Chapter I Executive Summary

Chapter II General Company Description

The Kapalong Garden Memorial Park (KGMP) is located at Purok

10-B, Maniki, Kapalong Davao del Norte in front of the Kapalong Public

cemetery. The Cemetery’s care and maintenance, which was at first the

responsibility of individual plot owners, have undergone periods of

neglect. Care and maintenance is presently provided by the KGMP. The

KGMP has a capacity of up to 6 hectares and will be expanding so soon,

including both burial plots, and grave yards

The KGMP has its own diversification of products and services

like giving discounts to the loyal clients and offering inexpensive services

which surely recognized and soon be patronized by the target market.

Vision

The Vision of Kapalong Garden Memorial Park is to provide an

affordable, well-maintained final place of rest, regardless of burial

choice, where family, relatives, other friends and the community can be

at peace with their loved ones and their thoughts.

To be recognized as one of the “tourist Spot” memorial park in

Davao del Norte that showcases unique services offered and be

appreciated by eternal remembrance

Mission

It is the mission of Kapalong Garden Memorial Park to make

believe that the family comes first when it comes to give full service. We

greet and serve all families with the utmost care and respect realizing
 the importance of each and every visit to the Park by maintaining the

cleanliness and safetiness of the memorial park.

Goal

To educate people about burial options. Final burial choices are

as wide and varied as the population we serve. Affordability and

accessibility are the cornerstones of our business. At Kapalong Garden

Memorial Park, we strive to preserve a peace park-like setting for

reflection, to give more impression and attraction to the Municipality of

Kapalong and to continue the maintenance to be worth remembering.

Objectives

 To gain more profit at least 20% from the capital within 5 years.

 To stabilize 100% positive remarks from the clients.

 To help increase the tax revenue in Kapalong with at least 5% from the

business.

Business Philosophy

Since the Kapalong Public Cemetery is almost out of a plot and

graveyard, the proponents created this kind of business industry by

recognizing the Kapalong Public cemetery will possibly be unobtainable

of serving the people, because of the place is almost filled with dead

individual. The proponents believed that this kind of business industry

has no chance of bankruptcy, that is why we come up of planning to have

a Memorial Park in the Kapalong area.

 The proponents studied that the number of dead people in

Kapalong area is averaging 400 individuals per year, which will cater our

products and services for this kind of business. The location wise, has

already studied that it is for sale and it will be fitted as our strategic

location.

Legal Form of Ownership

Partnership would be the Legal Form of ownership, for some of the

partners contributed property as a capital and the others are industrial partners

who contributes pure personal service.

 Chapter III Product and or Services

Products and Services

Kapalong Garden Memorial Park will generate income by offering

the following products and services for the prospected clients. Cemetery

maintenance and upkeep / Providing a standard burial committal

services.

 Graveyard and Plots

 An area of a land that has been measured and

considered as a unit which the dead people are to be

buried.

 Compartment niches (Honey comb)

 A niche that is three-layered compartment style.

 Customized Burial place

 The plots and graveyards acquired by the customers

will be customized by the management according to the

customer’s choice.

Competitive Advantage

Accessibility

Accessible from the Kapalong National Road, The Kapalong

Garden Memorial Park is also a stone’s throw away from the Kapalong

Public Cemetery. KGMP offers you an enviable location and

unparalleled accessibility, making it the best choice as an eternal

memorial home for your loved ones.

Ownership

The lot owner is entitled to permanent ownership upon the

issuance of a Certificate of Ownership(CO). The CO will be given once

the total contract price has been paid. Your memorial lot is also fully

transferable provided a minimum transfer fee is paid. Thus, as the

KGMP’s rules and regulations stipulate that the contract will end until 20

years upon the issuance of the Certificate of Ownership.

High-quality and Modern Recreation

Kapalong Garden Memorial Park spends careful selection of

suppliers and contractors in the construction and launch of the Park, as

well as quality control of the project, in order to guarantee the comfort

and safety of the constructed object and meeting the standards of

KGMP.

Security

The KGMP is guarded 24 hours round the clock with uniformed

security guards and secured with concrete fences along its boundaries.

It is well lighted during nighttime with curfew hour established to deter

undesirable elements and also to keep safe of the client’s properties.

Pricing Structure

The pricing system is going to be based on what is obtainable in the

industry, the proponents do not intend to charge more (except for premium and

customized services) and the business don’t intend to charge less than our

competitors are offering in Kapalong area.

