FEASIBILITY STUDY FOR A[NAME OF BUSINESS]

[Name of Members]

[Class Schedule]

PRODUCT/SERVICE

• [State and briefly describe your product/service. BE SPECIFIC for EACH PRODUCT.]

• [Indicate your target market.]• [Indicate the location of your business.]• [You may use more than one slide if needed.]

PROMOTIONYear 1 Year 2 Year 3

Sales commissions for agents

Advertising

Signboards

Posters, flyers, etc.

Packaging

Transportation expenses

Sales promotions/gimmicks

Others

TOTAL SELLING EXPENSES

PLACE OF DISTRIBUTION

• [Specify if you will sell directly to end-users (consumers) or if you will pass through channels of distribution (e.g. wholesaler, retailer, agents).]

• [If you will have distributors, elaborate on how much commission or discount you would give.]

PRICE

• [State the prices for each of your products/services.]

• [Explain briefly how you came up with your price.]

SALES FORECAST(Single Product/Service)

Year 1 Year 2 Year 3[Specify Product/Service]

Total UnitsSelling PricePESO SALES TOTAL

[Specify Product/Service]Total UnitsSelling PricePESO SALES TOTAL

TOTAL SALES

SALES FORECAST(Single Product/Service)

PRODUCT/SERVICE Year 1 Year 2 Year 3

Planned sales volume (in units)

Planned selling price/unit

TOTAL SALES

PROCESS

• [Write down ALL of the steps involved in selling your product/service.]

DEPRECIATION SCHEDULEAnnual Depreciation ChargesYear 1 Year 2 Year 3

LandBuildingMachines/EquipmentFurniture/FixturesOffice EquipmentVehiclesGRAND TOTAL

PRODUCTION SCHEDULE(Manufacturers)

Year 1 Year 2 Year 3

Planned sales volumes, in units

Add: Desired ending F.G. inventory

Less: Beginning F.G. inventory

UNITS TO BE PRODUCED

DIRECT MATERIAL COST(Manufacturers)

Direct Material Total Direct Material CostYear 1 Year 2 Year 3

TOTAL

COST OF PRODUCTION(Manufacturers)

YEAR 1 YEAR 2 YEAR 3

Direct materials

Direct labor

TOTAL COST OF PRODUCTION

COST OF GOODS SOLD(Manufacturers)

Year 1 Year 2 Year 3

Total cost of production

ADD: F.G. beginning inventory

Total of goods available for sale

LESS: F.G. ending inventory

TOTAL COST OF GOODS SOLD

MERCHANDISE SUMMARY(Traders)

Total Cost of Merchandise Purchases

Product Year 1 Year 2 Year 3

TOTAL

COST OF GOODS SOLD(Traders)

Year 1 Year 2 Year 3

Total sales

LESS: Mark up

TOTAL COST OF GOODS SOLD

COST OF SUPPLIES AND SPARE PARTS USED

(Service Providers)Supply/Spare Part Total Cost of Supplies and Spare

Parts Used

Year 1 Year 2 Year 3

TOTAL

PRE-OPERATING CONCERNS

• [State what legal form of business you will have and your reason.]

• [State your TOTAL pre-operating expenses. No need for the table.]

MANPOWER

• [Indicate who will be in charge of the following departments. Describe their function brieflyA) MarketingB) ProductionC) FinanceD) Administration]

ADMINISTRATIVE EXPENSESYear 1 Year 2 Year 3

Salaries and wagesOffice suppliesRentUtilitiesDepreciation of non-production equipmentAmortization of pre-operating expensesRepair and maintenanceOthersTOTAL

PROJECT COSTDEBT

(borrowings, loans)

EQUITY(money

from your pocket)

TOTAL

Total pre-operating expensesFixed investment

Working capital

TOTAL PROJECT COST

INCOME STATEMENT PROJECTION(Manufacturers and Traders)

Year 1 Year 2 Year 3Total salesLESS: Cost of goods soldGROSS PROFITLESS: Selling expensesLESS: Administrative expenses

Net operating profitLESS: Interest chargesNet income before taxesLESS: Income taxTo calculate a quick estimate of your income tax, please go to this link: http://easycalculation.com/tax/philippines.php

NET INCOME AFTER TAXES

INCOME STATEMENT PROJECTION(Service Providers)

Year 1 Year 2 Year 3

Total sales

LESS: Selling expenses

LESS: Administrative expenses

LESS: Depreciation for machines, equipment, tools

LESS: Total supplies/spare parts used

Net operating profit

LESS: Interest charges

Net income before taxes

LESS: Income taxTo calculate a quick estimate of your income tax, please go to this link: http://easycalculation.com/tax/philippines.php

NET INCOME AFTER TAXES

CONCLUSIONS AND RECOMMENDATIONS

[For this section, replace this text with your answers (in bullet form) to the following questions:• Based on your project cost table, do you have enough money

for your business? If no, where or whom will you borrow money in order to start your business?

• Check your net income after taxes. In your opinion, did the business earn a sufficient income for you and your partners? What made you say so?

• In your view, which aspects in your business should be modified in order to improve the standing of your business and possibly increase the profit? How will you modify these aspects? (Give at least 3 recommendations.)