Sample Feasibility Study
Sample Feasibility Study
Dragon fruit is among the most nutritious and wonderful exotic fruits. It is a favorite to
many, particularly people of Asian origin. It features a mouthwatering light sweet taste, an
intense shape and color, not forgetting its outstanding flowers. In addition to being tasty and
refreshing, this beautiful fruit boasts of a lot of water and other vital minerals with varied
nutritional ingredients.
Due to its vital nutrients, the Dragon fruit is suitable for all diets as it supplements fiber
which is best for laxative and the liver. Similarly, people who have high blood pressure, diabetes
and obesity have attested to the fruit’s goodness. Recent findings show that if an obese person
eats a Dragon fruit on a regular basis, it naturally reduces the weight considerably, creating a
Typically, the fruit has red pulp or red flesh if you like. The fruit originates from the
dragon fruit cactus plant, which usually appears like vines. Unlike day pollination done by bees,
it is surprising to note that this nutritious and tasty fruit blooms at night where pollination is
caused by nocturnal living things such as bats and moths. What is more, it blooms a few times
You can eat Dragon fruit as a desert, raw, of you can make its juice and use in cocktails.
Cocktails of ice cream are an example, or you can even ferment the cocktail into a
mouthwatering healthy alcoholic beverage. In Taiwan for instance, the Dragon fruit is used by
diabetics to substitute food for rice and to enhance the fiber content of the diet.
Summary of the Project
Pitahaya Juice is a healthy and nutritious drink that contains the benefit of anti
oxidants properties, mineral and vitamins, improves metabolic rate and strengthens immune
system.
B. Business location
C. Business Description
FRESH JUICES
For the first time we are producing Pitahaya Juice drink for testing the consumer
market. We are going to make fresh juices two flavors in drinks available throughout the year
SPECIALTY
We produce juice for the children and health conscious people, because we reduce
the fat level on 0.5% and add extra vitamins and add some sugar that are best for diabetic people.
D. Size of Business
This business will produce & provide consumer product and organize medium
size business. Initially we will cover the part of Tarlac.
E. Project Summary
a. Management Aspect
This includes a study of the officers and key personnel, basic considerations in
forming the organizations, form of ownership, organizational chart and project schedule. This is
to determine the option effectiveness of the organizational set up and the qualification of the
individuals who make up the organization. This will also determine the successful realization of
the study.
Angel’s Pitahaya Juice is a sole proprietorship business; the sole owner will be
over-all in charge day to day operations and management of the business. The business has total
b. Marketing Aspect
The market projection of this business is based on the surveys conducted and
other related information gathered from the company. Projection of sales for the five years of
operation is based on the different factors like the market acceptability, level of satisfaction of
the customers and promotional strategies. We also consider factors like our competitors and the
location awareness of the customers that may affect the market share of the company.
c. Technical Aspect
d. Financial Aspect
e. Socio-economic Aspect
Management Aspect
VISION:
Our business Angel’s Pitahaya Juice bears the vision of providing fun, deliciously
appetizing, uniquely enchanting food and beverage products while maintaining our commitment
needs, taste and preferences rather than simply convincing our customers to try and like
MISSION:
We aim for continuously generate awareness, interest and desire for our product,
resulting in frequent purchases by the customers. The healthy Pitahaya Juice will promise you
GOALS
• To offer a healthy beverage that satisfies the fast changing consumer preferences
• To provide World-class customer service that fills each needs and demands.
customer’s safety.
A. FORMS OF BUSINESS
The business proposed will be more productive and be more efficient in more aspects
having a sole proprietorship form of business in contrast with other forms. This will bring the
First, since the business is not that costly, it does not need much investment just as a
corporation and a partnership have. Another is that forming a sole proprietorship is very much
Advantages
• A sole proprietor has a complete control and decision-making power over the
business.
• Sale or transfer can take place at the discretion of the sole proprietor.
Disadvantages
• The sole proprietor of the business can be held personally liable for the debts and
• All responsibilities and business decisions fall on the shoulders of the sole
proprietor.
The business will generally hire individuals which are knowledgeable about the business,
good natured in the line of the industry. The combination of these attributes makes up good and
competitive employees.
