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INTRODUCTION

Internet is probably one of the greatest inventions of the century. Before this

invention we had to go to the library to do our research work, but now all we have to do

is go to an internet shop surf on the web and do our research work. We can do many

things with the use of internet; we can shop online, talk to our friends and relatives online

using social media, watch videos on youtube, earn money from blogging and many more.

Internet is really useful and has lot of advantages like fast communication, contains lot of

information sources, social networking, and other relevant online services.

Internet was the result of some visionary thinking by people in the early 1960’s

that has been a great potential value in allowing computer to share information and

research in the development of scientific and military fields. J.C.R licklinder of MIT first

proposed a global network of computers in 1962 and moved over to the Defense

Advanced Research Projects Agency (DARPA) in late 1962 to head the work to develop

the theory of packet switching which was to form the basis of the internet connections.

The early internet was used by computer experts, engineers, scientist and librarians.

Internet Shop business is indeed a very popular business. It is one of

establishments made indispensable in an increasingly interconnected world. In the

Philippines, Internet Shops or Cybercafés are found everywhere in major cities and there

is at least one in most municipalities. There are also internet cafés in coffee shops and

malls. High-end restaurants and fast foods also provide free broadband connection for

diners. An Internet Shop is a place where one can use a computer with internet access,

usually per hour or minutes and sometimes one can have unmetered access with a pass

for a day or a month.

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The Researchers of this study decided to put up an Internet Shop near Oas

Community College in Oas, Albay to provide service to the growing public as source of

information through computers with internet access.

The target customers of JJ Internet Shop are the students of Oas Community

College as service provider of information and research at an affordable price. The

business will be located at Calzada,Oas, Albay near Oas Community College (OCC).

Internet surfing and printing are the main services that will be offered by the proposed

business. Online gaming is not allowed. Initially, we have eleven (11) computer units; ten

(10) of which is designed to be used by the target customers and one (1) computer unit

will serve as server. The ambiance of the business is not air-conditioned but proper

ventilation will be put up for comfortable research work. We give privacy to every

customer, but viewing pornographic sites are not allowed. The customers are then

provided with fast and high speed internet connection, and each unit comes with a web-

cam and headphones.

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EXECUTIVE SUMMARY

Name of the Business : JJ Internet Shop

Nature of the Business : Service Entity/Computer Services

Business Location : Calzada, Oas, Albay

Name of Proponents : Jenny Joy R. Aquino

Jocelyn Z. Republo

Type of Organization : Partnership

Total Projected Cost : P741,748.11

Financing Source : Partners Equity

Return on Investment : 0.14%

Cash Payback Period : 7 years, 2 months and 2 days

Project Implementation : April 2016

VISION

To become the leading Internet Shop in the Municipality of Oas with the

commitment to meet customers’ needs and satisfaction in seeking for knowledge and

connecting into the world wide web.

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MISSION

To provide excellent quality services, operate in responsible manner being up to

date with the upgrading information technology and high-speed internet access in a

homelike environment for a highly reliable and consistently satisfying customer

experience.

OBJECTIVES

 To provide customers with good quality internet service.

 To earn profit;

 To open job opportunities;

 To contribute to the economy through payment of taxes; and

 To build social responsibility.

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BRIEF DESCRIPTION OF THE BUSINESS

The proposed business is JJ Internet Shop helps to provide information and

services to the public. The business name came from the initials of the name of the

proponents or partners. It will be located at Calzada, Oas, Albay near Oas Community

College (OCC). The business will offer different services like internet surfing and

document printing. Initially we have eleven (11) computer units, ten (10) of which is

designed to be used by the target customers and one (1) unit will serve as the server.

It will adapt Partnership as the form of business organization. The proposed

project will employ two (2) assistants for the server and two (2) managers (operation and

finance managers). Assistant One (1) will work from 9:00am-4:00pm and Assistant Two

(2) will work at 4:00pm-11pm, they will assist the clients’ needs and attend to their

wants. They will receive a salary of two hundred six pesos and fifty centavos (P206.50)

daily, which is a total of five thousand seven hundred eighty two pesos (P5,782.00)

monthly. Benefits like SSS, Philhealth, Pag-ibig and 13th month pay will also be given.

The Operation Manager is responsible for organizing the services and do marketing

research to know new market strategies, maintain the quality control of the business and

also exercise authority and responsibility of the subordinates. He will receive a salary of

two hundred sixty pesos (P260.00) daily which totals to seven thousand two hundred

eighty pesos (P7,280.00) monthly. He will also receive SSS, PhilHealth, Pag-ibig and

13th month pay as benefits. Finance Manager ensures the profitability of the business,

responsible in sales and does the collection of payment (cashier), records the daily sales

and other operation records. He will receive a salary of two hundred sixty pesos

(P260.00) daily which totals of seven thousand two hundred eighty pesos (P7,280.00)

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monthly. Oas Community College (OCC) is the target market, the shop operates from

8:00 in the morning until 11:00 pm. The target internet services provider is the BayanTel

Company.

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THE PROPOSED PROJECT: ITS USES AND USERS

The proposed project is an internet shop, which will be named as JJ Internet Shop.

JJ stands for the first letters of the name of the proponents, Jenny Joy and Jocelyn. The

business will offer different services like internet surfing and document printing. The

proponents decided to avail the services of BayanTel Company as the provider of the

internet. Initially, the JJ Internet Shop will have eleven (11) computers in the business;

ten (10) of which is designed to be used by the target customers and one (1) computer

unit will serve as the server for the said business.

Internet surfing, research and printing are the main services that will be offered by

the proposed business to its target market. Online gaming and viewing of pornographic

sites are disallowed in the business.

The proposed business will cater internet services to the students of Oas

Community College in their initial business operation.

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DEMAND ANALYSIS

Internet Shop is very important for those people who don’t own a Personal

Computer for their business or personal use. The proposed business will offer an internet

renting service at an affordable price. It also offers research and printing services.

Since the prospective customers of the business are the students the proponents

conducted an actual survey through identifying the student population of the school from

the Registrar’s office.

Table 1
Projected Population

SCHOOL YEAR POPULATION

2016-2017 1,056

2017-2018 1,118

2018-2019 1,184

2019-2020 1,253

2020-2021 1,326

Source: OCC

Table 1 shows the projected population of students of Oas Community College

(OCC) within the next 5 years. The proponent gives a growth rate of 5.86% on the

population of OCC. Detailed computation is found on Appendix 4. The projected

population was based from the student population from 2009-2015

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The number of Internet Shops and the number of students particularly in college

level should be proportioned. As the number of students increases, the number of Internet

Shop should also increase, which is one of the various problems of the students in the

Oas Community College because computer shop are too far from their school. This

results for a possible high demand for the proposed business.

Knowing the demand of the business is very important. Demand analysis will

help the proponents to identify the possible clients and their demand for the business.

Demand analysis is determined by the willingness of the individual who will avail of the

services and if they have the capacity to pay the services offered.

Table 2
Projected Target Customer

SCHOOL YEAR PROJECTED PERCENTAGE TARGET


POPULATION OF CUSTOMER
WILLINGNESS
TO AVAIL THE
SERVICE

2016-2017 1,056 80% 845

2017-2018 1,118 80% 894

2018-2019 1,184 80% 947

2019-2020 1,253 80% 1,002

2020-2021 1,326 80% 1,061

Table 2 shows that 80% of total no. of students are willing to avail the services

based on the questionnaires given to them by the proponents. The other 20% opted not to

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avail the services from the Internet Shop because some of them have their own internet

connection and has personal laptops.

Table 3
Projected Total Demand (in hours)

YEAR TARGET AVERAGE PER TOTAL DEMAND


CUSTOMER CAPITA (in hours)
(in hours)

2016-2017 845 7,392 6,246,240

2017-2018 894 7,392 6,608,448

2018-2019 947 7,392 7,000,224

2019-2020 1,002 7,392 7,406,784

2020-2021 1,061 7,392 7,842,912

Table 3 shows the projected total demand in hours of the proposed business for

the next five years. The demand is computed by multiplying the total number of target

customers per year to average per capita.

SUPPLY ANALYSIS

Putting up a business is not easy. There are a lot of factors to consider. Knowing

the supply of the proposed business on the market is a big thing.

In the business world, one thing that is inevitable are competitors. Less

competition is better since there are only few who will offer the same type of service in

spite of the increasing demand.

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As business expands the shop will also add some services to be offered to the

customers.

Supply analysis is another important aspect for the successful planning of the

business. Determining the possible competitors must be done to know if there is enough

supply or the competitors can supply all the demand for the services. If not, the proposed

business has the possibility to exist and to supply the services needed by the target

clients.

