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FEASIBILITY STUDY
O Lets discuss here "How to make a great Feasibility Study project proposal for business"... Download Feasibility Study Sample
Template Formats based on best practices by business persons..
Hey there Filipino business students and expert business personalities come and share here your ideas on How to Do a Feasibility
Study the Filipino way! Let us help each other to answer some questions related to creation oI Feasibility Study projects and lets
outline the most important items that should be included to create good Sample Template Format and please deIine some words that
people ask here.
To begin with sharing my ideas on creating Feasib report... here am I going to make Iree online course lesson Ior writing a
comprehensive good business Ieasibility study.
Lesson 1. What is a Feasibility Study?
Definition of Feasibility Study:
A Ieasibility study is a research tool Ior business that looks at the viability oI a certain business idea. The business research gives
emphasis on identiIying potential problems oI the business. In many instances it attempts to answer one main question by most oI the
business people: Will the business idea work and should you proceed with it?
It is very important paper to be written beIore you begin writing your business plan. It identiIies how, where, and to whom you intend
to sell your companies/small business products or services. This paper also assess your market competition and in this business
research you can Iigure out how much money you need to start your business and keep it running until it is established.
July 6, 2011 - 12:45 PM #
Here is our template Iormat making Ieasibility study, below you can see the list oI important parts oI business research study..
Feasibility Study Format:
Title Page
Approval Sheet
Acknowledgement
Dedication
Table oI Contents
SUMMARY
INTRODUCTION
CHAPTER I MANAGEMENT ASPECT
CHAPTER 1I MARKETING ASPECT
CHAPTER III TECHNICAL ASPECT
CHAPTER IV FINANCIAL ASPECT
CHAPTER V SOCIO-ECONOMIC ASPECT
REFERENCES
APPENDICES
I'll explain later all the parts oI this Iormat. The above Sample Template Format is suitable Ior business research, engineering and
sciences study, and more...
The Title Page contains the Iollowing:
Research or Feasibility Study Title
------------------------------------
A Business Research Presented to the
Faculty oI the School oI Accountancy
and Business oI St. Paul University oI the Philippines
-----------------------------


In Partial FulIillment
oI the Requirements Ior the Degree oI
Bachelor oI Science in Business Administration
Major in Finacial Management and Bachelor oI Science in Accountancy
by
Name 1 (iI you are only one researcher)
Name 2 (iI you have a company researching Ior a certain topic)
Then the month and year
------------next page-----
APPROVAL SHEET
In partial IulIillment oI the requirements Ior the degree oI Bachelor oI Science in Business Administration, this Ieasibility study
entitled 'Establishing a Champion Hotel in Tuguegarao City, Philippines has been prepared by Mr. X Name and Mr. A Name, who
are hereby recommended Ior Oral Examination.

MRS. Teacher Name, CPA, MBA
Feasibility Study Adviser
Approved by the Panel oI the Oral Examiners with a grade oI .

MRS. Panelist One, CPA, MBA MRS. Panelist TWO, MBA
Approved by:

MR. DEANS NAME, MBA
Dean, School oI Accountancy and Business
------------next page-----
ACKNOWLEDGEMENT
This should contain whom you want to thank... you will express here you sincerest gratitude to everyone who in one way or another
had made valuable contribution in making your Business Research to be possible.
------------next page-----
DEDICATION
This work is dedicated to... your loving Parents (Dad & Mom), siblings (Sisters and Brothers), relatives, or love/crush etc...
------------next page-----
TABLE OF CONTENTS
Title Page i
Approval Sheet ii
Acknowledgement iii
Dedication iv
Table oI Contents v
SUMMARY 1
INTRODUCTION 2
CHAPTER I MANAGEMENT ASPECT 3
CHAPTER 1I MARKETING ASPECT 4
CHAPTER III TECHNICAL ASPECT 5
CHAPTER IV FINANCIAL ASPECT 6
CHAPTER V SOCIO-ECONOMIC ASPECT 7


