FEASIBILITY STUDY ANALYSIS OF FURNITURE BUSINESS (CASE STUDY ON MICRO, SMALL, AND MEDIUM ENTERPRISES FURNITURE AT CV. XX IN BANDUNG CITY)

Abstract

The furniture industry is one of the industries that is showing positive growth amid the Covid- 19 pandemic that hit the Indonesian economy. In the 2nd quarter of 2020, the impact of the

Covid-19 pandemic on the Indonesian economy was got contraction down to -3.4%. However, the Indonesian economy has recovered quickly due to the role of micro, small and medium enterprises (MSMEs) in furniture industry, thus providing a positive forecast for the Indonesia economy in the future. CV.XX, headquartered in St. Pasirkoja, Sukahaji Village, Babakan Ciparay District, Bandung City, West Java, Indonesia has become one of the micro, small and medium enterprises (MSMEs) in the furniture industry that contribute to stabilize Indonesian economy. Changing the new business model from a Business-to-Business (B2B) in to a Business-to-Consumer (B2C) become a business development effort carried out by CV.XX in reaching a wider range of furniture sales. Business development makes researchers want to know whether the business with the new business model is feasible or not to run. This study aims to determine the feasibility level of Micro, Small, and Medium Enterprises (MSMEs) CV.XX in terms of non-financial aspects and financial aspects. In this study, researcher used qualitative and quantitative methods to process data collection using primary and secondary data. The results of research on non-financial aspects show that several aspects are feasible and not feasible. Although, the not feasible aspects do not affect the business is run. Regarding the financial aspect, with an initial investment of Rp 137,424,791.67,-, the projected cash flow in the 1st year is -Rp215.972.291,67,-, in the 2nd year is Rp -Rp247.272.166,67,-, in the 3rd year is Rp -Rp215.660.388,57,-, and in the 4th year is Rp -Rp92.917.220,53,-. However, starting from the 5th year, it shows a positive cash flow amounting to Rp Rp146.659.632,21,. In summary, this indicates that the amount of money coming in exceeds the amount of money spent to run the business starting from the 5th year. CV.XX also generates a Net Present Value (NPV) of Rp 174.141,491,75,-, which is positive (NPV > 0). The Payback Period is 4 years and 1 months, which is considered feasible since it is less than 5 years.