Within the location of the proposed business, the proponent conducted a personal

interview to the possible competitors of the project in the Municipality of Oas.

Table 4
Services of Competing Establishment
(in hours)

Competitors Address No. of No. of No. of Days Weekly Monthly Yearly


Name Units Hours of of
Operation Operation
Hytech’s Café Centro, 12 12 6 864 3,456 41,472
Oas, Albay
6A’s Café Iraya Sur, 14 12 7 1,176 4,704 56,448
Oas, Albay
Reynancia’s Iraya Norte, 20 14 6 1,680 6,720 80,640
Café Oas, Albay
ROQ’s Café Iraya Norte, 18 14 7 1,764 7,056 84,672
Oas, Albay
D’link’s Café Ilaor Sur, 15 14 7 1,470 5,880 70,560
Oas, Albay
Sabdao’s Iraya Norte, 15 12 6 1,080 4,320 51,840
Café Oas, Albay
Compulab Centro, 20 12 6 1,440 5,760 69,120
Café Oas, Albay
TOTAL 454,752

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Table 4 shows the estimated number of hours rendered by the competing

computer shop in the locality. The number of hours weekly was multiplied by four (4) to

arrive the number of hours per month. The number of hours per month was multiplied by

twelve (12) to determine the annual number of hours availed by the customers. Detailed

computation is found on Appendix 5.

The other internet shop was located far from the target customers and some

internet shops are not visible to the customers because of its location. The reason why the

proponents decided to propose this business is because of good location and accessibility

for the prospective clients.

Table 5
Projected Supply
(in hours)

YEAR PROJECTED SUPPLY

2016-2017 454,752

2017-2018 477,490

2018-2019 501,365

2019-2020 526,433

2020-2021 552,755

Table 5 shows the total projected services rendered by competing establishments

in the market. The proponents used 5% as the annual increase. Such rate came from the

historical data of the existing computer shop in the target area.

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DEMAND AND SUPPLY GAP ANALYSIS

Demand and supply gap analysis was used to determine whether the proposed

business would prosper and if the total demand and supply would meet each other.

After determining the total demand and supply, it is easily for the proponents to

get the demand and supply gap from the complete data of the information to determine

the demand and supply gap. The total supply was subtracted from the total demand of the

project.

The sensitivity analysis of the projected demand and supply values of this was

presented. This will be one of the main reasons for the easy penetration of the market.

Table 6
Demand and Supply Gap Analysis
(in hours)

YEAR TOTAL DEMAND TOTAL SUPPLY DEMAND and


SUPPLY GAP

2016 6,246,240 454,752 5,791,488

2017 6,608,448 477,490 6,130,958

2018 7,000,224 501,365 6,498,859

2019 7,406,784 526,433 6,880,351

2020 7,842,912 552,755 7,290,157

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Table 6 shows the demand and supply gap that was computed by subtracting the

total supply per year by the total demand per year. For market share, the demand and

supply gap is divided by the total demand per year and multiplied by 100%.

There is continues increase of demand so the expansion of the proposed business

has the potential to fill up the remaining gap.

PROJECTED SALES OF THE PROPOSED BUSINESS

Projected sales were computed by estimating the average number of hours that the

students will avail the internet access and printing service.

Table 7.1
Projected Sales- Internet Access

YEAR SALES VOLUME SELLING PRICE TOTAL SALES


(in hours)
2016 2,352 Php15.00 Php 705,600.00
2017 2,688 16.00 Php 860,160.00
2018 2,856 17.00 Php 971,040.00
2019 3,024 18.00 Php1,088,640.00
2020 3,360 19.00 Php1,276,800.00

Table 7.1 shows the projected sales of JJ Internet Shop for internet access service.

The proposed business is available 14 hours a day and it is estimated that at least 50% of

the number of hours per day will be availed by the target market, 2 hours is the average

that a customer consumes a day and the selling price will also increase by 5% in the

additional number of hours to be availed by the customer. Detailed computation is found

on Appendix 7.1.

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Table 7.2
Projected Sales- Printing

YEAR SALES VOLUME SELLING PRICE TOTAL SALES


(number of pages (per page)
printed)
2016 1,014 Php2.50 Php2,535.00
2017 1,072 Php2.75 Php2,948.00
2018 1,136 Php3.03 Php3,442.08
2019 1,202 Php3.33 Php4,002.66
2020 1,274 Php3.69 Php4,701.06

Table 7.2 shows the projected sales of JJ Internet Shop for printing service. It is

estimated that at least 60% of the students will avail printing service. The selling price

will also increase at least 10% per page being availed by customer. Detailed computation

for sales volume is found on Appendix 7.2.

Table 7.3
Summary of Projected Sales

SERVICES 2016 2017 2018 2019 2020


Internet P705,600.00 P860,160.00 P971,040.00 P1,088,640.00 P1,276,800.00
Access
Printing 2,535.00 2,948.00 3,442.08 4,002.66 4,701.06
TOTAL P708,135.00 P863,108.00 P974,482.08 P1,092,642.66 P1,281,501.06

Table 7.3 shows the summary of the projected sales of Internet access and

projected sales for printing service.

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MARKETING PROGRAMS AND STRATEGIES

Marketing strategies are ways to promote new business in particular place. It will

help the business to be known to the market and at the same time to promote the service

that is being endorsed. Marketing strategies could stimulate sales.

Promotional Strategies

Every business that will be put up on market needs a marketing strategy to

introduce the business especially if it is very new. In order that certain business be well-

patronized or be known in the market, market strategies are important. Through this, it

will serve as the key to the success of the business.

Before the opening of a new internet shop, it has to be advertised and promoted

properly. It can be done through local radio advertisement, and services offered will be

displayed on the store window for promotion. Putting up a tarpaulin promoting the

business on the site on month before the opening will also be considered, to let the people

know that there will be a new Internet Shop on the vicinity. On the opening the first

fifteen (15) customers will be given free one (1) hour internet access. 2% discount will be

given for every 50 pages printing service availed by the customer, and 100 pages they

will given a 5% discount. This offer will be made available only during the first week of

the opening.

Lastly, updating and developing the skills of the staff is very important by

attending seminars to improve the team’s knowledge and to be updated in this business.

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Product Positioning

The proposed business is a service entity that offers internet surfing and document

printing as our target market will patronize because it is different from other existing

shops. First, it is the nearest internet shop in Oas Community College while the others are

too far. Second, the shop has a waiting area which is comfortable place for the customers

while waiting for a unit to be vacant. Lastly, our internet shop operates in responsible

manner, being up-to-date with information technology and high-speed internet access in a

homelike environment.

JJ
INTERNET SHOP

Figure 1. Signage of the Establishment

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Pricing Scheme

The proponents considered the costs increased during the operations to come up

with the selling price. The initial price for internet access is Php15.00 and will increase

by 10% annually. The initial price for printing is Php2.50 and will increase 10%

annually.

Channel of Distribution

Channel distribution is the whole series of marketing intermediaries. It enhances

communication flows and the flow money.

INTERNET ACCESS
(BayanTel)

SUBSCRIBER
(our shop)

CUSTOMERS

Figure 2. Distribution Channel

JJ Internet Shop is subscribing to the BayanTel Company as our service provider

in order to provide our customers with fast and reliable internet access.

The target customers just need to go to the shop for them to avail the different

services being offered by the proposed business.

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SERVICE SPECIFICATION

The Internet Shop will be known as “JJ Internet Shop”. Fast access of the internet is

the service to be offered in this shop. The customers will be satisfied from its high-speed

connection of the internet. Fast connection of the internet is the key selling point. The

internet shop opens from Monday to Sunday from 9:00AM to 11:00PM. Some of the

internet and computer services to be offered JJ Internet Shop are listed below:

 Surf the web at warp speed;

 Chat online using Messenger, Yahoo and Facebook;

 Have video conference with business associate, family member or friends;

The customers will enjoy surfing and researching at JJ Internet Shop, with high-

speed internet connection where they can visit all their favorite sites in record time.

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SERVICE PROCESS

 As the customer enters the internet shop, he should approach the assistant to

request for the service he wants to avail.

 He will then be assisted to the client’s chosen pc, and the assistant will go back to

the server pc to open the client’s pc according to the period of time the customer

wants.

 If the customer wants to extend the time usage, he must inform the assistant.

 If the customer wants to avail the printing service, the assistant will be the one to

print the papers.

 If there are no vacant PC, the customer will then be assisted to the waiting are

until he/she have been told to log in.

 The customer will pay to the cashier after using the client pc.

