Everyday we think to own our business but the problem is how to make sure that our business will become successful. By looking around your area and you will see what people needs. To prevent the waste of money and time, make sure to have a feasibility study to assess the viability of your business idea. Before spending money, feasibility study should be conducted in order to foresee if the business has a good chance of succeeding.
Business magazines and daily newspaper is a good source of business information. Also, yellow pages will give you an idea of a business already operating in your area. Also, seek business advice from others who are in the same industry. Getting information you need will find out
Some factors to consider when preparing feasibility study are the following:
- demand and market
- skills and talent needs by customer
- capital needs and requirements
- potential client or customer
- management and operations
- resources including facilities, equipment, staff, etc.
- market size
- economic benefits
When you pass the feasibility test, you are now ready to the next step which is to business planning. Business planning will see the picture of the future. According to Wikipedia, business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
Feasibility Study is written to determine if the business is feasible because it serves as analytical tool that includes scenarios for the decision-makers. If they decided not to proceed with the business then there is no need to write a business plan. Business feasibility study determines if the business is profitable or not.
The business feasibility study is conducted during the deliberation phase of the project development cycle while business plan is the design for project implementation phase which presents the guideline for the project plan.
The feasibility study provides calculations, analysis and estimated financial projections as well as the description of the business and statements concerning competition and cash flow projection while the business plan contains plans and strategies to be implemented to grow the business. Just like feasibility study, business plan also provides detailed budgets, monthly and seasonal forecast, management details such as resumes of staff, background and competition. Also, business plan shows revenues expected, overheads and expenses as well as staffing levels with salaries along with employment cost, sales levels, setup costs, building and office costs, utility, telephone, legal, insurance, accounting, supplies cost and legal requirement cost. It also features sales and sales methodology and objectives.
To summary, business feasibility study determines if the business or project is viable because writing a feasibility study is an inexpensive way to safeguard against wastage of investment while business plan will help to maximize potential and minimize overheads.
Some thought that writing a business plan is a waste of time but it has a lot of benefits. But there are numerous advantages and benefits of writing a business plan. It helps to identify the potential problems and opportunities the business might have. Also, your business plan can be shared to your potential partners as well to your advisers and can be a source of funding.
Business plan will have impact on how your business will works throughout its life. The components of business plan includes the business name, mission statement, product or service details, business vision, marketing strategies, financial plan as well as contingency plan. Make sure to use a simple and concise language which relevant to the field only when necessary so it’s easier for others to read. You don’t need to write a formal business plan to reap the benefits but think the business plan as a list of methods and objectives to achieve your business goal.
Your business plan is a written document which describes your business together with its objectives and strategies you have.
To summarize, a business plan has the following benefits:
- Clearly define your business objectives
- Helps to get advice from entrepreneurs
- Make it easier to ensure that all aspects are in track
- Know exactly your financial planning as well as source of funding
- Plan the growth of your business as well as the capital requirements
- Identify the weak areas of your business as well as the strengths
Goldilocks Bakeshop is one of most popular bakeshop since it offers a variety of cakes and pastries. It named after the Goldilocks, a character from the fairy tale, “Goldilocks and the Three Bears”. The main products of Goldilocks include breads, sweet and pastries.
Some branches of Goldilocks incorporate a Foodshop which offering a Filipino cuisine such as beef, chicken, pork, seafood and vegetable dishes as well as halo-halo, gulaman, fruit salad and sago.
For those are interested to franchise Goldilocks, here is some of the information.
- Need to prepare letter of intent addressed to the Franchise Relations Manager, address, location, vicinity map of proposal which include site description, business establishments within 1 km. radius. Also, prepare comprehensive resume of applicant with personal background information credit references, latest ITR, fixed assets and liabilities, proof of billing address, list of membership, organization, 2×2 colored photograph.
- Download and fill up Goldilocks Franchise application form
- The estimated investment cost for Goldilocks franchise is range from Php6 to 8 million and for the full store ranges from Php10 to 15 million. Investment cost includes leasehold improvements, delivery vehicle, operating equipment, collateral, project management fee, POS-Point of Sales with Hardware Package, and Refrigerated delivery truck.