REFERENCES vi
APPENDICES vii
July 13, 2011 - 03:26 PM #
SUMMARY
Your summary should contain a brieI inIormation about your research, you may reIer here how to create Feasibility Study Summary
Ior new/existing business..
It must also contain brieI summary oI MANAGEMENT ASPECT, MARKETING ASPECT, TECHNICAL ASPECT, FINANCIAL
ASPECT, and SOCIO-ECONOMIC ASPECT.
You should end your summary by determining why is your business idea is Ieasible or not Ieasible.
Generally, Business Name is seen to be Ieasible and proIitable Ior (period oI years) in
accordance with the research and study oI the proponents. blah blah blah
What have you Iound out in your study/research, your recommendations and solutions.
------------next page-----
INTRODUCTION
This part should contain brieI background oI the business you wanna put up... introduce the product/business idea/existing business,
history oI it or latest development about it.
When creating new business and or doing careIul analysis/evaluation oI existing business/idea you need to begin your paper with...
Name oI the Firm:
Location: (Proposed location or exact location oI business iI it is already existing)
Intro perse... May contain:
The Statement oI the Problem and sub-problem per aspect Ior some this should not to be too detailed;
Objective oI the Study per aspect, may be written in two to 3 sentences;
SigniIicance oI the Study this is about the importance oI your study or the use oI the study to be reIerence Ior Iuture studies oI those
students in business or business people who wish to conduct a paper similar to such topic.
Assumptions
BeIore Iormally conducting your research, you need the Iollowing assumptions to be established:
The initial capital needed to run your business idea.
The location oI the business.
The most suitable Iorm oI business organization to be adopted Sole Proprietorship or Partnership or Corporation.
The projected years oI the business that will operate proIitably in the next years.
and Iinally the Scope oI Study.
Your study aims to establish Type oI Business(Hotel, coIIee shop, Internet CaIe,etc...) on
Location.The Iocus oI the research this hould be based in management, marketing, technically, socio-economic,
and Iinancial aspect oI business. Get some insight Irom the Managers and owners oI existing businesses similar to your industry..The
most signiIicant part is your respondent who will be the Iuture target market oI your business..
July 13, 2011 - 04:38 PM #
MANAGEMENT ASPECT a chapter that will be Iocusing on Iive diIIerent process oI management: planning, organizing, staIIing,
directing and controlling.
Note: For new business ideas... you should answer this questions.


Why you come up with that business/product name?
Why you choose that Iorm oI business?
Forms oI Business Ownership
The Iorm oI the business you proposed to put up is . The proponents choose the Iorm oI Sole
Proprietorship or Partnership or Corporation because oI the Iollowing reasons.
State your reasons... just put the Key Advantages Ior new business, however put the Dis-Advantages oI the business idea iI it is
existing one!
Establishing the Initial Capital
The total initial capital agreed upon by the partners is Php 500,000.00, where each partner will contribute 250,000.00 pesos. The
Iollowing are the names oI the partners and their capital contribution:
Partners ------------Contribution Amount
Mr. X ------------Cash P 250,000.00
Mr. A ------------Cash P 250,000.00
Both partners (owners) agreed to share with each other the income or losses oI the business equally.
Persons Involved in the Management
With the proposed business, the managing partner will be Mr. X and his duties shall cover . Mr. A
will act as , and his duties and responsibilities will be in the business and is in-charge oI
.
Setting oI Objectives
Set your goals/objectives in managing your biz. Remember the acronym SMART stands Ior; Market share objectives; increase proIit
annually; to survive in diIIicult months(months that your business is not in demand), to grow Ior Ior the period, and increase
brand awareness in months or weeks.
Project Schedule - should be presented in "Gantt Charts" oI Activities and please give Description oI your Activities!
Organizational Structure to be presented with ORGANIZATIONAL CHART
Organizational Policies contains Operating Period Ior business and Work Holidays. The business working days and time. It also
includes the Payment oI salaries/wages.
Projected Compensation Scheme Ior diIIerent position Ior regular employees or Basic Salary Ior Monthly and Annually basis would
be in the Iorm oI Gannt Chart and supporting computations be presented.
INTERNAL ORGANIZATION
MANPOWER REQUIRMENT/JOB ANALYSIS
July 13, 2011 - 04:59 PM #
MARKETING ASPECT chapter should present and examine the current market demand Ior the proposed project, market competition,
potential markets, including market analysis, the ideal prices at which your product may be sold to the customers, the creation oI
product concept, and Iurther should contain some strategy to dominate the your target market by well planned marketing program.
General Market Description
Current Market Analysis/Demand Analysis
Competition/Supply Analysis
Anticipated Future Market Potential/Demand and Supply Quantum
Potential Buyers and Sources oI Revenues
Probable Competitors
Marketing Program the Ior P's oI 'MARKETING MIX the Product, price, place and promotion
Product Concept and Delivery Strategy
-contains pictures oI your product/ product layout/ product delivery to attract customers
Computation oI Probable Customers
1000 Total Population
x 90 Percent oI amenable to patronize the Iood carts