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CUSTOMER SERVER OPERATOR

NO VACANT
WAITING AREA COMPUTER

YES YES

COMPUTER

SURFING

FINISHED

CASHIER

OUT
F

Figure 3. Service Process Flow Chart

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Plate 1
Computer Set

Specification:

 PC server- Intel core 2 duo processor, 2G DDR2 RAM, 160G HDD, 2GB video

card, 10/100 LAN card (or built-in), CD or DVD drive, 56K, modem or ISDN

(internal or external), 22* LCD monitor, mouse and keyboard, Automatic Voltage

Regulator (AVR).

 PC client- Intel Dual Core, 1GB DDR2 RAM, 2GB video card, LAN card

10/100, 160G Hard Disk, 19* LCD monitor, mouse and keyboard, Auto Voltage

Regulator (AVR).

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EQUIPMENT REQUIREMENTS

The proposed project is going to use of 1 computer unit for server and 10

computer units for the clients and the details of the equipment required for the project are

stated below:

Table 8
Computer Hardware

DESCRIPTION QTY UNIT TOTAL USEFUL DEPRECIATION


PRICE PRICE LIFE
PC (Server) 1 pc. Php30,000.00 Php30,000.00 5 yrs Php 6,000.00
PC (Client) 10 pcs. 27,000.00 270,000.00 5 yrs 54,000.00
Printer 1pc. 9,850.00 9,850.00 3 yrs 3,283.33
Lan Cable 50 m. 50.00 2,500.00 3 yrs 833.33
RJ45 10 pcs. 10.50 105.00 3 yrs 35.00
Router 1 unit 3,000.00 3,000.00 5 yrs 600.00
Web-cam 11 unit 750.00 8,250 3 yrs 2,750.00
Headset 11 unit 400.00 4,400.00 3 yrs 1,466.67
CCTV 1 10,000.00 10,000.00 4 yrs 2,500.00
package
UPS 1 unit 2,000.00 2,000.00 5 yrs 400.00
TOTAL Php340,105 Php71,868.33
Source: DTI pamphlet

Table 8 shows the number of hardware and its total price to be used in the

operation of the proposed business. The proponents got the price list based on the DTI

pamphlet.

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Table 9
Software

DESCRIPTION UNIT TOTAL USEFUL DEPRECIATION


PRICE PRICE LIFE
Operation System Php6,750.00 Php74,250.00 5 yrs Php14,850.00
Anti-virus and Spy 699.00 7,689.00 5 yrs 1,537.00
Software
Application 636.27 6,999.00 5 yrs 1,399.00
Software
TOTAL Php88,938.00 Php17,787.60
Source: DTI pamphlet

Table 9 shows the list of software and their unit cost. It will be installed in the

computer units to perform specific operations and be free from viruses.

 Operating System- Windows 7 Ultimate for 11 units at 6,750 per license.

 Anti-Virus and Anti-Spy- Will eliminate or delete treats and system breakdown,

at 8,000 for 11 pc units.

 Application Software - Word processing, spreadsheets, gaming, software’s

version 2013 and other applications.

Table 10
Furniture and Fixture Equipment’s

DESCRIPTION QTY UNIT TOTAL USEFUL DEPRECIATION


PRICE PRICE LIFE
Ceiling Fan 2pcs. Php800.00 Php 1,600.00 5 yrs. Php 320.00
Wall Fan 4 pcs. 800.00 3,200.00 5 yrs. 640.00
Chairs 20pcs. 200.00 4,000.00 5 yrs. 800.00
Flourescent 2 pcs. 200.00 400.00 5 yrs 80.00
Lamp
Led Bulb Lamp 3 pcs. 150.00 450.00 5 yrs 90.00
PC Table 10 pcs. 250.00 2,500.00 5 yrs 500.00
TOTAL Php12,150.00 Php2,430.00
Source: LCC
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Table 10 shows the furniture and fixtures of the proposed business. The chairs and

pc tables will be used for all computer sets. The ceiling fans and other chairs will be

utilized in the waiting area of the customers. The other wall fans and ceiling fans are

intended for the computer area.

Table 11
Repair & Maintenance

DESCRIPTION YEARLY
Repair & Maintenance Php20,000.00

Table 11 shows the cost of the repair and maintenance of the computers.

Php20,000.00 yearly is the projected expense which includes the parts and labor for the

repair of computer units.

Table 12
Office Supplies

The materials needed for the operation of the business are stated below:

DESCRIPTION QTY UNIT PRICE TOTAL PRICE


Record book 2 pcs. Php50.00 Php50.00
Ballpen 2 boxes/24pcs. 3.00 72.00
Stapler (big) 1 95.00 95.00
Official receipts 25 stubs 35.00 875.00
TOTAL Php 1,142.00
Source: Maxi Pro and Novo

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Table 12 shows the office supplies needed for recording business transactions. It

is very important to record and organize well every transaction of the business in order to

determine every expense and the cash flows.

Table 13
Computer Supplies

DESCRIPTION QTY UNIT PRICE TOTAL PRICE


Bond Paper 20 reams Php100.00 Php2,000.00
Printer Ink 10 tones 600.00 6,000.00
TOTAL Php8,000.00
Source: DTI pamphlet and LCC

Table 13 shows the computer supplies that will be used in the business operation.

The printer’s ink and bond papers will be used for the costumers printing needs.

Table 14
House Keeping Supplies

Particulars Quality Unit Unit Cost Total Cost


Trash Can 3 pcs. Php30.00 Php90.00
Dust Pan 2 pcs. 30.00 60.00
Soft Broom 3 pcs. 50.00 150.00
Floor Mat 2 pcs. 25.00 50.00
Computer 1 pcs. 1,000.00 1,000.00
Vacuum
Falcon Dust-off 3 pcs. 350.00 1,050.00
Total Php2,400.00
Source: Novo and Angena

Table 14 shows the house keeping supplies for the maintenance cleanliness of the

facility. It is very important that the computer area, computers, offices and all sides of the

facility are clean to avoid any illness and embarrassment from the customers.

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Table 15
Internet

DESCRIPTION COST/MONTH COST/YEAR

Internet Subscription Php3,000.00 Php36,000.00

Source: BayanTel Company

Table 15 shows that internet provider is BayanTel Company. The cost of

installation is Php1,499.00 with free 250 meters wire and Php12.00 per meter for any

additional wire.

SERVICE QUALITY CONTROL

Providing a quality service for the customer and to satisfy them is one of the

objectives of the business. The equipment and tools to be used should be inspected to

make sure that it is in good condition and properly working in order to avoid conflict and

to provide good quality service.

In purchasing the tools and equipment, good quality must be observed. It should

be tested before purchasing. The Manager will monitor the operations including the

operator’s performance to make sure that they’ll repair computer properly and to give

quality service for every needs of the customer.

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WASTE DISPOSAL

The proposed business should consider cleanliness. The proponents shall comply

with the low proper disposal. The Republic Act No. 9003 also known as the “Ecological

Solid Waste Management Act”, is the applicable law that set their standards for proper

waste disposal. It must be observed to avoid burden to the public.

The proper disposal of the garbage is very important. Since our business is an

Internet Shop which usually use bond papers, we will observe proper waste disposal. To

maintain the cleanliness inside the Internet Shop, there are trash baskets located at each

corner. In this business, air-conditioning will not be used to conserve more power.

Computers are made from variety of materials and some of these materials are

toxic to the environments. The disposal of old computers has become a serious

environmental issue. The problems of the rising amount and the environmental danger of

unused of scrapped electronic equipment and computers are now known as e-waste.

Some old computer parts that can be reused will be sold and will contact some e-waste

recycling and disposal companies for those computer parts that can’t be recycled for safe

disposal.

BUILDING FACILITIES AND RENOVATION

Building is an important asset of a business. It must be built properly. The use of

enough amount of materials and it must be planned by a professional engineer. It also

must have a strong foundation for strong protection against any disaster.

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There is an available building near the target location which was inherited from

the family of the proponent, which is yet to be renovated. The estimated renovation costs

Php200,000.00.

The location of JJ Internet Shop is at Diversion Road, Calzada, Oas, Albay. The

site is chosen because it is near to the target market. See figure 4 for plant layout, figure 5

for perspective and figure 6 for vicinity map.

UTILITIES REQUIREMENTS

Utilities such as electricity and telephone are very important in any business

operation. Electric supply will be provided by the Albay Power Electric Cooperative

(APEC) for lighting, ventilation and other purposes.

Table 16

Utilities Requirements

UTILITY COST/MONTH COST/YEAR

Electricity Php15,450.96 Php185,411.52

Table 16 shows the electric consumption projected during the operation of the

proposed business, its cost monthly and yearly. Detailed computation is found on

Appendix 8.

