Feasibility Study

Introduction

A. Name of the proposed business

“Venice Cake and Bread House”
B. Name of the founder
“Vina Niña Mae Requiz”
C. Summary of the Business
The business is named “Venice Cake and Bread House” since my
daughter loves to eat cakes and bread. We produce and sell flour-
based food baked in an oven such as bread, cookies, cakes, pastries,
and pies. We also offer drinks to customers who wish to consume the
baked goods on the premises.

Part 1. Product/Service Feasibility

A. Assessment Tools
1. Products and Service Ideas (Concept Statement Test)

  The Venice Cake and Bread House will provide the residents of
Bulwa, Medina with fresh-baked breads, cakes and cookies on a daily basis.
All breads are scratch-made from locally sourced ingredients, and we will
carry a line of gluten-free products and a line of dairy-free products, as well
as other efforts to maintain sensitivity to special diets. The bakery's
extended hours, beginning at 5 a.m. and ending at 9 p.m. each week day,
will provide service to locals on their way to and from work, as well as
maintaining a casual, drop-in environment for late evening visits and daytime
fresh-baked goods. The bakery will hold weekly promotions via its Facebook
page. 
 ~Menu~
CAKES DESSERT PASTRIES TARTS & CHEESE DRINKS
BARS PIES CAKE
Carrot Nutty Peach Chocolate Blueberry Espresso
Cake Brownie Muffin Raspberry Cream Macchiato
Tart Cheese
Fudge Salted Banana Chocolate Asparagus Irish
Cake Caramel Muffin Truffle & Goat Coffee
Brownie Tart Cheese
Summer Pecan Bar Blueberry Maple Cheese Hot
Berries & Muffin Pecan Pinwheel Chocolate
Cream
Raspberry Blueberry Vegan Choco Ginger
Lichous Bar Berry Truffle Tea
Pecan
Mouisse Apricot Sticky Bun Soft drinks
Cake Bar
Low Fat Cinnamon Can Juice
Oatcakes Bun
Extra Long Mineral
Twists Water

Customer Survey

Name Things they like Suggestions for Comments

about the the
product/services products/services
development
Hanna Cago *Best for on- the- go *Offer loyalty program The business will be
people *Venture into catering feasible since it is a
*The vicinity is clean trend for now.
Marie Balatayo *It has drinks that best *They should offer The business is feasible
fit the baked goodies delivery services because many people
*They offer bread for love to eat breads and
those people who are cakes.
in diet
Jonalyn Bacharo *The customer service *Offer different The business will grow
is good portion sizes since they offer gluten-
*They have weekly free bread and cakes
promotion for those who are in
diet.
*
Grace Butron New on the place *Should offer more The business will
*The drinks and sweet yummy treats probably continue to
treats complement *They should install its operation because
well Wi-Fi for the of its products and
*The location is customers services.
perfect
Edcel Guillena *The bread and *The place should be The business will grow
 delicacies they offer is more spacious to since bread is in
new to our taste buds accommodate more demand on daily basis.
*The place had a good customers
ambiance
*The customer service
is impressive

Conclusion:

Therefore, the business has a good and favourable feedback from my target
market. The survey shows that the customer is satisfied with the products and
services the bakery offer. They also suggest other things that may help the business
grow in times. They are also interested on the proposed product and services.

Part 2. Industry/Market Feasibility

A. Assessment Tools

Industry Attractiveness Assessment Tool

(Used to assess the broad industry, rather than the specific target market, you plan to
enter)

Low Potential Moderate High Potential

Potential
Number of Many Few None
competitors
Age of industry Old Middle Aged Young
Growth rate of Little or no Moderate Strong growth
industry growth Growth
Average net Low Medium High
income for firms in
the industry
Degree of industry Concentrated Neither Fragmented
concentration concentrated
nor fragmented
Stage of industry Maturity phase Growth phase Emergence
life cycle or decline phase phase
Importance of “Ambivalent” “Would like to “Must Have”
industry’s products have”
and/or services to
customers
Extent to which Low Medium High
business and
environmental
trends are moving
in favour of the
 industry
Number of exciting Low Medium High
new
products/services
emerging from the
industry
Long-term Weak Neutral Strong
prospects

Target Market Attractiveness

There are so many factors that can affect the market attractive and it depends
on what factors are essential to the company and which elements are not. But still,
there are a few factors that affect the market attractiveness which is common to all.