Organizational chart shows lines of authority among the various positions within an
organization. This type of chart illustrates the relationships among departments and of personnel
within the departments. The senior position is placed at the top of the chart. Other positions are
Manager/Cashier
This person will be the overall in-charged in the business. He/she is responsible in hiring
personnel, procure equipment, handle business agreements, perform bookkeeping and decide on
finances.
Accountant
This person will be responsible for the preparation of Financial Statements and Income
General Clerk
This person will work in an office performing such tasks as keeping records, attending to
correspondence, or filing.
Food Technologist
This person shall ensure the adherence of products to strict quality standards. With this,
These persons will be responsible for manual work such as washing, peeling, preparation
and packaging.
Driver
This person must be a licensed driver and must know the routes and areas around Tarlac
area for it will deliver finished goods to the resellers around Tarlac and even pick up supplies to
the suppliers.He must also know how to drive huge and loaded trucks.
C. Personnel Requirements
` The number of personnel that the business will be hiring in the initial year of
operation will be maintained throughout the first three years of operation and in additional 4
labourers in the next two years. The basis of these managerial presumptions is that the
businesses will increase in production capacity on these periods although decline in market
share is possible because of some reasons. The number of employees that the business needs
Manager/Cashier 1 1 1 1 1
Accountant 1 1 1 1 1
General Clerk 1 1 1 1 1
Food Technician 1 1 1 1 1
Laborers 10 10 10 15 15
Driver 1 1 1 1 1
Total 15 15 15 20 20
D. Qualification Standard
The success of the business relies heavily on the persons which comprises its
workforce. Employees of the business should embody the vision of the entity. The owner
will be the one who will hire the manager of the business. The other positions will then be
hired by the manager with the approval of the owner of the business. The business will
establish the qualifications which are essential to a person in the specific position.
service managing a
communication skill
sensible judgments
• Has sufficient
understanding in the
of the business
of the persons
around.
• Accommodating to
customers
such as a transfer
etc.
product
• Must be a licensed
driver
E. Compensation Package
Workers are to be treated with utmost respect and priority being placed in their
wage
SSS Phil PAG- SSS Phil PAG-
Technologist
Accountant - - - 1 - 30,000.00
Clerk
Technologist
LEGAL REQUIREMENTS
✓ A Cover sheet
✓ Registration fee the amount of which depends on the type of the business
✓ Mayor’s permit
✓ Mayors Permit
to register with the DOLE for the purpose of monitoring the firm’s compliance with
labour regulations.
✓ Vicinity map
Marketing
Aspect
Marketing Aspect
The market projection of this business is based on the surveys conducted and other
related information gathered from the company. Projection of sales for the five (5) years of
operation is based on the different factors like the market acceptability, level of Satisfaction of
the customers and promotional strategies. We also consider factors like our competitors and the
location awareness of the customers that may affect the market share of the company.
A. Product Description
Pitahaya Juice is made from pure, fresh and naturally grown Dragon fruits.
It has a delicious taste. Each bottle of our juice offers a lot of health benefits for
our customers at un affordable price thus, making their money worth spending on.
Strengths
Weakness
• Selling Pitahaya Juice in the local market and even exports may fluctuate due to
Opportunities
• Nowadays, most people are shifting for healthy kind of living due to arising of
B. Demand
Demand will vary from year to year in accordance to the population growth of the
consumers. Tarlac is strategic place to establish any business since it is a tourist place, hence
Number of Resellers
Year 2009-2013
2009 106
*2010=7/113=6.2%
*20117/120=5.8%
The table summarizes the number of resellers (pasalubong retailers, convenient stores,
divided by the previous year data. The average increases of the population in these years as 5.7
percent. Because the historical data are inconsistently, increasing statistical straight-line method
will be used to project the population in the next five (5) years.
Year 2014-2019
2014 141
Source: Appendix A
*(2015)7/148=4.7%
The above table shows the projected number of reseller (pasalubong retailers, convenient
stores, sari-sari stores and supermarkets) resulted from statistical straight-line method
computation. The average increase from 2014-2019 is 4.2 percent. Based on the results of the
survey questionnaires, 100 percent of the target market is selling and capable to patronize the
The table shows the projected demand in boxes and in pesos respectively. Both show an
increasing demand for Pitahaya Juice with flavor in the next five years. Hence, the product has
high potential in the market. The increase in price of each box is determined through the average
This area of study deals with the indirect competitor’s performance in the distribution of
Pitahaya Juice in the market since there is no direct competitor of Pitahaya Juice business.
