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1.

Business Plan

1.1 Industry Overview

The snacks consumption in the Philippine industry whether it is salty or sweet reached a
total amount of Php 4, 524 in 2015 survey for every household (Adobo Magazine, 2017). Salty
snacks are one of the trendiest food these days like french fries and potato chips. On-the-go
snacks is chronic in today’s generation.

In 2007, the Philippines produced some 110,752 MT of potatoes. Our branch is founded at
Katarungan Village 2, Poblacion Muntinlupa City where many students and teachers pass by.
Since most students, teachers and residents are hanging out in that area and they are willing to
buy food.

There are various food sitting businesses continue to exist such as fried snacks. However
there is still no potato snack business that offers and gave an affordable and healthier potato
snack than Sawrapped Potato. Currently, there are few potato businesses demoting in
Muntinlupa such as potato corner and kerimoto, this may result in some similarities in the snacks
they offered.

1.2 Company Description

Sawrapped Potato is a company that offers healthy snacks, it is under the food industry. It
will be introduced to the market as a new food business. Sawrapped Potato offers different
variety of potato products like potato sticks and potato bombs. Sawrapped Potato operates from
Monday to Saturday from 8:00 am-8:00 pm.

The branch of Sawrapped Potato is a place where customers can warm themselves while
grabbing a bite of our product. The ambiance of the place is distinct and cozy.

1.3 Mission Statement

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Sawrapped Potato is a product and service business that offers a healthy and delicious
product with an affordable price. Building a good relationship to its customers, employees, and
communities is the he goal of Sawrapped Potato business and also to gain a lot of customers.
Sawrapped Potato business wants their product to be known not just because of its affordable
price but also because of the delicious taste of it. Sawrapped Potato to build a new and healthy
living lifestyle by offering our product.

1.4 Vision Statement

Sawrapped Potato wants to become a very well-known by providing simple, affordable and
healthy products and good service.

1.5 Core Values

Sawrapped Potato is guided by POTATO corporate values namely patient, obedient,


trustworthy, accommodating, transparent and optimistic.

1.6 History and Current Status

The trends and taste wanted by today’s generation led the owners to come up with an idea of
creating a food business that serves a healthy quality of product and budget-friendly. The start-up
idea of the business became real because of the creativity and knowledge of the owners. Within
this year, the owners of the business are planning to establish their branch by the year 2018.

The current status of the Sawrapped Potato is on its stake of Oligopoly Competition. The
competition of the market our company in has a few seller and small firms following the path of
the leading big firms. Regardless of being new in the food market,
Sawrapped Potato is competitive that its employees are determined and confident to make
our company to reach the top of the food industry.

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1.7 Goals and Objectives

Goals

1. To make customers satisfied with our product

2. To have a good feedback to the customers

3. To maintain our product and services safety

4. To build a strong relationship with the customers

Objectives

1. To achieve 10% return of the capital by December 2019.

2. To build a strong relationship with the customers

3. To inform everyone the benefits of eating vegetables by 10% to our target market in
December 2019.

4. To expand the business by January 2020.

1.8 Company ownership

Types of ownership: Partnership

Sawrapped potato will be having partnesrship comprising of Stefanie Ramos, Shaila


Narvaez, and Allysa Gragg. The overall manager will be Stefanie Ramos and Shaila Narvaez and
Allysa Gragg, Jun Toling, Jeffrey Razo, Charisse Rose Lamayo, Annarose Reyes, Rey Fresco,
John Jerryl Nunez, Micha Colorada and Michael San Juan will be the investors in the business
and at the same time the people who will work in the business. All of the partners are Senior
High School in Muntinlupa National High School - Main taking Accountancy, Business and
Management (ABM).

