Introduction

RESEARCH is a key to progress ---

There can be no progress without research. In any
field of specialization research is vital and essential

Primary goal of research is to enable man to have a

better life, man therefore is continuously in search for
ways by which he could make its life fuller and richer

A full and rich life encompasses not only the material

and economic phases of his life but also the social;
emotional, moral, spiritual, mental and creative –
aesthetic aspects
By: Dr. Mariano M. Ariola
QUESTIONS TO PONDER:
Part 1
1. The difference between a feasibility
study report and a business plan.
2. The Feasibility Process Flow
3. Why Develop a Feasibility Study/
Business Plan?
Part 2
1. Presentation of a Feasibility Study
Model
4 Differences between conducting
Feasibility and Writing a Business Plan
1. FEASIBILITY STUDY
A feasibility study is carried out with the aim of finding
out the workability and profitability of a business
venture. Before anything is invested in a new
business venture, a feasibility study is carried out to
know if the business venture is worth the time, effort
and resources.
BUSINESS PLAN
Is developed only after it has been established that a
business opportunity exist and the venture is about
to commence. This simply means that a business
plan is prepared after a feasibility study has been
conducted.
4 Differences: cont.
2.FEASIBILITY STUDY
A feasibility report is filled with calculations,
analysis and estimated projections of a
business opportunity.

BUSINESS PLAN
While a business plan is made up of mostly
tactics and strategies to be implemented in
other to start and grow the business.
4 DIFFERECES: cont.
3. FEASIBILITY STUDY
A feasibility study is all about business idea viability
BUSINESS PLAN
While a business plan deals with business growth
plan and sustainability.
4. FEASIBILITY STUDY
A feasibility study report reveals the profit potential
of a business idea or opportunity to the
entrepreneur,
BUSINESS PLAN
While a business plan helps the entrepreneur raise
the needed start up capital from investors.
Feasibility Study vs. Business Plan
Feasibility Study vs. Business Plan
The Following:
Definition
Emphasis
Target Audience
Sections / Parts
Versions
Importance
DEFINITION
FEASIBILITY STUDY
Synonymous with Project Study
A systematic inquiry to determine whether
a specific business undertaking could be
implemented at a certain acceptable profit
level.
A feasibility study is an in-depth
examination of a project's potential for
success.
 A creative, objective, rational process
whereby marketing and financial data are
collected, assimilated and analyzed.
(Grace P. Perdigon)
Definition:
BUSINESS PLAN
A written document that describes in details the
proposed venture:
o Describes the current status, expected needs, and
projected results of the new business
o Demonstrates a clear picture of what the venture
is, where it is projected to go, and how the
entrepreneur proposes it will get there-a roadmap
for a successful enterprise
A business plan lays out a written plan from a
marketing, financial and operational viewpoint.
EMPHASIS, TARGET AUDIENCE
Emphasis
Feasibility studies answer the question, “Will this
work?”
A business plan answers the question, “How will
this work?”

Target Audience
Feasibility studies are for the entrepreneur's
benefit, to determine whether it's worth
proceeding with the business.
Business plans are targeted at investors, lenders
and future executives to explain how the business
works.
SECTIONS / PARTS
Feasibility studies focus on the size of the
potential market, availability and prices of
suppliers and distributors, and the abilities
of the entrepreneur.
Market Study
Technical Study
Management Study
Financial Study
Socio-Economic Study
SECTIONS / PARTS: cont.
Business plans also include operations
plans, marketing strategies, location,
management team and in-depth
financial projections.
Management Feasibility
Marketing Feasibility
Production / Technical Feasibility
Financial Feasibility
Socio Economic Feasibility
VERSIONS, IMPORTANCE
Versions
 Feasibility studies usually compare several possible
scenarios for how a business might work.
Business plans describe a specific business, but
include different sections depending on which parts of
the business are interesting to the audience.
Importance
 A business will probably fail if its feasibility study is
done poorly the first time.
Business plans, however, will go through many
iterations and are designed to evolve to describe an
ongoing business
FEASIBILITY / BUSINESS PLAN PROCESS FLOW
Why Develop a FS / BP?
Why Develop a Feasibility Study / Business Plan
1. Developing any new business venture is difficult.
2. Taking a project from initiation of idea to
operational stage is a complex and time consuming
effort.
3. It minimizes project failure.
4. Projects involve business operations that differ from
individual business.
5. Feasibility study allows groups developing a business
idea to preview potential project outcomes and
decide if they want to continue developing the
project.
Why Develop: cont.
6. Though the cost of conducting a study can seem high,
almost always these costs are relatively minor when
compared to the total project cost.
7. Small initial expenditure on a feasibility study / business
plan by a group can help to protect larger capital
investment later.
8. Feasibility study / Business plan is a useful tool and is valid
for many kinds of projects.
9. An effective feasibility analysis will provide the client with
a solid foundation upon which a project is built.
10. A feasibility study / Business Plan provides concept
identification, estimates of supportable market, design
parameters, attendance estimates, revenue projections, and
net warranted investment.
Guidelines to Remember
 Keep the plan respectably short
Organize and package the plan appropriately
 Orient the plan toward the future
 Avoid exaggeration
Highlights critical risks
 Give evidence of an effective entrepreneurial
team
 Do not over-diversify
 Identify the target market
 Keep the plan written in the third person
 Capture’s the reader’s interest
PART 2

PRESENTATION OF A
FEASIBILITY STUDY
MODEL