Feasibility Study of Establishing Cindy’s Fast Food Branch Along Plaza of Balanga,

Bataan

1. General Objectives

1.1. Description of the Business Project

The proposed business will need a two-storey building in a 2,000 square-meter lot with a parking
space at the rear. The customer will drive in the left entrance greeted by the water-sprinkled
Indian trees partly shielding the establishment from the fumes coming from the busy street.
Embraced by the multi-colored lights, the trees will set the cosmopolitan setting to a rustic
atmosphere. The building will be constructed to hide the stockroom complementing the
architectural masterpiece. The smoothly cemented exit passing through the well-manicured lawn
will draw sights of satisfaction from the customers.

The state-of-the-art tables, chairs and utensils will enhance the customers feeling that they are in
a five-star hotel. Very affordable, the food will enthrall every customer to come and savor the
food over the widely spaced tables on the immaculately marbled floor. The electronically
flushing system of the restrooms will motivate the customers to force their friends and relatives
to frequent this new Cindy’s Branch at the heart of the Balanga.

1.2. Project Time Table

All minor details considered, the project will start serving the five thousand targeted daily
customers within five months. The contractors will complete the fence and the framework of the
building in the first month. They will finish the walls and the floors in the second month. They
will install the electrical and the air conditioning units in the third month. After the first and
second layer coating, they will complete the final painting in the fourth month and finally they
will landscape and plant balled-trees in the fifth month. As the project will be in progress, the
company will busy the facilities to be used.

1.3. Management of the Business

With three managers alternately scheduled on the eight hour duty to man the 95crew in the 24
hour service, the business will surely satisfy the customers, propelling profit to soar.

The personnel will make a customer feel that he is the only one served amidst the queuing
multitude. The high wage given by the company and, likewise, the humane treatment of the
superiors will inspire the crew to render machine-precise service.

2. Product and Market Aspects

2.1 Market Outcome

A variety of expensive fireworks commence the business to attract the children, students,
parents, and professionals. This opening blast will have been advertised a month before. The
initial big crowd from the different districts of the province will keep growing to actualize the
management’s vision that this Cindy Branch will be the most profitable among the food chains in
the City.

2.2 Market and Selling Price

The customers can order from a variety of choices in the counter staffed with beautiful and
handsome ever-smiling crew. The waiters will serve the orders in the well-crafted, smoke free
dining areas with both oriental and western motifs to fit their number and their tastes. These
areas will enhance customer privacy as the customers enjoy eating while talking about the
gossips of the town, or as they engage in a highly intellectual calisthenics about a hot political
issue. The area will also conduce lovers to cement their relationship with their soul-penetrating
interlocked gazes that only lovers could fathom, as they savor their food.

3. Technical Aspect

3.1 Location Factor

At the center of Balanga Plaza, this food center will surely draw customers from the cross-
section of society. The following factors will back-up the company’s foresight:

3.1.1 Topography

The 2,000 square-meter lot does not need labeling because the area is already flat and it is
located in high location. No matter how strong the typhoon will be, the rains will not flood the
area. The customers will not be drawn away from enjoying the services of Cindys.

3.1.2 Cost of Land

The fertile business venture will cheapen the current P20,000 per square meter piece of land. The
forty five million peso worth of property will double after only three years of operation.

3.1.3 Security

The place will be safe. Secretly installed cameras will monitor every move to ensure the security
of the customers. Four security guards simultaneously assigned to the area will guarantee the
safety of the clients. This will be backed up by policemen assigned at the outpost nearby.

3.2 Size and Layout of the Building

To maximize the 40 x 50 meter land area, the engineers will erect the 20 x 30 meter proposed
two storey building, leaving five meters at both sides and 18 meters fronting the street. Only two
meters will be left at the back of the building. This will ventilate the establishment.
3.3 Equipment

The Bataan Builders will construct the building. This construction company will use modern
building equipment like a cement mixer, caterpillar, automatic digging drill, and other state of
the art construction materials.

4. Project Cost

4.1 The Land and the Building

This project will cost about P 45,000,000.00 which is roughly broken into the following:

Cost of 2,000 meter lot – P 40,000,000.00

Cost of 2 storey building – P 4,000,000.00
Accessories and Equipments – P 1,000,000.00

Total Cost – P 45,000,000.00

The 45 million pesos worth of land is the biggest of the capital investment but it is worth it
because unlike the other expenses, the land value will appreciate through the years. The contract
with the Bataan Builders for the proposed two-storey building is P 4,000,000. This includes
materials and labor. With the five-month paying scheme, Cindy will pay P 800,000 every month
until the last month. The food center will need P 1,000,000 for the imported accessories like
tables, chairs and other needs.

