I.

INTRODUCTION

The Calinan of today has gone far from its unrefined beginning to a flourishing and developing community. Standard of living and the way of life improved. People have reached the supremacy of sophistication resulting to higher demand for goods and services to satisfy their needs and wants. Cultures in politics, health and public services, economic, socio-economic, and tourism are altered to conform to the undying needs of the society. Even in the world of education, Calinan has perked up resulting to the e istence of different learning institutions. !n connection to this, students, faculty and other members of the academe, and office employees" demand for services and products that are essential to their field of interest hikes. !n respond to this, many businesses have been established to meet such demands. #owever, the proponents observed that a one stop shop catering both photocopying and merchandising of school and office supplies services is of great need to capture the unsatisfied demand of the prospect customers supported by the survey conducted showing that $%& and '(& of the respondents believe that their demands for photocopying services and merchandising services respectively are not met by the e isting businesses. The proposed business aims to get hold the demands of the students and faculty of the different schools located in the vicinity of the business" proposed location namely) #oly Cross College of Calinan* Calinan +ational #igh School* ,t. Cipriano -illafuerte Sr. Elementary School* and Calinan Central Elementary School.

A. OBJECTIVE OF THE STUDY This study aims to determine the feasibility of establishing a .ultipurpose Cooperative in Calinan, /avao City.

This study also aims to merchandise office and school supplies and to offer photocopying services that the targeted customers would like to avail.

!t also seeks to determine the si0e of the prospective market and other aspects related to the success of the cooperative.

B. SCOPE AND LIMITATIONS

The main focus of this pro1ect study is the feasibility of the proposed .ultipurpose Cooperative in Calinan, /avao City. ,ike most business proposals, feasibility criteria have ma1or aspects that need to be considered in arriving at final conclusions and recommendations. The aspects that need to be factored into this study are divided into pro1ect summary, marketing, organi0ation and management* the technical, financial, socio- economic aspects, and legal aspects. 2esponses to the 3uestionnaire were limited to students, faculty and members of the academe, and employees, both government and nongovernment doing their field of interest near the vicinity of the proposed location in Calinan. They were considered as the target market since they are the most likely buyers of the goods and services offered by the proposed cooperative. 4nly those who were identified as part of the target market were considered and given the chance to answer the 3uestionnaires regarding the establishment of the multipurpose cooperative.

C. SIGNIFICANCE OF THE STUDY

The intention of this study is to aid, guide, and assist the proponents in determining whether or not to establish the business. This study would help the #oly Cross College of Calinan 5dministration in determining the viability of establishing its Student .ultipurpose Cooperative in Calinan.

D. METHODOLOGY

5 pro1ect summary should be prepared to present the highlights and the 6capsule view7 of the whole pro1ect. .oreover, market study is to be conducted to determine the market demand for the proposed pro1ect. Technical analysis should be done the discuss the nature of the product line, the technology necessary for the operation and its availability. !nasmuch, financial pro1ections should be considered to present the overall financial picture of the first five 89: years of operations of the business. Socioeconomic feasibility likewise should be prepared to discuss the effect of the pro1ect on the society and on the economy as a whole. ;inally, management and organi0ation analysis should also be done to identify the management structure of the proposed pro1ect.

II.

PROJECT SUMMARY

5. NAME OF THE ENTERPRISE: <usiness Students" .ulti-Purpose Cooperative 8<S.PC: The prospect members of this business organi0ation are the current <usiness students as well as the <usiness Students 5lumni of #oly Cross College of Calinan = College /epartment who are interested to become members of the proposed cooperative. >ith this reason, <usiness Students"

.ulti-Purpose Cooperative 8<S.PC:, the cooperative"s name, reflects the field of interest of its corporators and members. #owever, it does not necessarily mean that it will e clusively cater its services to the business students of the said institution only. This cooperative also wishes to serve other potential customers around its vicinity.