 Size of the market

 Growth Rate
 Margins and pricing trends
 Competitors

Market Timeliness Assessment Tool

Low Potential Moderate High Potential

Potential
Buying mood of Customers are Customers are in Customers are in
the customers not in a buying a moderate an aggressive
mood buying mood buying mood
Momentum of the Stable to losing Slowly gaining Rapidly gaining
market momentum momentum momentum
Need for a new Low Moderate High
firm in the market
with your offerings
or geographic
location
Extent to which Low Medium High
business and
environmental
trends are moving
in favour of the
target market
Recent or planned Large firms Rumours that No larger firms
entrance of large entering the large firms may entered the
firms into the market be entering the market or are
market market rumoured to be
entering the
market
 Conclusion:
The data shows that the market attractiveness and timeliness is
between the moderate and high potential. It shows that the business is
feasible and effective and will be able to continue its service in time even
though there are many competitors.

Part 3: Organizational Feasibility

A. Assessment tools

Management Prowess Assessment Tool

Low Moderate High

Potential Potential Potential
Passion for the Low Moderate High
business idea
Relevant None Moderate Extensive
industry
experience
Prior None Moderate Extensive
entrepreneurial
experience
Depth of Weak Moderate Strong
professional and
social networks
Creativity among Low Moderate High
management
team members
Experience and None Moderate High
expertise in cash
flow
management
College graduate No college Some college Graduated or
education education but are currently in
not currently college
in college

Resource Sufficiency
• The focus in this section is on nonfinancial resources. Use the following table to
rate your “resource sufficiency” in each category.
• The list of resources is not meant to be exhaustive. A list of the 6 to 12 most critical
nonfinancial resources for your proposed business is sufficient.
An explanation of the rating system used in the first portion of the table is as follows:
① Available
② Likely to be available: will probably be available and will be within my budget
③ Unlikely to be available: will probably be hard to find or gain access to, and may
exceed     my budget
④ Unavailable
⑤ NA: not applicable for business

Resource Sufficiency Assessment Tool

Ratings Resource Sufficiency

①② ③ ④ ⑤ Office Space

①② ③ ④ ⑤ Lab space, manufacturing space, or space to

launch service business

①② ③ ④ ⑤ Contract manufacturers or outsource providers

①② ③ ④ ⑤ Key management employees (now and in the

future).
①② ③ ④ ⑤ Key support personnel (now and in the future)

①② ③ ④ ⑤ Key equipment needed to operate the business

(computers, machinery, delivery vehicles)
①② ③ ④ ⑤ Ability to obtain intellectual property protection on
key aspects of the business

①② ③ ④ ⑤ Support of local and state government if

applicable
for business launch
①② ③ ④ ⑤ Ability to form favourable business partnerships

Ratings: Strong, Neutral, or Weak

Strong Proximity to similar firms

Strong Proximity to suppliers
Strong Proximity to customers
Neutral Proximity to a major research university

Conclusion:
The management showed the core analytical competencies of investing in the
ides, has the capacity to build trust, able to make commitments in implementing the
idea, demonstrates support and the ability to adopt new ideas and change with
changing business environment. It was established in the study that employees and
the management or the organization took ownership of the idea, by demonstrating
teamwork. In the aspects of resource sufficiency, it shows that the business has the
strong potential to start its operation.
 Part 4: Financial Feasibility
A. Assessment Tools

Total Start-up Cash Needed

• The startup costs (which include capital investments and operating
expenses) should include all the costs necessary for the business to make
its first sale. New firms typically need money for a host of purposes,
including the hiring of personnel, office or manufacturing space,
equipment, training, research and development, marketing, and the initial
product rollout.

• At the feasibility analysis stage, it is not necessary for the number to be

exact. How-ever, the number should be fairly accurate to give an
entrepreneur an idea of the dollar amount that will be needed to launch the
firm. After the approximate dollar amount is known, the entrepreneur
should determine specifically where the money will come from to cover the
startup costs.
• The total startup cash needed can be estimate using the following table.

Total Start-up Cash Needed (to Make First Sale)

Capital Investments Amount

Property (Building) ₱35,000.00

Furniture and fixtures ₱3,850.00
Computer Equipment ₱15,000.00
Other equipment ₱40,000.00

Operating Expenses Amount

Legal, accounting, and professional services ₱5,000.00

Advertising and promotions ₱4,500.00
Deposits for utilities ₱5,377.00
Licenses and permits ₱3,600.00
Prepaid Insurance ₱5,000.00
Lease payments N/A
Salary and wages ₱11,000.00
Payroll taxes ₱1,000.00
Travel ₱1,000.00
Signs ₱1,000.00
Tools and supplies ₱1,155.00
Starting Inventory ₱50,000.00
Cash (working capital) ₱80,000.00
Other expense 1(PACKAGING) ₱15,000.00
Other expense 2 ₱5,000.00

Total Startup Cash Needed= ₱282,482.00

Comparison of the Financial Performance of Proposed Venture to Similar Firms

• Use the following tables to compare the proposed new venture to similar firms in regard to
annual sales (Year 1 and Year 2) and profitability (Year 1 and Year 2).