4.2 Franchise

The food center will pay the current P 1,000,000 Cindy franchise.

4.3 Sources of Financing

The proprietor will put in P 5,000,000. The remaining P 40,000,000 will be borrowed from the
bank.

5. Business Operation

5.1 Revenues

With 50 thousand monthly net income target from about five thousand daily customers, the
proposed branch projects the following net income by month and years:

First month – P 1,500,000.00

First year – P 18,000,000.00
Second year – P 36,000,000.00
Third year – P 54,000,000.00
Fourth year – P 72,000,000.00
After four years of operation, this venture will have gained P 11,000,000 as shown in the
following computations:

Net income in four years – P 72,000,000.00

Minus the sum of investments – P 61,000,000.00
Difference – P 11,000,000.00

Loaned money from the bank – P 42,500,000.00

Interest of loaned money – P 17,000,000.00
Franchise – P 1,000,000.00
Maintenance – P 500,000.00
Total – P 61,000,000.00

5.2 Accessories and Equipments

Being of high quality, the accessories will still be usable after four years. However, P 500,000
pesos is allotted for maintenance and replacements of damaged property.

Summary

The figures above prove how financially rewarding this business venture. Because food is a
necessity, a venture like this guarantees 99% success. This is especially so if the location is the
Plaza like Cindys Plaza.

Vital Parts of Feasibility Study

A. Summary of Project

1. Name of Firm
2. Location – head office and plant site
3. Brief description of the product
4. Highlights of major assumptions such as market projections, share and prices, investment
costs, method of funding
5. Summary of findings and conclusions on the following

a. Market feasibility
b. Technical feasibility
c. Financial feasibility

B. General Information – Describe the pre-operating period, during the operating period,
labor, and professional firms or consultants to be hired, if any. Also, includes status of timetable
of the project and other information such as pending litigations, information regarding
intangibles, etc.

C. Competitive position considering imported and/or substitute products.

D. Marketing Program – description of the present marketing practices of competitors in the
exports and domestic market. Projected export and proposed marketing program of the project.
It includes the contribution to the economy, plant layout, structure, raw materials, utilities, and
waste disposal.

E. Financial Feasibility – Total project cost, initial capital requirements, sources of financing,
financial statements, and financial analysis.

F. Social Desirability – specific project contributions to the economy and society and social
rate return.

Suggested Outline for Feasibility Study

One of the important steps in business development is a feasibility study. Feasibility study is
used to determine the potential for success of a proposed business venture.

The sample outline below can be used to help you make your study. However, not all feasibility
studies are alike because it depends to the type of business venture analyzed and the market. The
success of a feasibility study is based on the careful identification and evaluation of all of the
important aspects for business success.

Description of the Project. Identify the list of product(s) or services(s) to be marketed and the
general business model such as how the business will make money. Include the technical
processes, size, location and kind of inputs. Also know the economic and social impact on local
communities as well as environmental impact on the surrounding area.

Market Feasibility. Determine the industry description, industry competitiveness, market

potential, sale projection and the access to market outlets.

Technical Feasibility. Find out the facility needs, suitability of production technology,
availability and suitability of site, raw materials and others such as labor availability and
qualified management personnel.

Financial Feasibility. Include the estimation of total capital requirements, equity and credit
needs, budget expected costs and returns of various alternatives

Management Feasibility. Identify the business structure and business founders.

Conclusion. Include information that will be used for decision making whether to proceed the
proposed business ventures.
Some Feasibility Study Mistakes
It is imperative to show your idea is feasible to attract investor and fund the project. No matter
what is your offering whether a product or service, you need to convince other people to finance
your ideas.

I provide some feasibility mistakes which serve as guidelines to your feasibility study.

• Doing feasibility study without doing research. It is a wasting of time and money
without preliminary research on validity of the idea. It is necessary to conduct initial
research or pre-feasibility study before the start on of a full feasibility study.

• Incorrect data interpretation. Sometimes, the writer overestimates the market size as
well as the opportunity for the new venture. For example, you will observe that the
product has a large market place, but not realized the strengths of competitors and their
customer’s loyalty.

• Incorrect cost estimation. Make sure to detailed the cost to avoid over-estimation or
under estimation. Also, cost estimates should be studied carefully.

• Overlook indirect competitors. Make sure to investigate all products and services that
deal to customers’ need.

• Surveys dependence. Don’t over rely to survey because people tend to answer “yes” for
new product but when it comes to purchasing, they say “no”.