<. LOCATION: /uyac Street Calinan, /avao City /uyac Street is the proposed location of the proposed cooperative due to following reasons) The location is accessible to the potential customers which include not only the #oly Cross College of Calinan students and faculty but as well as the students and teachers of the neighboring schools namely) Calinan +ational #igh School, Calinan Central Elementary School, ,t. Cipriano -illafuerte Elementary School.

The location is strategically situated to cater the needs of the settlers of the community where the proposed firm is to be established. The mentioned settlers could be the students and teachers studying in the city, office workers, household members who need school and office supplies and services such as photocopying and merchandising.

The proponents observed that in the proposed location only few enterprise has e isted that will somehow meet the growing demand of the customers for school and office supplies as well as for photocopying services in 1ust one stop shop.

.oreover, these are the considered factors which affect the choice of location) The sources or the suppliers of merchandise 8 ;elcris Calinan and +CCC Supermarket Calinan: to be sold to the prospect customers is located near to the proposed location- an edge on the enterprise"s part. The pro imity of the suppliers to the enterprise"s location allows the enterprise to minimi0e its transportation e penses, freight in and other related e penses. !nasmuch, the human resources 8#CCC <usiness Students 5lumni: needed in running the enterprises are living near the enterprise"s location. The mode of transportation in reaching out the different suppliers from the enterprise"s location is tricycle. The suppliers can also be reached through walking. Since it is the first operation of the enterprise and because of limited availability of funds, the proponents decided to lease the e isting stall found in the proposed location.

C. DESCRIPTIVE DEFINITION OF THE PROJECT The proposed enterprise is in line with government encouraged undertaking supported by 2epublic 5ct +o. $9?@, also known as the APhilippine Cooperative Code of ?@@(A, 5rticle ?) Declaration of Policy.- !t is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social 1ustice. The State shall encourage the private sector to undertake the actual formation and organi0ation of cooperatives

and shall create an atmosphere that is conducive to the growth and development of these cooperatives. AToward this end, the Bovernment and all its branches, subdivisions, instrumentalities and agencies shall ensure the provision of technical guidance, financial assistance and other services to enable said cooperatives to develop into viable and responsive economic enterprises and thereby bring about a strong cooperative movement that is free from any conditions that might infringe upon the autonomy or organi0ational integrity of cooperatives. A;urther, the State recogni0es the principle of subsidiarity under which the cooperative sector will initiate and regulate within its own ranks the promotion and organi0ation, training and research, audit and support services relative to cooperatives with government assistance where necessary.

D. PROJECTS LONG-RANGE OBJECTIVE !n ten 8C@: years time, after its first operation the enterprise envisions to eventually buy the lot and the space which the enterprise is currently leasing, if the owner sells it. The enterprise will ac3uire additional photocopy machine and a computer set to intensify the services it offers. /uring this time it can be able to generate employment, contribute to the Calinan"s economic development through paying ta es.

Actions Inauguration / Opening of Business Business Operation Proper Purchase of one (1) additional colored photocopying machine Additional Business Line Store !pansion Additional manpo"er (# personnel) Increase in $ar%et Share

Year Year Year Year Year Year Year Year Year Year 1 X X X X X X X X X X X X X X X X X X X X X X X X 2 3 4 5 6 7 8 9 10

E. FEASIBILITY CRITERIA

The guidelines to be used in 1udging the feasibility of the enterprise are) 8C: profitability = the ability of the organi0ation to utili0e its assets, resources to generate a reasonable and sound rate of return* 8?: Boing Concern 5bility = the capacity of the enterprise to continue its e istence regardless of the instability of the economy and its ability to continuously serve the community* 8D: Socio-economic !mpact = the ability of the business to serve the community where it belongs by 1ob creations, ta payments, and alleviation of members" standard of living.

