FEASIBILITY STUDY

Workbook

ALOE HAND SANITIZER

Title of the Proposed Project

STEVEN SCOTT M. ALONZO

JULIA CYRENE MANLANGIT
KARLA FYNE UAYAN
CHRISTINE SANCHEZ
LEAH PACETE
Name of the Proponents

PAMUS COMPANY
SAN AGUSTIN INSTITUTE OF TECHNOLOGY
PUROK 10 POBLACION, VALENCIA CITY
BUKIDNON
Name of Company &
Address
FEASIBILITY STUDY 2

EXECUTIVE SUMMARY

1. BRIEF DESCRIPTION OF THE PROJECT

2. BRIEF PROFILE OF THE PROPONENTS

3. TOTAL PROJECT COST OR FUNDING SOUGHT

FEASIBILITY STUDY 3
FEASIBILITY STUDY 4

Section 1
MARKETING FEASIBILITY STUDY

1.1 DESCRIPTION OF THE PRODUCT

Aloe hand sanitizer
 Trapezoid shape
 35ml
 Green
 Moisturizing
 Convenience
 Plastic container


1.2 COMPARISON OF THE PRODUCT(S) WITH ITS COMPETITORS

 affordable
FEASIBILITY STUDY 5

Table 1.2 -- Competitive Analysis of the Product(s)

Product Proposed Greencross Hygienix Isoprophyl

Features Enterprise
Quality 1 2 4 3
Price P30.00 P59.00 P35.00 P32.00
Delivery Time 2 3 3 4
Packaging 1 3 2 3
Volume Discount 1 3 2 3
Others (specify) services 5 4 5

Legend: 1 - Outstanding 2 - Very Satisfactory 3 - Good 4 - Fair 5 - Poor

1.3 LOCATION

Figure 1.3 - Location Map

FEASIBILITY STUDY 6

1.4 MARKET AREA

Figure 1.4 - List of Market Area and Size

Area Size Population Sectors

1.5 MAIN CUSTOMERS

Figure 1.5 - List of Major Customers and Their Requirements

Major Customers Requirements / Preferences

1.6 TOTAL DEMAND

FEASIBILITY STUDY 7

Table 1.6A - Table of Projected Demand

Month/Year Quantity Amount

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Table 1.6B - Seasonal Fluctuations

Months/ 1 2 3 4 5 6 7 8 9 10 11 12
Demand
High
Medium
Low

1.7 MARKET SHARE

FEASIBILITY STUDY 8

Table 1.7 -- DECISION GUIDE

Your Number Their Market

Product of Their Product(s) Share
Features Competitors Share* Features (%)

1.8 SELLING PRICE

Figure 1.8 - Comparison of Competitors’ Selling Price

Enterprise’ Selling Competitor’s Selling Price Competitors

Product(s) Price 1 2 3 Aver. Price

1.9 SALES FORECAST

FEASIBILITY STUDY 9

SCHEDULE 1.9 -- SALES FORECAST

Sales Forecast Year 1 Year 2 Year 3 Year 4 Year 5

TOTAL SALES
FORECAST

1.10 PROMOTIONAL MEASURES

1.11 MARKETING STRATEGY

1.12 MARKETING BUDGET

FEASIBILITY STUDY 10

FINANCE SCHEDULE 1.12 -- MARKETING COST (BUDGET)

Account title Year 1 Year 2 Year 3 Year 4 Year 5

TOTAL BUDGET -
MARKETING
FEASIBILITY STUDY 11

Section 2
TECHNICAL FEASIBILITY STUDY

2.1 PRODUCTION PROCESS

Figure 2.1 - Process Flow Chart

2.2 FIXED CAPITAL

FINANCE SCHEDULE 2.2 -- FIXED CAPITAL (FIXED ASSETS)

Account Title Cost Life/Years Depreciation

TOTAL FIXED CAPITAL -

PRODUCTION
FEASIBILITY STUDY 12

2.3 MAINTENANCE AND REPAIRS

2.4A SOURCES OF MACHINERY AND EQUIPMENT

2.4B TERMS AND CONDITION OF PURCHASE OF MACHINERY AND EQUIPMENT

2.4C PLANNED CAPACITY

2.5 FACTORY LOCATION AND LAY-OUT

FEASIBILITY STUDY 13

Figure 2.5A - Factory Location

Figure 2.5B - Factory Lay-out

2.6A MATERIALS NEEDED

FEASIBILITY STUDY 14

Figure 2.6A - Needed Volume and Cost of Materials

Materials/Product(s) Volume Cost (One Year)

