Feasibility Study Sample

Topics: Backpack, Qualitative research, Sampling Pages: 56 (10483 words) Published: July 9, 2013
Chapter 1

Executive Summary

1. Name of the Firm

The company’s name is Cats and Rocks. The business is named after the two owners namely Katina Cassandra and Roanna Kelly. They have proposed the idea the massaging backpack, Lay-Backpack

2. Location

Main manufacturing plant will be located 416D Quezon Street, San Antonio, San Pedro Laguna. This property is owned Mrs. Yolanda Lopez, a sole proprietor of a t-shirt printing business. She will let the company rent a portion of the factory.

3. Brief description of the project

The company is now introducing the newest option that the market can choose from. Comfort has been highly prioritized thus the existence of the ideal pain reliving bag. People can now travel without worrying about shoulder pains and back pains.

1.4.1 Market Feasibility

According to the demand and supply analysis there is an increase in the desirability of this product every year, therefore consumers are open to the idea of accepting such product. We also want to attract potential buyers with the most affordable price that we can offer.

1.4.2 Technical Feasibility

In this part of the study the researchers look at the technical aspect of production. Lay-Backpack is a regular sized backpack with a unique massaging feature which is not seen in the local market as of the moment.

1.4.3 Management Feasibility

Ms. Katrina Cassandra D. Espeleta and Ms. Roanna Kelly L. Gabinete formed a partnership and created the company Cats and Rocks, the company that will be producing and supplying Lay-Backpack. The two general partners will be in charge of the whole enterprise. One will manage the administration and the other will handle the production care. Though the production manager is under the administrative manager, they both have equal rights towards the company’s ownership since they have invested an equal share of the capital.

1.4.4 Financial Feasibility

Based from the projected income statement, as seen, 2011, there is already a net income, the business is already self-sustaining in only it's first year. The expenditures of the business would be greatly covered by the amount of sales thus such expenditures would not be a hindrance on the self-sustenance of the business. If you would consult the cash flow statement of the business, the cash inflow is evidently much greater than the cash outflow even in its first year so such business is very liquid and solvent. The Current Ratio and Quick (Acid-Test) Ratio, the business is above "1" thus the company can pay off its obligations if they came due and current assets can be readily turned into cash if needed. Profitability Ratio, the important factor is the ROI percentage, due to the profitable net income in the three-year span of the business, the proponents are able to acquire more of what was invested in 2013, and thus, the business is financially feasible. As you can see in the proponents Solvency Ratio, they are able to limit their liabilities to suit the growing equity, thus such percent will only play on 3-5 percent, this means that the company can handle liabilities and expenditures very well and we make sure that such growing interest and taxes in the country would not affect our business, if such would occur, only in the minimal basis. To conclude, the company is financially stable and such risk of being insolvent or bankrupt would be very minimal.

1.4.5 Socio-Economic

The researcher’s analysis of the said business venture will contribute in lessening the unemployment rate in the country. It can also help the economy of the country by paying permits, licences, and other requirements needed for the whole business to operate. The firm can also contribute to the economic aspect of the country by paying taxes and contribute to the government’s funds.

Chapter 2

Brief Background of the Study

2.1 Brief background of the study

Travelling is how people go...
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