F. HIGHLIGHTS OF THE PROJECT i. Histor The pro1ect came about because of the ma1or problems of the #CCC students especially of the college department with regard to the number of hours that the services of the bookstore, which is

situiated inside the campus, are available. The students find it inconvenient because every time they have to buy school supplies the bookstore is not always open. >ith regard to the photocopy service of the school, most of the students find the e isting price they are offering burdensome which is evidently more e pensive than that of the prices offered by the same line of business outside the campus. 5s a result, the proponents have decided to propose this pro1ect to establish a one-stop-shop photocopying and merchandising school supplies services to answer the clamor of the #olycrossians and to meet the e isting demand of other potential customers.

ii. Pro!"#t Ti$"t%&'" %() St%t*s The research pro1ect started with the identification of the proponents and the prospect study. The feasibility study of the proposed business is e pected to be done in less than a year. /uring the first month of the entire study the proponents will identify the type of business, location, history, nature of industry, mode of financing, investment cost and ma1or assumptions. .oreover, from first to the si th month, the proponents will conduct market, technical, and socio-economic survey, as well as economic survey for C/5 8Cooperative /evelopment 5uthority: registration. 5t some point on the seventh month, the proponents will finali0e, review, and harness the totality of the feasibility study for final presentation and approval. Supposing that the feasibility study is approved, on the seventh month the proponents will look into

consideration the preparation of the proposed business site. Throughout the seventh up to the ninth month, business permit and C/5 registration will be processed. ;urthermore, on the ninth to the tenth month, hiring and training of personnel will occur. Purchase of machineries and supplies for merchandising and photocopying services is e pected to materiali0e on the tenth to eleventh month. ;inally, on the twelfth month, the business will commence its operation. iii. N%t*r" o+ t," I()*str The proposed pro1ect is a cooperative type of business. !ts product lines are photocopying services and merchandising of office and school supplies. The business aims to meet the e isting unsatisfied demand of the target customers by providing the demanded products and services. i-. Mo)" o+ +i(%(#i(. The sources of funds include the paid-in capital of the corporators, members of the proposed cooperative, and #CCC College 5lumni = <usiness /epartment, and borrowings from lending institution. The accumulated funds will be used for downpayment in purchasing the machineries and e3uipment. Portion of it would be spent for the purchase of inventories, rental pre-payments, and store renovation.

The proponents decided to borrow certain amount from lending institution since the paid-in capital of the e pected members is insufficient to cover up the needed initial investment. !n the case of the machineries and e3uipments purchased on account, the obligations will be paid through monthly installments. The accounts payable due to the lending institution will also be settled monthly. -. I(-"st$"(t Cost To make the pro1ect operational the re3uired funds should amount to Php C((,E@@.

The Php C((,E@@ will be allocated to the following) /*%(tit ? C ?

1 7 4 2

It"$ Photocopying machines Computer Set Electric ;an 8Stand ;an: ;urniture and ;i tures
Bench Office Chairs Office Tables Display Shel es

U(it Pri#" Tot%' Php %@,@@@ Php (@,@@@ D9,@@@ D9,@@@ ?,@@@ %,@@@ CD,E@@
300 200 500 5,000 300 1,400 2,000 10,000

.erchandise !nventory 4ffice Supplies Pre-paid rent 8? months: D,@@@ TOTAL P,0

D@,@@@ 9,@@@ ',@@@ 1223455

G. MAJOR ASSUMPTIONS -i. M%r6"t F"%si&i'it

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There are already e isting businesses catering photocopying services and merchandising of school supplies that are operating in the place where proposed business is to be established. #owever, the proponents found out that they are not efficiently and satisfactorily meeting the demands of the customers. These unsatisfied demands now constitute a portion of the total market share of the proposed business. These unsatisfied demands will be met by employing marketing strategies such as discounts on volume sales, value added services, 3uality controlled products and services, and promotions.