-----
900 Total Probable Customers
Products and Price Strategy
-Your product be presented in menu with prices/ Ilyers / streamers etc
Place oI Channel oI Distribution Strategy
Promotion Strategy
July 13, 2011 - 05:22 PM #
Technical Aspect this chapter helps you to determine the details on how to deliver the product or service.
One oI my teachers said that these are needed:
1. Service
2. ManuIacturing Process
3. Plant Location
4. Plant Layout
5. Building and Facilities
6. Equipments and Supplies
7. Building and Other Facilities
8. Raw Materials
9. Utilities
10. Waste Disposal
11. Product Cost
12. Labor Requirements
13. Estimated and Overhead Cost
14. Major Technical Developments
How ever we used the Iollowing:
Service/ Product Line
How to make the product or service.
Plant/Business Layout
Business Location
Why should be located there?
Investment Requirements contains pre-operational investment requirements
Building
Operation Materials Needed
COST OF UTENSILS
EQUIPMENT
RAW MATERIALS and COOKING COST iI your hotel has restaurant or iI it oIIers Iood Ior guest.
Packages/Room Rates
Procedures
COSTING AND PRICING
Production Cost (iI ManuIacturing business or have cooked Ioods)
Product Pricing/ Package Pricing
Inventory (iI ManuIacturing business or have cooked Ioods)
Main OIIice and Stock Facility (iI ManuIacturing business or have cooked Ioods)
Waste Disposal and Methods oI Waste Disposal(Ior all business with Ioods)
Labor Requirements
Operation Process and Operation Capacity Schedule
Technology Requirements to Run the Business
----------------------next chapter-------------------
Financial Aspect
-It is a chapter wherein you will show how you project how much start-up capital is needed, sources oI capital, returns on investment,
and other Iinancial considerations.
Start-Up Capital Requirements


Sources oI Project Financing (Irom bank or Irom savings)
Financial Assumptions
Present the Computations
Pre-Operating Expenses
Schedule oI Sales Projections
Schedule oI Cost oI Sales Ior the First Year
Schedule oI Gross ProIits Ior the First Year
Annual Schedule oI Sales
Annual Schedule oI Cost oI Sales
Annual Schedule oI Gross ProIits
AIter determining all pre-operating expenses, their schedules and others, the most signiIicant part oI this Iinancial study you should
careIully consider is the Iinancial statements and comprehensive Iinancial analysis.
The result will prove how Iinancially Ieasible is your business idea, in terms oI proIitability and stability within your projected years
oI operation.
Income Statement
Statement oI Changes in Partners' Capital
Statement oI Cash Flows
Balance Sheet
FINANCIAL ANALYSIS
Test oI Liquidity
-Current Ratio
Test oI ProIitability
-Gross ProIit Margin
-Return on Sales
-Return on Equity
Test oI Solvency
-Debt to Equity Ratio
-Debt-Assets Ratio
----------------------next chapter-------------------
Socio-Economic Aspect
This deals with the positive quantitative and qualitative eIIects oI the proposed business to the social condition and economic situation
oI the country.
------------end chapters now present your reIerences and appendices--------------
REFERENCES (APA Style)
APPENDICES
This is great Ieasibility study Iormat Ior business student. Ah this one is a complete sample indeed. You did not miss Irom the start to
socio economic aspect oI the Ieasibility study. Your sample Iormat is complete the components are...
MANAGEMENT, MARKETING, TECHNICAL ASPECT, FINANCIAL ASPECT and SOCIO-ECONOMIC ASPECT You
also gave importance to some elements like summary and introduction parts oI Ieasibility projects.
The Elements of a Good Feasibility Study
"1hose who do not do their homework do not graduate." Bryce's Law
In its simplest Iorm, a Feasibility Study represents a deIinition oI a problem or opportunity to be studied, an analysis oI the current
mode oI operation, a deIinition oI requirements, an evaluation oI alternatives, and an agreed upon course oI action. As such, the
activities Ior preparing a Feasibility Study are generic in nature and can be applied to any type oI project, be it Ior systems and
soItware development, making an acquisition, or any other project.