 Be that as it may, the proponents have put plans in place to discount the

products and services once in a while and also to reward the loyal customers

(clients such as insurance companies and owners of mortuaries). (See

Appendix 1).
 Chapter IV Marketing Plan

Market Research

The concept of Kapalong Garden Memorial Park is different from

the other cemetery existed, although we almost have the same

operation. The advantage of the business is we have varied services and

other products. The proponents have better location and arrangement of

the graveyard plots.

As the proponents studied, that the Kapalong Public Cemetery

has no capable of catering the people around Kapalong area, because

of no vacancy in the said cemetery, that is why the proponents decided

to form a partnership and build the KGMP. The proponents also found

out that the number of dead individuals is increasingly numbered with

almost 400 a year according to the Police Station particularly in LCR.

The proponents will target clients by forming good relationships

with Hospitals, and mortuary owners. Since they preserve bodies until it

is due to burial. It is the proponent’s job to carry out the burying, the

proponents will strike a deal with them so that they will get a

commissions for every burial they refer to the business. The price will be

based on our target market which depends on their social status.

Economics

The KGMP will help increase the current economic condition of

Kapalong Municipality, by means of giving the municipality a high

percentage of tax revenue and it will be form part as tourism in the town.
 Memorial Park business in Kapalong will be highly successful

industry as the demand of the cemetery in town. The Kapalong Public

Cemetery proves that this kind of business find spot in the municipality

as an evidence of improvement that Memorial Park has the capacity to

increase tourism in the municipal of Kapalong. Historically speaking,

there is no Memorial or Cemetery service has bankrupted its operation

due its non-profitability and inefficient operation. It is safe to say that this

kind of business industry will succeed into its chosen business.

Product and Services

KGMP offers varieties of quality products and services with

affordable price for the people around Kapalong and nearby

municipalities and cities of Davao del Norte. The proponents offer

products and services as shown in chapter 3 accordingly. KGMP also

served other requested products and services like funeral service and

customized graveyard with all the clients wanted.

Customers

It will be safe to say that the target market for cemetery services

cuts across people of all class, race, religion, and culture as long as they

value their deceased loved ones and would want to give them befitting

burial.

In view of that, proponents have created strategies that will enable

us reach out to various individual clients who we know can’t afford to do

without our services. We have conducted our market research and

 survey and we will ensure that our Memorial Park is well accepted in the

market place.

These are the groups of people we intend marketing our memorial park

services to;

 Senior Citizens
 Insurance Companies
 Owners of mortuaries or Funeral Home
 Hospitals
 Government Retirees
 Households
 Government Officials
 SSS Pensioners
 Military and police Men and Women
 Dayong (People’s Organization)

NICHE

The proponent’s business is best for the target market, because

as the current status of the Kapalong Public Cemetery has no capable

of obtaining the needs of the customers as to Local Civil Registrar (LCR)

confirmation. The Kapalong Public Market status is out of plots.

The business knows that people need a formal and safe burial of

their love ones and relatives and they are committed to do so. Therefore,

they will have a good business sense. The products and services offered

by KGMP will allow clients to make good choice.

 SWOT analysis

Factors Strength Weaknesses Opportunities Threats

Product/Services Down Expensive to Availability of Competitor

Payment operate grave sites price war

Place Strategic Limited Available Lot Neighborhood

location parking lot for sale beside concern
for historic the location
site

People Well- No applicant Availability of Employee

trained Low cost in piracy
staff salary

Price Installment Delinquent Availability of

payments Accounts Collection
Process

Promotion Access to Poor Availability of Market

Insurance promotional Social and Regulation
Agencies instruments Print-Ads Disapproved
Advertisements agency
referral
Marketing Strategy

It is important to clearly state that in this dispensation, customers

use the Internet to find memorial park services providers, to read

reviews, to view facility available and the location of the cemetery

services provider; loads of processes have gone digital.

The proponents are quite aware that one of the ways to get

people to patronize the KGMP services is to build good business

relationship with owners of mortuaries, insurance companies and

hospitals. Having a good working relationship with people of the

mortuaries will enable them refers people to the business; since their job

is to preserve corpses is to conduct a befitting burial.

The proponents will go all out to strike a deal with the agents that

will ensure that they get a commission for any referral we get from them.

