Professional Documents
Culture Documents
Final Business Plan
Final Business Plan
TACLOBAN COLLEGE
TACLOBAN CITY
________________________________________________
In partial fulfillment of the Requirement in the subject Entrepreneurship and Business Plan
_______________________________
Submitted to
Submitted by
Bryan Gacho
Merasol Gumapac
Mark Denver Marilla
S.Y 2010-2011
TABLE OF CONTENTS
Acknowledgement
I.
II.
III.
Introductory Page
B. Nature of business
Executive Summary
Industry Analysis
B. 1. Economic Condition
2. Socio-Cultural Condition
10
3. Demographic profile
10
C. Analysis of Competitors
10
11
A. Product
B. Service
C. Size of the Business
D. Office Equipment & Personnel
12
V.Production Plan
2
A. Production Process
13
B. Physical Plant
C. Machinery and Equipment
15
16
B. Distribution
C. Production
D. Target Market Forecast
17
E. Controls
18
19
B. Org. Structure
C. Roles and responsibilities and manners of organization
20
22
23
A. Financial Object
B. Projected Income Statement
24-26
27-28
27
I. Introductory Page
A. Name and Address of business
The group comes up to name the business R8 EXPRESS: Coffee and T. R8 stands for Region 8
or the Eastern Visayas Region, for our business is located at the heart of the region- Tacloban. The letter T
stands for tourism since our course THRM is related to Hospitality and Tourism Industry and also to
promote the regions paradise and attractions through photo gallery concepts.
Downtown district of Tacloban is the proposed location of the business for it ideal source of our
potential target market. It is also that the downtown district is the commercial center of the region.
B. Names and Addresses of Principals
Bryan M. Gacho
Merasol R. Gumapac
Mark Denver Marilla
C. Nature of Business
The business is a coffee shop that caters mostly to students, coffee shop goers, and individuals
that belongs in the average to above average earner group and has high disposable income.
Its unique concept will give a differential advantage among other coffee shop. R Express: Coffee
and T. will be adopting a mix of nature and tourism inspired photo gallery style with Earth color, green
and blue as accent as its concept. Partnership will be the form of this business venture, specifically
general partnership which means that all of the partners will be involved in management.
D. Statement of Financial Needed
Starting a business entails a certain amount of capital. The total investment requirement will be
P2, 500,000.00, 60% will be the partners equity and 40% from loan equity. The partnership will be
incurring a loan at the Development Bank of the Philippines; this loan will be worth P1,000,000.00 with
an interest of 10% annually and 7% discount rate. The partners equity will be divided equally among the
partners, thus, each partners contribution will be P250, 000.00.
The promotional strategies that will be employed would include signage, tarpaulins,
flyers/pamphlets, radio ad., sales promotion and internet advertising. The coffee shop itself; the interior
design, theme and the exterior as well are also set to attract customers.
An additional product variety and product innovation will be offered as part of the market
development strategy and after achieving sufficient product compliance from the target market. That will
be projected after the first 2 years of R8 EXPRESS operation.
Stiff competition is highly expected for coffee shop business is one of the fastest growing
ventures here in Tacloban. However, with a unique concept and marketing strategy with the positive
results from the market research, maximum profitability may be expected from this business venture, with
an annual growth rate of 10%.
BUSINESS OBJECTIVES AND GOALS:
To meet the growing needs of the target market
To create social responsibility as to promote the tourism of Eastern Visayas ad
environmental awareness.
To establish an effective and profitable marketing mix of product, place, price and
promotion.
To increase sales by 10 to 20 per cent annually for the first three years
To evaluate the competitive environment and continue to establish a differential
advantage
To make agreement with coffee and delicacies distributors and bakery ventures for high
quality and best choice of products
To create a cozy and friendly environment
To become the foremost coffeehouse in the area
Understanding trends in coffee drinking can help coffee shop owners, roasters and other
coffee professionals make business decisions about what products to order and offer in
their shops. The information is also useful to other food retailers, those in the hospitality
industry and anyone who is considering a career in the coffee industry.
The Facts
The most significant coffee drinking trends in the past 50 years include:
- A steady drop in daily coffee consumption from 1950 to 1993
- A steady upward trend in daily coffee consumption from 1993 onward
- A growing upward trend in specialty coffee consumption beginning in the early 1990s
- An increase in the number of people drinking coffee outside the home from 1950 to the
present
- An increase in the consumption of flavored coffees starting about 1992
- A growing awareness of ecological and economic issues surrounding coffee since 2002
- The growing number of people concerned with health effects of coffee
- An increase in coffee consumption in both young (18 to 24) and senior (60-plus) age
groups
Each of these trends has represented significant changes in the way that people view and
drink coffee. For instance, the coffee drinking trends from 2003 to 2008 clearly show an
increase n the number of people who are more likely to buy a coffee that is Fair Trade
certified, which suggests that consumers are growing more concerned with paying a fair
price for the coffee that they drink.