- The franchises will propose a site location with an initial market study of the proposed site together with the foot and vehicular count and demographics then the Business Development Department will assess the site and validate the market study
- The franchise term is for eight (8) years
- The required sizes of the store space for the bakeshop is a minimum of 60-80 square meters while for full store is a minimum of 160-200 square meters
- There is a royalty fee of 4% of total value of bakeshop products for a bakeshop and 8% of total monthly gross sales for foodshop on a monthly basis
- The advertising fee is 3%of the total sales derived from both bakeshop and foodshop on a monthly basis
- There is a standard Goldilocks store design, lay out, equipment and facilities requirements for each type of store
- The Goldilocks team assists the franchise in the recruitment of its personnel in terms of screening and testing free of charge for the initial store team but recruitment cost will be charged for succeeding hires.
- Store personnel will hired by the franchises and will be responsible for their salaries and benefits
– The return of investment is greatly depends on the ability of the franchisee to manage the business to increase sales volume and minimize the operating costs
One out of fifty businesses is commercially viable so it is essential to conduct a feasibility study to avoid wastage of investment and resources. Business decision making is based on the feasibility study. The primary aim of feasibility study is if the project will continue or not. In business, feasibility study will determine if the business proposal works on the long time basis or endure financial risk that may come. Also, it helps to identify potential cash flow. Some business fails to success because they do not begin with a feasibility study.
Finally, business feasibility study will assess by the potential investors and stakeholders. They have to analyze every aspect of business feasibility including marketing aspect, production aspect, management aspect, and financial aspect. If the result of the study is favorable, it is reasonable to continue with it. On the other hand, if the result is not reasonable, no investor or businessman will take a risk on it.
The last but not the least, your feasibility study should provide supporting evidence for its recommendation. Decision-making process is also based on cost benefit analysis of the actual business or project viability. If the business feasibility study is viable, the full business plan is created.
Shakey’s Pizza Parlor is one of the famous pizza parlors here in the Philippines that’s why many entrepreneurs want to franchise. At present, they have 148 stores nationwide and still growing. They have been 39 years of market dominance since more than hundred restaurants nationwide owned and operated by the company and by different franchisees.
Shakeys offers a variety type of pizzas such as Philly Cheese Steak Pizza, Belly Buster Pizza, Pizza Bianca, Classic Cheese Pizza, Friday Special Pizza, Hawaiian Delight Pizza, Margherita Pizza, Pepperoni Pizza, Vegetarian Pizza, Grand Slam Pizza and many more. Also, they serve chicken, pasta, dessert, soup and salad.
See below some of the requirements for franchising Shakey’s Pizza Parlor:
- To apply for Shakey’s franchising, you need to submit letter of intent. Upon receiving the letter of intent, application form will be provided to the Franchise Applicant after the screening, validation and final review process. The letter of intent should contain the size and the frontage of the space, exact location, pictures of the actual size and other detail.
- The franchising investment is ranges from Php18M to Php25M depending on the store size, location and other factors. This investment includes construction of the restaurant, purchase and installation of kitchen equipment, furniture and fixtures, pre-operating expenses and franchise fee.
It is important to identify the parts or areas of a feasibility study in order to compose a good feasibility study.
The following are some areas of a feasibility study to be writing in:
- Introduction – It includes background information about the proposed business including proposed name and purpose of the business. Also, determines the skills and experience of the business investors.
- Business Description – It provides information about the business including the product or services to be offered and nature of industry.
- Market Analysis – It includes knowing the current and potential demand of the product as well as the characteristics of buyers and sales forecast over the first three years.
- Management Analysis – Prospective entrepreneurs need to know the skills and talent of the management team in launching the proposed business. It provides details specification of management personnel including primary duties and organization structure.
- Technical Description – It explain the detailed requirements of facilities, inventory and production control as well as raw materials and other utilities.
- Risks and Problems – It should identify the major and minor risks and problems of the proposed business opportunity including the timing and financial start-up.
- Economic Plans – It should contains the cost and benefit to compare
- Financial Plans – It includes the total estimated cost of the proposed business or project as well as projected cash flow and profitability.