There are basically six parts to any eIIective Feasibility Study:
The Project Scope which is used to deIine the business problem and/or opportunity to be addressed. The old adage, "The problem
well stated is halI solved," is very apropos. The scope should be deIinitive and to the point; rambling narrative serves no purpose and
can actually conIuse project participants. It is also necessary to deIine the parts oI the business aIIected either directly or indirectly,
including project participants and end-user areas aIIected by the project. The project sponsor should be identiIied, particularly iI
he/she is Iooting the bill.
I have seen too many projects in the corporate world started without a well deIined project scope. Consequently, projects have
wandered in and out oI their boundaries causing them to produce either Iar too much or Iar too little than what is truly needed.
2 The Current Analysis is used to deIine and understand the current method oI implementation, such as a system, a product, etc.
From this analysis, it is not uncommon to discover there is actually nothing wrong with the current system or product other than some
misunderstandings regarding it or perhaps it needs some simple modiIications as opposed to a major overhaul. Also, the strengths and
weaknesses oI the current approach are identiIied (pros and cons). In addition, there may very well be elements oI the current system
or product that may be used in its successor thus saving time and money later on. Without such analysis, this may never be discovered.
Analysts are cautioned to avoid the temptation to stop and correct any problems encountered in the current system at this time. Simply
document your Iindings instead, otherwise you will spend more time unnecessarily in this stage (aka "Analysis Paralysis").
3 Requirements - how requirements are deIined depends on the object oI the project's attention. For example, how requirements are
speciIied Ior a product are substantially diIIerent than requirements Ior an ediIice, a bridge, or an inIormation system. Each exhibits
totally diIIerent properties and, as such, are deIined diIIerently. How you deIine requirements Ior soItware is also substantially
diIIerent than how you deIine them Ior systems.
4 The Approach represents the recommended solution or course oI action to satisIy the requirements. Here, various alternatives are
considered along with an explanation as to why the preIerred solution was selected. In terms oI design related projects, it is here where
whole rough designs (e.g., "renderings") are developed in order to determine viability. It is also at this point where the use oI existing
structures and commercial alternatives are considered (e.g., "build versus buy" decisions). The overriding considerations though are:
O Does the recommended approach satisIy the requirements?
O Is it also a practical and viable solution? (Will it "Play in Poughkeepsie?")
A thorough analysis here is needed in order to perIorm the next step...
Evaluation - examines the cost eIIectiveness oI the approach selected. This begins with an analysis oI the estimated total cost oI the
project. In addition to the recommended solution, other alternatives are estimated in order to oIIer an economic comparison. For
development projects, an estimate oI labour and out-oI-pocket expenses is assembled along with a project schedule showing the
project path and start-and-end dates.
AIter the total cost oI the project has been calculated, a cost and evaluation summary is prepared which includes such things as a
cost/beneIit analysis, return on investment, etc.
6 Review - all oI the preceding elements are then assembled into a Feasibility Study and a Iormal review is conducted with all parties
involved. The review serves two purposes: to substantiate the thoroughness and accuracy oI the Feasibility Study, and to make a
project decision; either approve it, reject it, or ask that it be revised beIore making a Iinal decision. II approved, it is very important
that all parties sign the document which expresses their acceptance and commitment to it; it may be a seemingly small gesture, but
signatures carry a lot oI weight later on as the project progresses. II the Feasibility Study is rejected, the reasons Ior its rejection
should be explained and attached to the document.
Conclusion
It should be remembered that a Feasibility Study is more oI a way oI thinking as opposed to a bureaucratic process. For example, what
I have just described is essentially the same process we all Iollow when purchasing an car or a home. As the scope oI the project
grows, it becomes more important to document the Feasibility Study particularly iI large amounts oI money are involved and/or the
criticality oI delivery. Not only should the Feasibility Study contain suIIicient detail to carry on to the next succeeding phase in the
project, but it should also be used Ior comparative analysis when preparing the Iinal Project Audit which analyses what was delivered
versus what was proposed in the Feasibility Study.
Feasibility Studies represent a common sense approach to planning. Frankly, it is just plain good business to conduct them. However, I
have read where some people in the IT Iield, such as the "Agile" methodology proponents, consider Feasibility Studies to be a colossal
waste oI time. II this is true, I've got a good used car I want to sell them.
Ieas|b|||ty stud|es alm Lo ob[ecLlvely and raLlonally uncover Lhe sLrengLhs and weaknesses of Lhe exlsLlng buslness or proposed
venLure opporLunlLles and LhreaLs as presenLed by Lhe envlronmenL Lhe resources requlred Lo carry Lhrough and ulLlmaLely Lhe
prospecLs for success
1
ln lLs slmplesL Lerm Lhe Lwo crlLerla Lo [udge feaslblllLy are cosL requlred and value Lo be aLLalned

