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BUSINESS PLAN in

ENTREP 2
S u bby:
mitted to:
Submitted

Pocket Pie
Cottage

POCKET PIE COTTAGE


A. Description of the Business

Pocket Pie Cottage is a start-up business located on the outskirts of Bohol town. It will be
a partnership trader business and the start-up commencement date is June 2015.

The

owners of the proposed business are _________________________________________.


The proponent chose partnership because it is easy to form and to manage.
Pocket Pie Cottage is a food cottage business offering healthy and freshly made pies.
Pocket pies are pastry type of food that can be fried or baked. It is an exciting food brand
which is very convenient to carry and eat anywhere. These Fried Pocket Pies are great when
you want a to-go snack, a picnic or a party. Pocket pies are always a favorite for young and
old alike with its flakey shell and variety of yummy fillings by applying a new concept and
showcasing it in an attractive food stall. It is great for pasalubong or gift treats to friends and
family
B. The Product

The product is called Pie. It is made of flour, baking powder, sugar, salt, egg, lard, butter,
food color, oil, water, tuna, mayonnaise, picklerelish, cooked ham, cheese, pizza sauce,
pineapple, banana, & chocolate. Pocket Pie Cottage will focus on offering pie with variety of
flavors namely tuna salad, hawaiian pizza, choco banana and cheese. Varieties of pocket
pies are called Empanadas, Turn-Overs, Fruit Tarts and Samosa.
Production Process

The process of making pocket pies includes:


1. Preparation of ingredients.
The following ingredients will be:

1 kilo flour

15 grams baking powder

20 grams sugar
2

1 egg

150 grams lard

100 grams butter

1 pack food color

750 ml oil

1 cup water

1 can tuna

80 ml mayonnaise

100 grams picklerelish

150 grams cooked ham

90 grams cheese

1 pack pizza sauce

1 small can pineapple

300 grams banana

1 pack chocolate

2. Procedures:
1. In the bowl, combine the flour, baking powder and salt.
2. Add the shortening and butter, knead it into the flour with your hands until
it is crumbly.
3. Add the water gradually and mix until it begins to come together.
4. Lightly flour your hands and the countertop and turn the dough out onto
the countertop.
5. Knead the dough ball, folding over 10 to 20 times
6. Cover the dough with clean cheese cloth and let it rest for 20 minutes.
7. Using a rolling pin roll the dough to 1/3 to 1/2-inch thickness, then cut into
desired shape.
8. Roll each shape as thinly as possible or to 5 to 6 inches in diameter.
9. Spoon 1 tablespoons of filling onto the dough.
10. Fold over and seal the edges together with the tines of a fork.
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COOKING DIRECTION:
To deep-fry pies, heat vegetable oil in a deep-fryer or a large heavy pot to 375
degrees F. Once hot, add 1 to 2 pies at a time and fry until golden brown,
approximately 3 to 4 minutes.
Materials Handling Design

Pocket Pie Cottage will have its weekly purchase scheduled every Sunday. This is
being purchased by the proponent.
The proponent will acquire a large volume of products to be purchased in a single trip
which is consumable for the whole week.
The materials to be purchased will be placed in a cabinet in a storage room.
C. Market

Ranked as the 12th most populous country in the world with a population of approximately
94 million, the Philippines is an emerging and industrialized country. About 42.6% of a
household's income is spent on food. Food is considered the highest expenditure in each
Philippine household. Most Filipinos wanting to become Small Business Operators (SBO)
usually start out with food retail business.
Our marketing strategy will be to attract new customers, educate those customers and
then create a loyal customer base. Pocket Pies will attract consumers through highly visible
signage, print media advertising, flyers, entertainment book coupons, word-of-mouth
advertising and strategic alliances.
Our sales strategy includes hiring employees who genuinely enjoy their jobs. We
will continually assess all aspects of the business and interact with our customers personally,
evaluating food choices for popularity and keeping favorites on the menu as we rotate weekly
and seasonal specials.