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AS OF SEPTEMBER 2018
NAME TITLE (IF APPLICABLE)
Stefanie Ramos Manager/Owner 25%
Shaila Desiree Narvaez Investor 7.5%
Allysa Gragg Investor 7.5%
Jun Toling Investor 7.5%
Jeffrey Razo Investor 7.5%
Charisse Rose Lamayo Investor 7.5%
Annarose Reyes Investor 7.5%
Rey Fresco Investor 7.5%
John Jerryl Nunez Investor 7.5%
Micha Colorada Investor 7.5%
Michael San Juan Investor 7.5%
Total 100 %

2. Product/Service

2.1 Product and Service Description

Sawrapped Potato is an accessible and approachable food branch which offers freshly fried
potato products. Sawrapped Potato will use fresh potatoes from trusted dealers and will use real
flavouring and mineral water for the customer. The ingredients we will use in making our
product will come from the Cordillera Region which sustains a growth of high quality of crops
that are needed in making our products.

We also provide fast and trusted service when it comes in selling our products. We only hire
service crew with a pleasant personality to serve our customers with a smile.
2.2 Unique Feature of Product/Service

The concept of our product is far different from other food branch is not only we offer a new
image of potato products like potato bomb and potato stick, we also prioritize the comfortability
of the consumers by providing them a clean and cool ambiance of place to eat.
Unlike our competitors’ product, one of the assets of our product is the pure potato that is
used to make the product. Aside from the health content, it is also affordable. Sawrapped Potato
products are for younger ones but also for adults.

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3. THE MARKET

3.1 Industry Analysis (PESTEL)

 Political Factors

Sawrapped Potato must follow the rules and regulations of Food and Drug Administration
(FDA) in terms of Health and Safety Law.

Changes in established laws may prevent Sawrapped Potato from selling its product.

 Economic Factors

Sawrapped Potato products are available around the vicinity of Katarungan Village 2,
Poblacion Muntinlupa City. The people passing around here have different customs, cultures,
tastes and desires. Sawrapped Potato has changed and updated how it handles its product by
creating new flavors to accommodate these customers.

 Social Factors

Sawrapped Potato sells their products around the vicinity of Katarungan Village 2,
Poblacion Muntinlupa City and they meet the demands of these customers.

 Technological Factors

Machinery and equipments have helped Sawrapped Potato to mash the potatoes needed
to make their product, it have helped too in mixing the mash potato with spices.

Sawrapped Potato has used social media technology to connect with audiences and
customers. Social Media have helped Sawrapped Potato to advertise and promote their products.

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 Legal Factors

Sawrapped Potato retains all rights that are related to their business, including past and
future products developed with a patented process.

 Environmental Factors

Sawrapped Potato is affected by waste disposal. Waste disposal is necessary for all the
business. Sawrapped Potato must follow the proper waste disposal, if anything is amiss, it can
affect the reputation of the business.

3.2 Market Analysis (SWOT)


Sawrapped EAT N’ Franies Mama’s
Potato SIT Food Delicacy
House

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Strengths  Affordable  Affordable  Affordable  Offers
price price price unique
 Location  Easy to  Can be seen product
 Easy to serve by  Affordable
serve everyone Price
 New variety
Weaknesses  It is still new  Crowded  Dirty place  Newly firm
to the place  Dirty tools  The other
market so  Lack stores in the
the people of utilities vicinity
aren’t aware  Slow
that such service
business is
exists.
Opportunities  The fact that  They are  People who  Store easily
it is a new already are fond of to be seen by
business. known by eating street the
everyone foods customers.

Threats  Weather  Competitor  Increasing  Competitors


condition s having the price of  Weather
that can same main condition
affect the concept products
harvest of needed
potatoes.

3.3 Competitor’s Analysis

COMPANY B COMPANY C COMPANY D


COMPANY A
(Franies Food (Mama’s (Sawrapped
(EAT N’ SEAT)
House) Delicacy) Potato)

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 Young and  Young and
 Young, adults  Young, adults
TARGET adults (12 adults (14 yrs.
(14 yrs. old (14yrs old
MARKET yrs. old and Old - 25 yrd.
and above) and above)
above) old)

 Different  Different  Different


dishes for snacks like  Different kinds of potato
PRODUCT
lunch like corndog, flavor of like potato
STRATEGIES
adobo, and dynamite and jelly flan. bomb and
sinigang. lumpia potato stick.