As
such a welldeslgned feaslblllLy sLudy should provlde a hlsLorlcal background of Lhe buslness or pro[ecL descrlpLlon of Lhe producL


or servlce accounLlng sLaLemenLs deLalls of Lhe operaLlons and managemenL markeLlng research and pollcles flnanclal daLa legal
requlremenLs and Lax obllgaLlons
1
Cenerally feaslblllLy sLudles precede Lechnlcal developmenL and pro[ecL lmplemenLaLlon
Five common factors
Tecbnology and system feasibility
The assessment is based on an outline design oI system requirements in terms oI Input, Processes, Output, Fields, Programs, and
Procedures. This can be quantiIied in terms oI volumes oI data, trends, Irequency oI updating, etc. in order to estimate whether the
new system will perIorm adequately or not. Technological Ieasibility is carried out to determine whether the company has the
capability, in terms oI soItware, hardware, personnel and expertise, to handle the completion oI the project. When writing a Ieasibility
report the Iollowing should be taken to consideration:
O A brlef descrlpLlon of Lhe buslness
O @he parL of Lhe buslness belng examlned
O @he human and economlc facLor
O @he posslble soluLlons Lo Lhe problems
At this level, the concern is whether the proposal is both technically and legally Ieasible (assuming moderate cost).
conomic feasibility
Economic analysis is the most Irequently used method Ior evaluating the eIIectiveness oI a new system. More commonly known as
cost/beneIit analysis, the procedure is to determine the beneIits and savings that are expected Irom a candidate system and compare
them with costs. II beneIits outweigh costs, then the decision is made to design and implement the system. An entrepreneur must
accurately weigh the cost versus beneIits beIore taking an action.
Cost-based study: It is important to identiIy cost and beneIit Iactors, which can be categorized as Iollows: 1. Development costs; and
2. Operating costs. This is an analysis oI the costs to be incurred in the system and the beneIits derivable out oI the system.
Time-based study: This is an analysis oI the time required to achieve a return on investments. The Iuture value oI a project is also a
Iactor.
Legal feasibility
Determines whether the proposed system conIlicts with legal requirements, e.g. a data processing system must comply with the local
Data Protection Acts.
Uperational feasibility
Operational Ieasibility is a measure oI how well a proposed system solves the problems, and takes advantage oI the opportunities
identiIied during scope deIinition and how it satisIies the requirements identiIied in the requirements analysis phase oI system
development.
|4|

Scbedule feasibility
A project will Iail iI it takes too long to be completed beIore it is useIul. Typically this means estimating how long the system will take
to develop, and iI it can be completed in a given time period using some methods like payback period. Schedule Ieasibility is a
measure oI how reasonable the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some projects
are initiated with speciIic deadlines. You need to determine whether the deadlines are mandatory or desirable.