Feasibility Study

Topics: Net present value, Depreciation, Cash flow Pages: 19 (4396 words) Published: August 31, 2011
Name of the Business
“Pitu de Goma” will be the name of the business. This name was conceptualized by the proponents due to the nature of industry or services that will be offered by the proposed business. Pito de Goma will focus on providing vulcanizing services and other tire problem to its target clienteles.

Location of the Business
The proposed business will be established at Barangay Tagongtong, Goa Camarines Sur near the Goa Municipal building. This location was considered appropriate for the proposed business due to its accessibility to its prospected clients and the distance from its competitor.

Description of the Project
Service - The main service that will be offered by the proposed business will be tire vulcanizing. This service will be offered to its prospected client at a very affordable price. The business will ensure the quality of service in order to satisfy its client.

Management - the proposed business will be operated by the proponents. They will contribute money equally and industry to form the partnership. One partner will be the manager of the proposed business who will be in-charge of the total business operation.

Project Long-range objective
General Objectives
Pitu de Goma will be the leading vulcanizing shop in Goa. it will provide quality service to its clientele to ensure its profitability and stability. Specific Objectives
Use advance equipments to ensure the quality of services to its clienteles.
Provide additional income opportunity.
Create a more environment friendly business venture by supporting recycling of waste materials.
Feasibility Criteria
The proposed business is considered feasible due to the growing number of motor vehicle in the locality. The rising prices for motor accessories especially tires and tubes, will lead to the profitability of the proposed business because motor vehicle owners will hesitate to buy new replacements for their tires and tables, instead they will have it repaired to a more affordable price.

Highlights of the Study
Nature of Industry
The proposed business will be a service business organization. Vulcanizing services will be provided by the proposed business. Revenues that will be generated from its operation will be allocated to other investment, savings and for future expansion.

Mode of Financing
A capital will be required in order to start the business. The capital requirements of the proposed business will be financed by the proponents through their capital contribution. The partnership capital will be allocated to the building construction, purchase of equipments and other pre-operating expenses.

Project Time-table
Using the table presented below, it was estimated that the pre-operating period of completion of the proposed business will last for at least 6 months.

Table 1
List of ActivitiesDuration in Months
January FebruaryMarch AprilMayJune
Finance Obtaining
Building Construction
Acquisition of Equipment
Registration of the business
Advertising and Promotion
Start of Operation

Market Description
The proposed business will concentrate its operation within the municipality of Goa, considering it is the center for commerce and industry in Partido area. Specifically, the target market of the proponents is the motor vehicle operating within the municipality.

For the past 3 years the Department of Transportation reveals the following information regarding the number of registered vehicle in Partido Area.

Table 2
Registered Vehicle for the Past 3 Years
YearNumber of Registered

The demand fro Pito de Goa can be determined by analyzing the present data regarding motor vehicle and servicing of the existing vulcanizing shop in the locality. Using the statistical straight-line method Y = a + b...
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