Feasibility Study

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What to Include in your Feasibility Study
March 30, 2010, 3:32 am
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
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• Overlook indirect competitors. Make sure to investigate all products and services that deal to customers’ need.
• Surveys dependence. Don’t over rely to survey because people tend to answer “yes” for new product but when it comes to purchasing, they say “no”.
• Without expert Assistance. It is important to get expert views regarding the product, idea or services.
What to include in your Technical Feasibility
• Description of product
• Economic uses of the product
Manufacturing Process
• Detailed Flow Chart of the Manufacturing Process including the material and energy requirement at each step and normal duration of the process
• Other processes and factors considered to determine the process to be adopted
• Processes used in existing plants and in similar projects
Plant Size and Production Schedule
• Daily and annual production capacity of the plant
• Days per year the project operate
• Factors used in determining plant size
• Expected attainable annual production volume for the next five years considering start-up and technical factors.
• Machinery layout such as the number of specifications, rated capacities of major machineries, prices of equipment, and balancing of capacities of each major and auxiliary equipment and standby units
• Spare parts and repair service available
• Quotations from suppliers, machinery guarantees, delivery, terms of payments and other arrangements
Plant Location and Layout
• Location

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