Sample Feasibility Study

MEMORANDUM

INTRODUCTION

It has been four years since InfiniTea was first opened and it has become quite popular with the students of Oregon Institute of Technology (OIT).  That is why we have decided to research the feasibility of remodeling InfiniTea by adding an upper floor.

FEASIBILITY OF EXPANSION

There are several reasons why we are confident that expanding the shop is feasible for InfiniTea.  All of our motives for adding a second floor are aimed at helping the students and locals of Klamath Falls succeed at what they love to do, whether it be through music or art.  By helping the community, our business will in turn continue growing.

Music

Many of the students have taken advantage of the opportunity to share their music on weekend nights.  The result is that it has been increasingly crowded inside the shop.  Fliers are posted around OIT about the next show and students flood the shop each weekend to hear the latest line-up of songs.  Having a second floor will permit us to build a bigger stage and give more room for listeners.  Having a larger stage will allow a full band to perform which will open doors for various music genres.  All of these features will bring in more customers.

Art

Having an upstairs makes even more room for artists and OIT students to post their artwork in the shop.  The opportunity to post artwork has been embraced by a significant amount of locals.  So much so that we are unable to leave their pieces on the walls for long periods of time because we have to switch it out for a new artist.  Having an upper floor would create a lot more wall space for an art gallery.

Students

We plan on sound proofing the upper level so that the students who want to study can stay downstairs and not be distracted.  Some students have avoided coming on weekends to study because of how crowded it gets during the performances.  The lower level will now be reserved for conversation and study.

FINANCES

After four years of business, our company has raised enough funds for the addition of a second story to InfiniTea.  We still need to pull a loan of $30,000 for part of the cost, but our company funds can cover the majority of the expenditures.  Even though InfiniTea has to close for a few weeks for construction, we still consider this to be a doable project.  We are certain that we will gain even more customers and more funds after this remodel is finished.

CONCLUSION

We believe that this remodel is both feasible and advantageous for our company.  The result of having more room and more music genres is that it will bring in a lot more following.  More students will feel welcome to study here on weekend nights since the lower floor won’t be as disruptive.  We have the finances to be able to expand and are certain that this change will be gladly accepted by our patrons.  InfiniTea has become one of the town’s biggest weekend hot-spots, which makes us confident that with more room, even more customers will come.

CC:   Hannah Thompson, Co-Owner

         Andrew Carter, Manager

         Crystal Lewis, Assistant Manager