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A Feasibility Study
Davao City
By:
March 2019
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
CHAPTER 1
Purok San Juan, Agdao, Davao City, and 8000 Davao del Sur. The building will
We are planning to start this business on the year 2021 of April to 2025 after five
(5) years of plan we will decide if AirMech Safety Marshalling Paddles and
Wands will continue or shut down depending on the gained income of the project.
That produces BS AMT graduates for the business to grow and continue its
operation.
Market Projection
R. Castillio, Agdao, Davao City. The business site is near the schools of MATS
College of Technology, FAA, and AISAT. The target customers are BS AMT
students and aircraft mechanics from nearby locale in need for review. The
chosen location is in the heart of the city for easy access to customers. This
Market Share
targeted customers inside and outside the location in Davao City. The place has
Market Prize
Paddles
Lights
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
Investment Cost
The total investment cost of the project on its 5-year duration/operation would be
Investment Costs
Pre-Operating Period 2020 2021 2022 2023 2024
Acquire Bus. Permit 10,000 10,000 10,000 10,000 10,000
Location Rental Annually 50,000 50,000 50,000 50,000 50,000
Furniture 4,000
Office equipment 20,000
Display Cabinets 9,750
Air-Condition 14,000
Miscellaneous Expenses 7,000 7,000 7,000 7,000 7,000
Operating Period
Marshalling Paddles and Wands
Capital 85,440 85,440 85,440 85,440 85,440
Internet w/ Landline Annually 15,600 15,600 15,600 15,600 15,600
Electricity Bill 30,000 30,000 30,000 30,000 30,000
Water Bill 5,000 5,000 5,000 5,000 5,000
SSS 8,040 8,040 8,040 8,040
Pag-Ibig 3,800 3,800 3,800 3,800
Philhealth 3,800 3,800 3,800 3,800
Contigencies 7,000 7,000 7,000 7,000 7,000
Pickup truck/Bongo 305,000
Fuel allocation for service 15,000 15,000 15,000 15,000 15,000
Advertisement/Marketing 12,000 12,000 12,000 12,000 12,000
Salary (Employees) 69,000 69,000 69,000 69,000 69,000
Total Investment Cost 1,945,510
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
Method of Financing
The method of financing that will be used is equity and capital will
be provided by the member of the partnership. Each member will put in 50% of
Market Feasibility
This project is marketable for the reason that our target customers are
capable of availing our products direct from store and online. People in the
location are continuously growing and that means more prospective demand of
the product in the business. The business provides a product within the reach of
Technical Feasibility
Financial Feasibility
CHAPTER 2
Pre-operating Period
activities for the business during the pre-operating period. Since it will be the start
of our pre-operating period we will not hire too many personnel to minimize our
investment cost.
We will spend our first year for planning, capital sourcing, license
processing, renovation, hiring, and purchasing equipment. And for the remaining
Operating Period
the business is well furnished, equipment and product is ready for selling. And
since the project is partnership, the owners segregate the task and their functions
in the business.
Organizational Chart
General Manager
Advertising
Benefits
Pag-ibig
SSS
PhilHealth
Facilities:
Office
Computer
Stock Room
Counter
Display Cabinets
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May
Planning
Phases
Acquisition of
Capital
Renovation
Procurement of
Materials
Processing of
Business
Permit and
Requirements
Advertisement
Normal
Operation
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
CHAPTER III
MARKET STUDY
The objective is to assist various businesses who are going to buy our
products, our competitive position in the current market, and on how we could
Actual Demand
SUGNI
YEAR UNITOP Enterprises TOTAL
2011 103 223 326
2012 108 263 371
2013 111 225 336
2014 145 243 388
2015 176 228 404
2016 223 212 435
2017 218 235 453
2018 222 241 463
2019 236 256 492
3,668
Sources of Data
The varied data was obtained through inquiry on the proposed demand of
customers of Sun Star LED Garden, Lots for Less and Bao Sheng Enterprises for
marshalling lights and UNITOP and SUGNI Enterprises for Marshalling Paddles.