2014-2019
The table shows the projected supply of Pitahaya Juice with flavored in the next five
years. The increase in supply is determined by the increase in population of the market and the
average inflation rate of 2.5 or 1.025 for the next five years.
D.Demand-Supply Analysis
After the computation of the demand and supply for the proposed project, the next step is
to compare these two factors to determine whether there is a market for the service to be offered.
The propose project which is the Pitahaya Juice with flavored shows that there is a market
2015-2019
2015-2019
The table summarizes the analysis of the projected demand and supply which resulted to
a higher demand than supply. The supply percentage in both tables are computed by dividing
supply to demand and its figure in forms of pesos and box are 43.94 percent and 50.70 percent
respectively.
The unmet demand is the difference between demand and supply. The market share is
computed by dividing the business capacity to unmet demand. The market share in forms of
pesos and in box is not consistent because of these three factors population growth, inflation and
the increase in business capacity due to business expansion after 3 years operation. Population
growth and inflation rate affect the unmet demand every year.
If the orders of the retailers are in wholesale basis, the prices are discounted due to its
bulks orders. On the other hand, the price of the juices is per bottles if the retailers order is on per
price basis.
E. Marketing segmentation
There are groups of customers for our Pitahaya Juice and the needs are
different from s e g m e n t t o s e g m e n t . I t i s p r i m a r i l y f o c u s e d o n s e g m e n t s
Prevent the
formation of cancer
cells
Manage blood
pressure
Controls cholesterol
levels
Target Market
Primäre
• Choose food and beverages that offers extreme health benefits rather than better
taste
• Concern with the price and quality of the product
• Prevent sickness
F.Marketing Mix
Product
Pitahaya Juice is made from pure, fresh and naturally grown D ragon
fruits. It has a delicious taste. Each bottle of our juice offers a lot of health benefits
for our customers at unaffordable price thus, making their money worth spending on.
Place
Pitahaya Juice will be having its first location at MH Del Pilar Street, Tarlac
City. We will not place at roadside locations as we promote healthy beverage and we don’t want
our product to be exposed on different toxins and smoke coming from the vehicles. We will
COMPETITOR ANALYSIS
Preisgestaltung
Each bottles of 12 ounce of Pitahaya Juice with flavor is priced at Php 28.00 to
28.00 and each bottles of 16 ounce of Pitahaya Juice with flavor is priced at Php 33.00 to 34.00
and each bottles of 22 ounce of Pitahaya Juice with flavor is priced at Php 40.00. The price is
competitive since indirect competitor’s price range from 29.50 to 62.50. Each box contains 12
bottles.
Cost of Utensils
Apron 700.00
Mouth mask 3, 000.00
Hair net 400.00
Funnel 100.00
Storage box 1,785.00
Plastic gloves 250.00
Measuring spoon 183.75
Knife 400.00
Strainer 96.00
Plastic tray 885.00
Chopping board 850.00
TOTAL 8,649.75
Equipment
Cooler 7,875.00
Dalandan 35.00/kilo
Mango 40.00/kilo
Raw materials 12 oz 16 oz 22 oz
Dalandan 16.13
Mango 16.47
Raw Materials per 16oz cup (Medium)
Dalandan 19.92
Mango 20.23
Dalandan 23.70
Mango 24.20
Small (Dalandan)
= [(16.13)]/ (100-40 mark up)] x 100
= (16.13/60) x 100
= 26.88
Small (Mango)
= (16.47/60) x 100
=27.45
Medium (Dalandan)
= (19.92/60) x 100
=33.20
Medium (Mango)
= (20.23/60) x 100
=33.72
Large (Dalandan)
= (23.70/60) x 100
=39.50
Large (Mango)
= (24.20/60) x 100
=40.33
Promotion
The business shall be promoted by word of mouth, free samples, tarpaulin, and brochures
and through personal selling effort of the business proponent. The budget for this will be Php
50,000. Packaging and labeling will be enhancing more to further promote the product.
People
Laborers hired are trained and supervise keenly in the production so as ensure efficient
and effective production. Also, the Manager is good in public relation especially the resellers in
order to create favorable rapport with them. Besides, he/she has good leadership skills to manage
the company in Tarlac City. The technology to be used in the business operation is presented.