Benefits
The NCDT shows that a growing number of people are concerned about the benefits
of drinking coffee, both personally and for the world at large. For instance, according to
the 2008 report on coffee drinking trends:
- 61 percent of coffee drinkers said that coffee improves their focus
- 46 percent listed the health benefits of drinking coffee as one of the reasons they drink
coffee
- Fair Trade certified and organic coffees are the fastest-growing segment of the specialty
coffee market
About Coffee Shop Trends
Coffee is the drink of choice for many people across the world. Every morning millions
of people rely on their morning fix to get going for the day. Coffee has become so
popular that there are a number of different flavors and combinations available. You can
fill up on anything from a white chocolate mocha to a double chocolate chip iced coffee,
or even vanilla bean treats. Coffee shops tend to do very well, especially the giant coffee
shop chain known as Starbucks. Back in the 1990s, Starbucks started to expand across the
entire world. It is now one of the largest coffee shop chains around.
History
A. Coffee has been around for thousands of years, but coffee shops have only become
popular over the last 100 years. As more people have relied on caffeine to wake them
up in the mornings, many small businesses have capitalized on this need. Coffee
shops in general provide a lot of business. Most people would rather get a cup of
coffee than enjoy a healthy breakfast. This is partly due to our fast-paced society.
Many people are busy, and they don't always have time to sit down for a full
breakfast, even if it would do them some good.
Benefits
B. The benefits of these coffee shop trends are many. The proliferation of coffee shops
help the economy to flourish because they encourage spending and create jobs. With
coffee shops on every corner, it is not difficult to find a place to buy your morning
8
coffee. This provides consumers with the added convenience of saving time by being
able to pick up a quick cup of coffee regardless of where they are.
According to the Archives of Internal Medicine, coffee, especially decaffeinated
varieties, has been linked to a lower risk of type 2 diabetes. There are many other
health benefits of drinking coffee in moderation.
Features
C. Coffee is the most popular and widely used herb around, which is the reason why
coffee shops are so popular. People love coffee, so many small business people
capitalize on this by opening up coffee shops. Some coffee shops provide Internet
access so that people can use their laptops while they enjoy their coffee. This is
especially helpful for busy students on the go.
The coffee shop trend continues because there is a huge demand for it. If you took a
road trip across America, you would find coffee shops on just about every corner.
While the biggest and most well-known chain is Starbucks, you will also see many
mom-and-pop coffee shops or small coffee shop stands. Even gas stations sell coffee
to truckers and other travelers on the road.
Brazil has by far the most coffee drinkers worldwide, so you will certainly notice that
the coffee shop trends are very popular in Brazil. Some people even say that they can
smell the aroma of coffee in the air.
Coffee with no sugar or added creamers has no calories, and coffee shops have come
up with the trend of offering many coffee drinks and treats that are low-fat.
Read more: About Coffee Shop Trends | eHow.com
http://www.ehow.com/about_4567371_coffee-shop-trends.html#ixzz1FQBsIsJe
B.
1. Economic Condition:
Philippine Economy
The Philippines is located in South East Asia and the Philippines economy has been
industrialized in the recent times. In terms of the purchasing power parity it ranked
24th according to the World Bank. The sectors that are of key importance in the
Philippines Economy are agriculture, industry and mining each of which can be
detailed under the following heads; Agricultural sector contributes about 17.1% of
the GDP, Industrial Sector contributes 18.1% in the GDP. The Gross Domestic
product (GDP) for 2004 was $84.2 billion. The per capita gross domestic product was
$976. At constant 1985 prices and current prices in million PHP (Pesos).
(http://www.economywatch.com/world_economy/philippines/) The Philippines is a
newly
Tacloban City Economy
Despite the growth, the country will not reach the government's planed selfsufficiency in the next few years.
http://www.pr-inside.com/philippines-agribusiness-report-q-r2111912.htm
2. Soocio-cultural Condition
The socio-cultural condition and urbanization affects the food and recreation
preference of individual as more people become preoccupied with their job that also leads
to a changing lifestyle. People nowadays are leading a fast paced life so they have lesser
time devoted to eating, food preparation and long out-of-town vacation so they tend to
find within the downtown establishments that offers recreation, relaxation and food and
beverage.