 Comparison of the Financial Performance of Proposed Venture to Similar

Firms Assessment Tool

Annual Sales

Estimate of the proposed                                 Explanation of how the estimate was computed

Ventures                                                
Annual Sales - Year 1       

Estimate of Year 1 Sales 24x₱3,500.00= ₱84,000.00 / month

₱84,000.00x12=₱1,008,000.00/year
Summary: How proposed annual sales on average compares to similar firms:

BELOW AVERAGE AVERAGE ABOVE AVERAGE

Estimate of year 2 Sales 24x₱3,502.75=₱84,066.00/month

₱84,066.00x12=₱1,008,792.00/year
Summary: How proposed annual sales on average, compares to similar firms:

BELOW AVERAGE AVERAGE ABOVE AVERAGE

 Net Income
Estimate of the proposed                                 Explanation of how the estimate was computed
Ventures                                                
Net Income - Year 1       

Estimate of Year 1 Net Income = ₱164,207.81

Sales 1,008,000.00
Less: Cost of Goods Sold 560,979.60
____________
Gross Income 447,020.40
Less: Operational Expenses 205,538.33
Income before Tax 241,482.07
Less: Income Tax (32%) 77,274.26
Net Income ₱164,207.81

Summary: How proposed annual sales on average, compares to similar firms:

BELOW AVERAGE AVERAGE ABOVE AVERAGE

Estimate of the proposed                                 Explanation of how the estimate was computed

Ventures                                                
Net Income - Year 2      

Estimate of Year 2 Net Income = ₱116,016.50

Sales 1,008,792.00
Less: Cost of Goods Sold 585,578.58
____________
Gross Income 423,221.42
Less: Operational Expenses 205,538.33
Income before Tax 217,675.09
Less: Income Tax (32%) 101,658.59
Net Income ₱116,016.50

Summary: How proposed annual sales on average, compares to similar firms:

BELOW AVERAGE AVERAGE ABOVE AVERAGE

Overall Financial Attractiveness of the Proposed Venture

• The following factors are important in regard to the overall financial attractiveness of the
proposed business.
• Assess the strength of each factor in the following table.
 Overall Financial Attractiveness of Proposed Venture Assessment Tool
1. Steady and rapid growth in sales during the first one to three years in a clearly
defined target market: Highly Likely
2. High percentage of recurring income- meaning that once you win a client, the client
will provide recurring sources of revenue: Strong
3. Ability to forecast income and expenses with a reasonable degree of certainty:
Strong
4. Likelihood that internally generated funds will be available within two year to
finance growth: Moderately Likely
5. Availability of exit opportunity for investor is applicable: May be Available

Conclusion:
The total startup cash needed is ₱282,482.00. There are few businesses that I can
directly relate to my start up. I believe that this business as it stands right now would have the
appeal for repeat customers. The financial feasibility is feasible. I just have to make
additional way and other yummy products to attract more customers.

OVERALL FEASIBILITY: SUMMARY AND CONCLUSION

Overall Feasibility of Suggestions for Improving

the business Idea Based on
each Part
Product/Market Feasibility
Industry/Market Feasibility
Organizational Feasibility
Financial Feasibility
Overall Assessment
The Feasibility
Feasible To improve product/market
feasibility make sure that your
product is in demand to your
target market and motivates
them to purchase your product.
Feasible To improve industry/market
feasibility it would be necessary
to come up with a way to
generate revenue clearly. The
application would also have to
rely heavily on word of mouth to
market itself.
Feasible To improve organizational
feasibility it would be necessary
to well evaluate the needs and
interests of the customers. We
must also identify an
appropriate level of quality for
the products or services.
Unsure To improve financial feasibility it
would be necessary recover
outstanding debt and reduce
and re-arrange expenses.
Feasible Overall the business is feasible.
This business may consider
launching a new business or
adopt product line.

Conclusion:
 Based on the survey and analysis I conducted, I therefore conclude that my
business is feasible and viable in the market.

BUKIDNON STATE UNIVERSITY

MEDINA SATELLITE CAMPUS

ENTREPRENEURIAL
MANAGEMENT
FINAL OUTPUT
       
“FEASIBILITY ANALYSIS”

Vina Niña Mae Requiz

1909100113

Mr Lyle Owen Arnold Rabaya