Activity 7:

Instructions: Conduct Pre-feasibility study by using the easy steps below that can help to identify a
viable business venture. Choose one opportunity that you want to pursue. Take the scores from the
opportunity screening matrix into consideration. Of course, the final decision will be made based on
your own preferences.
WATER REFILLING STATION
A. Market Potential
1. Segmenting the Market
➢ This water refilling would likely target the residents of our barangay and the nearby
areas.
2. Assessing competition
➢ There is none yet water refilling station installed in our barangay.
3. Estimating Market Share and Sales
➢ This would likely to sell for almost 100 water cans per day which cost 25 pesos per
water can.

B. Technology Assessment and Operations Viability

1. Quantities demanded
➢ The least estimated sell per day is 100 water cans.
2. Quality specifications demanded
➢ This water refilling station will undergo the necessary requirement for a clean and
safe drinking water as mandated by government agencies.
3. Delivery expectations
➢ Costumers can buy in our outlet or through delivery services but price may vary from
in-store purchase.
4. Price expectations
➢ 25 pesos for in-store purchase
➢ 30 pesos for delivery purchase

C. Investments Requirements and Production/Servicing Costs

1. Pre-operating costs
➢ Php. 200,000.00 estimated cost for the water refilling station building and equipment
necessary for operation of the water station.
2. Production/Service Facilities Investment
➢ Php. 160,000.00 for facilities cost
3. Working Capital Investment
➢ Php. 200,000.00

D. Financial Forecasts and Determination of Financial Feasibility

1. Income statement
Monthly Income Statement
Revenue Cost of goods sold 25,000.00
Total Revenue 25,000.00
Expenses Wages 7,000.00
Water bill 2,000.00
Transportation 1,500.00
Utilities 2,500.00
Total Expenses 13,000.00
Net Income 12,000.00
 2. Balance sheet
Asset Pesos
Current Assets:
Cash 1, 000.00
Accounts receivable 5, 000.00
Permits 3, 000.00
Unexpired insurance 1, 500.00
Supplies 3, 000.00

Total current assets 13, 500.00

Non-current assets:
Equipment and facilities 200, 000.00

Total assets 213, 500.00

3. Cash flow statement

Operations
Cash receipts from
Costumers 25,000.00
Other operations
Cash paid for
Inventory purchases 5,000.00
General operating and administrative expenses 3,000.00
Wage expenses 7,000.00
Income Taxes 4,000.00

Net Cash Flow from Operations 6,000.00

PRE-FEASIBILITY STUDY MAKING

Activity 8

Directions: Make your own pre-feasibility study using the template given below. Use A4 bond paper.
(If encoded use Times New Roman Font size 11-12) Note: encoded is optional not required.

I. Executive Summary Water refilling station is in demand nowadays

II. Market Potential
III. Technology Assessment and Operations Facilities for this kind of business can be bought
Viability
IV. Investments Requirements and
Production/Servicing Cost
because of limited source of safe drinking water.
And also because of urbanization, sources of
potable water have been destroyed, urbanized or
developed. Therefore, it is not that risky to venture
this kind of business and this is also an everyday
need of human being.
It is not hard to sell this kind of product for this is a
daily need. And in our barangay there is only one
competitor for this kind of business.
through franchising inclusive with service training
on how to operate the machine.
There are only few requirements to make this
business a reality:
➢ Building

V. Financial Forecasts and Determination
of Financial Feasibility
➢ Machine for filtration to make the water
potable.
➢ Materials for operation such as: Water cans,
heater, printed brand name, sealed and
transport vehicle for delivery.
➢ Permits to operate.
This will only cost at around Php. 250,000.00
Water is a daily need. Human cannot survive
without water. Therefore, the estimation for daily
consumption is at around 100 water cans, if this will
multiply by 25 pesos each this will acquired around
2,500 pesos per day, in a month this will sum at
around 75,000 pesos. The pre-operation cost can be
easily gained.