1.

SUGGESTED OUTLINE FOR A FEASIBILITY STUDY

One of the important steps in business development is a feasibility study.  Feasibility study is used to
determine the potential for success of a proposed business venture.

The sample outline below can be used to help you make your study. However, not all feasibility
studies are alike because it depends to the type of business venture being analysed and the market.
The success of a feasibility study is based on the careful identification and evaluation of all of the
important aspects for business success.

1. Description of the Project.

Identify the list of product(s) or services(s) to be marketed and the general business model
such as how the business will make money. Include the technical processes, size, location and
kind of inputs. Also know the economic and social impact on local communities as well as
environmental impact on the surrounding area.

2. Market Feasibility.
Determine the industry description, industry competitiveness, market potential, sale
projection and the access to market outlets.

3. Technical Feasibility.
Find out the facility needs, suitability of production technology, availability and suitability of
site, raw materials and others such as labor availability and qualified management personnel.

4. Financial Feasibility.
Include the estimation of total capital requirements, equity and credit needs, budget
expected costs and returns of various alternatives

5. Management Feasibility.
Identify the business structure and business founders.

6. Conclusion.
Include information that will be used for decision making whether to proceed the proposed
business ventures.
2. GUIDELINES IN FEASIBILITY STUDY PREPARATION

1. What is the name of the firm?

2. Where is the location of head office and plant site?

3. Give a brief description of the project.

4. What are the assumptions being made including market projections, share and prices,
investment costs, and method of financing?

5. Mention the summary of findings and conclusions regarding the market feasibility, technical
feasibility and financial feasibility.

6. How shall the project be managed during the pre-operating period such as the firms or
persons involved or to be involved in studying the different aspects of the project?

7. How shall the project be managed during the operating period including the type of business
organization, organizational chart and function of each unit management personnel, duties
and time to be devoted to the project, qualification and compensation?

8. What skills and corresponding numbers of labor are required such as qualifications,
recruitment and training program, compensation, fringe benefits and facilities?

9. Include the time table of the project.

10. Indicate the annual volume of the domestic demand for the past 10 year?

11. Who are the major consumers of the product?

12. What is the projected annual volume of the domestic demand for the next 5 years? Also
indicate the method used and factors considered in preparing the projection.

13. Who are the current and potential buyers of the product and where are they located?

14. What is the annual volume of the domestic supply for the past 10 years?

15. Who are the major producers of the product?

16. What are the prevailing prices of the product?

17. What are the present marketing strategies and practices of competitors?

18. What shall be adopted in the project as to the selling organization, terms of sales, and
channels of distribution, location of the sales outlets, transportation and storing facilities?
3. WHAT TO ALSO INCLUDE IN THE FEASIBILITY STUDY

In starting a new business venture, it is important to conduct a feasibility study to ensure that your
business will be successful.  Some things to be included are plan, cost, and sources of funding,
manpower and personnel requirements, market and profitability.

In the plan section of your feasibility study, State clearly the objectives and description of the project.
Duration to complete the project is also included. It is usually answers the questions what, why and
how about the project.

Indicate the cost of equipment and facilities needed for the project.  The proponents should
undertake reliable canvassing using at least two or three supplier and be particulars to models and
capacities of equipment as well as the availability of materials.

Also, it is important if there is budget for the project.  If there is no sufficient budget for the project, a
bank loan may be considered.  In this case, the loan amount and its interest must be factored into the
financial documents of the study.  Realistic income targets from the venture should be projected.

As per personnel or manpower, it is important to determine the size and particulars of manpower as
well as personnel’s job description, job titles and credential standards.  Also, salary rates and
allowance should be noted.

In addition, the stability of the market determines the viability of the project.  A survey should be
conducted to know if there are sufficient clients or customers and to whom the commercial venture
will cater.

Of course, project should know if it is profitable. A ten or twenty percent return of investment (ROI)
is usually regarded as profitable enough.