Sample Techincal Study for Feasibility Study

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					                                       Chapter III

                                 TECHNICAL STUDY

       The Technical Aspect is also a very important part of a business study. This

includes the racetrack location, lay out, machineries and equipment, and utilities. It also

describes services the business will offer and other aspects essential in the conduct of the


Service Description

       Motor Venue Racing Circuit offers racing services to motorcycles within the

underbone category. The major services are the Racetrack Rentals which include

Sponsored Racing and Individual Racetrack Rent, and the Regular Underbone Race.

Minor services include Parking Service and Stall Rentals.

       Sponsored Racings are offered to companies, business firms, motorcycle

associations, and individuals who would like to organize races. What is being offered

here are the use of the racetrack and other racing facilities, and of course a chance for

them to promote their business and build good relationship with motorcycle racers.

Sponsored Racings are scheduled only every first, third and fourth Sunday of a month to

give way for Motor Venue’s other services offered.

       Do you want to try our racetrack? Motor Venue offers a chance for those racers

who wants to try our racetrack’s drag strip, loops and curves. Individual Racetrack Rent

is offered from Monday to Saturday from 8:00AM to 5:00PM.
        No matter who you are, as long as you have the will and the wheels to race, you

can join the Regular Underbone Race. This type of service is open to anyone who is

willing and capable of competing in a motorcycle race. Regular Underbone Racing will

be held every second Sunday of a month.

        Racetrack users and participants are obliged to follow Motor Venue Racing

Circuit General Rules and Regulations.

        Motor Venue Racing Circuit will provide convenient and secured parking service

to spectators.

        If you want to put up business inside Motor Venue Racing Circuit, Stall Rentals is

for you.

Types of Service

        Motor Venue Racing Circuit offers two major types of services: Racetrack

Rentals and Regular Underbone Racing. Minor service includes Stall Rentals.

   Racetrack Rentals

       Sponsored Racing

           The first step in Sponsored Racing is the meeting between the sponsor’s race

    organizer and Motor Venue’s race coordinator. During this stage, the size and length

    of the event, the number of participants and the price to be paid is determined.

           An agreement will be signed to make sure that the price agreed will be paid in

    full after the race whether or not the race will take place.

          If everything is settled during the first stage, the filling up of Reservation

    Forms should be done for the allotment of the racetrack and facilities on the agreed

    date and time.

          Then the race organizer will pay the 50% of the total price as down payment.

          The remaining 50% of the total price will be paid after the race. But in case of

    re-scheduling of race without informing Motor Venue a week before the scheduled

    competition or the race is cancelled during the day of the event, the race organizer is

    still obliged to pay the remaining 50% of the total price as part of the agreement.

          After paying, the sponsor’s race organizer will receive an official receipt.

       Individual Racetrack Rent

          The first step in Individual Racetrack Rent is the filling up of Racetrack Rent

    Form by the individual who wants to use Motor Venue’s racetrack. This form will

    contain the individual’s personal information as well as the records of his or her

    renting dates and time.

          After filling up, the payment for the rent is next which is in an hour basis. Price

    depends on the length of time the individual wishes to use the racetrack written in the

    rent form.

          After paying, a rent ticket which contains the time-in and time-out will be

    given to the racetrack user which is to be given back after using the racetrack. And if

    there is an over time, the individual is obliged to pay the due.

   Regular Underbone Race

        Motor Venue Racing Circuit will be sending invitations and application forms.

But those who were not able to receive one but have the will to compete can join by

simply filling the application form during the competition day. This is important so as for

Motor Venue to have a record of the participants.

        After filling up the form, the participant will pay the racing fee to the Motor

Venue Race Committee.

        Then the participant’s motorcycles will be checked by the members of the race

committee to ensure safety as well as to make sure that there is no bias in the race

category designation. If the motorcycle passed the safety standards, a motorcycle

clearance will be issued including the race category designation.

        Race category schedules will be set up by the Motor Venue Race Committee.

        After the race, winners will be awarded.

   Stall Rentals

        The first step is the filling up of Stall Rent Form which will contain the owner’s

personal information and rent payment information.

        After filling up the Stall Rent Form, an agreement will be signed containing the

rules in rent fee payment and conditions. And then, down payment and one month

advance payment must be paid to the receptionist-cashier.


       All spectators, both of the Racetrack Rentals and Regular Underbone Race, will

        be charged with spectator’s fee.

       Payments are non-refundable for all Motor Venue’s services.

       All Motor Venue Racing Circuit forms and contracts include waiver.

Service Process Flow

      Racetrack Rentals

            Sponsored Racing

                           Meeting between the sponsor’s
                             race organizer and Motor
                             Venue’s race coordinator

                                 Signing of contracts

                           Filling up of Reservation Forms

                              Down payment to Motor
                              Venue’s race coordinator
                               (50% of the total price)

                              Race competition proper

                             Balance payment to Motor
                             Venue’s race coordinator
                            (Remaining 50% of the total

                                 Issue official receipt
            Individual Racetrack Rent

                            Filling up of Racetrack Rent

                                 Payment of rent fee

                           Issue Rent Ticket

                         Usage of the racetrack

                       Issue Rent Clearance Form
                      upon receiving the issued rent

   Regular Underbone Race

                       Distribution of invitation or
                             application form

                       Receive confirmation from

                        Payment by participant
                     (Motor Venue Race Committee)

                      Issue Motorcycle Clearance
                      which includes race category
                        designation and schedule
                          (Motor Venue Race


   Spectators

                         Payment by spectator

                                Issue spectator’s Admission


       Stall Rentals

                               Filling up of Stall Rent Form

                                    Signing of contracts

                               Down payment and one month
                                    advance payment

                                      Usage of stalls

Machineries and Equipment

        Motor Venue Racing Circuit will be needing various machineries and equipment

to be used in carrying out the business.

