Business Feasibility Analysis of Crispy Mushrooms from Oil Palm Bunches

Abstract

This study elaborate the business feasibility analysis of crispy mushrooms of oil palm bunches from the marketing, technical, and financial aspects. Surveys were conducted on 225 businessmen and 250 consumers in Riau, Indonesia. In terms of marketing, the results of the survey showed that 96 percent of the consumers has an interest in the product, and 92 percent of those was found to like it. The business is also highly feasible to be managed because the main and supporting materials are easily accessible, the workers need no special expertise, and the production process requires relatively simple technology. The financial analysis expects the product to be commercially profitable with a positive NPV value, IRR greater than the rate of return, PI greater than 1 (one), and PP shorter than the length of the investment. Thus, the business is expected to develop and become profitable.