In summary, Kapalong Garden Memorial Park will adopt the following

sales and marketing approach to win customers/clients over;

 Building strong good relationship within our industry and

with the owners of mortuaries;

 Continuously improving the efficiency of our memorial park

services and operating processes;

 Delivering consistent customer experiences to all our

clients; making our first impression count positively;

 Hire the services of experts to make our brands the first

choice for families and government officials;

  Make use of attractive hand bills to create awareness and

also to give direction to the cemetery services facility;

 Position the signage / flexi banners at strategic places in and

around the chosen location;

 Create a loyalty plan that will enable us reward the clients

such as hospitals, insurance companies and owners of

mortuaries;

 Engage on promotional strategy by means of advertising

during community sponsorship program or events within the

town to create awareness for the memorial park services

business.

Promotion

The proponent’s way of improving communication and promotion of

KGMP is to create an independent website with details about products and

services. Staff agrees that the cemeteries system requires enhanced

communication and promotion. The Kapalong Garden Memorial Park should

develop social media accounts with all of the key players and use these

accounts to target demographic groups, communicate events and video

promotions. The promotional campaign should create good relationship with

insurance companies, Funeral Home owners and other Target market.

This would facilitate targeting demographic groups, highlighting events

and promotions. In addition, a full colored brochure or presentation using a

more professional layout of tarpaulins should be developed. Material should be

distributed to prospected clients, walk-ins and government officials. Staff will be

working on new promotional material to be ready for 2018. Because of the

number of cemeteries, it may be need to create a new material tools for

promotion. Direct mail of print material will continue to form part of the

communication and promotion campaign, as will attendance at any events of

the town.

Promotional Budget

Kapalong Garden Memorial Park is establishing with the aim of

maximizing profits in the cemetery services industry by means of funding

promotional tools and materials with low cost yet effective promotion. And the

proponents are going to go all the way to ensure that we do all it takes to attract

prospected clients. (Appendix 2) represents the promotional budget:

Distribution Channel

The Kapalong Garden Memorial Park will make a relationship

with the target market. The proposed business will have display

streamers along the highway and in the crowded place as well, so people

and potential clients will take a better look of our products and services

the business intended to offer.

 Production Process

Landscaping/ Purchase of Raw

Land Acquisition
Construction Materials

Business Promotional
End User
Agreements Distribution

Location

The KGMP location will be place in Purok 10-B, Maniki, Kapalong,

Davao del Norte fronting the Kapalong Public Cemetery. The proponents

decided to place our business in front of the public Cemetery so that the

clients will easily recognized the KGMP as the new memorial park and it

will be the best option for the prospected customers and clients.
Sales Forecast

When it comes to providing a cemetery services, if the facility is

well positioned and you have the right business, you will always attract

client sales and that will sure translate to increase in revenue generation

for the business. Proponents are well positioned to take on the available

market in Maniki, Kapalong area and we are quite optimistic that we will

meet our set target of generating enough income from the first year of

operations and grow the business and our clientele base.

The proponents have been able to examine the cemetery

services industry and analyzed the chances in the industry and the

proponents found out that the market share is 15% and 5% from the

competitors outside the town specifically in Tagum area, which means

the remaining 80% will go to the KGMP. That is why, the proponents

have been able to come up with the following sales forecast. The sales

projections are based on information gathered on the field and some

assumptions that are peculiar to similar startups in Kapalong area.

Below are the sales projections for Kapalong Garden Memorial

Park is based on the location of our business and other factors as it

relates to cemetery services providers start – ups in Davao del Norte;

This projection is done based on what is obtainable in the industry

and with the assumption that there won’t be any major economic

meltdown and there won’t be any major competitor offering same facility

and services as we do within same location. Please note that the above

projection might be lower and at the same time it might be higher.

 Chapter V Operational Plan

Operational Plan

The following section will identify the proposed operational plan

of Kapalong Garden Memorial Park. Included are the general operating

hours, and working capital requirements of the business.

Operating Capital Requirements

The business has sufficient working capital to meet all operational

responsibilities of the business for the five years.

It is estimated that the business will need approximately 11,306,000

pesos in working capital to sustain and ensure the business meets all

opening and on-going financial obligations.

General Operating Hours

Kapalong Garden Memorial Park intends to operate Mondays

thru Saturdays from 9 am to 5 pm. The operation will be year round.

Orientation and Seminar Operation

A long term strategy to maintain a positive cash flow during these

periods will be to diversify and develop environmental training programs

for certain communities. These Orientation and Seminar programs will

be given during time when the customers acquire the products. The

customer will have an orientation stating the rules and regulation of the

business in acquisition of its product.

Production

The selling of the product will be based on the result of the

promotion conducted by the management. The products and services of

Kapalong Garden Memorial Park will be shown on the brochure and

leaflets distributed by the agents.