Table 2: Machineries and Equipment

       Item         Quantity        Description         Unit Price   Total   Life
                                                         (Php)       Cost    Span

                       Office Equipment and Supplies
Complete set       1        Will consist of: 100,000        100,000    10 yrs.
of Sound                    - Power 2
system                          channel
                            - Speaker S-
                            - Instrumenta
                                l 18” and
                            - Tweeter
                            - Trumpet
                                horn set
                            - Player
                            - Microphone
                            - Equalizer
                            - Mixer
                            - Box for 18”
                            - Box base

    Item        Quantity     Description       Unit Price    Total      Life
                                                (Php)         Cost      Span
Lighting           1       Will consist of       5,000       5,000      3 yrs.
system                     the lights
                           needed in the
                           whole racetrack

Emergency          1       Used for             200,000     200,000   10 yrs.
vehicle                    transportation
(second hand)              especially for
Electric           1       To be used in        150,000     150,000    10 yrs.
generator                  case there is no
                           supply of
Computer set       1       Used in office       29,000       29,000    10 yrs.
                           filings, printing
                           and saving

Printer              1       For business        5,000       5,000     10 yrs.
Telefax              1       Used for faster     6,000       6,000     10 yrs.
                             transfer of
Centralized air      2       For ventilation     52,948     105,896    10 yrs.
conditioning                 of the office
units                        building
Telephone            5       For                  800        4,000     10 yrs.
units                        communication
                             within and
                             outside the
Calculators          2       For calculating      500        1,000     10 yrs.
Dust Pans            5       For business          30        150        1 yr.
Hand Soaps           4       For business         250        1,000    6 months
Pails               10       For business          40        400        1 yr.
Rugs                10       For business          20        200        1 yr.
        Item      Quantity     Description     Unit Price   Total      Life
                                                (Php)        Cost      Span
Doormats             5       For business          30        150        1 yr.
Electric fan         1       For business        1,000       1,000     10 yrs.

Fluorescent         20        For business         150       3,000      10
lamps                         purposes                                months
Fire                 4        For safety          1,500      6,000    10 yrs.
Extinguishers                 purposes
                             Furniture and Fixtures
Office chairs        9        Used for sitting    1,200     10,800     10 yrs.
                              purposes at the
Office Tables        8        For office          1,500     12,000     10 yrs.
Reception            1        Where               3,000      3,000     10 yrs.
table                         receptionist
                              carry out

Reception                 1      Used by the            1,000       1,000      10 yrs.
chair                            receptionist
Monobloc                  30     For business           240         7,200      10 yrs.
chairs                           purposes
Monobloc                  5      For business           900         4,500      10 yrs.
tables                           purposes
Sofa set                  1      For the lobby          3,000       3,000      10 yrs.
File cabinets             4      For filing              516        2,064      10 yrs.
Large trash               10     For waste              500         5,000       5 yrs.
cans                             disposal
Wall clock                3      For business           300          900        5 yrs.
Exhaust fan               5      For business           1,000       5,000      10 yrs.
                                   Clinic Equipment
Hospital bed              1      For medical            5,000       5,000      10 yrs.
Medicine rack             1      For keeping            4,000       4,000      10 yrs.
                                 medicines and
                                 medical tools


       Water

                Tanauan Water District will supply water to Motor Venue Racing Circuit

        with an estimated monthly bill of Php 4, 000.

       Electricity

                The Batangas Electric Cooperative II (BATELEC II) shall supply

        electrical energy. The business is estimated to consume Php 9, 000 worth of

        electric power.

       Telecommunication

               PLDT will provide telephone services and internet connection for online

       inquiries and advertisements to Motor Venue Racing Circuit with a probable

       monthly bill of Php 3, 000.

Waste Disposal

       There would be not much waste produced in the operation of the business.

Garbage will be disposed in trash cans and collected twice a week by garbage trucks

hired by Motor Venue Racing Circuit since there is no garbage collection in Brgy.

Bañadero by the garbage trucks of Tanauan City.

Racetrack Location

       The researchers decided that Motor Venue Racing Circuit will be situated at Brgy.

Bañadero, Tanauan City, Batangas. This is an ideal place for racing circuit since it suits

the size of lot needed at a comparably low price, it is accessible by the market,

transportation is easy and the supply of electricity and water are present.

Racetrack Layout

       Motor Venue Racing Circuit will occupy a 5-hectare lot which is a right size of a

typical racing circuit. Within that 5-hectare lot are the racetrack, main building, food stall

rentals, grandstand, pits and parking lot.

Racetrack Location Map

                                                     To Talisay

                                                                Motor Venue Racing Circuit
                                                                  Brgy. Bañadero, Tanauan City

                                             To Brgy. Bilog-bilog


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Description: Example of a complete technical aspect of a feasibility study of a Racing Circuit Business Venture