FEASIBILITY STUDY FOR A [NAME OF BUSINESS] [Name of Members] [Class Schedule]
Feb 25, 2016
FEASIBILITY STUDY FOR A[NAME OF BUSINESS]
[Name of Members]
[Class Schedule]
PRODUCT/SERVICE
• [State and briefly describe your product/service. BE SPECIFIC for EACH PRODUCT.]
• [Indicate your target market.]• [Indicate the location of your business.]• [You may use more than one slide if needed.]
PROMOTIONYear 1 Year 2 Year 3
Sales commissions for agents
Advertising
Signboards
Posters, flyers, etc.
Packaging
Transportation expenses
Sales promotions/gimmicks
Others
TOTAL SELLING EXPENSES
PLACE OF DISTRIBUTION
• [Specify if you will sell directly to end-users (consumers) or if you will pass through channels of distribution (e.g. wholesaler, retailer, agents).]
• [If you will have distributors, elaborate on how much commission or discount you would give.]
PRICE
• [State the prices for each of your products/services.]
• [Explain briefly how you came up with your price.]
SALES FORECAST(Single Product/Service)
Year 1 Year 2 Year 3[Specify Product/Service]
Total UnitsSelling PricePESO SALES TOTAL
[Specify Product/Service]Total UnitsSelling PricePESO SALES TOTAL
TOTAL SALES
SALES FORECAST(Single Product/Service)
PRODUCT/SERVICE Year 1 Year 2 Year 3
Planned sales volume (in units)
Planned selling price/unit
TOTAL SALES
PROCESS
• [Write down ALL of the steps involved in selling your product/service.]
DEPRECIATION SCHEDULEAnnual Depreciation ChargesYear 1 Year 2 Year 3
LandBuildingMachines/EquipmentFurniture/FixturesOffice EquipmentVehiclesGRAND TOTAL
PRODUCTION SCHEDULE(Manufacturers)
Year 1 Year 2 Year 3
Planned sales volumes, in units
Add: Desired ending F.G. inventory
Less: Beginning F.G. inventory
UNITS TO BE PRODUCED
DIRECT MATERIAL COST(Manufacturers)
Direct Material Total Direct Material CostYear 1 Year 2 Year 3
TOTAL
COST OF PRODUCTION(Manufacturers)
YEAR 1 YEAR 2 YEAR 3
Direct materials
Direct labor
TOTAL COST OF PRODUCTION
COST OF GOODS SOLD(Manufacturers)
Year 1 Year 2 Year 3
Total cost of production
ADD: F.G. beginning inventory
Total of goods available for sale
LESS: F.G. ending inventory
TOTAL COST OF GOODS SOLD
MERCHANDISE SUMMARY(Traders)
Total Cost of Merchandise Purchases
Product Year 1 Year 2 Year 3
TOTAL
COST OF GOODS SOLD(Traders)
Year 1 Year 2 Year 3
Total sales
LESS: Mark up
TOTAL COST OF GOODS SOLD
COST OF SUPPLIES AND SPARE PARTS USED
(Service Providers)Supply/Spare Part Total Cost of Supplies and Spare
Parts Used
Year 1 Year 2 Year 3
TOTAL
PRE-OPERATING CONCERNS
• [State what legal form of business you will have and your reason.]
• [State your TOTAL pre-operating expenses. No need for the table.]
MANPOWER
• [Indicate who will be in charge of the following departments. Describe their function brieflyA) MarketingB) ProductionC) FinanceD) Administration]
ADMINISTRATIVE EXPENSESYear 1 Year 2 Year 3
Salaries and wagesOffice suppliesRentUtilitiesDepreciation of non-production equipmentAmortization of pre-operating expensesRepair and maintenanceOthersTOTAL
PROJECT COSTDEBT
(borrowings, loans)
EQUITY(money
from your pocket)
TOTAL
Total pre-operating expensesFixed investment
Working capital
TOTAL PROJECT COST
INCOME STATEMENT PROJECTION(Manufacturers and Traders)
Year 1 Year 2 Year 3Total salesLESS: Cost of goods soldGROSS PROFITLESS: Selling expensesLESS: Administrative expenses
Net operating profitLESS: Interest chargesNet income before taxesLESS: Income taxTo calculate a quick estimate of your income tax, please go to this link: http://easycalculation.com/tax/philippines.php
NET INCOME AFTER TAXES
INCOME STATEMENT PROJECTION(Service Providers)
Year 1 Year 2 Year 3
Total sales
LESS: Selling expenses
LESS: Administrative expenses
LESS: Depreciation for machines, equipment, tools
LESS: Total supplies/spare parts used
Net operating profit
LESS: Interest charges
Net income before taxes
LESS: Income taxTo calculate a quick estimate of your income tax, please go to this link: http://easycalculation.com/tax/philippines.php
NET INCOME AFTER TAXES
CONCLUSIONS AND RECOMMENDATIONS
[For this section, replace this text with your answers (in bullet form) to the following questions:• Based on your project cost table, do you have enough money
for your business? If no, where or whom will you borrow money in order to start your business?
• Check your net income after taxes. In your opinion, did the business earn a sufficient income for you and your partners? What made you say so?
• In your view, which aspects in your business should be modified in order to improve the standing of your business and possibly increase the profit? How will you modify these aspects? (Give at least 3 recommendations.)