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MANPOWER REQUIREMENT

The employees will hire two (2) assistants that will operate the computers when

there is a customer and will maintain the stability of the computers. The proponents will

be the Manager and will receive a salary of Php206.50 per day. The assistants will also

have a fringe benefit if they are regular employees.

Table 17
Manpower Compensation

Position No. of Daily Monthly Yearly


Employee
Manager1 1 260.00 Php 7,280.00 Php 87,360.00
(Finance)
Manager2 1 260.00 7,280.00 87,360.00
(Operation)
Assistant1 1 206.50 5,782.00 69,384.00
Asssistant2 1 206.50 5,782.00 69,384.00
TOTAL Php26,124.00 Php313,488.00
Source: DOLE

Table 18
Fringe Benefit

Position Fringe Benefits


SSS Phil Health Pag-ibig 13th
Monthly Yearly Monthly Yearly Monthly Yearly Month
pay
Manager 1 P 562.50 P 6,750.00 P 200.00 P2,400.00 P145.60 P1,747.00 P 7,280.00
Manager 2 562.50 6,750.00 200.00 2,400.00 145.60 1,747.00 7,280.00
Assistant 1 218.00 2,616.00 200.00 2,400.00 115.64 1,387.68 5,782.00
Assistant 2 218.00 2,616.00 200.00 2,400.00 115.64 1,387.68 5,782.00
Total P1,561.00 P18,732.00 P600.00 P7,200.00 P522.48 P6,269.36 P26,124.00
Source: DOLE
Table 18.1 shows the benefits of the workers and managers in SSS and

PhilHealth, Pag-ibig as well as the 13th month pay.

30
Figure 4. Floor plan
Figure 5. Building Perspective

32
Figure 6. Vicinity Map

33
Cost Computation (1 Month)

Labor P11,564.00

Electricity 15,450.96

Overhead

Repair & Maintenance 1,666.67

Internet Subscription 3,000.00

Computer Supplies 666.67

Office Supplies 95.17

House Keeping Supplies 200.00

Depreciation Expenses

Building 16,666.67

Software 1,482.30

Hardware 9,354.79

Furniture and Fixture 202.50

TOTAL P59,683.06

Divide by: 11 unit of computer 11

5,425.73

Divide by: Hours/day (14hours x 30days) 420

12.92

Mark-up (20%) 2.19

Rate per hour Php 15.00

34
MANAGEMENT AND PERSONNEL

The business will be managed and supervised by two (2) managers, two (2)

workers as assistants will also be hired the proposed business. The personnel will be paid

under the minimum wage.

The type of organization that the proponents will adopt is partnership. It is a

grouping of two or more persons to carry-on as co-owners of business profit. The

business is based on a partnership agreement, which is known as “Articles of Co-

Partnership”. In the absence of this agreement, all profit and loses are usually divided

equally among all partnership unless there are special arrangements made and previously

agreed. The reason why it is chosen type of organization because of such advantages:

 Ease of organization.

 The combined talents, judgment and skills of several or all of the partners.

 More capital available for the firm from any or all of the partners.

 Maximum of personal interest of the service.

 Definite legal status of the company.

 Tax Advantages.

ORGANIZATIONAL STRUCTURE

The plan for the systematic arrange of work in the business is referred in as the

organizational structure. It is comprised of function, relationship, responsibilities,

authorities, and communication of the individual within the business.

35
ARTICLE OF PARTNERSHIP

KNOW ALL MEN BY THESE PRESENTS:

That we, Jenny Joy R. Aquino, Filipino, single, and Jocelyn Z. Republo,
Filipino, single, of legal ages and residents of Mayao, Oas, Albay and Iraya Norte, Oas,
Albay covenanted to establish a partnership from this date, in accordance with existing
laws,

AND WE HEREBY CERTIFY:

1. That names, surnames, and addresses of the respective partners are as follows:

Names Address
Jenny Joy R. Aquino Mayao, Oas, Albay
Jocelyn Z. Republo Iraya Norte, Oas, Albay

2. That the name of this partnership shall be JJ Internet Shop and it shall exist for 5
years from the execution of this instrument, with the right of transfer of
retirement of any partner provided written notice and approval are made to and by
the others;

3. That the capital of this partnership shall be seven hundred forty one thousand
seven hundred forty eight and eleven centavos (Php741,748.11) Philippine
Currency, broken down, in contributions, as follows:

Names Contributions

Jenny Joy R. Aquino Php370,874.05


Jocelyn Z. Republo Php370,874.05

36
4. That the purpose for which this partnership established are as follows:
 Promote a good quality product.
 To create job opportunities.
 To gain profit and at the same time to contribute to the economic growth
and development of our country.

5. That the partnership shall be under the management and supervision of a Jocelyn
Z. Republo, Operation Manager who shall perform as the operation manager in
cooperation with Jenny Joy R. Aquino, Sales Manager who shall perform as
marketing manager; and who shall receive a monthly salary of Php7,280.00 each.

6. The profit and losses shall be divided to 50/50 portion share according to the
invested capital contributions.

In Witness thereof, we have to a fixe are signature this ______ day of _______,

________ at BUPC, Polangui, Albay, Philippines.

Jenny Joy R. Aquino Jocelyn Z. Republo


Signature Signature

Witnesses:

SUNJAY C. GANDIA SONNYLEN G. REQUILLAS


Signature Signature

37
Finance Operations
Manager Manager

Assistant1 Assistant2

Figure 7. Organizational Chart

38
DUTIES AND RESPONSIBLITIES

In a business operation, everyone has an important task to be taken up in order to

achieve the mission of the business.

The proponents determined the duties and responsibilities of the personnel of the

proposed project.

Operations manager is responsible for organizing the service and marketing

research to know new market strategies. Finance manager is tasked in sales, he’s also

responsible in managing and supervising the business.

OPERATIONS MANAGER

Duties and Responsibilities

 Maintaining the quality control of the business.

 Formulates the marketing strategy.

 Exercise authority and responsibility over his subordinates.

FINANCE MANAGER

Duties and Responsibilities

 Ensure the profitability of the business.

 Responsible in sales and does the collection of payment (cashier).

 The cashier that records the daily sales and other relevant records.

39
INTERNET SHOP ASSISTANT

Required Qualifications:

 Graduate of any computer course;

 Single;

 Has had a good encoding skills;

 Has knowledge in troubleshooting.

Duties and Responsibilities:

 Obliged to entertain the customers and set the service of the customer’s

needs.

 Does operate the computer and assist if there is a customer and ensures the

maintenance and quality control of every computer unit.

MANPOWER COMPENSATION SCHEME

Workers will be hired in the operation of proposed business. The assistant will

receive two hundred six pesos and fifty centavos (P206.50) daily. The assistant will also

receive fringe benefits like SSS, Phil Health, Pag-ibig and also 13th month pay. In the

administrative department, the Managers will receive a daily salary of two hundred and

sixty pesos (P260.00).

40
PRE OPERATING ACTIVITIES

Before a business is established there are requirements to be satisfied before its

legal operation. The proposed business will undergo a feasibility study to know whether

the business will be patronized by the target customer.

Next, all permits and licenses to operate the business, the municipal fees, and

other fees for registration like in the Department of Trade and Industry (DTI) and the

Bureau of Internal Revenue (BIR) where business tax are required to pay must be

accomplished.

The funds or the capital to be used to start and operate the business including the

purchase of raw materials and equipment to be used in the service shall be considered.

Lastly, hiring and training of the workers, proper orientation on how to operate

and manage the business and getting familiarized with the company policies, rules and

regulations. Building facilities should be situated in the area according to the proposed

site of the business.

41
Table 20
Gantt chart

Activities Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr

Preparation of PFS
Raising for capital

Renovation of
building
Registration of
business

Procurement of
equipments, tool,
supplies, and
furniture
Hiring and
training of
employee
Start of operation

42
Financial Source

The total project cost of Php741,748.11 will be financed by the family and the

relatives of the proponents through their savings and property.

Summary of Financial Assumptions

1. The business will start on April 2016 and will operate continuously using the

calendar year.