3. Demographic Profile
During the 2007 population census, Tacloban City has an actual total populationcount
of 217,199. With an average annual population growth rate of 2.73 percent, it is
projected that for the year 2008, Tacloban Citys population would be 223,130 and
based on this projected population, Tacloban City has a population density of 1,106
persons per square kilometer or 11 persons per hectare. The disaggregated population
results of the 2007 census is yet to be released as of this documentation but using ratio
and proportion using the 2000 census as baseline data. Tacloban City has a proportionate
total household of 43,415 for 2008. Using the same method, Total Number of Families
counts at 47,014 with an Average Household Size of 5.1.
http://www.tacloban.gov.ph/
C. Analysis of Competitors
The current competitors of business venture in Tacloban City are classified into two: The
direct competitors which includes all coffee shop within the tacloban area that offers
unique concept and service. This includes, Jose Karlos, Libro: Books and coffee, Bos
Coffee, Starzrocks, and the LIKE. Indirect competitors includes food establishments that
offers coffee, Dunken Donuts and Mister Donuts.
A. Products
R8 Express: Coffee and T. will be offering high quality coffee, hot and cold beverages, teas and
other custom drinks at a very reasonable price. We will also sell fresh-baked pastries and other
confections like cookies, brownies, and cakes. In addition, the business venture will also offer same of
Regions delicacies like moron and binagol just to add twist to the venture. Seasonally, the business
will add specialty and customized product during peal seasons. We will also market premium items and
souvenirs such as mugs and T-shirts with imprinted tourist attractions of Eastern Visayas and other
premium items like key chains, coin purse, etc.
B. Services
We will be having the following service:
C. Size of Business
R8 Express: Coffee and T. will be renting a space within the downtown area feasible to our target
market. The desired size is 80 square meter, with a seating capacity of 30 pax.
OFFICE EQUIPMENT
Items
Computer
Fax/Printer
Telephone
File Cabinet
Tables
Chairs
Ceiling Fan
Quantity
Unit Cost
1 set
1
1
2
1
3
1
40000
2500
3500
3000
500
100
3000
Office supplies
40000
2500
3500
6000
500
300
3000
2000
P57,800
PERSONNEL
Total
V. Production Plan
A. Production Process
12
Budgeting is a list of all planned expenses and revenue. It is plan from saving and spending to
what is going to be purchased in working our product.
Purchasing getting the desired product of the right quality, at the right quantity, right price and
time from the right and reliable sources or suppliers.
13
Receiving- is a print at which the purchaser inspects products and tasks legal possession of the
product ordered. A well designed receiving process is important to cost and quality control and
therefore warrants careful planning and implementation.
Storing- proper storing of the purchased item maintains the quality of the product. In storing f &
b items required a certain degree of temperature and should be well ventilated.
Production/Preparation- this should be done properly and accordingly to produce the desired
product that is high quality and satisfying to customers.
Portioning- dividing the product into how many serving ensuring that each portion are consistent
and in quality.
Serving- serving the finish product to our customers based on their orders.
Controlling- concerned with the management measure with current performance.
Quantity
1
1
1
3
Unit Cost
65000
25000
10000
2000
14
TOTAL
65000
25000
8000
6000
Blender
Refrigerator
Oven with Burner
Air conditioner
Cash Register
Microwave
Toaster
Mixer
2
1
1
2
1
2
1
1
2500
21000
30000
8000
6000
5500
1000
2500
5000
21000
30000
16000
6000
11000
1000
2500
P195,500.00
The customers can dine at the coffee shop or have a take out. Product will be displayed at
the counter section with their specific price (for pastries and souvenir items). For coffee and other
beverage product will be made upon order. The price , size and the picture of the product are on
the menu.
C. Promotion
We will develop an intensive marketing effort through promotions and advertising
strategies to attract attention and to create awareness. Among the strategies are signage,
tarpaulins, radio advertisement, online/internet advertisement, flyers and stickers.
Discount coupons and promos like offering a Frequent drinkers club discount to our
best customers.
Growth
2013
2014
2015
2016
2017
10%
35
39
43
47
51
10%
35
39
43
47
51
10%
10
11
12
13
14
10%
20
21
22
23
24
Custome
rs
Students
(35%)
Young
Professio
nals
(35%)
Travellers
(10%)
First
timers
16
(20%)
Total/year
10%
100*360
110*360
120*360
130*360
140*360
=36,000
=39,600
=43,200
=46,800
=50,400
E. Controls
a) Product Control The making of the product will be monitored and the avoidance of use
of substitute ingredient will be implemented to assure that the product will maintain its
standard tasks, nutritional value and quality.
b) Price Control- The pricing of the product will be followed by the business aggressively.
Products price will not go lower than the average cost to ensure profitability.
c) Promotional Control- Once the product would be able to gain a market share,
advertisements would be lessened. Tarpaulins, flyers and discount coupon will be the
usual promotional activities for those plays major role in promotions.
