Study

Total Project Cost
Provide here the investment pertaining to the pre-operating procurement of machinery and
equipment, the site development, the organizational cost (relating to costs spent to licenses and
other statutory requirements), and other relevant pre-operating costs.

Source of Financing
State the source of financing or who will or are to finance the establishment of the proposed
business. State also alternative sources of financing and the amount and terms of financing.

Financial Assumptions
Present the cost and sales assumptions as to increases and decreases in each of the items within
the period five (5) years.

Financial Statements
Projected Statement of Financial Position
Projected Statement of Comprehensive Income
Projected Cash Flow Statement

Financial Ratios and Analysis

Provide at least 5 essential analysis tools for each of the ratios and the corresponding
explanation.

Solvency Ratios and Analysis

Profitability Ratios and Analysis
Liquidity Ratios and Analysis
Break Even Point Analysis
Payback Period
Net Present Value
Internal Rate of Return

Chapter VI – Socio-Economic Aspect

Social Desirability
State here the benefits other than what the employees and government may derive from the
operation of the business. Describe its impact on population, market activities, infrastructure,
landscape, ecology and others.

Economic Contribution/Implication
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FEASIBILITY STUDY General Format & Content Guide

Present here the monetary benefits the employees may obtain for working in the project. Table
for this purpose may be used. Describe the effect of these benefits in their standard of living,
purchasing power, improved recreational needs, and others. The table for project employees
and the government may be as follows:
For employees:
Year Salaries Allowances Incentives Total
1st
2nd
3rd
4th
5th
Total

For government:
Year Income Tax Licenses/Permits Other Fees Total
1st
2nd
3rd
4th
5th
Total

Chapter VII – Project Plan Implementation

Gantt Chart (or PERT-CPM)

Present here the activities through the use of Gantt chart beginning from the project
conceptualization to dry-run and start of normal operations.
Functions/Duties and Responsibilities of the Proponents
State the functions of individuals or proponents during the pre-operating period in relation to
the activities identified in the Gantt chart.

Chapter VIII – Conclusion and Recommendations

Conclusion (by Aspect)

Highlight particularly on the strengths on each of the aspects to strengthen claim of the
proposed business feasibility.

Marketing
Technical
Management
Financial
Socio-Economic

Recommendations (by Aspect or as a whole)

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