-ii. T"#,(i#%' F"%si&i'it The proposed cooperative will cater two lines of business which are) photocopying services and merchandising of school supplies. !n terms of merchandi0ing school supplies, the proposed business will be selling varied supplies in retail. !n addition, during its operations, the business will be using two photocopying machines, a computer set, stand fans and furniture and fi tures. -iii. Fi(%(#i%' F"%si&i'it /uring the first two years of operations, the business e periences losses because it is still on the process of ad1ustment. #owever, during the succeeding years it has earned reasonable net surpluses which are indicators of its ability to earn return out of the invested resources.

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,ooking into the financial ratios, the business is said li3uid throughout its first five years of operations. !n terms of its financing, the business e3uity is mostly financed by the members" investments. There is a positive relationship between the return on sales and the fi ed asset. i7. So#io-"#o(o$i# F"%si&i'it The business operations will give rise to employment and distribution of income. E3ually, the standards of living of the employed individual as well as hisFher family will also improve. .ore income in the hands of the people would mean greater demand for goods and services. Thus, it does not only benefit the individuals and families but the entire economy as well, in accordance to the provisions of the 2epublic 5ct $9?@ under 5rticle ' which states that) 6P!rposes of Cooperati es. = 5 cooperative may be organi0ed and registered for any or all of the following purposes) 68C: To encourage thrift and savings mobili0ation among the members* 68?: To generate funds and e tend credit to the members for productive and provident purposes* 68D: To encourage among members systematic production and marketing* 68%: To provide goods and services and other re3uirements to the members* 689: To develop e pertise and skills among its members* 68': To ac3uire lands and provide housing benefits for the members* 68E: To insure against losses of the members* 68(: To promote and advance the economic, social and educational

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status of the members* 68$: To establish, own, lease or operate cooperative banks, cooperative wholesale and retail comple es, insurance and agriculturalFindustrial processing enterprises, and public markets* 68C@: To coordinate and facilitate the activities of cooperatives* 68CC: To advocate for the cause of the cooperative movements* 68C?: To ensure the viability of cooperatives through the utili0ation of new technologies* 68CD: To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation* and 68C%: To undertake any and all other activities for the effective and efficient implementation of the provisions of this Code. 7. M%(%."$"(t F"%si&i'it The management structure of the proposed business follows the typical structure of cooperative organi0ation. !n the highest hierarchy is the general assembly composed of all the members followed by the board of directors who formulates policies and rules for the affairs of the cooperative. Gnder the board of directors are the officers who directly manage the daily business operations. ,astly are the staffs who are involve in the daily business transactions. The salary scales of the mentioned officers are based on the provisions of 2epublic 5ct $9?@ or also known as the PHILIPPINE COOPERATIVE CODE OF 8552.

III. A. SERVICE DESCRIPTION

MAR9ET STUDY

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The proposed business pro1ect will cater two business lines namely photocopying services, and merchandising of school and office supplies. The students, teachers and other members of the academe of the schools mentioned earlier as well as the people residing within the vicinity of the proposed business location who need such services are the ma1or customers. B. DEMAND ANALYSIS The target markets are the students, teachers and members of the academic institutions that the business endeavors to serve. The target markets are classified according of the type of services they demand. <ased on the survey conducted out of C9@ respondents, ((& said that they are not satisfied with the services of e isting photocopying services and 9( & of them believed that the e isting school and office supplies centers are not satisfying their needs for such supplies. .eaning, there are still number of customers that need the service of photocopying and office and school supplies that would satisfy their demand.

14

!n relation to it, $( & and $? & of the respondents agreed that there is still a need for photocopying centers and office and school supplies center respectively to be opened which will meet the demands that are not catered by the e isting businesses and C@@& of them liked it to be a one stop shop 8having photocopying services and merchandising of office and school supplies in 1ust one store:.

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.oreover, most of the respondents agreed that the things that they do not like in the e isting photocopying and office and school supplies centers are the unavailability of the services at all times, unapproachable store attendants, services and products which are of not good 3uality and the imposed products and services" prices.