• Without expert Assistance. It is important to get expert views regarding the product,
idea or services.

Rules in Preparing a Good Project Feasibility Study

A project study or feasibility study contains several chapters. The proposed project must be
financially, economically, technically and socially feasible.

A consultant or researcher must possess not only the technical expertise on the project involved,
but also the right analytical, interpretative and writing skills to be able to produce the desired
studies. He must know all banking, institutional, and governmental rules and regulations on the
particular projects he is to work on.

Rules in Preparing a Good Project Feasibility Study

1. Know the nature of the proposed project well. If you are not familiar with the topic or
project, you must obtain the technical expertise from qualified experts to help you in
researching the basic required technology and other sensitive aspects of the project.
 2. Research well. Explore all resource related to your study. Your project study must be
included with statistics, data documents, and all information needed from all available
resources.
3. Must be a good analyst. You must know how to analyze, evaluate, interpret, use and
discard unnecessary data.
4. Data must be accurate. Your estimates and projections must be close to realities. Avoid
making guesses and statistical improbabilities.
5. Organize study. You must know how to put in order your study.
6. Write it well. You must know how to write it properly.

Proposal Writing Tips and Strategies

Writing proposal can be tedious job but if you will know the steps of writing proposal, it can
never be difficult. The first step in writing a proposal is defining the project by establishing
proposal title. Also, it is need to identify the agency as well as find out guidelines and
deadlines. Write down preliminary material. In addition, perform literature search and also
consider writing the first draft of full proposal.

Some parts to consider in writing proposal are introduction, problem statement, objectives,
methodology, evaluation if necessary, dissemination, future funding, budget, appendices,
abstract and curriculum vitae. Not all proposals require these parts but most of them are required
by agency.

The following are some tips and strategies in writing proposal:

• Make use of outline formats and records to break up narrative texts.

• Do not use vague languages like might, could, ought, should, hope, will, may, it appears,
consider.
• Don’t think that the reader is familiar with the subject.
• Prevent using unsupported arguments.
• Avoid impossible promises.
• Include illustrations or visuals to explain abstract concepts and relationships.
• Proofread and review proposal over and over again and let someone to proofread it to see
opinion of others.
• Proposal should be organized, readable, grammar free and without missing page and also
consider overall appearance such as cleanliness.
• What to Include in your Feasibility Study
• In starting a new business venture, it is important to conduct a feasibility study to ensure
that your business will be successful. Some things to be included are plan, cost, and
sources of funding, manpower and personnel requirements, market and profitability.
• In the plan section of your feasibility study, State clearly the objectives and description of
the project. Duration to complete the project is also included. It is usually answers the
questions what, why and how about the project.
• Indicate the cost of equipment and facilities needed for the project. The proponents
should undertake reliable canvassing using at least two or three supplier and be
particulars to models and capacities of equipment as well as the availability of materials.
• Also, it is important if there is budget for the project. If there is no sufficient budget for
the project, a bank loan may be considered. In this case, the loan amount and its interest
must be factored into the financial documents of the study. Realistic income targets from
the venture should be projected.
• As per personnel or manpower, it is important to determine the size and particulars of
manpower as well as personnel’s job description, job titles and credential standards.
Also, salary rates and allowance should be noted.
• In addition, the stability of the market determines the viability of the project. A survey
should be conducted to know if there are sufficient clients or customers and to whom the
commercial venture will cater.
• Of course, project should know if it is profitable. A ten or twenty percent return of
investment (ROI) is usually regarded as profitable enough.
• Summary of Conclusion for Feasibility Study of Snack
Stand
• Marketing Aspects
• 1. The Snack stand will be very much positive in offering a lot of services to satisfy
customers needs, accept suggestion and criticisms to improve our business
2. Snack stand will utilize with honesty and credibility thru our products and services.
3. Snack stand will be always “open-minded” to those other competitors and will seek
only the best.
• Technical Aspect

