Philippine E-Journals

A Feasibility Study in Establishing a Bicycle and Spare parts Shop with Food and Entertainment in Los Baños, Laguna

Reuben C. Manalo | Janric Demiel L. Inocencio | Amando F. Macalintal Jr.

 

Abstract:

The incredible Hub is a one-stop shop that offers a combination of bicycle repair and maintenance shop, eatery, and entertainment hall with darts and billiards that aim to provide delight for the target market or the cyclists. It is the proposed business selected by the researchers because of the rising trend of biking due to the numerous benefit and convenience it can provide to an individual. The one-stop shop focuses on the usual bicycle spare parts shop and bicycle maintenance and repair services to satisfy the cyclists. It also aims to address the inconvenience brought about by the long wait for the service to be completed. The feasibility study was composed of the marketing aspect, technical aspect, management aspect, and financial aspect. Under the marketing aspect, the researchers were able to come-up with the marketing strategy of introducing and promoting the business through the marketing mix. The demand and supply projection were also determined through a pre-survey and an actual data gathering conducted with the actual cyclists around Laguna. Moreover, the benchmarking in some bicycle shops in Los Baños, Laguna was done. Under the technical aspect, the researchers identified all the necessary information to satisfy the technical requirements of a business such as process flow diagram, cost and expenses of the machines, tools, and equipment, plant location, raw materials and supplies, and the actual computation of the products and services offered and the actual prices. Under the management aspect, the researchers clearly identified the roles and responsibilities of each owner as well as the workers needed in the business. The researchers determined the accounting finances of the business such as the payback period for 5 years, net present value of future cash flows, profitability index, accounting rate of return, and internal rate of return. The return of investment would occur in two years with 55% profit. Thus, the researchers recommended this project to the bicycle shops and to the new entrepreneurs and businessmen who want to have a profitable business.