For the Pocket Pie industry in the Philippines, today many of us were very much surprised
because of how all pie stall in a mall is not yet introduced in the city of Tagbilaran wherein it
has been established outside the province, most especially in the malls of Metro Manila.
Pocket Pie Cottage will focus on attracting a wide and diverse clientele, male or female,
average to high class individuals, and of all ages. The proponent focuses on people who pass
by inside the Tagbilaran City Square.
In looking at the market analysis, Pocket Pie Cottage is generally focused on all segments
of people. This includes students, high-end singles, working individuals, happy couples,
families, kids, etc. who wants to buy something, those who standby and those who are
waiting someone inside.
The probable consumers are determined by using the historical data of the total population
of the by-passers of Tagbilaran City Square. According to the City Square management, there
were 60,000 people who are estimated to pass by the City Square during its first two months
of operations.
We will sell our Pocket Pies at P12.00 each and P35.00 in pack of 3s.
D. Location of the Business

The proposed location of Pocket Pie Cottage is in the Ground floor of Tagbilaran City
Square. The City Square is said to be found in the heart of the City. The project site has all
the key elements required for the development of the taho stall, very accessible to potential
customers. The whole area of the stall location has 10 sq. meters.
E. Competition
The proponent decided to establish the business for it is unique in the market. It would
be the first pocket pie to be introduced in the City of Tagbilaran. Pie is one of the nutritious
and delicious pastry foods that attracts individual most especially the children. The industry of
Pie in the market nowadays is competitive because of the different business stalls concerning
pie that is recently sprouting. Pocket Pie Cottage would be very competitive in the market for
the reason of being the first pocket pie stall found in the City of Tagbilaran. The place for the
stall is chosen since it is at the heart of the city and it is easily accessible to potential
customers.
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F. Management
The proposed business project will operate in the form of partnership, which will be owned
and managed equally by all the capitalist partners namely: Naomi Ampoloquio, Analiza
Batocael, Joan Penaso, Evelyn Polistico, Bryan Jay Bagaipo and Ma. Mae Cenia. The said
business is composed of 4 employees. There will be working policies to ensure cooperation
and harmonious relationship between employees to meet the objective of the said business
Proposed Organizational Chart
The proponent of the Pocket Pie Cottage will be the manager and the production staff
of the business.

Sales Personnel (2)

Production Staff

General Company Policies


Companies have different means by which they keep their employees informed of their
policies, practices and other information in connection with their work. All employees are
required to follow all the policies, rules and regulation of the company. For those who will be
caught violating these will be subjected to some disciplinary actions.
Company Policies and Regulations
1. All regular employees are required to undergo eight hours of work daily,
8:30am-5:30 except for bookkeeper. The bookkeeper will report once a
week.
2. Employees must keep the secrecy of the business.
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3. Employees should wear their proper prescribed uniform. Their uniforms shall
be provided by the business.
4. Absence without official leave (AWOL) is highly discouraged. Employee
committing one (1) day AWOL will have deduction from his salary an amount
equivalent to one-day salary.
5. When payday falls on a Sunday or Holiday, salaries will be paid the following
working day.
6. The following offenses have corresponding disciplinary actions:
a. Tardiness
b. Drunkenness
c. Theft
Disciplinary Measures
The business has set of rules and regulations governing the actions and behavior of all
personnel. The penalties provided herein intended to deter any negative actions/behavior that
will be detrimental to the interest of the proprietorship.
1. Absence of personnel without proper permission form the manager.
Penalty:
a) 1st offense- oral reprimand
b) 2nd offense- written reprimand
c) 3rd offense- 1day deduction of salary
2. Tardiness of personnel
a) 1st offense- oral reprimand
b) 2nd offense- written reprimand
c) 3rd offense- 1day suspension
3. Absence for more than 1 day without leave:
a) 1st offense- 3 days suspension
b) 2nd offense- termination
4.

Unauthorized use of proprietorship documents.


a)

5.