 Php 16.00 -
 Php 12.00 –
 Php 30.00 –  Php 2.00 – 20.00 each
20.00
PRICING 50.00 lunches 10.00 snacks potato stick
different
STRATEGIES with different with different and potato
flavor of
dishes. flavor bomb and
jelly plan.
lemon juice
 For dine in
 For take- and take out
 For dine in
DISTRIBUTION out plate  Plate and
and take out  Paper cups
STRATEGIES and plastic paper cups
paper cups
cup  Mugs or
disposable

 Tarpaulin  Flyers and


PROMOTION
 Poster  Poster and bundle social media
STRATEGIES
strategy. advertiser

3.4 Computation of Market Share

Number of prospect target market 9 920


Frequency of purchase per year 37
Total number of purchase per year 367 040

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Average payment per purchase Php 17
Projected total industry sales per year Php 6 239 680
Percentage the Firm attain 12%
The firm’s market share Php 751 944

Market Share

Franies
Mama's Delicacy
Eat and Seat
Waffle House
Carinderia
Sawrapped Potato

4. MARKETING PLAN

4.1 Introduction

Sawrapped potato is a small business owned by Accountancy, Business and Management


students in Muntinlupa National High School - Main. Sawrapped potato offers healthy and
affordable snacks and drinks like potato stick, potato bomb and lemon juice to intend them to
buy and taste our product. Sawrapped potato is located at Katarungan Village 2, Poblacion

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Muntinlupa City. Sawrapped Potato aim to give the customer a delicious and affordable food,
also the people who really love healthy food and potato that will passed by our store.

4.2 Market Segmentation Strategy

The students, teachers, workers, residents and the people who passed by in our store in
Katarungan Village 2, Poblacion Muntinlupa City is our target customer here in Muntinlupa. The
potential customers are the people who really love potato and the people who want to try new
and flavorful taste of potato products.

 Demographic segmentation

Sawrapped Potato suits for both genders and all ages (13 yrs old – 25 yrs. old). We focus more
on students who has 50-100 pesos above allowance.

 Geographic segmentation

Sawrapped Potato target customers are the students who are studying in Muntinlupa National
High School – Main and the people who live near in our location in Katarungan Village 2,
Poblacion Muntinlupa City

 Psychographic segmentation

Sawrapped Potato product is applicable to all the people who want to try our flavorful taste
of potato products.

 Behavioral segmentation

Sawrapped Potato target are the people who are willing to buy our product and people who
eat a lot of potato products.

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4.3 Targeting Strategy

Sawrapped Potato is a food business that serves its market which are the students, workers
and people who passed by in our store in Katarungan Village 2, Poblacion Muntinlupa City who
loves healthy food yet affordable. The product that we offer suits for everyone who is health
conscious that is why Sawrapped potato make sure that the product we serve is nutritious and
satisfy every customer.

4.4 Positioning Strategy

Sawrapped Potato products are not only affordable but at the same time it’s healthy. It is good
for all the customers. Even if adults or children are capable to eat the Sawrapped Potato products.

4.5 Product Strategy

Sawrapped Potato is not the usual potato that you see everywhere. The potato we all know
has vitamin A for growth and development, fiber, and anti-inflammatory for swelling.

The product will be served freshly and undergo to the quality control. The products that will
be offered by Sawrapped Potato are potato stick and potato bomb. Our products will surely
satisfy the taste of the customers. We serve it hot and crunchy because we will fry it when the
customer ordered.

 Budget friendly
 Made with real potatoes

4.6 Pricing Strategy

The pricing strategy we used is “Target return pricing”, because we aim to have a return
profit of 10% s that we may continue our business and to have many branches in Muntinlupa.
Sawrapped Potato pricing varies from product to product. Potato Stick costs Php 16.00 that is

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consisted of 4 pieces of potato stick and Potato bomb costs Php 18.00 that is consisted of 3
pieces of potato bombs.

Sawrapped Potato prices are competitively priced, but customers will see and taste a
difference in terms of freshness, healthiness and quality.

