Feasibility Study for (Name of the

Enterprise)

Team
No. Name National ID Seat No.
1
2
3
4
5

Major: Regular/Irregular:
 Executive Summary

First: Business Description

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 Second: Product(s)
(2-1) Product Description

Product Usage Quality Check

(2-2) Future Product Plan

New Products in Year (2) New Products in Year (3)

Third: Technology

Product Components Suppliers

2
 Fourth: Target Market
Market Need

Target Segment

Reasons for Selecting the Target Segment

Size of Target Segment (Provide Approximate data)

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 Fifth: Competition
(5-1) Analysis of Competition

Competitor Its Products Strengths Weaknesses

(5-2) Strengths of our Products

Product Strengths

(5-3) Competitors’ Reactions and our Actions

Competitors’ Reactions Enterprise’s Action

Sixth: Revenue Streams

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The enterprise will generate its revenue streams from the following sources:





Seventh: Marketing Viability

(7-1) Pricing

Product Selling Price Calculation Approach

(7-2) Promotion Mix

The enterprise will use the following promotional tools:





Promotion Cost

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 Item Year (1) Year (2) Year (3)
No. of Advertisements
X Cost per Adv.
Total Cost of Advertisements (1)
No. of Salesperson
X Average Annual Commission per person
Total Cost of Personal Selling (2)
No. of Brochures
X cost per unit
Total Cost of Brochures (3)
Cost of other promotion (4)
Total Cost of Promotion (1+2+3+4)

(7-3) Distribution

Product Distribution Channel

(7-4) Projected Sales

Item Year (1) Year (2) Year (3)

No. of units to be sold from product (1)
No. of units to be sold from product (2)
No. of units to be sold from product (3)

Eighth: Technical and Technological Viability

(8-1) Location
Location Type Cost Cost of
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 Remodeling
(Purchase/rent
(Suggested Site of Head Office)
)

(8-2) Equipment

Equipment Required Number Cost of Buy or Rent

(8-3) Estimating Variable Cost per Unit

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 (1) (2) (1) + (2)
Material Average Variable Cost
Product Labor Cost
Cost per Unit

Ninth: Management and Human Resources

(9-1) Organizational Structure

(9-2) Jobs and Salaries

Job (1) (2) (3) = (1)x(2) (3) x 12

Required Monthly Total Total

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 Monthly Annual
No. Salary
Salary Salaries

Tenth: Financial Viability

(10-1) Estimating Investment Cost

Item Cost
Cost of all purchased equipment (not leased)
+ Cost of location (if purchased)
+ Cost of Remodeling
+ Cost of enterprise registration and other legal cost
+ Cost of pre-operating advertising and promotion
+ Cost of application and web site development
+ Any cost should be paid before the operation
Investment Cost

(10-2) Funding and Financing

Required fund =
Sources of Fund

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 From Owners From Bank Loan

(10-3) Estimating Cash Flows

Item Year (1) Year (2) Year (3)
Sales of Product (1) (No. x Selling price)
+ Sales of Product (2)
Total Sales
(-) COGS of Product (1) (No. x Variable Cost per unit)
(-) COGS of Product (2)
Gross Profit
(-) Cost of rent (for location)
(-) Cost of lease (for equipment)
(-) Total annual salaries
(-) Cost of utilities (Water, natural gas …etc)
(-) Cost of promotion
(-) Cost of distribution
(-) Any other related cost
EBIT
(-) Interest (Loan x Interest rate)
Cash flow (Net income)

(10-4) Calculating Net Present Value (NPV)

CF 1 CF 2 CF 3
NPV = 1
+ 2
+ 3
−Investment Cost
(1+10 %) (1+10 % ) (1+10 %)

NPV = ❑ + ❑ + ❑ −¿
1 2 3
(1+10 %) (1+10 % ) (1+10 %)
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 =

Eleventh: Recommendations and Advice

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