1st offense- immediate dismissal to be determined by the manager

When employees are found out reporting for work under the influence

of

alcohol:
a)

1st offense- oral reprimand

b)

2nd offense- written reprimand

c)

3rd offense- 3 days suspension

d)

4th offense- termination

6. When employees are caught drinking alcoholic beverages during working hour:
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a) 1st offense- written reprimand


b) 2nd offense- 3 days suspension
c) 3rd offense- termination
Staff Development Programs
The employees of Pocket Pie Cottage will undergo training for at least a day before the
start of the operations. The training/seminar will be held to prepare the employees in their
designated tasks. The sales personnel will be able to learn to proper handling of customers
service and how to handle money, while the bookkeeper will be hired only for financial
determination purposes. Thus, no more training will be required.
G. Personnel
Personnel Job Specification and Description
This table shows the skills, qualifications, education of the personnel that are essential
in performing a particular job.
Position

Job

Job Description

Specificatio

Employme

Salary

nt Status

Benefits

and

n
Manager

-Overall in-charge Regular

P 500.00/day

of business.
-Manages
business activities
and

make

appropriate
control

on

all

activities
performed by the
employees
accordance
their

in
with

respective
8

duties.
-Act

as

representative of
the business in
dealing

other

person

or

institutions.
-Make disciplinary
action for erring
staff.
Bookkeeper

-CPA/

-Keeps

the Retainer

Accountancy

financial book of

graduate

the business

P700/week

-Equipped full -Prepares all the


knowledge
and

financial

good statements

background

-Prepare all the

in accounting recording of the


and auditing.

business

-Computer

transactions

literate

-Computes

the

-25-30 years proper


old
-Honest

government
and taxes,

permits,

hardworking

and licenses.

Sales

Female/Male

-Accepts

Personnel

-18-30 years customer


old
-atleast

Contractual
orders

and payments
high -Responsible

P 115/day
(exclusive of
lunch

in

and

snack)
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school

handling

graduate

receipts

-pleasing

-Must

personality

physically fit and

-Proficient in with
numbers
-with

cash
be
pleasing

personality.
good

communicatio
n skills
-Honest

and

Committed

Section Two: Financial Data


A. Sources and Application of Funding
The total project cost amounting to P100, 000.00 will be financed by the proponents.
There will be no loans applied because the capital requirements will be derived from the
personal fund of the proponents. All assets requirements, supplies, pre-operating costs and
working capital requirements will be taken out from this fund.
B. Capital Equipment List
Total Project Cost
Fixed Costs
A.Store Equipment and Facilities
Pie Display Cabinet
Calculator
Refrigerator
Furniture and Fixtures
Stall
Utensils and Supplies
Gas stove
Pie pan
Dishwashing Soap
Making Dough
Knife
Pie Cutters
Pastry blenders

Equity
P8,000.00
700.00
15,000.00

P23,700.00

37,402.69

37,402.69

4500.00
1300.75
20.75
1300.00
59.00
200.00
3500.00
10

Plastic wares (small)


Bulb
Frying pan
Straw
Hairnet
Basin
Cellophane
Broom
Dustpan
Rag
Apron
Total Initial Fixed Costs
B. Pre-operating Cost
Legal Permits
Business permit and tax Clearance
Sanitary Permit
BIR Certificate
Business Name Certificate (DTI)
Recruitment
Orientation
Marketing Expenses
Streamers
Flyers
Other Fees
C. Initial Working Capital
Raw Materials
Cash on Hand
Salaries Expense
Supplies Expense
Repair and Maintenance
Utilities Expense
Rent Expense (monthly)
Miscellaneous Expense
Total Initial Working Capital
TOTAL PROJECT COST

24.00
99.00
300.00
28.00
20.00
30.00
15.00
25.00
60.00
150.00
89.00

11,720.50
72,823.19

100.00
100.00
100.00
500.00

800.00

1,200.00

1,200.00

1,625.00
1,750.00
1,250.00

4,625.00

6,600.00
4,806.12
24,900.00
270.75
100.00
375.00
12,000.00
1,500.00
50,551.81
P130,000.00

Financial Assumptions
a. The business will be using cash basis wherein expenses are recorded when
theres an outflow of cash and income is recognized when cash is received.
b. Organizational costs are treated expensed outright in the first year of
operations.
c. There will be no employee benefits because the employee hired will be on
contractual basis except for the manager who is the owner who will pay his
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monthly contribution from his personal fund.