C. SUPPLY ANALYSIS The direct competitors of the proposed business pro1ect are classified according to the type of services they are offering as well as the si0e and location of their e isting businesses. Specifically, the direct competitors whose business si0es are small, whose locations are near to the target markets and who are of most in number include the businesses whose establishments are 1ust a couple of steps away from the target markets" location. 4n the other hand, direct competitors whose business si0es are big, whose locations are a little bit far to the target markets and who are of least in number include ,ilian <a0aar, Calinan Trading, and +acario Printing Shop. The type of market structure e isting among the competitors is competition wherein there are many e isting business ventures offering the same line of businesses which are photocopying and merchandising of office and school supplies. Thus, the proposed business pro1ect must

16

employ e tensive and intensive marketing strategies to cope with the stiff competition. 5s a counterpart to the survey conducted on the demands of the target customers, the proponents found out that %@& of the interviewed e isting suppliers said that their supply is less than the customers" demand. This shows that there is still a need for the proponents" proposed business to be established in order to capture the unsatisfied demand.

D. DEMAND-SUPPLY ANALYSIS i. D"$%()-S*00' Co$0%riso( The survey shows that the demand and supply do not meet at a certain point called e3uilibrium. The demands of the targeted customers e ceed the supplies offered by the e isting stores. >ith this reason, the proponents see an opportunity of reali0ing the proposed business. E. PRICE STUDY i. P,oto#o0 i(. s"r-i#"s :0ri#"s &%s") o( t," "7isti(. &*si("ss"s;: 4utput Huality C. Clear Copy Paper Si0e 8<ond Paper: ,etter ,egal Price per sheet 8!n Philippine Peso: C.@@ C.9@ C.@@ C.?9 ?. 4rdinary Copy ,etter C.9@ @.9@

17

D. 2educed Copy %. Enlarged Copy

,egal ,etter I ,egal ,etter

@.E9 @.E9 ?.@@ C.9@ per si0e ad1ustment

ii. Pri#" Tr"()s :P,oto#o0 i(. S"r-i#"s; 4utput Huality Paper Si0e Jear C. Clear Copy ?. 4rdinary Copy D. 2educed Copy %. Enlarged Copy ,egal ,etter I ,egal ,etter I ,egal C.9@ per si0e ad1ust ment C.9@ per si0e ad1ust ment C.9@ per si0e ad1ust ment C.9@ per si0e ad1ust ment C.9@ per si0e ad1ust ment @.E9 ?.@@ @.E9 ?.@@ @.9@ ?.@@ @.9@ ?.@@ @.9@ ?.@@ ,etter ,egal ,etter ?@C@ C.?9 C.9@ @.E9 Price Per Sheet 8!n Philippine Peso: Jear Jear Jear ?@@$ C.@@ C.9@ @.E9 ?@@( C.@@ C.?9 @.E9 ?@@E C.@@ C.@@ @.E9 Jear ?@@' @.9@ @.E9 @.E9

iii. R"s0o(si-"("ss o+ D"$%() to Pri#" C,%(."s

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!f the supply is held constant the demand for the photocopying services and office and school supplies relatively increases if the products and services" prices decline. Conversely, if the supply is held constant the demand for the photocopying services and office and school supplies relatively decreases if the products and services" prices increase.

i-. Est%&'is,$"(t o+ Pro)*#ts %() S"r-i#"s S"''i(. Pri#"s 4utput Huality Paper Si0e Jear C. Clear Copy ?. 4rdinary Copy D. 2educed Copy %. Enlarged Copy ,egal ,etter I ,egal ,etter C.9@ per si0e ad1ust ment C.9@ per si0e ad1ust ment C.9@ per si0e ad1ust ment C.9@ per si0e ad1ust ment C.9@ per si0e ad1ust ment @.E9 ?.@@ @.E9 ?.@@ @.E9 ?.@@ C.@@ ?.@@ C.@@ ?.@@ ,etter ,egal ,etter ?@C@ C.@@ C.@@ @.E9 Price Per Sheet 8!n Philippine Peso: Jear Jear Jear ?@CC C.@@ C.@@ @.E9 ?@C? C.@@ C.@@ @.E9 ?@CD C.?9 C.?9 C.@@ Jear ?@C% C.?9 C.?9 C.@@