Total

2.6B AVAILABILITY OF RAW MATERIALS

2.7A LABOR NEEDED

Figure 2.7A - Workers. Skills and Salary Scales

FEASIBILITY STUDY 15

Number of Regular/ Salary

Kind of Worker Skill Workers Contractual Scale

2.7B LABOR AVAILABILITY

FEASIBILITY STUDY 16

2.7C LABOR PRODUCTIVITY

2.8 PRODUCTION BUDGET

SCHEDULE 2.12 -- PRODUCTION BUDGET

Account title Year 1 Year 2 Year 3 Year 4 Year 5

SUB-TOTAL BUDGET -
PRODUCTION
Depreciation -
Depreciation -
Depreciation -
TOTAL BUDGET -
PRODUCTION
FEASIBILITY STUDY 17

2.13 PRODUCTION COST PER UNIT

FEASIBILITY STUDY 18

Section 3
MANAGEMENT FEASIBILITY STUDY
3.1 VISION STATEMENT

3.2 MISSION STATEMENT

3.3 FORM OF BUSINESS

FEASIBILITY STUDY 19

3.4 ORGANIZATIONAL STRUCTURE

Figure 3.4 - Organizational Chart

3.5 BUSINESS EXPERIENCE AND QUALIFICATION OF THE PROPONENT/

ENTREPRENEUR

Figure 3.5 - Entrepreneurs’ Profile

Name of Officers
and Staff Qualifications Rank Functions
1.
2.
3.
4.
FEASIBILITY STUDY 20

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

3.6 PRE-OPERATING ACTIVITIES

Figure 3.6 - Pre-Operating Activities

Timetable (Weeks, Months specify)

Activities 1 2 3 4 5 6 7 8 9 10
FEASIBILITY STUDY 21

3.7 PRE-OPERATING EXPENSES

SCHEDULE 3.7 -- PRE-OPERATING COST (EXPENSES)

Account Title Cost

TOTAL PRE-OPERATING COST

3.8 OFFICE EQUIPMENT, FURNITURE AND FIXTURES

FEASIBILITY STUDY 22

SCHEDULE 3.8 -- FIXED CAPITAL (FIXED ASSETS)

Account Title Cost Life Depreciation

SUB-TOTAL -- OFFICE EQUIPMENT,

FURNITURE AND FIXTURES
Depreciation --
Depreciation --
TOTAL -- OFFICE EQUIPMENT
FURNITURE AND FIXTURES

3.9 GENERAL AND ADMINISTRATIVE (OPERATING) EXPENSES

FEASIBILITY STUDY 23

SCHEDULE 3.9 -- GENERAL AND ADMINISTRATIVE (OPERATING) BUDGET

Account Title Cost

TOTAL BUDGET - GENERAL AND ADMINISTRATIVE

(OPERATING EXPENSES)
FEASIBILITY STUDY 24

Section 4
FINANCIAL FEASIBILITY STUDY
4.1 PROJECT COST

SCHEDULE 4.1 -- PROJECT COST

Particulars Equity Loan Others Total

A. Fixed Capital (Fixed Assets)

Sub-Total Fixed Assets

B. Pre-Operating Cost
(Expenses)

Sub-Total Pre-Operating Cost

C. Working Capital (Current
Assets)

Sub-Total Working Capital

Grand Total -- Currency

Grand Total -- Percentage ( % )
FEASIBILITY STUDY 25

4.2 FINANCING PLAN AND LOAN REQUIREMENT

Figure 4.2 - Financing Plan

Source Amount Use

Equity

Loan

Total Requirement

4.3 SECURITY FOR LOAN

Figure 4.3 - Particulars of Collateral Offered

Particulars of Security Year of Purchase Book Value Market Value

FEASIBILITY STUDY 26

4.4 INCOME STATEMENT (PROFIT AND LOSS STATEMENT)

SCHEDULE 4.4 -- INCOME STATEMENT

(Name of Company)
INCOME STATEMENT
Five Year Projection

PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

GROSS SALES
Less: Sales Returns and Allowances
NET SALES
Less: COST OF GOODS SOLD
Direct Materials
Direct Labor
Factory Overhead
Less: Purchase Discount/Returns
TOTAL COST OF GOODS SOLD
GROSS INCOME
Add: Other Income - Membership Fee