d. Straight-line method of depreciating the machineries, equipments, utensils and
furniture and fixtures is used that will be computed every end of the year.
e. Miscellaneous expense is estimated to be 1,500 per month and will increase 3%
annually.
f. Repairs and maintenance is estimated to be 5% of the costs of fixed assets and
will increase 3% annually.
g. Supplies, raw materials and labor expense are presumed to increase 3%
monthly.
h. Utilities expense is presumed to increase 3% annually.
i. The ending raw materials are expected to be equal to 12.5% of the next two
months supply.
j. The product sold is on cash basis; there is no accounts receivable.
k. Income tax payable is paid at the end of the year but the management
appropriates a certain amount for the tax payment. The amount is neither fixed
nor standardized.

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Pocket Pie Cottage


Balance Sheet
As of December 31

1st Year

2nd Year

3rd Year

4th Year

5th Year

ASSETS
Current Assets:
Cash
Inventory of Utensils and Supply
Total Current Assets

226,981.20

349,241.72

472,649.82

692,843.50

969,627.53

8,299.64

8,714.62

9,150.35

9,607.87

10,088.20

235,280.84

357,956.34

481,800.17

702,451.37

979,715.73

1,600.00

1,200.00

800.00

400.00

Non-current Assets:
Pastry Blenders
Calculator

583.35

420.00

280.00

140.00

2,000.00

2,000.00

2,000.00

2,000.00

2,000.00

Stall

34,285.79

29,922.16

26,181.88

22,441.61

18,701.35

Total Non-current Assets

38,469.14

33,542.16

29,261.88

24,981.61

20,701.35

273,749.98

391,498.50

511,062.05

727,432.98

1,000,417.08

106,602.74

126,362.85

148,069.45

Pie Display Cabinet

TOTAL ASSETS

LIABILITIES AND EQUITY


Current Liabilities:
Income Tax Payable

66,288.33

89,894.00

Equity:
A, Capital

22,121.14

30,108.18

54,637.36

87,667.37

P, Capital

12,631.52
12,631.52

22,121.14

30,108.18

54,637.36

87,667.37

Pol, Capital

12,631.52

22,121.14

30,108.18

54,637.36

87,667.37

Bag, Capital

12,631.52

22,121.14

30,108.18

54,637.36

87,667.37

Bal, Capital

12,631.52

22,121.14

30,108.18

54,637.36

87,667.37

Ceia,Capital

12,631.52

22,121.14

30,108.18

54,637.36

87,667.37

Add: Net Income

131,672.55

168,877.66

223,765.21

273,245.97

326,343.40

Total Equity

207,461.65

301,604.50

404,459.31

601,070.12

852,347.63

TOTAL LIABILITIES AND EQUITY

273,749.98

391,498.50

511,062.05

727,432.97

1,000,417.08

Pocket Pie Cottage


Statement of Comprehensive Income
For the Year Ended December 31

Sales

1st Year
699,854.38

2nd Year
772,430.91

3rd Year
852,826.15

4th Year
941,588.97

5th Year
1,039,590.

Cost of Sales

319,901.70

333,252.35

355,072.35

374,100.98

396,790.

Gross Profit
Less: Operating Expenses
Depreciation Expense
Miscellaneous Expense
Repair and Maintenance
Organizational Cost
Marketing Expense

379,952.68

439,178.56

497,753.80

567,487.99

642,800.

