Feasibility Study for TWC Alteration Shop
This feasibility study aimed at establishing an alteration shop as an income generating project of TESDA Women's Center (TWC). The TWC Alteration Shop will focus on a niche market segment, the captive clients or those in the vicinity of the TESDA Complex. The TWC Alteration Shop's target markets are those individuals who are seeking for quality alteration services and have no time to go to other places to have their clothes repaired. Marketing strategy will show people that the Alteration Shop has great service and convenient accessibility at an affordable rate. The services will be a range repairs available at both malls and local dressmaker or tailoring shops. The Alteration Shop's pricing will be less expensive compared to the high-end competition in order to penetrate the market while emphasizing convenience as well as competence in the work through highly skilled employees. Average price of services is at P70.00. The shop will be implementing a low cost promotion campaign which will include flyers, banners and tarpaulins installed at strategic areas of the TESDA Complex. TWC Alteration Shop will be directly under the supervision of the TWC Center Chief. The functions of Marketing, Finance and Administrative will be handled by the trainer as Head Manager while the Head Sewer shall be in charge of the Production aspect. Personnel for the Alteration shop will be a graduate of Dressmaking NC II Training Program. There are two functioning groups within the Alteration Shop: Production and Marketing, Finance and Administrative. Production involves the Head Sewer and Assistant Sewer, who will be operating the repairing and altering clothes for the customers as well as the daily inventory and maintenance of equipment and facilities. Marketing, Finance and Administrative will handle the promotion of the shop and as well as managing the training of employees, purchase and request, and monitoring of financial performance. With the financing carried by TWC and the labor costs cut back by Dressmaking NC II trainees, income is expected to be derived from the first year of operation until the fifth year projection. Net income for the first year computed at Php 1,950.50 or 2.70% Return on Investment. However, this will eventually increase year on year and net income will reach Php 26,870.10 by the second year. Return on Investment is computed at 37.40% by the second year which is significantly efficient in terms of generating income for every peso of asset invested in the business. Based on the projected cash flows, payback period is 1.87 years to cover the tools and equipment of the alteration shop. The proposed income generating project is deemed feasible and viable. It is therefore recommended for implementation for year 2018. Further studies on expanding the services and increasing productivity of employees are also suggested.