IJRR

International Journal of Research and Review

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Year: 2024 | Month: January | Volume: 11 | Issue: 1 | Pages: 583-590

DOI: https://doi.org/10.52403/ijrr.20240165

Feasibility Study Analysis of the Def. Flodeco Decoration Services Business in Bandar Lampung

Yuni Marlina1, Vonny Tiara Narundana2

1Management Student, 2Management Lecturer,
Faculty of Economics and Business, Bandar Lampung University, Jl. Z.A Pagar Alam No.26 Labuhan Ratu, Kedaton, 35142, Bandar Lampung, Indonesia

Corresponding Author: Yuni Marlina

ABSTRACT

Def.flodeco is a service business that has great potential in the development of current service businesses because an event requires a concept to make it look attractive. This business is facing a reduction in income during the Covid 19 pandemic, which is affecting the viability of the business. This study aims to determine the feasibility of Def.flodeco in developing its business. This research method applies an explanation of business viability from non-financial aspects such as market aspects and HR management. Then it uses financial aspects such as payback period, net present value, profitability index, internal rate of return, and break event point analysis. The results of this business feasibility analysis were declared non-financially and financially feasible. With the financial results, it is explained that the value of BEP for five years is IDR 116,315,817, PP with a period of 2 years 3 months 18 days, NPV is IDR 17,587,302, PI is 1,135, and IRR is 14.04%. This proves that the Def.flodeco business is suitable for development because every financial analysis carried out meets investment criteria. Suggestions for this business are to pay attention to other aspects for the smooth running of the business, namely the prices offered, the quality of rental goods, service, innovative desires of customers, and companies need to carry out promotions and content for decoration activities actively on social media.

Keywords: Business sustainability, non-financial aspects, financial aspects.

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