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Viability of a Local Lugawan Business

The document discusses starting a lugaw business. It notes that lugaw is a popular business model in other areas and presents studies showing the porridge business is thriving. It states the feasibility study is important to understand market acceptance and financial viability before starting. The proposed business will offer 5 porridge varieties, expanding on competitors only offering 2 varieties, to better meet customer needs and demands.

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Jojie Genayas
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36 views1 page

Viability of a Local Lugawan Business

The document discusses starting a lugaw business. It notes that lugaw is a popular business model in other areas and presents studies showing the porridge business is thriving. It states the feasibility study is important to understand market acceptance and financial viability before starting. The proposed business will offer 5 porridge varieties, expanding on competitors only offering 2 varieties, to better meet customer needs and demands.

Uploaded by

Jojie Genayas
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

INTRODUCTION

Lugawan business is an existing business model offered in different parts of the country. It was
noticed that this type of business is non-existent in our locality. The idea is that Lugaw could be the
easiest alternative for people to eat especially of they are in a hurry or to take a light meal. Neri (2020)
presented a study that porridge is a thriving business as evidenced by the growing number of Lugaw in
the city of Manila.

In every business, investors are keener on knowing its viability. Using a business feasibility
study would mean a basis among businessmen to know the market and financial forecast of a certain
business. Morales (2019) explored the essence of business viability as evidence-based specifically market
acceptance and financial capacity. The importance of FS is that it is utilized to provide information on
business viability to know the knowledge before the conduct of the business project (ISU, 2020)

The researchers identified lugaw as a good business endeavor as it was noted that there are only
a few sellers of lugaw in the vicinity, hence to take advantage through innovating the product is
considered. The Lugaw business will offer 5 different offerings as opposed to the existing competitors
with only 2.

Gap – Inability to provide the products to the customer because of: price, availability,

Purpose -

You start by presenting either of the following:

1. Business model. What is your business? What do you think makes your business important in
terms of. Value, product, necessity (or need by the people). You need to insert related studies
(RRL).
Example:

Lugawan business is an existing business model offered in different parts of the country. It was
noticed that this type of business is non-existent in our locality. The idea is that Lugaw could be the
easiest alternative for people to eat especially of they are in a hurry or to take a light meal. Neri (2020)
presented a study that porridge is a thriving business as evidenced by the growing number of Lugaw in
the city of Manila.

2. You offer why a feasibility study is important in starting a business.

In every business, investors are keener on knowing its viability. Using a business feasibility study
would mean basis among businessmen to know the market and financial forecast of a certain business.
Morales (2019) explored the essence of business viability as evidence-based specifically market
acceptance and financial capacity.

Common questions

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In a market like Manila, competition in product variety plays a critical role in success by providing unique and differentiated offerings that can attract consumers. Given the presence of numerous Lugaw vendors, offering a wider or diversified range can improve customer satisfaction and loyalty, enhancing business competitiveness .

Financial capacity influences the evidential basis of business viability by determining the potential for initial investment and continuous cash flow, which are essential for operational stability and growth. Evaluating financial capacity helps in assessing whether the business can withstand financial pressures and meet its economic objectives .

Innovating the Lugaw product can significantly enhance market performance by differentiating the business from competitors and appealing to a broader audience. By introducing new flavors or recipes, the business can meet diverse customer preferences, potentially increasing market share in the new locality .

A feasibility study aids in understanding the financial forecast by projecting potential revenues, costs, and profitability. It evaluates market size, consumer behavior, and competition, providing business entrepreneurs necessary insights to make informed decisions on investments and operational strategies .

Market acceptance is crucial for the business viability of a Lugaw venture as it measures the willingness of potential customers to purchase the product. This involves understanding consumer preferences and ensuring that the product offerings meet their needs, which ultimately supports financial success and sustainability .

The Lugaw business model distinguishes itself by offering five different product offerings, as opposed to its competitors who only offer two. This diversity in product offering can attract a wider customer base and address different customer preferences and needs, potentially enhancing its market viability .

The location significantly impacts the success of a Lugaw business model as it affects customer access, visibility, and market reach. A strategically placed location can drive foot traffic and increase sales, while poor location choices could limit growth despite other advantages such as product variety and pricing .

A Lugaw business might be viable in a locality where it currently doesn't exist because it fills a market gap, providing a convenient meal option that is both accessible and affordable. With few competitors, the business can capture unmet demand and establish a strong market presence early on .

The Lugaw business might face challenges such as setting a competitive yet profitable price that captures consumer interest without sacrificing sustainability. Additionally, ensuring product availability by managing supply chain logistics and maintaining sufficient stock can be demanding, especially in a new market .

Identifying a market gap is crucial as it signifies unmet demand, providing an opportunity for the Lugaw business to capture the market quickly and establish brand loyalty. It can aid in minimizing initial competition, thereby improving the prospects for success .

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