Technical Feasibility Grant

The goal of technical feasibility grant is to fund the cost of the company to undertake a technical study.  Technical study that  pass to their requirements includes the development of new products, processes, technologies  as well as the redesign or improvement of current products , processes or services.  It also includes the possibility of extending or expanding company facilities to meet companies’ needs and application of new technologies for the companies’ growth.

The purpose of writing a technical feasibility study is to know if the project is viable. The content of feasibility study includes; prototyping and design, assessment of manufacturing process, evaluation and selection of plant, source of raw materials, cost analysis and market research.

Technical feasibility study is used to assess the details on how to deliver a product or services. It will determine how your business will produce, store, and deliver products and services. It serves as flowchart on how your product and services progress and move through your business to reach your target market. It involves the study of facility needs and suitability of production technology providers as well as the availability of raw materials, transportation, labor, and products.

Some countries provide technical feasibility grant to the companies who needs financial assistance for their business venture.  So it is important that you write it in a correct format.

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Business Feasibility Study Structure

For all we know, a Business feasibility study is written to know if the business idea will become successful or not when implemented. It serves as an evaluation tool for every business because it will determine whether or not it’s worth investing your time and money to this business idea. Also, it will determine the profitability of the business.

Business feasibility study will analyze your business idea, market and financial feasibility of the business. The objectives of your study are to assess the market size, your competitive analysis, capital requirements, and management ability.

business feasibility studyDuring market analysis, you have to determine the type of demand that available for your product or service you plan to offer such as the consumer and distributor and then establish the size of the market and its growth capacity.

After determining if the market is available, you have to know your competitors and determine what makes your product or service special compare to your competitors. Also, analyze the sales strategy to use. Other factor to consider is to determine the management and personnel requirements.

Of course, before starting your business you have to know the financial feasibility of your business idea including making sales forecast, computing start-up and working capital requirements, estimating profitability and financial viability. Financial projection includes balance sheet, income statement, cash flow, and break even analysis.

Below is an example of Business Feasibility Study outline:

•    Executive Summary
•    Introduction
•    Product or Service
•    Market
•    Competition
•    Industry
•    Marketing and Sales Strategy
•    Operating Requirements
•    Financial Projection
•    Balance Sheet Projection
•    Income Statement Projection
•    Cash Flow Projection
•    Break Even Analysis
•    Financial Requirement
•    Recommendation and Findings
•    Conclusion

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Sample System Feasibility Study Outline

Feasibility study is a tool use to determine if the project or business will be successful. It serves as an evaluation since it contains the analyzation of each aspect in order to know the outcome of the proposed solution to the problems. These aspects include technical aspect, marketing aspect, financial aspect and economic aspect and so on. Make sure that before making any decision,

Writing feasibility study is hard when you don’t know how to start. So I make an outline to be used as guidelines. This sample feasibility study is about a Proposed System.

system feasibility study

I. Introduction

a. Purpose

b. Scope

c. System Overview

d. Project References

e. Acronyms and Abbreviations

II. Management Analysis

a. Environment

i. Organizational Structure

ii. Input/Output

iii. Processing

iv. Security

v. System Interaction

b. Current Procedures

c. Objectives

d. Constraints

e. Assumptions

f. Methodology

g. Evaluation and Criteria

h. Recommendation

III. Proposed System

a. Proposed System Description

b. Benefits and Improvements

c. Cost and Time Resource

d. System Effects

i. Software Effects

ii. Equipment Effects

iii. Organization Effects

iv. Operational Effects

v. Developmental Effects

vi. Site and Facility Effects

vii. Security and Privacy Effects

e. Recommendation

IV. Alternative System

a. Description of Alternative System

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Components of a Good Feasibility Study

Writing feasibility study is very essential in business so that entrepreneurs or businessman may know if the proposed business or ideas is profitable. Time and effort in writing feasibility study is worth since feasibility study serves as an evaluation and analysis of a proposed business or proposed project to know if it is technically feasible and it is feasible within the estimated cost.

Here are some components to consider in writing a good feasibility study:

–    Introduction
Background information of the proposed business or proposed project will be described such as the proposed name and purpose of the business. It also includes the skills and experience of the business investors.

–    Business or Project Description
Information about the business or project as well as the nature of industry or nature of the project is discussed in this section.

–    Market Analysis
Current and potential demand of the product or idea is determined. Also, it contains information about the buyers as well as the sales forecast over the first three years.

–    Management Analysis
Skills and talent of the management team or personnel involved in the business or the project should be included. It contains the primary duties of each personnel with the organization structure.

–    Technical Analysis
Detailed requirements of the facilities, inventory and production control is identified.  Also, it provides the raw material needed and other utilities.

–    Risks and Problems
Major and minor risks and problems of the proposed business opportunity or project are elaborated.

–    Economic Analysis
Cost and benefit analysis discussed.

–    Financial Analysis
Total estimated cost of the proposed business or project are included as well as the projected cash flow and profitability.

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Components of Feasibility Study

One of the purposes of writing a feasibility study is to minimize the risk and to ascertain the possibility of the business to become successful. Feasibility study will measure if a certain business or project could be carried out profitably. It also serves as framework on how the operation shall be accomplished. It is always wise to write a feasibility study before implementing a business or project to ensure to have a successful venture.

The components of a feasibility study are the following:

  • Marketing Study. This involves the study of sufficient demands for the products and the competitive position of the firm in the industry.
  • Technical Study. This is the study of plant size and location, production schedule, layout, structure, utilities, raw materials and waste disposal.
  • Management Study. It includes the organizational chart as well as the function of each unit management employee or personnel such as their skills and the number of labor required.
  • Financial Study. This study includes the evaluation of the total capital requirement, break even analysis, amount of sales required to earn a profit and the cash payback period.
  • Social Desirability. This study is include to measure the economic benefits to the people living in vicinities.

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Business Report Sample Summary

Reduction of Mercaptain Sulfur in JPA Jet Fuel Blend Stocks


The Metallic Lead Sweetening process is recommended as a potential method for reducing mercaptan sulfur in JP4 jet fuel blend stocks.

Development of new jet engines has required parallel development of fuels of the JP4 type. Production of these fuels to Philippine Government specifications is handicapped by lack of process for reducing total mercaptans to 10 ppm or less.

Five processes were therefore evaluated for adequate mercaptan reduction: (1) Caustic Treating; (2) Potassium Cresolate Treating; (3) Air Caustic Sweetening; (4) Bender Sweetening; and (5) Metallic Lead Sweetening. The Caustic and Potassium Cresolate treatments were tested in batch type treats. The other three methods were evaluated in small continuous pilot plant units.

The Bender and Metallic Lead processes were able to reduce mercaptan to specified levels Since the Bender process incurs expense of royalties and catalyst preparation, the Metallic Lead process is recommended.

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Preparing Feasibility Study

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.
  • competition
  • 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.

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Difference between Business Plan and Feasibility Study

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.

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Importance of Business Feasibility Study

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.

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Characteristic of a Good Feasibility Study

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:

  1. 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.
  2. Business Description – It provides information about the business including the product or services to be offered and nature of industry.
  3. 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.
  4. 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.
  5. Technical Description – It explain the detailed requirements of facilities, inventory and production control as well as raw materials and other utilities.
  6. 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.
  7. Economic Plans – It should contains the cost and benefit to compare
  8. Financial Plans – It includes the total estimated cost of the proposed business or project as well as projected cash flow and profitability.

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