Mang Inasal is one of the fastest Philippine’s growing barbeque fast food chain which serves chicken, pork barbeque and other Filipino favorites. They also serves Bangus Inihaw, Bangus Sisig, Pork Sisig, Pansit Bihon, Pork Dinuguan with Puto, Bilo-bilo, Creamy Halo-halo. Unlimited Rice has been ever become Mang Inasal’s trademark.
Mang Inasal truly gives customer’s satisfaction by giving a Philippine restaurant experience by serving rice wrapped in banana leaves, barbeque in bamboo sticks and other Filipinos delicacies.
If you are success-driven entrepreneur and have financial capability to franchising and willing to strictly follow the standard operation system of Mang Inasal, then you are qualified to franchise Mang Inasal.
The following are some information for franchising Mang Inasal:
- Need to write a letter of intent
- Mang Inasal franchise fee is Php 1.1 Million plus 12 VAT.
- Mang Inasal investment includes tested operation support, brand or trade name usage, marketing and training support.
- The franchise term for Mang Inasal is 7 years and it is renewable
- The space requirement is 150 to 200 sq. meters
- The royalty fee is 5% of gross sales while the advertising fee is 2% of gross sales
- Other cost for the franchise includes product security deposit of Php400,000 and renovation estimated cost of Php 7 million to Php 9 million
The world that we are living now is experiencing different environmental problems. Some affect the water, others affect the air, and still others affect the land and the animals. Some of the largest problems are now affecting the world. As globalization continues and the earth’s natural processes transform local problems into international issues, few societies are being left untouched by major environmental problems like global warming.
Philippines have experienced temperature spikes brought about by climate change. It has been observed that warming is experienced most in the northern and southern regions of the country, while Metro Manila has warmed less than most parts. This kind of environmental problems can be reduced or eliminated through corrective actions or proactive measures. Every environmental problem has causes, numerous effects, and most importantly, has a solution.
The increase in the use of natural and renewable energy sources is one of the major solutions to take the burden off our current dependency. By making switch to natural and renewable energy sources, you will be doing your part in helping to improve the quality of the environment and the air we breathe. To resolve such predicament, people should strive to manage or conserve electrical energy to find other ways to generate electric power out of some high anticipated natural like water.
The pico-hydro electric generator system is a proven technology and is feasible solution to existing problem, not only lessening the demand of electric energy, but also as a source of energy for some rural areas here in Bataan. The system is an efficient way in keeping the environment clean because it only uses water rather than harmful toxins to produce electricity. Other ways producing energy that we used today create harmful effects to the environment. Therefore, hydro electric power is much more environment friendly way of producing energy.
The proponents developed a pico-hydro project designed to test the electrical energy potential of a river available in Maluya Central, Balanga City, Bataan and to supply energy to the target house near the site.
Title: Feasibility Study: Pico Hydro for Rural Electrification
Jerome dela Cruz
Wilgem Regino Crespo
John Andrew Molino
Rosauro J. Fernando Jr.
Chowking is a Philippine based fast food chain that pioneered the Asian quick service restaurant concept here in the Philippines. This restaurant combines a Western fast food style with Chinese food such as noodles, soup, dim sum and rice toppings, Chowking became one of the favorites Chinese Restaurant.
If you are planning to invest your money to become a franchisee of Chowking, here is some of the information you need to know:
- The site are required at least having a site with an area of 250 sqm. as well as a letter of intent, location map of the proposed site and a duly accomplished application form.
- The required investment ranges from Php9 to Php13 Million which includes franchise fee of Php1 Million, kitchen facilities, construction and finishes, furniture and fixtures and signage, etc. The investment depends on the
- The benefits of Franchising Chowking includes established brand name and a proven formula, site selection and construction, operational and management support, comprehensive training support, effective advertising and marketing programs, new products and product development as well as accounting and control system.
- Chowking assists in the recruitment and training of managers and gives HR management guidelines but not directly hire employees for the franchisee.
- Chowking does not provide financing but do feasibility study and approve or reject the proposed site
- The expected Return of Investment (ROI) os 3 to 4 years and the franchise duration is 10 years and it is renewable.