Consumers
Various AMO Schools in Mindanao (MATS, Metro Davao and various places in Mindanao,
FAA, AISAT, Cotabato AMO, GenSan AMO) Philippines
Projected
Year Actual Production X X² XY
Production YC
2011 326 -4 16 -1304 326.56
2012 371 -3 9 -1113 346.81
2013 336 -2 4 -672 367.06
2014 388 -1 1 -388 387.31
2015 404 0 0 0 407.56
2016 435 1 1 435 427.81
2017 453 2 4 906 448.06
2018 463 3 9 1389 468.31
2019 492 4 16 1968 488.56
TOTAL 3,668 60 1221
Jack-up
Year X YC Original Cost Total Price Total Sales
%
2020 5 509 Php 24.96 45% Php 36.00 Php 18,324
Actual Projected
Year X X² xy
Production Production YC
2011 581 -4 16 -2324 597.12
2012 651 -3 9 -1953 621.45
2013 668 -2 4 -1336 645.78
2014 673 -1 1 -673 670.11
2015 668 0 0 0 694.44
2016 689 1 1 689 718.77
2017 734 2 2 1468 743.1
2018 755 3 3 2265 767.43
2019 831 4 4 3324 791.76
TOTAL 6250 60 1460
Jack-up
Year X YC Original Cost Total Price Total Sales
%
Method Used
The method used to obtain these varied data is statistical straight line method.
The factors which were considered on the forecasting are the supply, demand,
competition, and some certain legalities involved on operating a tool supply depot.
COMPETITIVE POSITION
Prevailing Price
aircraft and traffic control, this marshalling wand quickly attracts attention and has found
Marketing Program
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
to every potential customer, during the opening week, we will be giving flyers for
every graduating aviation students and we will go to every hangar in Davao and
Terms of Sales
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
Our supplier is the Pan Touch & Go Pilot Supply. It is located at 20803
Stuebner Airline Rd, Spring, TX 77379, USA. We choose them as the supplier because
they are giving the unit retail price. Our supplier will deliver the product to our store.
We could help the national economy by paying our income taxes regularly,
declaring everything required by the national law, and having a more productive
Number of Workers
We will aim to employ two (2) security guards, and two (2) driver/utility
personnel for at least a total of four (4) individuals to our company, helping them
CHAPTER IV
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
COST OF SALES
4,351,294.61 5,618,951.97 7,218,189.36 9,231,193.13 11,759,925.88
Gross Profit 1,864,840.55 2,408,122.27 3,093,509.73 3,956,225.63 5,039,968.23
Operating Expenses
Salary(Employees) 517,200.00 517,200.00 517,200.00 517,200.00 517,200.00
Benefits 120,528.00 120,528.00 120,528.00 120,528.00 120,528.00
Electric Bill 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00
Office Supplies/Maintenance 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00
Miscellaneous 12,072.40 12,072.40 12,072.40 12,072.40 12,072.40
Fuel Cost and Maintenance
96,000.00 96,000.00 96,000.00 96,000.00 96,000.00
for Multi Cab
Advertisement 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Water Bill 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Connectivity Cost 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
CENRO 400.00 400.00 400.00 400.00 400.00
Business permits 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Other Expenses 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
Rental for the Office 96,000.00 96,000.00 96,000.00 96,000.00 96,000.00
Depreciation 53,100.00 53,100.00 53,100.00 53,100.00 53,100.00
CHAPTER V
Return of Investment
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560
= 9,919,047.97/5,500,000
= 180%
Return of Equity
Owners’ Equity
= 9,919,047.97/30,944,613.05
= 32%
CPP=3.68 YEARS
CUMULATIVE CASH
YEAR CASH FLOW
FLOW
0 (5,500,000) (5,500,000)
1 716,886.13 (4,783,113.87)
2 1,205,839.69 (3,577,274.18)
3 1,822,688.39 (1,754,585.25)
4 2,599,132.70 844,547.45
5 3,574,501.05 4,419,048.50
Break-even Analysis
MATS COLLEGE OF TECHNOLOGY
R. Castillo St. Agdao, Davao City
Tel. No. (082)225-3756/226-4560