Location

The proponent’s way of promoting the chosen location would be

very accessible to our prospected clients. One reason is that, the KGMP

will be found in front of the Kapalong Public Market which may help us

to be recognized by our clients. The location also found in the brochure

which was distributed by the business sales agents and staff. (Appendix)

Memorial Park Layout

The memorial park will have an area of 6 hectares divided a

different kind of graveyard and a honey comb which all clients can be

catered. (Appendix)

Legal Environment

Organizing and registration of the business, the proponents must

follow the process of legalizing the business.

1. Verification of partnership name wit h SEC (Kapalong Garden

Memorial Park)

2. Drafting and execution of the articles of the partnership.

3. Filing of the articles of partnership with the following requirements:

a. Treasury’s affidavit
 b. Statement of asset and liabilities of the proposed partnership

c. Authority to verify bank deposits

d. Certificate of deposit of cash paid for subscription.

4. Payment and filing the publication fee

5. Issuance by SEC of certificate of partnership

6. Secure municipality licenses with the Local Government.

7. Register VAT account number from the BIR

Personnel

The KGMP will have 11 employees to operate the business. The

operation will run in 2 shifting period. First, is in the morning from 7:00am to

4:00 pm of which the manager, tenant and the security, while in the evening

they will be shifted only by the other security guard. And the 4 staff will be on

call duty which means the staff will be working upon the signal of the owners

and or the management. And the sales agents will be working with commission

with their referral from the target market.

Inventory

The business will have_____ units of plots and graveyards and 1,500

unit of honeycomb within the 6 hectares of area.

Suppliers

The supply of inventories in the operation will be source out locally in

Kapalong and nearby municipalities and cities of Davao del Norte and

purchased on cash to cash basis.

 Chapter VI Management and Organization

Organizational Structure

Kapalong Garden Memorial Park is a partnership entity. The partners

will manage the business and will handle the operations, planning and

accounting functions. Kapalong Garden Memorial Park is composed of 11

employees including 1 sales manager, 3 sales agents, 1 tenant, 4 staff and 2

security guards.

PARTNER/
OWNERS

ACCOUNTANT

SECURITY SALES
TENANT
GUARD
MANAGER

SALES
STAFF 1 STAFF 2 STAFF 3 STAFF 4
AGENT

Job Description and Qualification

The operation will run by the staff assign by the owner of

Kapalong Garden Memorial Park.

POSITION QUALIFICATION DESCRIPTION

Sales Manager

Sales Agent

Tenant

Security Guard

Staff
Professional and Advisory Support

Professional’s input on how to maintain the business and generate

profits is critical for the success of the business. The Kapalong Garden

Memorial Park will hire an external Lawyer, Bookkeeper and engineer who will

help the legal, final structure of the KGMP lay out and the development of an

overall financial strategy for the business. The Financial advisers job is to

collect detailed information about the financial situation and at the same time,

provide advice on succession planning, risk management, insurances and

taxes.
 Chapter VII Financial Plan

The Kapalong Garden Memorial Park will achieve profitability in just over

one year of operation and reach annual net profit of approximately in the fourth

year of operation, with subsequent increase annually due to progressiveness.

Start-up Cost and Capitalization

When it comes to starting a cemetery services business, loads of factors

influences the amount that will be required to successful launch the business.

Factors like the location you intend starting the business, the size of the

cemetery services business you want to start

Important Assumption

The Financial Plan assimilates the foregoing changes anticipated within

the community while also identifying the ceiling on additional market capture

due to the close proximity of Arbor. It has also absurd the following base

financial planning and management assumptions:

 Projected Revenue escalations: 20% per annum.

 Projected escalation of permits and licenses with 25%

 Decrease of depreciation of Building with 15%

 Increase in Commission expense with 14% annually

 Salaries and Wages with fixed amount.

 Construction expense with fixed amount for five years.

 10% increase in Utility expense per annum.

 Increase of 10% in Repair and Maintenance per year.

 Fixed amount of office supply per year.

