PROJECT SUMMARY

• The project summary presents the highlights of a study, lists its major assumptions, and
summarizes the major findings and conclusions. Other terms for project summary are
abstract, synopsis, and overview.
• The project summary, though it appears after the title page and table of contents, is written
only after all the aspects of the study have been completed. It is very important because not
all readers have the luxury of time to read.every detail of the study. Oftentimes they read the
details only when they find the proposal financially appealing. The project summary,
therefore, should be written in a simple language and in an engaging manner to attract
investors or any interested user. It is the fagade of the whole study, and if possible' it should
win the hearts of the investors.
• There are no definite or prescribed sections of a project summary. It is recommended, however,
that the project summary have the following information:
• 1. Proposed name of the business
• 2. Description of the industry
• 3. Description of the project
• 4. Location of the project
• 5. Highlights of major assumptions
• 6. Summary of findings and conclusion

• With these sections, the total perspective of the whole study is vividly presented to the reader.
 PROPOSED NAME OF THE
BUSINESS
• In selecting a business name, several important points should be considered. This step is a delicate process
in business planning. The business might carry the chosen trade name for the next five decades or more.
• In general, a business name should achieve the following:
• 1. Reflect the business identity
• 2. Reflect the philosophical values and culture that the company espouses
• 3. Profess the brand identity of its product
• 4. Appeal to the customers
• Thus, as a guide In proposing trade names, the following questions need to be answered:
• 1. How does the trade name look and sound like?
• 2. Does it reflect the identity of the business?
• 3. Does it reflect the philosophical values and organizational culture the company espouses?
• 4. Does it reflect the types of products or services the business provides?
• 5. Will it attract the customers' attention?
• In suggesting trade names, mandatory requirements set by government agencies •such as the
Department of Trade and Industry (DTI), the Securities and Exchange Commission (SEC), and the
Bangko Sentral ng Pilipinas (BSP) should be observed. The proponents should suggest three possible
business names to choose from and make a brief explanation about the proposed trade names.

• In addition, before proposing trade names to the investor, the promoter should first check with the
DTI whether or not the three suggested names are already used by an existing business. In case a
name is already claimed by others, it should no longer be suggested. If the proposed business
organization is a sole proprietorship or a partnership, the proponent usually ends at this point.
However, whem the proposed business firm is a corporate entity, the proponent has to seek the
approval of the SEC for the proposed trade names. In a similar manner if the proposed business will
engage in banking operations, the requirements of the BSP should be met. One to two brief
paragraphs should be provided for this section of the project summary.
 DESCRIPTION OF THE INDUSTRY
• This section describes the industry where the business is aligned along with the analysis COnducted.A mere
description, however, will not suffice. It is very important that the proponent cite recent trends in the global market
that have bearing on the study. Likewise, the description should clearly indicate the current programs and thrusts of
the national government from which the proposed project will benefit. In other words, the proponent gradually
conditions the minds of the readers on the attractiveness of the project both in the local market and in the global arena.
• In describing the industry where the proposed business belongs, the proponent should answer the following:
• 1. What is the nature of the industry?
• 2. What are the trends in the global market?
• 3. What are the developments in the programs of the national government?
• 4. Are there barriers in the form of higher tariffs and other customs requirements?
• 5. What makes the project attractive?
• 6. What are the bright prospects of the proposed project?

