Measurement of Feasibility and Risk Level on Modern Embroidery Kebaya Boutique Establishment in Jakarta

Abstract

Business X is a creative business in Kebaya clothing, fabrics, and modern embroidered batik. The survey states that many medium business category turn into micro businesses due to the increasing number of imported textile products, resulting in a narrower market share. Under this condition, the company decided to create a Business X boutique considering that the products were not sold alone but at department stores that has a very high competition because of the large apparel industry continued to expand its business. In this paper, a feasibility analysis and the risk level measurement of the opening of this boutique are carried out. The market aspect begins with the distribution of questionnaires to obtain the demand and income projections. The technical aspects is for determining location using factor rating, layout and funding needs. Financial aspects estimate sales revenue and cashflow. The calculation results show NPV>0, PBP in 2, 989 years, and IRR(40%)>MARR(10.99%), it can be concluded that the Business X boutique establishment is feasible. The risk is 21.7% and with a MARR (10.99%), the rate is 32.69%. Based on the rate value that is smaller than the IRR(40%) and NPV>0, then by observing the level of risk, this business is feasible.