4.7 Distribution Strategy

Sawrapped Potato business is located on Katarungan Village 2, Poblacion Muntinlupa City


where many students and teachers hang out. Sawrapped Potato is noticeable because of its large
sign that is placed in the upper part of the store. Our place is always clean and orderly for our
consumer. We have also posted a logo to encourage more buyers to buy our product. Our major
tarpaulins are posted on the gate of Katarungan Village 2.

4.8 Promotion and Advertising Strategy

Sawrapped Potato is a new food store in Katarungan Village 2, Poblacion Muntinlupa City.
We used personal selling so we can easily approach and communicate the customers, advertise
and promote our business extensively. The different methods of our promotion strategy are to
connect with people within the use of social media, we will also distribute flyers throughout the
location describing Sawrapped Potato and offering coupons for their purchases. Through the use
of different methods of promotion, we are able to reach a variety of people.

Using social media allows Sawrapped Potato to fully advertise and promote their business,
since lots of people spends more time in social media.

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4.9 Sales Forecast

Month Projected Sales for Projected Sales Projected Sales for Projected Sales
Potato Stick Potato Bomb
(per unit) (per unit)

January 1705 27280 1616 29088


February 1903 30448 1816 32688
March 1639 26224 1552 27936
April 1463 23408 1376 24768
May 935 14960 848 15264
June 1518 24288 1432 25776
July 1628 26048 1560 28080
August 1738 27808 1672 30096
September 1903 30448 1856 33408
October 1810 28960 1752 31536
November 1716 27456 1672 30096
December 1254 20064 1216 21888

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TOTAL 19212 307392 18368 345816

5. Organizational Plan

5.1 Organizational Chart

5.2 Roles and Responsibility


Roles Responsibility
Investor - The one who will invest to the business
- The one who will manage the resources of the business.
Manager
- In charge of making the decision.
- Ensure proper scrutiny of its accounts and that ample documentation for
Accounting
expenditures and revenues.
Officer
- Prepares the annual financial statement.

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- Preparing, planning and project managing the publication of all publicity
Marketing material to maximize brand promotion.
Officer - Create marketing campaigns and works with the company's external PR
agency.
- Planning and supervising all the operational functions of a business.
Operation - Responsible for all administrative functions, including
Officer operations, management, process improvement, identifying various
compliance issues and strategic planning and development.
- They receive payment by cash, check, credit cards, vouchers, or
automatic debits.
Cashier - They issue receipts, refunds, credits, or change due to customers.
- They count money in cash drawers at the beginning of shifts to ensure
that amounts are correct and that there is adequate change.
- Help keep businesses running smoothly.
Operational
- Help with office and employee management. They may be assign tasks
Staff
such as ordering supplies and preparing sales reports.
Marketing
- Assists the marketing officer in implementing the promotion strategy.
Staff

6. Production Plan

Procedure
6.1 Production Process For Potato Stick:
First, boil the potatoes. Next
mash it, then, put the
Ingredients flavored powder in the
Potatoes mashed potato. After that, Finished Product
mix it together. Then wrap 1
Flavored powder spoon of mashed potato in Nutritious
the lumpia wrapper. “Sawrapped
Lumpia wrapper Moreover, put the oil in the Potatoes and Potato
frying pan. After that deep bomb“
Vegetable Oil
fry the wrapped potatoes
Flour until golden brown. Finally,
serve it with a deep.
For Potato Bomb:
First, mold the mash potato
and add cheese on the
center. Next, dip it with a
flour mixture then deep fry
it until golden brown.
Finally, serve it with a dip
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and cheese on top.
6.2 Physical Plant

v
lLegends
Frying
Window
Machine

Cabinet Door

Sink Table

Cash
Register Chair

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6.3 Machinery and Equipment

ITEMS PRICE UNIT (RM) QUANTITY COST

Frying pan Php 200 2 Php 400


Gas Stove Php 1,600 1 Php 1,600
Refrigerator Php 12, 000 1 Php 12,000
Spatula Php 200 2 Php 400
Gasul Php 700 2 Php 1,400
Mixer Php 1,500 1 Php 1,500
Utensils Php 2,150 - Php 2,150
Water Jug Php 100 2 Php 200
Display logo Php 350 1 Php 350
Table Php 3,500 2 Php 7,000
Chairs Php 375 8 Php 3,000
Total Cost Php 30,000
7. Operations Plan

7.1 Description of company’s operation

 Description of business operation

Sawrapped potato is a food business. Operation will incorporate the expenses and
purchases of the said product in lined with these, Sawrapped potato will be having.

