FEASIBILITY STUDY

DEFINITION
•The word “feasibility” is derived from
“feasible”, which simply means
capable of being done or accomplished.
 DEFINITION
•Feasibility studies aim to logically find
the strengths and weaknesses of a
proposed project, opportunities and the
resources required to carry through, and
ultimately the prospects for success.
 FEASIBILITY STUDY
•An analysis and evaluation of a proposed
project to determine if it is:
a. Technically feasible
b. Feasible within the estimated cost
c. Will be profitable
 IMPORTANCE:
1.Defines the facility
2.Determines whether the location is feasible
3.Shows whether a market exists
4.Quantifies the prospects of financial success
5.Helps organize financing
 MAIN PARTS
I. TECHNICAL- describes the product, what it
is and how is it made
II.MARKETING-discusses the product’s target
market, how they can be reached
III.FINANCIAL-translate the 2 portions into
profit or loss
 TEMPLATE
Part 1: Background or Introduction
a. Name of Business (history, logo)
b. Vision
c. Mission
d. Type of Business ( service/ambiance)
e. Organizational Chart
 TEMPLATE
Part 2: Overview of the project
a. Executive Summary
TEMPLATE
Part 3: Marketing
Plan
a. Target Market
 TEMPLATE
Part 3: Marketing Plan
B. Competitive Analysis
• Who are your competitors?
• What products or services do they sell?
• What is each competitor's market share?
• What are their strategies?
 TEMPLATE
Part 3: Marketing Plan
B. Competitive Analysis
• What type of media are used to market their products or
services?
• What are each competitor's strengths and weaknesses?
• What potential threats do your competitors pose?
• What potential opportunities do they make available for you?
 TEMPLATE
Part 3: Marketing Plan
C. Site Analysis
1. Site description-size, boundaries,
2. Site evaluation-visibility, accessibility, access to
transportation, availability of water and electricity,
communications, traffic counts
TEMPLATE
Part 3: Marketing Plan
D. Local Area Evaluation
1. Area growth pattern
2. Visual appeal of local area
3. Distance of facilities
4. Labor availability
5. Attractions of area
6. Consumer buying power
 TEMPLATE

Part 3: Marketing Plan

E. Marketing Strategies
 TEMPLATE

Part 3: Marketing Plan

F. SWOT Analysis
TEMPLATE
Part 4: Technical Study
A. Facility Specifications
LODGING:
1. Size of operation, number of rooms
2. Space requirements for public areas
3. Functional services area
4. Hotel features
TEMPLATE
Part 4: Technical Study
A. Facility Specifications
FOODSERVICE:
1.Size of operations and number of functional areas
2. Space requirements for functional and service areas
3. Number and type of seating
4. Type and quality of service, menu
TEMPLATE
Part 4: Technical Study
B. Ergonomic Features
1. All work areas
TEMPLATE
Part 4: Technical Study
C. Facility Management
1.Lighting Features
2. Noise Management
3. Layout and Design
TEMPLATE
Part 5: Financial Analysis
A. Capital investment budget
1. Land
2. Building
3. Equipment
4. Working capital
TEMPLATE
Part 5: Financial Analysis
B. Operating budget
1.Revenues
2. Expenses
3. Net return
TEMPLATE
Part 6: Conclusion
Is the business feasible?
Any questions?
THANK YOU!