F. FACTORS AFFECTING THE MAR9ET The demands for the services and products of the cooperative are affected by the following)

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i. Po0*'%tio( Gro<t, The demands for photocopying services and office and school supplies are affected by the population growth of the students, teachers and office employees in the area. !t is e pected that in the coming years, the population of the students in the aforementioned schools would increase due to following reasons) a: increased in tuition fees of the universities in downtown* b: increased in transportation, food, lodging e penses of the students studying in downtown which the parents cannot anymore afford* c: an increasing population trend in the public schools has been observed for several years* d: in much the same manner, an increase in the number of students also means an increase number of teachers* e: increased number of employees due to the increasing number of offices and establishments in Calinan. Thus, the proponents see a direct relationship between the population growth and the demand for photocopying services and office and school supplies. ii. I(#o$" C,%(."s 5s the income of the target customers increases their possible demands for such product and services are also e pected to increase proportionately. This is due to the consideration that their purchasing capacity has substantially increased. iii. R*r%' %() Ur&%( D"-"'o0$"(ts The developments in Calinan in terms of its economic, political and educational aspects pave the way for an increase in employment

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and conse3uently an increase in income resulting to an improved standard of living. >ith this regard, the demand for the products and services that the proposed cooperative is offering is also e pected to rise. Prices will be affected by inflation. Prices tend to go up whenever inflation rate increases. 5s a result the purchasing power declines in proportionate to an increase in the prices of goods and services. G. MAR9ETING PROGRAM i. T 0" o+ Pr"-%'"(t M%r6"ti(. Pro.r%$ The following are the marketing programs that the cooperative are going to adopt) a. /iscounts on volume sales b. -alue added services 8free delivery, staples, etc.: c. Huality controlled products and services ii. Pro$otio(s The end users of the products and services would be aware by the services of the cooperative through distribution of leaflets. The end users are likewise be enticed to patroni0e the cooperative by giving discounts and promos, by providing them a good customersupplier relationship 8CS2:, and by hitting customer satisfaction. IV. TECHNICAL STUDY A. PRODUCTS The proposed cooperative will cater two lines of business which are) photocopying services and merchandising of school supplies.

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!n photocopying services the cooperative will use substance ?@ bond papers with si0es = (KCC"8letter: and (KCD"8legal:.

.eanwhile, in merchandising of school supplies, the cooperative will sell the following products) !tem Short <ond Paper Short <ond Paper ,ong <ond Paper ,ong <ond Paper Construction Paper Construction Paper Construction Paper Colored Paper Colored Paper !ntermediate Paper !ntermediate Paper L and M !ntermediate paper Jellow Pad Paper Jellow Pad paper Colored <ond Colored <ond !tem /escription (.97 CC7 substance ?@ (.97 CC7 substance C' (.9 CD7 substance ?@ (.9 CD7 substance C' (.97 CD7 assorted colors (.97 CC7 assorted colors $ C?7 assorted colors Short 5ssorted colors ,ong 5ssorted colors Class 5 8white sheets: Class <
8dirty white sheets:

Class 5 and < Class 5 8fine in 3uality: Class <

8not fine in 3uality:

,ong 5ssorted in color Short

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<all Pen Pencil ;asteners Composition+otebook >riting +otebook <ig +otebook Thumbtacks Blue Paste ;older Plastic ;older Envelope Plastic Envelope Scissors Elementary Paper !nde card Crayons .anila paper Scotch Tape .asking Tape Braphing Paper Chalk Eraser Sharpener Cartolina !llustration <oard Stickers Silver /ust >ater Cellophane Cript Paper Napanese Paper /rawing <ook ;ormal Theme !nformal Theme Sulating Pangwakas Clear <ook .arker Permanent .arker