TOTAL GROSS INCOME

Less: OPERATING EXPENSES

Depreciation - Org and Mgt

TOTAL OPERATING EXPENSES
OPERATING SURPLUS
Less: Interest Expenses on Loans
NET SURPLUS BEFORE
RESERVES
General Reserve Fund
Cooperative Educ. & Training Fund
Optional Fund
NET SURPLUS BEFORE
DISTRIBUTION
Patronage Refund
Interest on Shared Capital
FEASIBILITY STUDY 27

4.5 CASH FLOW STATEMENT

SCHEDULE 4.5 -- CASH FLOW STATEMENT

(Name of Company)
CASH FLOW STATEMENT
FIVE YEAR PROJECTION

PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

Cash Balance Beginning

Cash Inflow

Total Cash Inflow

Cash Outflow

Total Cash Outflow

Cash Balance, end

FEASIBILITY STUDY 28

4.6 BALANCE SHEET

SCHEDULE 4.6 -- STATEMENT OF BALANCE SHEET

(Name of Cooperative)
Statement of Balance Sheet
Five Year Projection

PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets

Total Current Assets

Fixed Assets

Less: Accumulated Depreciation

Total Fixed Assets
Other Assets (specify)

TOTAL ASSETS
LIABILITIES, RESERVES AND
EQUITY
Current Liabilities

Total Current Liabilities

Long-term Liabilities

Total Long-term Liabilities

TOTAL LIABILITIES
RESERVES & MEMBERS' EQUITY
Reserve Fund
General Reserve Fund
Coop. Education & Training Fund
Optional Fund
Total Reserve Fund
Member’s Equity
Share Capital, beginning
Additional share capital
Share Capital, end
Total Members’ Equity
Donations and Grants
TOTAL RESERVES AND EQUITY
TOTAL LIABILITIES, RESERVES
AND EQUITY
FEASIBILITY STUDY 29

4.7 LOAN REPAYMENT SCHEDULE

SCHEDULE 4.7 -- LOAN REPAYMENT SCHEDULE

Amount of Interest Total

Month/ Principal Installment Due Payment Amount of
Year Outstanding @ % Interest
1
2
3
4
5
6
7
8
9
10
11
12

4.8 BREAK-EVEN POINT

SCHEDULE 4.8 -- BREAK-EVEN POINT

Year 1 Year 2 Year 3 Year 4 Year 5

BEP Sales

BEP Production

BEP Percentage
FEASIBILITY STUDY 30

4.9 FINANCIAL MEASUREMENTS

SCHEDULE 4.8 -- FINANCIAL MEASUREMENTS

Ratio Year 1 Year 2 Year 3 Year 4 Year 5

ROI/ROA

ROOI/ROE

Profit Margin

Current Ratio

Quick (Acid Test)

Cash

Debt-Equity

Payback Period
FEASIBILITY STUDY 31

Business Plan Vs. Feasibility Study

by Evangeline Marzec

Difference

A feasibility study is not the same thing as a business plan. The feasibility
study would be completed prior to the business plan. The feasibility study helps
determine whether an idea or business is a viable option. The business plan is
developed after the business opportunity is created. StrategicBusinessTeam.com
explained, A feasibility study is carried out with the aim of finding out the workability
and profitability of a business venture. Before anything is invested in a new business
venture, a feasibility study is carried out to know if the business venture is worth the
time, effort and resources.

Emphasis
Feasibility studies answer the question, “Will this work?” A business plan
answers the question, “How will this work?”

Target Audience

Feasibility studies are for the entrepreneur's benefit, to determine whether it's
worth proceeding with the business. Business plans are targeted at investors,
lenders and future executives to explain how the business works.