 Breaking down operations management

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This is where treating and training the staffs or employees tools and equipment and
technology involved the surroundings develop through the lifestyle of the target market.

 Specific responsibilities of operation management

Operations management handles the different strategies and techniques that can possibly
help the business grow more. Including the processes operation for product and project
management and also the transactions. The owners or managers utilize the formula and manage
the economic stability of the business.

 Supply chairs and logistics

Sawrapped Potato offers a healthy product providing a nice place to stay with. Sawrapped
Potato can satisfy the interest of the customers as we offer our promo and games that can make
them more curious so that it will attract them. The operations would also be responsible in
deciding the product price.

 Ideal traits of operation managers

Ms. Stefanie Ramos - Sawrapped Potato operations officer must have the knowledge about
business. She is the one who must have a lot and deeper knowledge in order to understand the
dos and don’ts when it comes to business.

7.2 Flow of orders for goods and services

Production

 It is stated in the company’s vision that we are offering healthy and delicious products with
an affordable price. Sawrapped Potato ensures that everyone will be able to afford everything we
offer.

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Quality Control

 Sawrapped Potato vows to keep their products clean and safe all the time. The business will
inspect the products regularly to guarantee that everything they release from the market will be at
its best quality.

Inventory Control

 The business will be conducting daily inventory to generate the maximum profit from the
smallest possible amount of products used; without interrupting the customer’s satisfaction level.

Trade

Production

 Sawrapped Potato entrusts certain dealers to supply the raw materials that they will be
need to produce the best potato products they can offer.

Location

 The food branch will be located at Katarungan Village 2, Poblacion Muntinlupa


City.Iit will be accessible and convenient for everyone.

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8 Financial Plan
8.1 Start-up Summary

Start up Cost
EXPENSE
Rent Php 3,000
Salaries 10, 000
Light and Water Expenses 2, 000
Purchase of Raw Materials 30,000
Legal 3,000
Total Php 48, 000

Start up Asset
Equipment 15, 000
Furniture and Fixtures 10, 000
Supplies 2, 500
Tools and Utensils 5, 000
Total Php 32, 500

Start up Expense Php 48, 000


Start up Assets Php 32, 500
Total Funding Required Php 80, 500

` 8.2 Pro forma Income Statement

2019 2020 2021


Sales Php 653, 208 Php 718, 528. 80 Php 790, 387.68
Beginning Inventory - - -
Cost of Good Sold 360, 000 396, 000 435, 000
Gross Margin 293, 208 322, 528.80 354, 781.68
Less: Operating Expense
Rent 36, 000 36, 000 36, 000
Salaries 120, 000 120, 000 120, 000
Light and Water 24, 000 24, 000 24, 000
Depreciation 6, 500 6, 500 6, 500
Legal 3, 000 - -
Total operating expense Php 189, 500 Php 186, 500 Php 186, 500

Net income before Tax Php 103, 708 Php 136, 028. 80 Php 168, 281. 68

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Tax (10%) Php 10, 370.80 Php 13, 602. 88 Php 16, 828. 17
Net income after Tax Php 93,337.20 Php 122, 425. 92 Php 151, 460. 51

Owners Capital

2019 2020 2021


Beginning Capital Php 80, 500 Php 173, 837.20 296, 263. 12
Add: Net income Php 93,337.20 Php 122, 425. 92 Php 151, 460. 51
Total
Ending Capital Php 173, 837.20 Php 296, 263. 12 Php 447, 723.63