Other technical information such as location, building, layout and floor plan, capacity,
scheduling and waste disposal will also be shown. The purpose for writing this is to show that
the product can be produce at a reasonable cost at the propose location of business.
Production Process
The processing starts with the receiving of raw materials. Upon delivery,
Dragon fruits, dalandan and mango are inspected visually, sorted and weighted. The Dragon
fruits that fail to meet specifications are rejected and sold at usually lower price 30 minutes will
The Dragon fruits, dalandan and mango that pass quality control will undergo the
peeling and washing stage to remove any adhering surface dirt and to avoid onset of oxidative
browning. This is done manually. Afterward, the Dragon fruits are placed in perforated plastic
3. Slicing
The Dragon fruits, dalandan and mango are then sliced manually for about 2-3.5
mm in thickness and placed in another tray separately and ready for arranging.
4. Arranging
Arrange the slices of dragon fruits and dalandan into a storage box layer by layer
separated with this layer of brown sugar until finished final layer with brown sugar then seal the
container and closed it tight and place the container in dark place at room temperature.
5. Fermentation
Keep fermentation process for 3 to 4 weeks before extraction. Strain the juice and
ventilation.
Working chair is a raised surface use to sit on,
manipulation.
program.
customers.
Office chair is a type of chair that designed for
business.
within an area.
Office Supplies
or documents.
Log book used for customer reservations and
face.
sugar.
storing waste.
cleanliness.
or a towel.
Factory Furniture, Equipment and Machineries- Depreciation
This table shows the total list of factory furniture and equipment and their quantities
needed for the production of Pitahaya Juice. The total cost of this is Php 249,200.00 and yearly
This table shows the total list of factory furniture and equipment and their quantities
needed for the production of Pitahaya Juice. This delivery equipment is secondhand thus; the
prices are then lower as purchase than of purchasing new one but ensures good quality. The total
cost of this delivery equipment is Php 215,000.00 and yearly depreciation of Php 30,714.29.
This table shows the total list of factory furniture and equipment and their quantities
needed for the production of Pitahaya Juice. The total cost of this cost of this furniture and
This table shows the total list of factory furniture and equipment and their quantities
needed for the production of Pitahaya Juice. The total cost of this Office supplies is Php 1,160.00
This table shows all the production tools and supplies needed for production of Pitahaya
Juice. All of these are purchased brand new. The total costs of these are Php 8,649.75.
A. Building
The building is made of cement which has a large floor space which with wall which
Factory Building
Total
Office Building
Total
B. Location
The production of the Pitahaya Juice will be established MH Del Pilar Street, Tarlac City.
C. Layout
The proposed working area layout was arranged properly. The floor plan was designed
for the workers to have a very conducive and very comfortable area while working. This was
meant to increase the efficiency and effectiveness of the working place and reduce
Top View
D. Capacity Scheduling
The business will be established will operate for five days from Monday to Friday. The
regular business hours will be from 8:00am until 5:00pm. Working hours of employees will
depend in their classification. Management and administrative department workers will work
on standard hour basis (8 hours a day) and they have 1 hour for lunch break.
Total 40 hours
Production workers will work on regular 8 hour shift per day. They will also be given an
hour break which is not included in the workers rate first shift is 8:00am-12:00pm and the second
shift is 1:00pm-5:00pm.
Total 40 hours
Production Capacity
This table shows the production capacity of the propose business. It has two (2) shifts
with 4,800 kilograms per shift in first three (3) years and 6,000 kilograms in the remaining two
(2) years that will processed and converted into finished products in terms of box.
E. Pre-Operating Expense
F. Waste Disposal
` To promote environmental protection, the resulting ways materials from the production
such as fruit peelings are disposed properly in a large can. They are then sold to farmer as for
fertilizers.
The utilities expense of the proposed business is composed of water, electricity, and
telephone and internet connection. The assume water expense is Php 2,000.00/month while
the electricity expense is Php 5,000.00/month and the telephone and internet connection
financial assumptions assumed by the business in preparing its financial status in the first five
years of operation, the project’s capital requirements and source of capital prior to
commencement of operation, and the preparation and analysis of the related financial statements.