2. Contingency cost is five percent (5%) of A,B,C of the total project cost.

3. Project cost assumed to increase five percent (5%) yearly.

4. Office supplies will increase by five percent (5%) yearly.

5. Preparation of project feasibility study estimated P5,000.00.

6. Depreciation expense will be computed using the straight-lined method.

7. Internet subscription is to be fixed P3,000.00

8. Hose keeping and computer supplies will increase five percent (5%) annually.

9. Electricity cost is assumed to increase five percent (5%) yearly.

10. The proposed business will engage in cash sales.

11. Administrative salary and fringe benefits are assumed to be fixed.

12. Direct labor and fringe benefits are assumed to be fixed.

13. Promotional expense is assumed to increase two percent (2%) yearly.

14. Fringe Benefits:

a) Monthly SSS, Phil Health and PAG-IBIG contribution is based on the

recent contribution as provide by the respective agencies are payable on or

before the 10th day of the following month.

43
b) Annual 13th month pay is equivalent to the employees monthly

compensation.

15. Withholding tax on compensation is computed based on the current withholding

tax table by the BIR.

16. Provision for income tax will else be computed using the rules in Partnership

Taxation.

44
TOTAL PROJECT COST

Total Project Cost


A. FIXED ASSETS
Building Renovation 200,000.00
Hardware Requirements 340,105.00
Software Requirements 88,739.00
Furniture and Fixture 12,750.00
Total Fixed Assets 641,594.00

B. WORKING CAPITAL (1 Month)


Repair & Maintenance 1,666.67
House Keeping Supplies 200.00
Promotional Expense 4,400.00
Computer Supplies 666.67
Direct Labor & Fringe Benefits 12,631.28
Administrative Salary & Fringe Benefits 16,376.20
Utilities 15,450.96
Office Supplies 1,142.00
Internet Fee 3,000.00
Total Working Capital 55,533.77

C. PRE-OPERATING EXPENSE
Project Feasibility Study 5,000.00
Internet Installation 1,999.00
Taxes, Permits & Licenses 2,300.00
Total Pre-Operating Expense 9,299.00

D. CONTINGENCY FUND (5% A,B,C)


A= 641,793.00 x 5% 32,079.70
B= 2,300.00 x 5% 2,776.69
C= 9,299.00 x 5% 464.95
Total Contingencies 35,321.34

TOTAL PROJECT COST 741,748.11

45
JJ Internet Shop
Calzada, Oas, Albay
PROJECTED STATEMENT OF FINANCIAL PERFORMANCE
For the Year Ended December 31, 2016-2020

SCHEDULE 2016 2017 2018 2019 2020

Service Fees A 531,101.25 863,108.00 974,482.08 1,092,642.66 1,281,501.06

Less: Cost of Services E 395,277.61 536,827.39 547,107.50 557,901.61 569,235.43

Gross Income 135,823.64 326,280.61 427,374.58 534,741.05 712,265.64

Less: Operating Expense M 187,080.84 244,416.90 247,883.17 251,555.89 257,352.46

Net Income Before Tax (51,257.20) 81,863.71 179,491.41 283,185.16 454,913.18

Less: Tax Due (30%) 0.00 24,559.11 53,847.42 84,955.55 136,473.95

Net Income After Tax (51,257.20) 57,304.60 125,643.99 198,229.61 318,439.22

46
JJ Internet Shop
Calzada, Oas, Albay
PROJECTED CASH FLOW
For the Year Ended December 31, 2016-2020

SCHEDULE 2016 2017 2018 2019 2020

Net Income IS (51,257.20) 57,304.60 125,643.99 198,229.61 318,439.22

Add: Depreciation I 84,064.45 112,085.93 112,085.93 112,085.93 112,085.93


Increase (Decrease) in current
Liability BS 5,458.12 24,946.55 29,566.75 31,403.53 51,990.55

Net Cash Provided by Operation 38,265.37 194,337.07 267,296.66 341,719.07 482,515.70


CASH FLOW FROM INVESTMENT

Acquisition of Fixed Assets J (641,193.00) 0.00 0.00 (25,105.00) (10,000.00)

Net Cash Provided by Investments (641,193.00) 0.00 0.00 (25,105.00) (10,000.00)


CASH FLOW FROM FINANCING
ACTIVITIES

Partner's Contribution TPC 741,748.11 0.00 0.00 0.00 0.00


Less: Withdrawals 0.00 0.00 0.00 0.00 0.00

Net Cash Flow From Financing Activity 741,748.11 0.00 0.00 0.00 0.00

Net Cash Flows 138,820.48 194,337.07 267,296.66 316,614.07 472,515.70

Add: Cash Beginning 0.00 138,820.48 333,157.55 600,454.21 917,068.28

Cash Ending 138,820.48 333,157.55 600,454.21 917,068.28 1,389,583.99

47
JJ Internet Shop
Calzada, Oas, Albay
STATEMENT OF FINANCIAL POSITION
For the Year Ended December 31, 2016-2020

ASSETS SCHEDULE 2016 2017 2018 2019 2020

Current Assets CFS 138,820.48 333,157.55 600,454.21 917,068.28 1,389,583.99

Total Current Assets 138,820.48 333,157.55 600,454.21 917,068.28 1,389,583.99


FIXED ASSETS

Building Renovation 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00

Hardware 340,105.00 340,105.00 340,105.00 340,105.00 340,105.00

Software 88,938.00 88,938.00 88,938.00 88,938.00 88,938.00

Furniture & Fixture 12,150.00 12,150.00 12,150.00 12,150.00 12,150.00

TOTAL 641,193.00 641,193.00 641,193.00 641,193.00 641,193.00


Less: Accumulated
Depreciation O 84,064.45 196,150.38 308,236.31 395,217.24 497,303.17

Net Book Value 557,128.55 445,042.62 332,956.69 245,975.76 143,889.83

TOTAL FIXED ASSETS 695,949.03 778,200.17 933,410.90 1,163,044.04 1,533,473.82

48
LIABILITIES AND OWNER'S EQUITY

Business Tax Payable L 1,770.34 2,157.77 2,436.21 2,731.61 3,203.75

Income Tax Payable FP 0.00 24,559.11 53,847.42 84,955.55 136,473.95

Withholding Tax Payable N 804.30 804.30 804.30 804.30 804.30

Fringe Benefits Payable 2,883.48 2,883.48 2,883.48 2,883.48 2,883.48

Total Liabilities 5,458.12 30,404.66 59,971.41 91,374.93 143,365.49

OWNER'S EQUITY

Capital Beginning TPC 741,748.11 690,490.91 747,795.51 873,439.50 1,071,669.11

Add: Net Income IS (51,257.20) 57,304.60 125,643.99 198,229.61 318,439.22

Capital End 690,490.91 747,795.51 873,439.50 1,071,669.11 1,390,108.33


TOTAL LIABILITY & OWNER'S
EQUITY 695,949.03 778,200.17 933,410.90 1,163,044.04 1,533,473.82

49
FINANCIAL ANALYSIS

Year Net Income Net Sales


2016 Php -51,257.20 Php 531,101.25
2017 57,304.60 863,108.00
2018 125,643.99 974,482.08
2019 198,229.61 1,092,642.66
2020 318,439.22 1,281,501,06
TOTAL Php648,360.22 Php4,742,835.05

AVERAGE NET INCOME = Total Projected Net Income


No. of years

= P648,360.22
5

= 129,672.04

AVERAGE NET SALES = Total Projected Net Sales


No. of years

= 4,742,835.05
5

= 948,567.01

RETURN ON SALES = Average Net Income x 100%


Average Net Sales

= 129,672.04 x 100%
948,567.01

= 0.14%

50
RETURN ON INVESTMENT= Average Net Income x 100%
Total Projected Cost

= 129,672.04 x 100%
741,748.11

= 0.17%

CASH PAYBACK PERIOD= Total Project Cost


Average Net Income

= 741,748.11
129,672.04

= 5.72

CURRENT RATIO = Current Assets


Current liabilities

= 314,882.67
42,688.66

= 7.37 or 1:7.37

NET WORKING CAPITAL= Current Assets – Current Liability

= P314,882.67 – 42,688.66

= P272,194.01

51
EQUITY RATIO = Partner’s Equity x 100%
Total liabilities

= 634,243.88 x 100%
639,702.00

= 99.15%

OPERATING RATIO = Cost of service + Operating expense x 100%


Net Sales

= 470,743.49 + 187,080.84 x 100%


531,101.25

= 123.86%

RATION OF GROSS INCOME TO NET SALES (2016)

= Gross income x 100%


Net Sales

= 60,357.76 x 100%
531,101.25

= 11.36%

RATION OF NET INCOME TO NET SALES (2016)

