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Here is a Simple example of Business Feasibility Study I did for a client. Do note that Business feasibility study or plan may be more complex than this example here. But for the sake of snappy work, I shall make mine as simple as possible.

Simple Example Of Business Feasibility Study

1.     Executive Summary

The transportation business in Nigeria is a major contributing factor to the economy of the country.  With major transporters in the country providing transportation services both intra-city and interstate, the transportation business have proven to be an important business, providing great solutions in the country. While the transportation business in the country have grown over the years, it is still clear that there is still a lot of challenges facing the country which the business have not been able to solve. The transportation business still very much holds great opportunities for industry players who are ready to leveraging existing technologies, industry best practices, and an aggressive marketing to enjoy an awesome market share in the transportation industry in Nigeria.

2. Description of the business

With the collapse of the rail system in Nigeria, inter-city and intrcity transportation using vehicles have assumed wider dimension and has become the most utilized way of movement of people, goods and services.

This report seeks to examine viability of starting and growing an interstate  transportation company in Nigeria using at least 50 hummer buses and 50 sienna buses. The with focus on the route, Owerri to major Nigeria capital cities like Lagos, Abuja, Kaduna, kano, Awka, Uyo, Portharcout, Enugu, Oyo, and Benin city

3. Market Description

The market for the intercity transportation business in Nigeria is very massive. With a population of over one hundred and seventy million (170,000,000) people and an estimated national population growth rate of 5.7% per annum, average economic growth rate of 3.5% per annum in the past few years, Nigeria is a large, expanding and sustainable market for inter-city transport business.

Revenue will be generated from the sales booking tickets. The transport company can generate a lot of income leveraging on available technology such as online booking and payments. Industry best practices such us excellent customer services, quality control, best ticket sales deals etc.

 

4. Description of Products and Services.

The transport company offers the following services

  • Interstate traveling services for general passengers, cooperate and executive services.
  • Light cargo transportation services.

Interstate traveling services for general passengers: here the company conveys individual passengers from one state to the other. Passengers comes to the company’s bus terminal to buy tickets or they book on online. With the ticket they board the bus assigned for the day to travel to their destination.

Interstate traveling services for cooperate and executive services: here the transport company is hired by an organization to convey its member from one state to another. The client organization books either online or manually and ahead of time.

Interstate traveling services for executive services: here individuals can hire the transport company’s bus and driver for private services. This is for individuals who do not wish to travel with general passengers.

Light cargo transportation services: here the transport company conveys, light packages from one state to another. Individuals sending the packages buys a booking ticket manualy or online and is given a tracking number. Which the receiver from the other state, using to collect the package from the company’s bus terminal.

 

5.      Organization and Staffing

The transport company will be a limited liability company registered with the cooperate affairs commission.

Licenses and permits are needed from the following bodies

  • Ministry of transportation from states where terminals exists
  • Federal Road Safety Corps
  • National Union of Road Transport Workers.

Staffs

General Manager: He over see’s the business affairs nation wide.

Needed skills: Good management and communication skills.

Qualifications: Minimum of HND in Transport Management Technology.

Human Resoure manager: He is incharge of all staffs and ensure excellent working condition for staffs.

Needed skills: Good management and communication skills.

Qualifications: Minimum of HND in Human Resource Management.

Terminal Managers: Is incharge of bus terminal operations and staffs activities.

Needed skills: Good management and communication skills.

Qualifications: Minimum of HND in Transport Management Technology.

 

Accountant:  Is incharge if company’s account.

Needed skills: Good accounting management skills.

Qualifications: Minimum of HND in Accounting.

 

Sales Personels: They incharge of tickets sales at bus terminal.

Needed skills: Good management and communication skills.

Qualifications: Minimum of OND in any field of study.

Drivers: They are in charge driving the buses.

Needed skills: Good driving, customer relations, and communication skills.

Qualifications: Minimum of five years experience in driving

Loaders: They are in charge proper arrangements of customers luggage into the bus.

 

6. Risk assessment:

The risk involved in this business  includes:

1) Fire outbreak in bus terminal.

2) loss of lives and bus in road accidents

3) total breakdown of buses in short time.

But this risk can minimized by observing and adhering to safety rules at bus terminals.  Also training drivers on safety practices for road usage.

Proper checkup and maintenance routines for the buses will help them last longer.

 

Marketing Plan

The business will leverage on information technology to increase sales of traveling tickets by promoting online booking and payments.  It will also maximize the potentials of digital marketing to reach more customers.

adverts on electronic and promotional events will help the business get a good size of the market share.

Most of the digital marketing strategies and promotional event will be targeted to attract people within the age of 17-35. With this we will win the heart of the most active travellers.

Excellent customer care services from bus terminal to travel destination will also help us get more customers.

Financial plans

The financial requirements for starting the transport company and running it for the next 12 months are listed below.  These figures accounts for business registration, licenses and permits acquisition, land acquisition, cost of building terminal, acquisition of buses, Staff  requirements, administrative and operational material, insurance costs,  cost of training needs, and website, server and hosting costs.

 

-Business registrations = N1,000,000

-Licenses and permits acquisition = N5,000,000

-Land acquisition ( 4 plots of land inside owerri city) = N100,000,00

-Cost of building terminal= N100,000,000

-Acquisition of buses  requirements (brand new 50 hummer buses and 50 Sienna buses) = N1,500,000,000

-Administrative and operational material = N50,000,000

-Insurance costs = N5,000,000

-Staff  requirements= N30,000,000

-Cost of training needs = N2,000,000

-Website, server and hosting costs.  = N 5,000,000

-Marketing needs= N20,000,000

Total=N1,818,000,000

Projected Revenue

If a the bus operates effectively for a year, it turns in a minimum of N3,120,000 per annum.

100 buses = N312,000,000 per annum.

Evaluation and Conclusion

The intercity transport business in Nigeria might seem very expensive to start, but with the growing population and economic activities it is a very lucrative business that yields high returns on investment if properly managed.

From the financial projections, am sure profit will increase as the years go bye as the company scales up and grow it’s market share.

I therefore recommend that the business is viable.

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