Assumptions and estimates are used in the study of the financial aspects of the proposal
business since the core of this study deals with future periods. However, prudence and
The investment cost is the sum fixed capital and working capital, with fixed
capital constitute the resource required for constructing and equipping an investment project and
working capital comprising the resources needed to operate the project totally or partially.
Cost of Investment
Land
Delivery Equipment
Refundable Deposits
Pre-Operating Expenses
Total
Sources of Financing
B. Financial Assumptions
1. The financial assumption of this project feasibility study will have five-year
projections.
2. The business operation will start on January 1, 2015 and the financial statements are
14. SSS Premiums payable, PhilHealth Payable, Pag-ibig Premium Payable for the month
15. The annual income tax will be paid in the month of April of the following year.
16. The company pays the employee’s salaries every end of the month.
17. Utilities Expense will increase ten percent (10%) each year except for the telephone
bills and internet connection. The Utilities for the month of December will be paid in
18. The business hires an accounting service to Accountants to ensure the proper
reportorial requirements.
19. Repairs and maintenance is equal to ten percent (10%) of Depreciation Expense.
20. Taxes and licenses equal to one percent (1%) of Net Sales.
21. Real property tax is equal to one percent (1%) of the cost of Land and Building.
22. There are no cash withdrawals for the first two years operations. The owner will
withdraw cash equivalent to fifty percent (50%) of the net income every year starting on
23. Miscellaneous expense is Php _____________ per annum with a yearly increase of
25. For the ending inventory 2% for the finished goods and direct materials and 5% for
packaging material.
The Financial Statements are composed of the Income Statement which shows the result
of operation, Balance Sheet to show the financial condition of the business in a particular
moment of time and the Cash Flow Statement which explains the usage of cash of the proposed
Financial statements portray the financial effects of transactions and other events by
grouping them into broad classes according to their economic characteristics. These broad
classes are termed the elements of financial. The elements directly related to the measurement of
performance in the Income Statement are income and expenses. The statement of changes in
financial position usually reflects income statement elements and changes in balance sheet
elements.
This section presents information about all the formal statements necessary in the
evaluation and analysis of the financial status of the proposed establishment for the next five
years.
The balance sheet is statement that shows that financial position or condition of an entity
by listing the assets, liabilities, and owner’s equity as at a specific date. The information needed
for the balance sheet items are the net balances at the end of the period rather than the total for
the period as in the income statement. This statement is called a statement of financial position.
The Income Statement is a formal statement showing the financial performance of the
enterprise for a given period of time. It summarizes the revenues earned and expenses incurred
for that period of time. Information about the performance of an enterprise, specifically its
profitability, is required in order to asses’ potential changes in the economic resources that it is
likely to control in the future. It is useful in predicting the capacity of the enterprise to generate
The statement of cash flows provides information about the cash receipts and cash
disbursement of an entity during a period. It is a formal statement that classifies cash receipts
(inflows) and (cash flows) into operating, investing, and financing activities.
Operating Activities
These include the transactions and events that entered into the determination of net
income. This includes collection from the customers, payment to suppliers and utility providers,
payment to employees and other expenses related to the operation of the business.
Investing Activities
These are the purchases of noncurrent asset to be used by the business. During the first
year of operation, cash flow from investing activities resulted from payments to acquire the
D. Financial Analysis
financial condition, operating results, and other business activities. When one reads a company’s
financial statements, he gets an overall picture of the firm’s profitability and financial conditions.
Merely reading such statement however, is not enough when one wants to make informed
judgment or decisions. For decision making purposes, a thorough analysis and interpretation of
Financial analysis involves the assessments and evaluation of such statement of the firm’s
past performance, its present condition, and future business potentials. The data needed for
analysis and interpretation come mostly from financial statements where key figures are sought
Financial statements serve a s the communication link between the company and the
various interested parties such as creditors, suppliers, customers, investors, and management.
Financial Ratios and Analysis
**E.g. for the year 2015, Php__________ is the excess current assets being used freely for the
*This means that the business has enough current assets to pay for a peso of liability.
**E.g. for year 2015, the business has Php__________ current assets to pay a peso of
liability.
*This income that the business is enough quick assets to pay for a
*This shows the adequacy of the revenue to earn profit. The higher the rate the more profitable
**E.g. for year 2015, ____% of the revenue earned went to profit of for a Php______ of sales,
*This represents the adequacy of revenue to absorb expenses. The lower the ratio the more
profitable the business is.