8.3 Cash Flow Projections

2019 2020 2021


Operating Activities
Sales Php 653, 208 Php 718, 528.80 Php 790, 389. 68
Less:
Cost of good sold (360, 000) (396, 000) (435, 600)
Supplies (30, 000) - -
Salaries (120, 000) (120, 000) (120, 000)
Prepaid Rent (36, 000) - -
Rent (36, 000) (36, 000) (36, 000)
Light and Water (24, 000) (24, 000) (24, 000)
Legal (3,000) - -
Tax (10, 370.80) (13, 602. 88) (16, 821. 17)
Net Cash Flow from 33, 837.20 128, 925.92 157,960.51
Operations
Investing Activities
Furniture and Fixtures (10, 000) - -
Equipment (15, 000) - -
Tools (5, 000) - -
Net Cash flow from 30, 000
Investing
Net Cash Flow 3, 837. 20 128, 925. 92 157, 960. 51
Beginning Cash Balance 80, 500 84, 337. 20 233, 223. 63
Ending Cash Balance 84, 337.20 213, 263. 12 371, 223.63

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8.4 Pro forma Balance Sheet

2019 2020 2021


Cash Php 84, 337.20 Php 213, 263. 12 Php 371, 223. 63
Beginning
- - -
Inventory
Prepaid
36,000 36,000 36,000
Rent
Supplies 30, 000 30, 000 30, 000

Furniture 15, 000 15, 000 15, 000


Less:
Depreciatio 3, 250 3, 250 3, 250
n
Equipment 10, 000 10, 000 10, 000
Less:
Depreciatio 3, 250 3, 250 3, 250
n
Tools and
5, 000 5, 000 5, 000
Utensils
Total: Php 173, 837.20 Php 296, 263.12 Php 447, 723.63

8.5 Breakeven Analysis

Total
Break EvenQuantity=¿ Cost ¿
Selling Price−Valuable Cost Per Unit

Year 1

Potato Stick

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16−9.6
¿
189,500
Break EvenQuantity=
¿

189,500
Break EvenQuantity=
6.4

Break EvenQuantity=29, 609.38 Units

Potato Bomb

18−10.8
¿
189,500
Break EvenQuantity=
¿

189,500
Break EvenQuantity=
7.2

Break EvenQuantity=26, 319.44 Units

9. Exit Strategy

In case when Sawrapped Potato starts to have a deficit profit due to its declining
popularity and value from their customers. The less a power to sustain enough the needs and
wages of the employees may affect business to stand on its own for a long time. Wherein
Sawrapped Potato Business Industry, It it essential to have a preparation to be ready at this point
of necessity. To sell company depreciating equipments, and furnitures is useful for Sawrapped
Potato. Since, it will help the business to reduce losses from their profit and also it contributes
morally to its investors.

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10. Assessment of Risk

Sawrapped Potato is newly introduced business in the market. These are some the risk
that the business may encounter along the way.

Sawrapped Potato has many competitors within Muntinlupa City. Since its product is
potato, there are also other businesses which offer variety of potato products. At the same time,
there are also stalls which serve healthy products. Beside other businesses, there are also fast
food chains along the place where Sawrapped Potato is located at. These business can hinder the
business growth and profitability through capturing other customers who might also be
Sawrapped Potato’s potential market.

The business may also face financial problems such as insufficient budget for the supply
of ingredients, high operational cost and other expenses that may affect the business’s
profitability. Malfunction of equipment and other machineries is also one of the risk that the
business may encounter. It may affect the production of the potato products.

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11. Milestone/Time Table (Gant Chart

Tasks Sept.5 Sept.8 Sept.10 Sept.11 Sept.14 Sept.17 Sept.25 Sept.27 Sept.28 Oct.1
Preparation of
business plan
Decision of
location
Canvassing of
supplies and
Equipments.
Analyze the
market
Securing the
capital
Securing
permit
license
Hiring of
staffs
Purchasing
Supplies and
equipment
Ordering raw
materials
Promotion &
introduction
Beginning
operation

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APPENDICES

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