1. The final location of the business will be at the Common Terminal, Balanga City,
Bataan.
2. Raw materials will be obtained during its freshness and nearness to the source which
is Elizabeth Supermarket in Balanga City itself.
3. The management will provide cleanliness of the stall, especially the food for
satisfaction of customers.
• Management Aspect
• 1. The best organizational structure to adopt in the same manner communication will be
facilitated from the top to bottom and from the bottom to the top.
2. The democratic atmosphere will always prevail in the business to ensure hormones
interpersonal relationship between management and personnel.
3. The Snack stand will develop the service activity to satisfy the need of the customer.
• Socio-Economic Aspect
• 1. The Snack stand will be very much responsible in promoting environmental, clean
air act and proper waste disposal.
2. Taxes assured for the city government.
3. The partner’s will make sure of the observance and God-fearing to all of them.
• Financial Aspect
• 1. The amount of fifty thousand pesos (Php50,000.00) is substantially enough to put up
the proposed project Snack stand.
 2. Based on the projections as depicted by the financial statements, the proposed project
is a kind of lucrative undertaking.
3. The proponent of the project will be responsible in producing the capital
requirement.
• Business Feasibility Study – Snack Stand
• A. Name and Address of the Business
• The GF Snack Stand (Good Food Snack Stand) is proposed to be located at the 2nd floor
of the Bataan Common Terminal, Ibayo, Balanga City, Bataan.
• B. Nature Business
• The GF Snack Stand offers a wide variety of snacks and beverages. It caters the need of
the persons in transit and others who are waiting for their ride home in the said common
terminal. It also provide hip and soothing music to those who are weary from work and
school.
• The menu mainly consists of chicken, ham, ham and egg and hotdog sandwiches,
fishballs, kikiam, squidballs, french fries and juices such as gulaman and pineapple juice.
• The said snack stand is open Mondays through Sundays from 7:00 AM to 7:00 PM.
• Management Aspect
• 1. What are the roles and responsibilities of each personnel?
2. What are the different strategies were going to use in order to cope up with the
competition?
3. How can we cope up with the competition?
• Financial Aspect
• 1. How much will be the total cost of the project?
2. How much is the contribution of each member?
3. How much profit were going to earn this kind of project?
• Socio-Economic Aspect
• 1. How can the business contribute to the reduction of unemployment?
2. How can the business contribute to the community?
3. How can the business contribute to the economy?
• Management Aspect Feasibility Study for Snack Stand
• The central idea of management is to make every action or decision help achieve a
careful chosen goal.
• The word management is also used to mean the group of persons called executives who
perform management activities.
• Objectives
• 1. To keep the subordinates be alert to what is expected to them.
2. To know the duties and responsibilities of each member and personnel.
3. To know different strategies to be able to achieve the company’s goal.
• Description of Activities
• 1. DTI Permit Application
• The business name of GF Snack Stand should be register with the Department of Trade
and Industry. It would take only four days to five days before the permit is receive. If
there as no other name of its type.
• Three (3) different name should be apply so when one is approved, so they can use other
applied business name (see appendix)
• 2. Rental Space
• The project business will be located at Bataan terminal at 2nd floor Ibayo, Balanga City,
Bataan. The application will only about three to four weeks before it is approved.
• 3. Mayor’s Permit
• The Mayor’s Permit application will acquire the submission of the following:
• a. SSS Clearance Permit
b. Sanitary Permit
c. DTI
4. TAN (Tax Account Number)
• The project business will be registered at the Bureau of Internal Revenue District Office
No. (1020) located at Capitol drive, San Jose, Balanga City. The following forms should
be accomplished with necessary attachments.
• BIR FORM No. Attachment Required, Mayor’s Permit and DTI Permit
• 5. Buying of machineries and equipment
• Involves the acquisition of the necessary machinery and equipment in the food snack as
mentioned in technical aspect.
• 6. Promotion
• Includes advertising and personal selling partnership in a variety of promotional activities
to inform customer about products and service and to encourage them to buy.
• 7. Start of Operation
• After securing all the necessary permits and other needed materials. The said will be now
ready to operate.
• C. Organizational Structure
• Through GF Snack Stand is just a simple business, the organization structure will have a
simple flow. It is not as complicated as big ventures.
• Over – All manager / Cashier
Cook 1, Cook 2
Utility Man 1, Utility Man 2
• D. Personnel Structure
• The GF Snack Stand is required to have the members of personnel and service crew.
• Staff – Over all Manager – 1
Cashier – 1
Cook – 2
Utility Man – 2
• E. Duties and Responsibities
• 1. Over-all Manager / Cashier
- Supervise the overall operation of the business
- Computer the total amount of the purchased item
- Assist the customers
• 2. Cook 1
- Prepares the necessary ingredients
- Cooks the items/products
• 3. Cook 2
- Prepares the necessary ingredients
- Cooks the item/products
• 4. Utility Man 1
- In charge of cleaning the workplace
- Delivers items within the vicinity
- In charge of buying raw materials from suppliers
- In charge of the inventory
• 5. Utility Man 2
- In charge of cleaning the workplace
- Delivers items within the vicinity
- In charge of buying raw materials from the suppliers
- In charge of the inventory