**E.g. for year 2015, ____% of the sales went to the recovery of expenses or for a Php________
of sales; Php________ goes to recovery of company expense.
*E.g. for year 2015, this means that the liabilities are only ___% of the assets. It also means that
____% of the assets are claimable by the owner making the business very stable.
G. PAYBACK PERIOD
Cost of Investments
Year Net Cash Inflows from operating activities
2015
2016
2017
2018
2019
Total
Payback Period
*The cost of investments will be recovered on year 2017 of operations.
TOTAL ASSETS
LIABILITIES AND
OWNER’S EQUITY
Current Liabilities:
Trade and other Note
payables 6
Total Liabilities
Owner’s Equity
Owner’s Equity-
December 31
TOTAL LIABILITIES
AND OWNER’S
EQUITY
Note 3
Inventories
Finished Goods
Inventory:
Finished Goods,
Beg.
Cost of Goods
Manufactured
Cost of Goods
Sold
Total
Direct Materials
Inventory:
Direct Materials
Used
Multiply by:
Total
Packaging
Materials
Inventory:
Packaging
Materials Used
Multiply by:
Total
TOTAL
INVENTORIES
Note 5: Refundable
Deposits
Other Payables
(Projected Sales)
Note 15: Cash paid for Salaries and Wages and 13th Month Pay (Operating Expense)
2015 2016 2017 2018 2019
Salaries and
Wages, Gross
13th Month
Pay
Total
Employee’s
Contributions
(SSS, PHIC,
HDMF)
Total
TOTAL
DIRECT
MATERIALS
*Pitahaya of about ___ Kg can produce ___ g of Ptahaya Juice
**Total Yield - ________ Kilos of Pitahaya
***Cost per kilo - ___ pesos/kilo
Depreciation:
Electricity
Water
Production
Tools and
Supplies
Repairs and
Maintenance
TOTAL
PRODUCTION
OVERHEAD
Schedule No.6: Salaries and Wages and 13th Month Pay (Operating Expense)
Employee’s Number Monthly Salary Annual Salary 13th Month Pay
Designation
Manager
Clerk
Food
Technologist
Laborers
Driver
TOTAL
*Statutory Minimum Wage in ___________ is Php _________ per day.
SOCIO-ECONOMIC DESIRABILITY
In contemplating to start a business, the proponent should always consider the business
impact to its investor, other stakeholder, and to other sectors of the society. The generation of
profit doest not reasonably justifies the existence of a business but so as to its effect to the
internal, as well as the internal surroundings of the business. Focusing on profit alone without
considering the implication to other sectors of our society will leave the entity impoverished in
A. Customers/ Consumers
Customers are the most important factors in the success, and even the existence of a
business. A properly manage business will eventually result to a good clientele both in quality
and quantity. With this, the proposed venture will seek to be customer-oriented –that is, the main
thrust is towards customer satisfaction. The proposed business will address the need of its
customers and eventually the consumers. With quality product, the resellers will earn promising
income because of its sales. On the other hand, consumers will enjoy the rewards of eating
delicious snack. Aside from that, they can also get healthy nutrients from the dragon fruit such as
high in fiber, rich in vitamin C, and minerals such as calcium for stronger bones and teeth,
phosphorus for tissue formation and iron for healthy blood. It also contain phytoalbumins, which
have antioxidant properties that help prevent the formation of cancer cells and lycopene is said to
B. Employees
Human resources are essential for the success and growth of a business. However, they
should also be treated fairly and in line with that, the business will give to its employee’s
commensurate compensation which will help them improve their economic status.
C. Creditor/ Suppliers
The proposed venture will benefit to both creditors and suppliers since a new business
entrant means a new customer on their part. The proposed business will maintain a good
relationship on these two stakeholders through responsibly meeting obligations on these parties.
D. Owner
The proposed business will be a good source of income by the business owner since he is
E. Community/ Church
The proposed business will create job in the community, hence, unemployment in Tarlac
City will be lessened. Additionally, the church will benefit through tithes and other contribution
F. Government
The proposed business will contribute to the total tax collected in the local government
Tarlac City. Besides, the municipality of Tarlac City will earn from the Business License fee,
Business permit fee, sanitary permit fee and other fees to be paid by the business owner.