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Feasibility Study Format

Prepared by
Syed Farhan Danish Alvi (3774)
M. Mehdi Changezi (1958)
Asif Ahmed (3879)

Department Of Business Administration
IQRA University Karachi

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Executive Summary:

Name of the Company :
Establishment :
Business :
Activity :
Debt to Equity Ratio :
Total Processing Establishment Cost:
Total Foreign Component :
Sponsors :
Bankers :
Financial Consultant :
Revenue Projections :

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Table of Contents

Title Page No.

1. Introduction 4
1.1 Product Description
1.2 Project Description
1.3 Opportunity Rationale
1.4 Existing Technology
1.5 Proposed Technology
1.6 Advantages of Proposed Technology
1.7 Proposed Capacity
1.8 Total Project Estimation
2. Essential Factors and Steps 5
2.1 Key Success Factors
2.2 Opportunities
2.3 Threats
2.4 Target Market
2.5 Market Need
2.6 Industry Analysis
2.7 Competitor’s Analysis
2.8 Business Model
2.9 Marketing Strategies
2.10 Market Size
2.11 Market Share
2.12 Production Requirements
2.13 Assets Requirements
2.14 Human Resource Requirements
3. Critical Risk Factors 7
3.1 Environmental Issues
3.2 Star -Up Schedule
4. Financial Details 8
5. Conclusion 9

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INTRODUCTION

Product Description:

Project Description:

Opportunity Rationale:

Existing Technology:

Proposed Technology:

Advantage from Proposed Technology:

Proposed Capacity:

Total Project Cost:

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ESSENTIAL FACTORS & STEPS IN DECISION
MAKING FOR INVESTMENT

Key Success Factors:

Opportunities:

Threats:

Target Market:
 Demographic Factors of Target Consumers
 Psychographic Factors of Target Consumers

Market Need:

Industry Analysis:
 Market Trends
 Growth Rate
 Demand and Supply Position

Competitor’s Analysis:

Business Model:

Marketing Strategies:

Market Size:

Market Share:

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Production Requirements:
 Manufacturing Process
 Space Required for Plant
 Machineries and Tools Requirements and their specifications
 Warehousing Requirements with area
 Major Suppliers

Assets Requirements:
 Equipment
 Furniture
 Machineries
 Land and Building etc.

Human Resource Requirement:
 Permanent Staff
 Contractual Staff
 Others

Securing Your Product:

 Patents
 Copy Rights
 Trade Marks

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CRITICAL RISK FACTORS:

Environmental Issues:
 Rules and Regulations of the State and Local Laws

Startup Schedule:
 Projected Date of Start of Project
 Projected Completion Date of the Project

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FINANCIAL DETAILS

Project Summary
 Project Life (years)
 Total Cost of Project (in Rupees)
 Equity (in Rupees)
 Debt (in Rupees)
 Names of Financial Institutions
 Desired Rate of Return

Production Details
 Equivalent No of Units Produced during the year

Operating Assumptions
 Shift per day
 Hours operational per shift
 Days operational per Month
 Days operational per year
 Pre Operation Period (Month)

Financial Ratios:
 Working Capital Requirements (in Rupees)
 Current Ratio
 Acid Test Ratio
 Assets to Sales Ratio
 Debt Equity Ratio
 Net Worth (in Rupees)

Operating Ratios:
 Contribution Margin
 Gross Margin
 Sales to Operating Expenses Ratio
 Profit Margin
 Break Even Point (in Rupees)
 Break Even Point (in units)

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CONCLUSION

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