FEASIBILITY REVIEWER PDF - Concepts and Principles in Feasibility Writing

Concepts and Principles in Feasibility Writing A special type of research inquiry MODULE 1 Does not follow the pattern of social research inquiry but rather relies on...

Concepts and Principles in Feasibility Writing A special type of research inquiry MODULE 1 Does not follow the pattern of social research inquiry but rather relies on heavily on a What is Feasibility Study? documentation and involves the analysis and A systematic investigation which ascertains evaluation of the trends in historical data in making a whether a business undertaking is viable and, forecast. if so, the degree of its profitability (Cabrera, Proposed Business Activity 2000) An analysis or research into the practicality of Feasibility study applies only to business endeavor a proposed plan or method, based on factors like marketplace, competition, available It should be intended for profit technology, manpower, and financial - Involves exchange of values resources (dictionary) It should be regularly undertaken An analysis of the ability to complete a project - There is a continuing and progressing successfully, taking into account the legal, economic act, not a mere singles economic, technological, scheduling, and disconnected act. other factors (Investopedia) It should be financial in character - Involves an exchange of monetary values with another part - Common denominator expressed in pesos. Viability in all areas Tests the viability of a business endeavor in all aspects. Viability in all areas ensures a higher chance of attracting and convincing prospective investors. Measurement of Profitability Level a proposed business endeavor may appear to be profitable, but if its level is below that of other projects with similar capital base, manpower requirements, or Systematic Inquiry management capability, such profitability does not carry any weight in the There is a procedure or a step-by-step process evaluation and implementation process. involved in the conduct of a feasibility study. consider opportunity cost However, procedures may not be fixed. Purposes of a Feasibility Study Have a definite beginning and a definite end. Enhance the sustainability of a particular business endeavor undertaken Scientific approach is a valuable tool in fulfilling Easily facilitate the evaluation of a project’s plans success in all areas covered by the study. The whole study is composed of different phases or Seek the infusion of additional fresh working aspects. capital from a financial institution. Determine the recovery period of capital The findings of one aspect should support investment or the expected return on other areas, as they are well-coordinated and investment. interdependent Serve as a measuring instrument in evaluating actual project results. Interlocking relationship  Mitigate the expected business difficulty that Competitors may have available data directly may be experienced during the actual related to their operations, but they may implementation of the project. hesitate to share such information because of Meet and satisfy the requirements set by the confidentiality. investors of a proposed business project. The person undertaking the study may not have acquired the necessary professional Qualities of a Good Feasibility Study expertise and competency in making the COMPREHENSIVE feasibility study. It requires higher-order critical thinking skills. Fully cover all areas It still remains a forecast and nobody can Complete information vouch for the attainability of the forecast. OBJECTIVE Unbiased presentation of the finding Should only contain absolute facts and figure SIMPLE Language and presentation should be simple Technical terms must be at the level of the reader’s understanding RELIABLE High degree of truthfulness in the available data It should fully satisfy the requirements of objectivity Usefulness of a Feasibility Study Classification of Feasibility Study For the project proponents, it is the most 1. As to Amount of Investment scientific instrument that can be used in project design. In terms of Capital base a business may be classified It can minimize the business difficulty that as: may be experienced in the actual Micro Enterprises implementation of the project. It is considered the most reliable instrument Investment of 3 million and below in making a decision of whether to implement or discard a project. Small Enterprises It is the most comprehensive medium that can Investment of Php 3,000,001 to Php 15,000,000 be used to evaluate a project in terms of infusing additional fresh capital or granting tax Medium Enterprises exemption incentives. Investment of Php 15,000,001 to Php 100,000,000 It is an effective tool for evaluating profitability level and sustainability of a Large Enterprises proposed project. Investment of more than Php 100,000,000 Limitations 2. As to Industry Classification Valuable information greatly needed in the Electronics study may not be readily available Manufacturing The cost of gathering necessary data required Real Estate in the analysis, formulation of conclusions, Merchandising and drafting recommendations may be very Transportation high Entertainment Agriculture  Utilities Exceptional Quality 3. As to Status of the Project Highlight the superior aspects that elevate the New Project product/service above competitors. This could include Expansion (Investment, strategy, ideas, its durability, performance, or user-friendliness. teamwork, goals) 4. Liability of Investors Target Market Sole Proprietorship Partnership Demographic Information Corporation Define the key demographics of the target market, Cooperatives including age, gender, income level, and education. This helps understand the characteristics of potential customers. Product and Service Description Psychographic Details This document provides a comprehensive guide for developing a compelling product or service overview, Consider the lifestyles, values, and interests of focusing on key aspects like product/service your target customers. This provides insights into description, target market analysis, and detailed their motivations and preferences. specifications. Geographic Location Product/Service Overview Identify where your target customers live. This helps focus marketing efforts and understand 1. Name and Description: The product or service regional preferences. name should be memorable, resonate with the target market, and reflect its core purpose. A Market Need detailed description should outline its functionality, the problem it solves, and its unique Why the Product/Service is Needed features. Discuss the necessity of the product/service 2. Core Purpose: The core purpose is the within the target market. This should demonstrate foundational reason for the product's existence. It the problem it solves and the value it provides. defines the problem it addresses and the value it provides to users. Supporting Data/Trends 3. Functionality: Describe how the product or Use data to back up your claims. This could service operates or is used. This includes its include market research, industry reports, or features, capabilities, and user experience. consumer surveys that support the need for the 4. Problem Solved: Articulate the specific issue the product/service. product/service addresses. This should clearly demonstrate the need for the product in the Product Specifications or Service Features market. Detailed Features Unique Features Go into detail about the physical aspects and Proprietary Technology capabilities of the product or the range of services offered. Discuss any unique or patented technology embedded in the product or service. This sets it apart from Product Specifications competitors and highlights its innovative aspects. Discuss the available sizes, materials used, and Unique Processes performance characteristics. Describe any distinctive processes involved in the Service Features product's creation or service delivery. This could Detail the scope of the service, including the types include sustainable manufacturing practices or of services offered and any customization options. specialized service techniques. Design and Development Design Process Explain how the product/service was conceptualized and developed. This includes the research, ideation, prototyping, and testing phases. Development Timeline Provide a timeline for the development stages, from initial concept to final product. This helps understand the time and effort invested in the product's creation. Prototypes/Beta Versions Discuss any preliminary versions of the product/service that were developed and tested. This demonstrates the iterative nature of the design process and the importance of user feedback. Quality Assurance Quality Control Measures Outline the steps taken to ensure the product/service meets industry standards and customer expectations. This includes testing, inspection, and feedback mechanisms. Industry Standards Ensure that the product/service complies with relevant industry regulations and certifications. This demonstrates the product's safety, reliability, and adherence to best practices.