3,566.90
15,000.00
500.00
2,050.00
16,875.00

3,566.90
15,450.00
515.00
16,875.00

3,566.90
15,913.50
530.45
3,375.00

3,566.90
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16,390.91
546.36
3,375.00

3,566.
16,882.
562.7
3,375.0

Pocket Pie Cottage


Statement of Cash Flows
For the Year Ended December 31

1st Year

2nd Year

3rd Year

4th Year

5th Year

Cash Flow from Operating Activities


Cash Receipts

699,854.38

772,430.91

800,000.00

941,588.97

1,039,590.34

68,525.49

89,356.80

95,346.00

102,375.00

110,117.42

157,500.00

175,650.01

184,350.51

198,992.01

205,303.05

93,226.86

108,222.08

115,766.20

118,375.66

123,788.50

500.00

515.00

530.45

546.36

562.75

Miscellaneous Expense

15,000.00

15,450.00

15,913.50

16,390.91

16,882.64

Marketing Expense

16,875.00

16,875.00

3,875.00

3,875.00

3,875.00

144,000.00

144,000.00

144,000.00

144,000.00

144,000.00

66,288.33

89,894.00

106,602.74

126,362.85

148,069.45

Flavors

7,500.00

9,000.00

9,000.00

9,000.00

9,000.00

Payment of Suppliers

1,207.50

1,207.50

1,207.50

1,207.50

1,207.50

Organizational Cost

2,050.00

Orientation of Employee

1,200.00

Cash Payments:
Raw Materials
Salaries of Employees
Utilities Expense
Repairs and Maintenance

Rent Expense
Appropriated for Tax

Total Cash Payments

573,873.18

650,170.39

676,591.90

721,125.29

762,806.31

Net Cash Payment Provided by Op. Act.

125,981.20

122,260.52

123,408.10

220,463.68

276,784.03

Cash Flow from Investing Activities


Cash Flow from Financing Activities

100,000.00

Add: Cash Balance, Beg.


CASH BALANCE, END

225,981.20

225,981.20

348,241.72

471,649.82

692,113.50

348,241.72

471,649.82

692,113.50

968,897.53

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F. FINANCIAL ANALYSIS
A. Profitability
It measures earnings in relation to assets, sales or capital
1. Return on Investment
It indicates whether the management is using the fund wisely. It measures the ability of
management to generate return on every peso of resources employed in operating the
business
=

Net Income
Ave. Investment
1st Year

2nd Year

3rd Year

4th Year

Net Income

131,672.48

168,877.66

223,765.21

273,245.97

326,343.30

Total Assets

273,749.98

391,498.50

511,062.05

727,432.98

1,000,417.08

48%

43%

44%

38%

33%

Return on Investment

5th Year

2. Return on Sales
Measures the percentage of net income to sales. The ratio represents the average net
profit earned by each peso of sales. It reflects profitability after been deducted from the gross
profit
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Net Income
Sales

1st Year

2nd Year

3rd Year

4th Year

Net Income

131,672.48

168,877.66

223,765.21

273,245.97

326,34

Sales

699,845.38

772,430.91

852,826.15

941,588.97

1,039,5

19%

22%

26%

29%

Return on Sales

G. Historical Financial Reports for Existing Business


Demand Analysis
The proponent adopted the market build up method in measuring the demand of the
product.
The probable consumers are determined by using the historical data of the total
population of the by-passers of City Square, Tagbilaran City. It is estimated that 16% of the
by-passers will purchase the pocket pie. The projected demand in the next 5 years is
calculated by using a growth rate of 3%. According to the City Square management, there
were 60,000 people who are estimated to pass by the City Square during its first two months
of operations. The projected demand is presented below.
Projected Demand
YEARS

PROJECTED DEMAND

1st year

9,888

2nd year

10,185

3rd year

10,490

4th year

10,805

5th year

11,129
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5th Y

Supply Analysis
There is no existing supply of pocket pie stalls in the area of dispersion which is
located in City Square, Tagbilaran City

Demand Supply Analysis


Based on an interview with 150 by-passers, the following demand is expected:
YEARS

1st

2nd

Projected Demand 9,888


Supply

3rd

10,185
0

4th
10,490
0

5th
10,805
0

11,129
0

18

CITY SQUARE FIRST


FLOOR
ENTRANCE
SNOWPY
Icecream
Parlor

LUGI
Apparel
Store
HALLWA
Y

B&J
Computer
Shop

TECHNICAL ASPECT

19
POCKET
PIE
COTTAGE

Figure 1: Office Layout Plan

Figure 2. Tagbilaran City-City Square(Red Mark)

SOCIO-ECONOMIC ASPECT
In a society, people basically try to fulfill their needs by deploying various activities like
food production and trade. People do this on various scales ranging from the individual scale
20

(basic survival), to family and community scales (subsistence and livelihood development) to
firms and whole nations leading to higher order socio-economic development.

