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Analysis of the Feasibility Study Bussiness on MSMEs Qi_Pastry Cake Shop Development

In: Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022)

Author

Listed:
  • Maya Asria

    (Universitas Negeri Padang, Department of Management, Faculty of Economics and Business)

Abstract

The research aims to measure the business sustainability of Qi_Pastry Cake Shop through the evaluation of non-financial and financial factors. Feasibility analysis involves evaluating non-financial aspects such as production and marketing in an application. The analytical tools applied for financial factors involve Payback Period (PP), Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index (PI), to assess the feasibility of a business. The findings indicate that Qi_Pastry Cake Shop is viable from a production standpoint, attributed to its strategic and accessible location, the use of modern technology, and a straightforward production process. In terms of marketing, the business is well-positioned due to the high quality of its products—some of which use imported ingredients—affordable pricing that appeals to a broad customer base, extensive distribution, and effective owner-led promotions that boost product awareness. The financial analysis further supports the business’s feasibility, showing it to be profitable over a 14-year project life at a 10% discount rate. The feasibility indicators reveal a Payback Period of 1 year and 1 month, with a Net Present Value (NPV) of Rp 326,562,092, and a Profitability Index (PI) that confirms its financial attractiveness.

Suggested Citation

  • Maya Asria, 2025. "Analysis of the Feasibility Study Bussiness on MSMEs Qi_Pastry Cake Shop Development," Advances in Economics, Business and Management Research, in: Firman Firman & Shuhymee Shuhymee & Rangga Handika & Muhammad Rizky Prima Sakti & Astri Yuza Sari & (ed.), Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022), pages 1764-1770, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-839-4_137
    DOI: 10.2991/978-94-6463-839-4_137
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