= Net income x 100%


Net Sales

= -51,257.20 x 100%
531,101.25

= -9.65%

52
SCHEDULE A
Projected Sales

2016 2017 2018 2019 2020


Internet Service 529,200.00 860,160.00 971,040.00 1,088,640.00 1,276,800.00

Printing 1,901.25 2,948.00 3,442.08 4,002.66 4,701.06


TOTAL 531,101.25 863,108.00 974,482.08 1,092,642.66 1,281,501.06

SCHEDULE B
Electricity

2016 2017 2018 2019 2020

Electricity 15,450.96 16,223.51 17,034.68 17,886.42 18,780.74


Multiplied by the no. of
months 9 12 12 12 12

TOTAL 139,058.64 194,682.10 204,416.21 214,637.02 225,368.87

53
SCHEDULE C
Housekeeping Supply

2016 2017 2018 2019 2020

Housekeeping Supply 3,837.00 4,028.85 4,230.29 4,441.80 4,663.89


Divided by 12 monthsfor 2016 12

Total 319.75
Mutliplied by no. of months of
2016 9

Total Housekeeping Supply 2,877.75 4,028.85 4,230.29 4,441.80 4,663.89

SCHEDULE D
Computer Supply

2016 2017 2018 2019 2020

Computer Supply 11,000.00 11,550.00 12,127.50 12,733.88 13,370.57


Divided by 12 months for 2016 12

Total 916.67
Multiplied by number of months for
2016 9

TOTAL 8,250.00 11,550.00 12,127.50 12,733.88 13,370.57

54
SCHEDULE E
Cost of Service

PARTICULARS 2016 2017 2018 2019 2020


Internet Subscription 27,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Direct Labor 122,354.52 163,139.36 163,139.36 163,139.36 163,139.36
Factory Overhead 245,923.09 337,688.03 347,968.14 358,762.25 370,096.07
TOTAL 395,277.61 536,827.39 547,107.50 557,901.61 569,235.43

SCHEDULE F.1
Wages and Fringe Benefits for 9 months (2016)

Monthly Salary SSS Phil Health PAG-IBIG TOTAL


Assistant1 5,782.00 218 200 115.64
Assistant2 5,782.00 218 200 115.64
Total 11,564.00 436.00 400.00 231.28
Multiplied by no. of months 9 9 9 9
Total Direct Labor Salary 104,076.00
13th month pay 8,673.00
Total Direct Labor and Fringe
Benefits 112,749.00 3,924.00 3,600.00 2,081.52 122,354.52

55
SCHEDULE F.2
Wages and Fringe Benefits for 2017-2020

Monthly Salary SSS Phil Health PAG-IBIG TOTAL


Assistant1 5,782.00 218 200 115.64
Assisstant2 5,782.00 218 200 115.64
Total 11,564.00 436.00 400.00 231.28
Mutilpilied by # of months 13 12 12 12
Total Direct Labor and Fringe
Benefits 150,332.00 5,232.00 4,800.00 2,775.36 163,139.36

SCHEDULE G.1
Administrative Salaries and Fringe Benefits for 9 months (2016)

Monthly Salary SSS Phil Health PAG-IBIG TOTAL

Manager1 7,280.00 562.50 200.00 145.60

Manager2 7,280.00 562.50 200.00 145.60

Total 14,560.00 1,125.00 400.00 291.20


Multiplied by no. of months 9 9 9 9

Total Administrative Salary 131,040.00

13th Month Pay 10,920.00


Total Salaries and Fringe
Benefits 141,960.00 10,125.00 3,600.00 2,620.80 158,305.80

56
SCHEDULE G.2
Administrative Salaries and Fringe Benefits for 2017-2020

Monthly Salary SSS Phil Health PAG-IBIG TOTAL

Manager1 7,280.00 562.50 200.00 145.60

Manager2 7,280.00 562.50 200.00 145.60

TOTAL 14,560.00 1,125.00 400.00 291.20


Multiplied by no. of months 13 12 12 12
Total Salaries and Fringe
Benefits 189,280.00 13,500.00 4,800.00 3,494.40 211,074.40

SCHEDULE H
Overhead

PARTICULARS 2016 2017 2018 2019 2020


Electricity 139,058.64 194,682.10 204,416.21 214,637.02 225,368.87
Depreciation 84,064.45 112,085.93 112,085.93 112,085.93 112,085.93
Computer Supplies 6,000.00 8,400.00 8,820.00 9,261.00 9,724.05
House Keeping Supplies 1,800.00 2,520.00 2,646.00 2,778.30 2,917.22
Repair and Maintenance 15,000.00 20,000.00 20,000.00 20,000.00 20,000.00
TOTAL 245,923.09 337,688.03 347,968.14 358,762.25 370,096.07

57
SCHEDULE I
Depreciation Expense
Particulars Qty Unit Unit Cost Total Cost Economic Life Depreciation
Expens
Building Php200,000.00 10 Php20,000.00
Renovation
Php200,000.00 Php20,000.00
Hardware
PC (server) 1 unit 30,000.00 Php30,000.00 5 Php6,000.00
PC (client) 10 pcs 27,000.00 270,000.00 5 54,000.00
Printer 1 Pc 9,850.00 9,850.00 3 3,283.33
Lan Cable 50 m. 50.00 2,500.00 3 833.33
RJ45 10 pcs. 10.50 105.00 3 35.00
Router 1 unit 3,000.00 3,000.00 5 600.00
Web-cam 11 unit 750.00 8,250.00 3 2,750.00
Headset 11 unit 400.00 4,400.00 3 1,466.67
CCTV 1 package 10,000.00 10,000.00 4 2,500.00
UPS 1 unit 2,000.00 2,000.00 5 400.00
Php340,105.00 Php71,868.33
Software
Operation System 6,750.00 74,250.00 5 14,850.00
Anti-virus 699.00 7,689.00 5 1,537.80
Application 636.27 6,999.00 5 1,399.80
System
Php88,938.00 Php17,787.60
Furniture and
Fixture
Ceiling fan 2 pcs. 800.00 Php1,600.00 5 Php320.00
Wall fan 4 pcs. 800.00 3,200.00 5 640.00
Chairs 20 pcs. 200.00 4,000.00 5 800.00
Fluorescent Lamp 2 pcs. 200.00 400.00 5 80.00
Led Bulb Lamp 3 pcs. 150.00 450.00 5 90.00
Tables 10 pcs. 250.00 2,500.00 5 500.00
Php12,150.00 Php2,430.00
TOTAL Php641,193.00 Php112,085.93
58
SCHEDULE J
Fixed Assets Acquisition
2016 2017 2018 2019 2020
Building Renovation Php200,000.00 0.00 0.00 0.00 0.00

200,000.00 0.00 0.00 0.00 0.00


Hardware
PC (server) 30,000.00 0.00 0.00 0.00 0.00
PC (client) 270,000.00 0.00 0.00 0.00 0.00
Printer 9,850.00 0.00 0.00 9,850.00 0.00
Lan Cable 2,500.00 0.00 0.00 2,500.00 0.00
RJ45 105.00 0.00 0.00 0.00 0.00
Router 3,000.00 0.00 0.00 0.00 0.00
Web-cam 8,250.00 0.00 0.00 8,250.00 0.00
Headset 4,400.00 0.00 0.00 4,400.00 0.00
CCTV 10,000.00 0.00 0.00 0.00 10,000.00
UPS 2,000.00 0.00 0.00 0.00
340,105.00 0.00 0.00 25,105.00 10,000.00
Software
Operation System 74,250.00 0.00 0.00 0.00 0.00
Anti-virus 7,689.00 0.00 0.00 0.00 0.00
Application System 6,999.00 0.00 0.00 0.00 0.00
88,938.00 0.00 0.00 0.00 0.00
Furniture and
Fixture
Ceiling fan 1,600.00 0.00 0.00 0.00 0.00
Wall fan 3,200.00 0.00 0.00 0.00 0.00
Chairs 4,000.00 0.00 0.00 0.00 0.00
Fluorescent Lamp 400.00 0.00 0.00 0.00 0.00
Led Bulb Lamp 450.00 0.00 0.00 0.00 0.00
Tables 2,500.00 0.00 0.00 0.00 0.00
12,150.00 0.00 0.00 0.00 0.00
TOTAL Php641,193.00 0.00 0.00 Php25,105.00 Php10,000.00

59
SCHEDULE K
Taxes, Permits and Licenses

2016 2017 2018 2019 2020


Barangay Business Php150.00 Php150.00 Php150.00 Php150.00 Php150.00
Permit
Police Clerance 65.00 65.00 65.00 65.00 65.00
Mayor’s Permit 200.00 200.00 200.00 200.00 200.00
Health & Sanitary 100.00 100.00 100.00 100.00 100.00
Permit
Garbage Permit 300.00 300.00 300.00 300.00 300.00
Fire RegistratioN 105.00 105.00 105.00 105.00 105.00
Business Plate 250.00 250.00 250.00 250.00 250.00
BIR Annual 615.00 615.00 615.00 615.00 615.00
Registration
DTI Registration 515.00 0.00 0.00 0.00 0.00
TOTAL Php2,300.00 Php1,785.00 Php1,785.00 Php1,785.00 Php1,785.00