5ssorted in color 5ssorted brands and colors 5ssorted brands and numbers 5ssorted color 5ssorted leaves 5ssorted ,eaves 5ssorted ,eaves 5ssorted brands and volume ,ong I Short = <rown ,ong I Short 5ssorted Colors ,ong I Short <rown ,ong I Short 5ssorted Colors 5ssorted Colors Brades C, ?, D I % -arious Si0es -arious si0es -arious Si0es -arious Si0es 5ssorted <rand and color 5ssorted si0es and designs 5ssorted Colors and 3uality -arious Si0es 5ssorted Colors 5ssorted Colors 5ssorted Colors 5ssorted Colors -arious Si0es

5ssorted Colors 5ssorted Colors <lack, <lue and 2ed

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B.

MACHINERIES E/UIPMENTS

AND

The following are the machineries and e3uipments that the cooperative is going to ac3uire)

Machineries and Equipments &omputer Set Photocopying $achines Stand ,ans

Php Php Php

Cost '() *** +*)*** (# machines) -) ***

ri!in Local Local Local

"tand #an

Computer "et

$hotocop% Machine

Standard Capacity of each Photocopying .achines and the /esired .a imum Capacity

24

Machineries

"tandard Capacit% !pected to last for 1* years

&esired Ma'imum Capacit% !pected to last for 1( years Paper &apacity ')*** sheets $a!imum !pected to last for 1( years Paper &apacity ')*** sheets $a!imum 1* years ( years

Photocopying $achine 1

Paper &apacity #)(** sheets $a!imum !pected to last for 1* years

Photocopying $achine # &omputer Set Stand ,ans

Paper &apacity #)(** sheets $a!imum !pected to last for ( years !pected to last for ' years

C. COOPERATIVES LOCATION The proposed cooperatives location is desirable in terms of its distance to the market where the business gets its merchandise as well as to its target customers. .oreover, the location is ideal because the water, transportation and light necessities are accessible.

Proposed Store Site

25

VIE= A

(o)% Cross Co))e!e o* Ca)inan

Proposed Store Site

26

VIE= B

D. STORE LAYOUT

27

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E. BUILDING AND FACILITIES /uring the first five years of the cooperative"s operation, it opts to lease the space, the lot and the building where the business operation are to be conducted /rainage facilities, road improvement are not of great consideration in this pro1ect.

F. UTILITIES The cooperative needs electricity and water for its daily operation thus, the organi0ation has to set up a connection for electricity and water.

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G. =ASTE DISPOSAL The cooperative"s waste could be in the form of crumpled papers, cutouts, damaged office and school supplies. Since one of the goals of the business is to adopt 3uality control system, the business e pects to have lower 3uantity of waste of the disposal. The waste accumulated by the cooperative out of the daily operations which cannot anymore be recycled shall be placed in a waste bag. Every week, the business shall throw them at the garbage bins provided by the government which are eventually collected by the CE+24 at a specified schedule. #owever, those wastes that can still be recycled will be used by the

organi0ation to minimi0e its e penses. 4ther option would be to sell those wastes in order to gain something out of them. H. LABOR RE/UIREMENTS There will be two 8?: staffs who will be employed by the cooperative. The remuneration for the staffs will be based on the present standard minimum wage. <efore the actual business operations, the staff will be trained on hisFher specific 1ob. There would be seven 8E: board of directors who will be compensated according to 25 $9?@, Chapter !-, 5rticle %'. There will also be one general manager, one secretary, one treasurer, and one cashier whose compensation and tenure are fi ed by the board of directors

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V.