COMMUNITY

Pocket Pie Cottage will have a socio-economic assessment that is implemented in host
communities of Pocket Pie Cottage. These are projects that have active community
involvement and are implemented with the objective of benefiting a larger number of people.
This includes medical missions, community clinics, barangay strengthening and enterprise
development.

EDUCATION

Pocket Pie Cottage supports literacy in the Philippines through scholarship assistance,
supplemental feeding, book donation and functional literacy programs. This project is in
partnership with elementary public schools and barangay day care centers wherein teachers
and parents assist in the implementation of the program. Scholarship Assistance: This is
given to underprivileged students in the communities where Pocket Pie Cottage operates.

Section Three: Supporting Documents


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REFERENCES
BIBLIOGRAPHY

MANAGEMENT ACCOUNTING 2011 Edition


By: Ma. Elenita Balatbat Cabrera, BBA, MBA, CPA, CMA
2011 Revised Edition
ISBN 971-0489 96 1
Published & Printed by: GIC ENTERPRISES & Co., INC. 2019 C. M. Recto Avenue, Manila
Philippines
FINANCIAL ACCOUNTING VOLUME 1 2011 Edition
By: Conrado Valix, BSC,LLB,
Jose F. Peralta,BBA, MBA,DBA
Christian Aris M. Valix, BSME, BSA
2011 Revised Edition
ISBN 971-049-86-2
Published & Printed by: GIC ENTERPRISES & CO.,INC. 2017VC. M. Recto,
Manila, Philippines
Department of Trade and Industry (DTI)
2ND Floor FCB Building
CPG Avenue Tagbilaran City

Executive Summary

Pocket Pie Cottage is a start-up business, scheduled to commence trading in June 2015,
as a partnership trader business. Pocket Pie will specialize in meat, vegetable and fruit pies
made using partners recipe during their college years in University of Bohol. Our pies will be
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baked fresh everyday and sold hot directly to customers through our retail stores.

Pocket Pie Cottage will have its weekly purchase scheduled every Sunday. This is being
purchased by the proponent.The proponent will acquire a large volume of products to be
purchased in a single trip which is consumable for the whole week. The materials to be
purchased will be placed in a cabinet in a storage room
Our proposed location of Pocket Pie Cottage is in the Ground floor of Tagbilaran City
Square. The City Square is said to be found in the heart of the City. The project site has all
the key elements required for the development of the taho stall, very accessible to potential
customers. The whole area of the stall location has 10 sq. meters.
. Our marketing strategy will be to attract new customers, educate those customers and
then create a loyal customer base. Pocket Pies will attract consumers through highly visible
signage, print media advertising, flyers, entertainment book coupons, word-of-mouth
advertising and strategic alliances.
Our sales strategy includes hiring employees who genuinely enjoy their jobs. We
will continually assess all aspects of the business and interact with our customers personally,
evaluating food choices for popularity and keeping favorites on the menu as we rotate weekly
and seasonal specials.
Pocket Pie Cottage is a partnership form of Business. All partners are capitalist partner
contributing P40,000.00 . The total project cost amounting to P100, 000.00 will be financed
by the proponents. There will be no loans applied because the capital requirements will be
derived from the personal fund of the proponents. All assets requirements, supplies, preoperating costs and working capital requirements will be taken out from this fund.
Pocket Pie Cottage Expects a 48% Return On Investment on its first year of operation , 43%
Return On Investment the second year, 44% Return On Investment on its third year, 38%
Return on Investment the fourth year and 33% Return on Investment on its fifth year of
operation.

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