SCHEDULE L
Business Tax

2016 2017 2018 2019 2020

Service Fees 531,101.25 863,108.00 974,482.08 1,092,642.66 1,281,501.06


Tax Rate 3% 3% 3% 3% 3%

Total Business Tax 15,933.04 25,893.24 29,234.46 32,779.28 38,445.03

Business Tax per month 1,770.34 2,157.77 2,436.21 2,731.61 3,203.75

60
SCHEDULE M
Operating Expense

PARTICULARS 2016 2017 2018 2019 2020

Project Feasibility Study 5,000.00 0.00 0.00 0.00 0.00

Administrative Salary 158,305.80 211,074.40 211,074.40 211,074.40 211,074.40

Promotional Expense 4,400.00 4,488.00 4,577.76 4,669.32 4,762.70

Taxes, Permits & licenses 2,300.00 1,785.00 1,785.00 1,785.00 1,785.00

Business Taxes 15,933.04 25,893.24 29,234.46 32,779.28 38,445.03

Office Supplies 1,142.00 1,176.26 1,211.55 1,247.89 1,285.33

TOTAL 187,080.84 244,416.90 247,883.17 251,555.89 257,352.46

61
SCHEDULE N

Withholding Tax 2016-2020

BASIC
MONTHLY WITHHOLDING WITHHOLDING
POSITION SALARY EXCESS TAX TAX TOTAL TAX

Manager1 7,280.00 613.00 15% 208.33 300.28

Manager2 7,280.00 613.00 15% 208.33 300.28

Assistant1 5,782.00 782.00 10% 41.67 119.87

Assistant2 5,782.00 782.00 10% 41.67 119.87

TOTAL 26,124.00 840.30

62
SCHEDULE O
Accumulated Depreciation

2016 2017 2018 2019 2020

84,064.45 84,064.45 196,150.38 308,236.31 395,217.24

Add: Depreciation Expense 112,085.93 112,085.93 112,085.93 112,085.93

Total 308,236.31 420,322.24 507,303.17

Subtract: Fixed Asset Acquisition 0.00 25,105.00 10,000.00

TOTAL 84,064.45 196,150.38 308,236.31 395,217.24 497,303.17

63
SOCIO ECONOMIC IMPACT

Being an entrepreneur is a very challenging career. It will enhance one’s

creativity and skills, abilities, knowledge and confidence. Considering these advantages,

one must not forget the community or society where he is with.

The proposed business aims to provide employment to the community that will

help decrease the number of unemployed in the society. Decrease in unemployed

individuals might lesser the social problems in the community.

The business will also contribute in the country by means of paying the correct

taxes. Taxes help the country to raise funds for defraying the government expenditures.

Above all, the business will provide the customers specifically the students with

affordable computer or internet services.

64
RISK AND SENSITIVITY ANALYSIS

In our present economic condition, it’s hard to gain profit if we don’t have job

that will support our daily needs and wants. Engaging in a business is one of the most

practical ways of generating income and supporting our daily living. But in venturing in

this kind of activity, we might be encountering lots of difficulties and obstacles along the

way towards success. An entrepreneur never stops anticipating of what could be the

possible stumbling block that may affect the flow of business in the future. Risk is one of

the possible obstructions that an entrepreneur may encounter in the world of business.

One of the characteristics of a good entrepreneur is a “risk taker” so nothing can stop a

true entrepreneur from continuing his/her business from the ups and down of the life of

business.

Risk analysis is a technique to identify and to asses factors that may jeopardize

the success of the projector achieving a goal. This will also help to define preventive

measures to reduce the probability counter measures to successfully deal with these

constraints when they developed to avert possible negative effects on the competitiveness

of the business owner.

Through careful analysis of the study, the proponents identify first the possible

threats that are entrepreneur may face as his business as he goes through.

 Customers may not be satisfied with the service.


 New competitors appear.
 Equipment, tools, and building may encounter some problems and
loss.
 Uncontrolled weather, natural disaster, accidents, and diseases.
 Change of tax regimes, public opinions, and government policies.
 Possible absences of the employees.

65
 Bankruptcy due to improper handling of funds.
Analysis of threats is important because is given an entrepreneur an outlook as to
what will possibly happen to the business. The proponent devised strategies that might
avoid or lessen the effect of the impending risk.
Below are the solutions that the proponents may apply to avoid or lessen the risks.

 On customers who may not be satisfied with the service, the proponent may

supervise for the proper service of hired employees and critical choosing of hired

operators and download an application that other internet shop not available.

 New competitors appear, the proponents may allocate budget promotions and

more service may offer of the business.

 New inventions of gadget, the proponents also go through the fast changing of

technologies. “What’s new” may also experience by the customers.

 Problem Fixed Assets and uncontrolled weather, natural disasters, accidents, and

diseases, proper checking of equipment and tools and proper keeping should be

done. Regular checking and evaluation of electrical connections, and proper and

safe utilization of equipment especially that of prone to fires.

 Proper handling of fund and employees should also be observed. The proposed

business will be adopting proper accounting system and policies will be set.

Attending seminars and proper labor and management relationships will be

imposed.

66
Appendix 1
Computation of Sample Size

Formula:

𝐍
n=
𝟏+𝐍(𝐞)𝟐

Where in:
n= Sample Size
N= Population
e= Level of error

944
=
1+944(0.10)2

944
=
1+944(0.010)

944
=
945

N= 99.8/ 100

67
Appendix 2.1
Questionnaire

NAME_______________________________________________ AGE: __________


ADDRESS: __________________________________________________________
SCHOOL: ___________________________________________________________

The researchers are conducting a Project Feasibility Study on INTERNET SHOP


near the Oas Community College. Kindly check (√) on the blank provided before the
option in each item cited. All responses gathered will be kept confidentially.

Thank you!
Jenny Joy R. Aquino
Jocelyn Z. Republo

A. Do you use internet for research work or other purposes?


_______YES _______NO

B. Why do you use internet?


_______Surfing
_______Gaming
_______Encoding
_______Others, please specify _______

C. Are you willing to go on Internet Shop near the OCC?


_______YES _______NO

D. How often do you go to an internet shop?


_______Daily
_______Weekly
_______Monthly
_______As need arise

E. How many hours do you spend on an internet shop a day?


_______1-3 hours
_______4-5 hours
_______Others, please specify _______

F. How much are you willing to spend for it?


_______ Php10.00 per hour
_______ Php15.00 per hour
_______Others, please specify _______

68
Appendix 2.2
Questionnaire for the Competing Establishment
NAME: ______________________________________________________________
ADDRESS: __________________________________________________________
NAME OF ESTABLISHMENT: _________________________________________

The researchers are conducting a Project Feasibility Study on INTERNET SHOP


near the Oas Community College. Kindly check (√) on the blank provided before the
option in each item cited. All responses gathered will keep confidentially.

Thank you!
Jenny Joy R. Aquino
Jocelyn Z. Republo

 How many hours do you operate in a day?


_____ 14 hours
_____ 15 hours
_____ 16 hours and above

 How many hours doesyour customers spent a day?


_____ 1-3 hours
_____ 4-5 hours
_____ 5-8 hours

 What services do you offer?