FINANCIAL FEASIBILITY

A. MAJOR ASSUMPTIONS i. Di-i)"() Po'i#i"s Gnder 2epublic 5ct $9?@, Chapter K, 5rticle (', The net surplus of every cooperative shall be distributed as follows) A8C: 5n amount for the reserve fund which shall be at least ten per centum 8C@&: of net surplus) A8?: 5n amount for the education and training fund, shall not be more than ten per centum 8C@&: of the net surplus) 8D: 5n amount for the community development fund, which shall not be less than three per centum 8D&: of the net surplus) A8%: 5n optional fund, a land and building, and any other necessary fund the total of which shall not e ceed seven per centum 8E&:) A89: The remaining net surplus shall be made available to the members in the form of interest on share capital 8dividends: not to e ceed the normal rate of return our investments and patronage refunds) Provided, That any amount remaining after the allowable interest and the patronage refund have been deducted shall be credited to the reserve fund.7 ii. L%&or %() M%(%."$"(t Co$0"(s%tio( There will be two staffs who will be employed by the cooperative. The remuneration for the staffs will be based on the present standard minimum wage. <efore the actual business operations, the staff will be trained on hisFher specific 1ob. There would be seven board of directors and one general manager. Gnder 25 $9?@, Chapter !-, 5rticle %' Co"pensation. = 8C: !n the absence of any provisions in the bylaws fi ing their compensation, the directors shall not receive any compensation e cept for reasonable per diems) Provided however, That the directors and

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officers shall not be entitled to any per diem when, in the preceding calendar year, the cooperative reported a net loss or had a dividend rate less than the official inflation rate for the same year. 5ny compensation other than per diems may be granted to directors by a ma1ority vote of the members with voting rights at a regular or special general assembly meeting specifically called for the purpose) Provided that no additional compensation other than per diems shall be paid during the first year of e istence of any cooperative. A8?: The compensation of officers of the cooperative as well as the members of the committee as well as the members of the committees created pursuant to this Code or its bylaws may be fi ed in the bylaws. A8D: Gnless already fi ed in the bylaws, the compensation of all other employee shall be determined by the board of directors. iii. M"t,o) o+ D"0r"#i%tio( The method of depreciation that the business will use in depreciating its machineries and e3uipment is Straight ,ine .ethod represented by this formula) A((*%' D"0r"#i%tio( > Tot%' D"0r"#i%tio( Esti$%t") Us"+*' Li+" :i( "%rs; >hereas, the business is going to follow the following formula for computing the amorti0ation) Ori.i(%' A$o*(t Borro<") > R
-(

1- :1?i; i

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B. TOTAL PROJECT COST The table shows the pro1ected pro1ect costs) Fixed Assets: /*%(tit ? C ? It"$ Photocopying machines Computer Set Electric ;an 8Stand U(it Pri#" Php %@,@@@ D9,@@@ ?,@@@ Php Tot%' (@,@@@ D9,@@@ %,@@@ CD,E@@ A83455

;an: ;urniture and ;i tures TOTAL FI@ED ASSETS P,0 Current Assets: /*%(tit It"$ Cash 4n #and Supplies !nventory 4ffice Supplies Pre-paid rent 8? months: TOTAL CURRENT ASSETS P,0 Total Project Cost: Tot%' Fi7") Ass"ts Tot%' C*rr"(t Ass"ts P,0 Tot%' Pro!"#t Cost P,0 U(it Pri#"

Tot%' C9,@@@ D@,@@@ 9,@@@ ',@@@ BC3555

D,@@@

1A83455 9',@@@ 1223455

C. SOURCES OF FINANCING THE PROJECT

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The sources of funds include the paid-in capital of the corporators and the members of the proposed cooperative, donated capital from #CCC College 5lumni = <usiness /epartment, and borrowings from lending institution. The accumulated funds will be used for downpayment in purchasing the machineries and e3uipment. Portion of it would be spent for the purchase of inventories, rental pre-payments, and store renovation. The proponents decided to borrow certain amount from lending institution since the paid-in capital of the e pected members is insufficient to cover up the needed initial investment. !n the case of the machineries and e3uipments purchased on account, the obligations will be paid through monthly installments. The accounts payable due to the lending institution will also be settled monthly.

D. FINANCIAL STATEMENTS

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