One to two paragraphs should be provided for this section of the project summary.
 DESCRIPTION OF THE PROJECT
• This section describes the nature of a project, and the product or service it will provide. The
proponent should include the particular stage the project is presently in and whether the project
arises because of regional studies or is related to some programs of the national government. In case
there is available information, the proponent may include incentives provided by the government
for such projects.
• This section of the summary supports the statements in the immediate preceding section by
providing specific details applicable to the business in particular. The promoter of the study should
have specific answers to the following questions:
• 1. What is the product or service that the business will provide?
• 2. Is the study the result of regional studies or consultation?
• 3. What is the potential of the product or service in the market?
• 4. Who are the major consumers of the product or service?
• 5. What is the primary raw material required to produce the good or provide the seruce?
 LOCATION OF THE PROJECT
• Oftentimes, one may hear the provocative statement that a project should be located in a
strategic location. However, what characterizes a strategic location?
• The term strategic in this context means that the location of a business, its head office, plant
site, and outlets should provide competitive advantage and ensure the attainment of
maximum efficiency. Competitive advantage means that a business has gained an edge over
its competitors that can hardly be copied and provides a higher profitability roduce level.
The location could provide maximum efficiency if the business would be able to produce
same amount of products at a lower cost.
• A straightforward reason for the selection of the location should be indicated in this section. It is highly
emphasized that all underlying reasons for the project are viewed valuable from the point of view of
prospective investors and not from that of the proponent.
• The following questions should be answered in this section:
• 1. What is the prevailing peace and order condition of the proposed location?
• 2. Are there primary competitors within the vicinity of the project?
• 3. Where are the sources of raw materials, labor, and utilities?
• 4. What is the proximity of the location to the market?
• 5. Is there available transportation?
• 6. How far is the plant from households?
• 7. What is the prevailing climate, temperature, or weather condition in the area?
• In providing information about the location of a project, one to two paragraphs may be utilized in the
project summary
 HIGHLIGHTS OF MAJOR
ASSUMPTIONS
• A feasibility study, in its •simplest term, is a business forecast based on a mixture of absolute data
and professional opinions of experts in the field. The setting of assumptions is regarded as a normal
procedure in conducting a study. There are widely accepted assumptions in the field of economics,
operation research or quantitative analysis, accounting, and other specialized fields. Assumptions
facilitate the conduct of a study and are required in some mathematical and quantitative analyses.
• However, assumptions, particularly in a feasibility study, do not simply arise without any bases. They
depend on any or a combination of the following:
• 1. Past experiences of other similar businesses
• 2. Trends in the local and global markets
• 3. Programs of the regional and national government
• 4. Regulations and issuances of monitoring agencies
• 5. Economic, financial, and monetary indicators
• 6. Economic, business, or statistical model
• The setting of assumptions is sometimes the bottleneck of a study and may become a
constraint if they are not reliable. The basic guiding principle is that the assumptions shoüld
be realistic and measurable. It is Important to remember that investors are updated on the
current or recent financial data from stock exchanges, financial organizations, the Bangko
Sentral ng Pilipinas, the Securities and Exchange Commissions, and other government
agencies. Using unrealistic assumptions spawns elements of doubt to investors on the
reliability of the study, and they may lose interest in the proposed project.
• Assumptions are needed to answer the following questions:
• 1. What is the market projection in terms of demand and supply?
• 2. What is the expected market share of the project?
• 3. How much is the expected cost of the product or service?
• 4. What is the expected initial selling price of the product?
• 5. How many units will be produced every year?
• 6. What is the expected cost of the project?
• 7. How will the project be financed?
• 8. What is the expected rate of return on investment?
• In the project summary, major assumptions are usually provided with short descriptions,
including their quantitative basis.
 SUMMARY OF FINDINGS AND CONCLUSION
• This is usually the last section of the project summary. It presents the findings on every aspect of the study
and the concluding remarks and findings of the proponent based on facts.
• Usually, a conclusion is reached in the following areas:
• 1. Market study
• 2. Technical study
• 3. Management study
• 4. Financial study
• The proponent should give a specific conclusion and recommendation for each Of these aspects and provide a
general conclusion on the whole study which he/she deems appropriate based on the facts and data.
• It is a must for the proponent to provide answers to the following questions:
• 1. Is the project feasible in terms of the market?
• 2. Is the project feasible in terms of its technical aspect?
• 3. Is the project feasible in terms of its organizational setup?
• 4. Is the project feasible in terms of its financial operation?
• In case the answers to these four major questions are all positive, then the general conclusion of the
proponent would indicate a high probability of the feasibility Of the proposed project. The proponent
however, should never vouch for the attainment Of the findings and conclusion.
• On the other hand, if one of the answers is negativev then a general conclusion on the
feasibility of the project cannot be reached. The proponent should clearly indicate this
situation in his/her concluding remarks. Based on all these analyses, recommendations, and
conclusions clearly indicated in the study, the user or prospective investor makes his/her
own final decision, which may sometimes be entirely different from the recommendation,
• The decision of the investors can be either to implement the project or not. The
implementation of a proposal entails a commitment of funds, whereas non-implementation
means that a project is discarded or aborted.
• Once the investor commits funds for the implementation of a project, the proponent
consequently prepares a business plan. A business plan is a thorough and detailed evaluation
and scrutiny of the different factors and forces of the business environment. It presents the
step-by-step procedures on how to implement the proposed business.