_____ Internet surfing
_____ Online games
_____ Printing
_____ Computer repairs etc.
 How many computers do you have?
_____ 10- 15 units
_____ 15- 20 units
_____ 20 units and more

69
Appendix 3
Computation of Growth Rate

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015


Actual
Population 688 708 669 786 851 943

(2009-2010) - (2010-2011)
688 - 708 = 20
20 ÷ 708 = 0.0282 x 100 = 2.82%

(2010-2011) - (2011-2012)
708 – 669 = (39)
(39) ÷ 669 = (0.0583) x 100 = (5.83%)

(2011-2012) - (2012-2013)
669 – 786 = 117
117 ÷ 786 = 0.1489 x 100 = 14.89%

(2012-2013) – (2013-2014)
786 – 851 = 65
65 ÷ 851 = 0.0764 x 100 = 7.64%

(2013-2014) - (2014-2015)
851 – 943 = 92
92 ÷ 943 = 0.0976 x 100 = 9.76%

2.82% + (5.83%) + 14.89% + 7.64% + 9.76% = 29.28 ÷ 5 = 5.86%

70
Appendix 4
Computation of Projected Population

SY Population
2015-2016 998
2016-2017 1,056
2017-2018 1,118
2018-2019 1,184
2019-2020 1,253
2020-2021 1,326

Formula:

Population x growth rate = next year population

2015-2016 - 943 x 1.0586 = 998

2016-2017 – 998 x 1.0586 = 1,056

2017-2018 – 1,056 x 1.0586 = 1,118

2018-2019 – 1,118 x 1.0586 = 1,184

2019-2020 –1,184 x 1.0586 = 1,253

2020-2021 – 1.253 x 1.0586 = 1,326

71
Appendix 5
Computation for Services of Competing Establishment

Competitors Weekly Monthly Yearly


Hytech’s café 864 3,456 41,472
6A’s café 1,176 4,704 56,448
Reynancia’s café 1,680 6,720 80,640
ROQ’s café 1,764 7,056 84,672
D’link’s café 1,470 5,880 70,560
SABDAO’s café 1,080 4,320 51,840
CompuLab café 1,440 5,760 69,120
TOTAL 454,752

Formula:
Number of operation hours x units of computer x days of operation x 4 weeks x
12 months= yearly supply

Hytech’s internet café


= 12 hours x 12 units x 6 days x 4 x 12 = 41,472hours annually

6A’s internet café


= 14 hours x 14 units x 7 days x 4 x 12= 56,448hours annually

Reynancia’s internet café


= 14 hours x 20 units x 6 days x 4 x 12 = 80,640hours annually
ROQ’s internet café
= 14 hours x 18 units x 7 days x 4 x 12 = 84,672hours annually

D’link’s internet café


= 14 hours x 15 units x 7 days x 4 x 12 = 70,560 hours annually

SABDAO’s internet café


= 12 hours x 15 units x 6 days x 4 x 12 = 51,840hours annually

CompuLab’s internet café


= 12 hours x 20 units x 6 days x 4 x 12 = 69,120 hours annually

72
Appendix 6
Computation of Average Per Capita

88 students says that they consume 2 hours a day in the internet shop.

2 hours x 7 days = 14 hours x 11 units = 154 hours

154 hours x 4 = 616 hours/month

616 hours x 12 = 7,392 hours/annually

LEGEND:
2 hours – average hour that customer consume a day
7 days – no. of days business operate
11 units – no. of computers

73
Appendix 7.1
Computation of Sales Volume- Internet Access

Formula:
Operation hours x increase percentage x average hours customer consume a day x
unit of computers x 4 weeks x 12 months= Sales Volume

2016-2017 - 14 hrs x 50% = 7 hrs x 2 hours = 14 hours


14 hrs x 10 units = 140 hrs x 7 x 4 x 12 = 47,040 hours annually

2017-2018 - 14 hrs x 55% = 8 hrs x 2 hrs = 16 hrs

16 hrs x 10 units = 160 hrs x 7 x 4 x12 = 53,760 hours annually

2018-2019 - 14 hrs x 60% = 81⁄2hrs x 2 hrs = 17 hrs

17 hrs x 10 units = 170 x 7 x 4 x 12 = 57,120 hours annually

2019-2020 - 14 hrs x 65% = 9 hrs x 2 hrs = 18 hrs

18 hrs x 10 units = 180 hrs x 7 x 4 x 12 = 60,480 hours annually

2020-2021 - 14 hrs x 70% = 10 hrs x 2 hrs = 20 hrs

20 hrs x 10 units = 200 hrs x 7 x 4 x 12 = 67,200 hours annually

74
Appendix 7.2

Computation of Sales Volume- Printing

Formula:

Target market x Estimated percentage = Estimated customer x 2 pages = Sale


Volume

PROJECTED ESTIMATED ESTIMATED NUMBER


TARGET PERCENTAGE NUMBER OF OF PAGES SALES
SY MARKET OF CUSTOMER PRINTED VOLUME
CUSTOMER AVAILING
THAT AVAIL PRINTING
OF PRINTING SERVICE
SERVICE
2016-2017 845 60% 507 2 1,014
2017-2018 894 60% 536 2 1,072
2018-2019 947 60% 568 2 1,136
2019-2020 1,002 60% 601 2 1,202
2020-2021 1,061 60% 637 2 1,274

Note: Estimated number of customers availed printing services is 60% of the projected
target market. The proponents estimate that each customer is to print two (2) pages.
Estimated selling price for printing is estimated to increase by 10%.

75
Appendix 8

Computation of Electric Consumption

FORMULA:

Consumption/Month = Wattage/1000(rate/hour)(hours per month(no. of unit)

Source: APEC

 Computers

450
= = 0.45 (8.50) (336) (11) = 14,137.2
1000

 Wall fan

60
= = 0.06 (8.50) (336) (4) =685.44
1000

 Ceiling fan

60
= = 0.06 (8.50) (336) (2) =342.72
1000

 Led Bulb Lamp

20
= = 0.02(8.50) (336) (3) =171.36
1000

 Fluorescent Lamp

20
= = 0.045 (8.50) (336) (2) = 114.24
1000

76
Appendix 9

Summary of Current Regional Daily Minimum Wage Rates


Non-Agriculture, Agriculture
(In Pesos)
(As of March 2015)

Agriculture
Region WO No. Date of Non-Agriculture Plantation Non-
EFFECTIVITY Plantation
NCR WO 19 / April Php. 444.00 – Php. Php.
4,2015 481.00 444.00 444.00
CAR WO 16 / Feb. 263.00 – 280.00 247.00 – 247.00 –
3,2014 268.00 268.00
I WO 16 / Feb. 213.00 – 253.00 233.00 213.00
5,2014
II WO 16 / Jan. 5, 247.00 – 255.00 235.00 – 235.00 –
2014 243.00 243.00
III WO 18 / Nov. 30, 298.00 – 349.00 283.00 – 271.00 –
2013 319.00 303.00
IV – A WO 16 / May 1, 261.00 / 362.50 261.00 – 255.00 –
2014 337.50 317.50
IV – B WO 06 / Feb. 1, 205.00 – 275.00 215.00 – 215.00 –
2014 225.00 225.00
V WO 16 / Jan. 10, 236.00 – 260.00 236.00 236.00
2014
VI WO 21 / Nov. 29, 245.00 – 287.00 255.00 245.00
2013
VII WO 18 / Dec. 14, 295.00 – 340.00 275.00 – 275.00 -
2014 322.00 322.00
VIII WO 18 / March 30, 260.00 235.00 – 228.00
2015 241.00
IX WO 18 / June 20, 280.00 255.00 235.00
2013
X WO 17 / June 20, 291.00 – 306.00 279.00 – 279.00 –
2013 294.00 294.00
XI WO 18 / June 1, 317.00 307.00 307.00
2014
XII WO 18 / Aug. 1, 275.00 245.00 245.00
2014
XIII WO 13 / Feb. 14, 268.00 268.00 248.00
2015
ARMM WO 15 / Feb. 1, 250.00 250.00 250.00
2014
Source: National Wages and Productivity Commission Updated: 15 April 2015

77
Appendix 10

Social Security System


Contribution Schedule
Effectively January 2014

78
Appendix 11

Phil Health
Premium Contribution Table 2015

79
Appendix 12
PAG-IBIG
Contribution Table

80
Appendix 13

Revised Withholding Tax Tables

81
Legend:
Z-Zero exemption
S-Single
ME-Married Employee
1;2;3;4- Number of qualified dependent children
S/ME = P50,000 Each Working employee
Qualified Dependent Child = P25,000 each but not exceeding four (4) children

USE TABLE A FOR SINGLE/MARRIED EMPLOYEES WITH NO QUALIFIED


DEPENDENT

1. Married Employee (Husband or Wife) whose spouse is unemployed.


2. Married Employee (Husband or Wife) whose spouse is non-resident citizen receiving
income from foreign sources.
3. Married Employee (Husband or Wife) whose spouse is engaged in business.
4. Single with dependent father/mother/brother/sister/senior citizen.
5. Single
6. Zero Exemption for Employees with multiple employers for the 2nd,3rd…employers
(main employer claims personal & additional exemption)
7. Zero Exemption for those who failed to file Application for Registration

USE TABLE B FOR THE FOLLOWING SINGLE/MARRIED EMPLOYEES WITH


QUALIFIED DEPENDENT CHILDREN
1. Employed husband and husband claims exemptions of children
2. Employed wife whose husband is also employed or engaged in business; husband
waived claim for dependent children in favor of the employed wife.
3. Single with qualified dependent children.

82
Appendix 14

Approved Appointment of Panel


of Oral Examiners

83