17
Manager
Finance
Manager
Store Supervisor
Marketing
Manager
Cashier
Barista
Service
18
Crew
Baker
Compensation:
Employees
No. of Employees
Salar/month
Total
Store attendant
15,000
15,000
Barista
9,500
19,000
Baker
9,000
9,000
Service Crew
7,500
14,000
Cashier
9,000
9,000
MONTHLY:
P66,000
Annual Salaries
Expense
P798,000.00
20
21
Legal Expense
Business Registration
5,000
Marketing Expenses
Signage
3,000
Tarpaulins
10,000
Stickers/Flyers
5,000
Radio Advertisements
15,000
OTHER
10,000
TOTAL
43,000
105,000
22
Premises Remodelling
150,000
Workers Compensation
19,000
30,000
TOTAL
P352,000
Operating Capital
-Payroll
66,500/month
P133,000
100,000/month
P5,000
TOTAL
P300,000
P438,000
Start-up Inventory
-Coffee Beans
P160,000
P150,000
-Beverages
P150,000
--Souvenirs
P50,000
-Office Supplies
P3,000
TOTAL
P453,000
P195,500
Office Equipment
P57,800
P50,000
P130,000
P30,000
23
P20,000
TOTAL
P1,374,300
2014
2015
2016
2017
3,600,000
3,960,000
4,356,000
4,878,720
5,464,166.4
(1,980,000)
(2,178,000)
(2,395,800)
(2,683,296)
3,905,291.5)
1,620,000
1,782,000
1,960,200
2,195,476
2,458,874.9
Permit &
Licenses
(5,000)
(3,000)
(3,000)
(5,000)
(3,000)
Salaries &
Wages
(798,000)
(798,000)
(798,000)
(821,940)
(821,940)
Rent Expense
(420,000)
(420,000)
(441,000)
(463,050)
(463,050)
Marketing
Expense
(43,000)
(50,000)
(45,000)
(30,000)
(25,000)
Maintenance
(12,000)
(12,000)
(15,000)
(15,000)
(15,000)
Depreciation
Expense
(54,162.5)
(47,392.2)
(41,468.2)
(36,284.64)
(31,749.06)
Miscellaneous
Expense
(30,000)
(30,000)
(35,000)
(35,000)
(20,000)
Remodelling
(150,000)
Other Expense
30,000
10,000
(20,000)
(25,000)
(15,000)
Sales
Less: Cost of
Sales
Gross: Profit
Less:
Operating
Expenses
24
P1,542,162.5
P1,370,392.2
P1,398,468.2
P1,431,274.6
P1,394,739
Operating
Profit/loss
77,837.5
411,607.8
561,731.8
764,201.4
1,064,135.9
Less: Interest
Expense
(100,000)
(90,000)
(90,000)
(90,000)
(90,000)
Net
income/loss
before taxes
22,162.5
321,607.8
471,731.8
674,201.4
974,135.9
(96,482.34)
(141,519.54)
(202,260.42)
(292,240.77)
P225,125.46
P330,212.26
P471,940.98
P681,895.13
Less: Taxes
(30%)
Net
Income(loss)
after tax
P22,162.5
25
2013
2014
2015
2016
2017
3,600,000
3,960,000
4,356,000
4,878,720
5,464,166.4
3,600,000
3,960,000
4,356,000
4,878,720
5,464,166.4
30,000
50,000
40,000
45,000
1,980,000
2,178,000
2,395,800
2,683,296
3,005,291.5
5,000
3,000
3,000
5,000
3,000
Salaries and
expense
798,000
798,000
798,000
821,940
82,940
Rent Expense
420,000
420,000
441,000
463,050
463,050
Mktg. Expense
43,000
50,000
45,000
30,000
25,000
Maintenance
Expense
12,000
12,000
15,000
15,000
15,000
Miscellaneous
expense
30,000
30,000
35,000
35,000
20,000
Interest
expense
100,000
90,000
90,000
Sales
Bank Loan
Partners
Equity
930,000
1,500,000
Total Inflow
2,430,000
Supplies
83,000
Merchandise
Inventory
450,000
Furniture &
Fixtures
130,000
Machinery &
equipment
253,300
License and
permit
26
90,000
90,000
Tax expense
96,482.34
786,300
3,388,000
Net In flow
1,643,700
212,000
342,517.66
1,643,70-0
1,431,700
Cash Beg.
Cash end
1,643,700s
1,431,700
141,519.54
202,260.42
292,240,77
1,774,217.66 2,088,898.12
1,774,217.66 2,088,898.12
493,173.58
2,582,071.7
683,644.13
2,582,071.7
3,265,715.83
1,643,700
Inventories
355,297
Total
1,998,997
Non-current assets
Furniture and Fixtures
130,000
253,000
383,000
(54,162.5)
328,837.5
50,000
30,000
Total
408,837.5
Total Assets
P2, 407,834.5
Liabilities
Long Term Debt, Net
930,000
Owners Equity
P1, 477,834.5
Capital
P2, 407,834.5
28
X. Appendix
A. Letters
March 7,2011
29