Projected Five-Year Balance Sheet

Kapalong Garden Memorial Park

Projected Balance Sheet Statement
For the years 1-5

Year 1 Year 2 Year 3 Year 4 Year 5

Assets
Current Assets
Cash in Bank 2,300,000 2,410,000 2,680,000 2,780,000 2,900,000
Raw Materials 231,000 270,000 310,000 345,000 387,000
Inventory 840,000 840,000 840,000 840,000 840,000
Work in Process 125,000 220,000 315,000 410,000
Total Current
Assets 3,371,000 3,645,000 4,050,000 4,270,000 4,537,000

Non-Current
Assets
Land 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Equipment 240,000 182,000 121,000 96,000 72,000
Sub Total 10,240,000 10,182,000 10,121,000 10,096,000 10,072,000
Accumulated
Depreciation (2,305,000) (2,305,000) (2,305,000) (2,305,000) (2,305,000)
Total Non-Current
Assets 7,935,000 7,877,000 7,816,000 7,791,000 7,767,000
Total Assets 11,306,000 11,522,000 11,866,000 12,061,000 12,304,000

Liabilities
Current Liability
Total Liability
Partner's Equity
D. Cagas Capital 2,261,200 2,310,400 2,373,200 2,412,200 2,460,800
R. Manera
Capital 2,261,200 2,310,400 2,373,200 2,412,200 2,460,800
M. Rollon Capital 2,261,200 2,310,400 2,373,200 2,412,200 2,460,800
K. Ugapay
Capital 2,261,200 2,310,400 2,373,200 2,412,200 2,460,800
R. Arig Capital 2,261,200 2,310,400 2,373,200 2,412,200 2,460,800
Total Equity 11,306,000 11,522,000 11,866,000 12,061,000 12,304,000
 The projected Balance Sheet of Kapalong Garden Memorial Park tells

about the assets, liabilities, and equity of the business. It also shows the

Beginning Capital of 11,306,000 and the increase of cash in the next five years

of operation.

Projected Five-Year Income Statement

KAPALONG GARDEN MEMORIAL PARK

Projected Income Statement
For the Years 1-5

Year 1 Year 2 Year 3 Year 4 Ye

Sales 14,346,320 17,215,584 20,658,700.80 24,790,440.96 29,748
Cost of Goods Sale:
Inventory Beg. 840,000 840,000 840,000 8
Add: Cost of Sales 300,000 700,000 922,000 1,093,000 1,1
Cost of Goods Available for
Sale 2,300,000 1,540,000 1,762,000 1,933,000 2,0
Less: Inventory Ending 840,000 840,000 840,000 840,000 8
Gross Profit 13,276,320 14,835,584 18,056,700.80 22,017,440.96 26,896
Less: General and
Administrative Expense
Salaries and Wages 450,000 450,000 450,000 450,000 4
Funeral Supplies 20,000 20,000 20,000 20,000
Office Supplies 5,000 5,000 5,000 5,000
Utility Supplies 20,000 20,000 20,000 20,000
Commission Expense 50,000 57,500 66,125 76,043.75 87
Business, Tax and Licenses 40,000 50,000 62,500 78,125 97
Repair and Maintenance 150,000 157,500 165,375 173,643.75 182
Legal Fees 40,000 40,000 40,000 40,000
Promotional Expense 43,000 43,000 43,000 43,000
Depreciation 2,305,000 2,305,000 2,305,000 2,305,000 2,3
Total Operating Expense 3,123,000 3,148,000 3,177,000 3,210,812.5 3,250
Income Before Tax 10,133,320 11,687,584 14,879,700.8 18,806,628.46 23,646

Less: Provision for Income 3,242,662.4

Tax 32% 3,740,026.88 4,761,504.25 6,018,121.10 7,526
Plus 125,000 3,367,662.4 125,000 125,000 125,000 1
Income After Tax 6,765,657.6 7,822,557.12 9,993,196.54 12,663,507.35 15,994

The projected Income Statement of Kapalong Garden Memorial Park

shows the increase in sales. The business gross profit is increasing with
92.54%. The business did not accumulate loss that is why the business gain a
high percentage of profit.

Projected Five-Year Statement of Changes on Partners Equity

Kapalong Garden Memorial Park

Projected Statement of Changes in Equity
For the Years 1-5

Year 1 Year 2 Year 3 Year 4 Yea

Partners Equity,
beginning 11,306,000 11,522,000 11,866,000 12,061,000 12,3
Add: Profit 6,765,657.6 7,822,557.12 9,993,196.54 12,663,507.35 15,994
Total 18,071,657.6 19,344,557.12 21,859,196.54 24,724,507.35 28,298
Less: Drawings (6,515,158) (7,360,930) (8,581,631) (9,116,290) (10,1
Partners Equity,
Ending 11,556,499.6 11,983,627.12 13,277,565.54 15,608,217.35 18,107

The statement in changes in equity of Kapalong Garden Memorial Park

shows that from year 1 the beginning balance is P 11,306,000. It increases up
to 18,107,706.73 on the year 5. The partner’s capital will increase because of
the profitable operation of the business.
 Projected Five-Year Statement of Cash Flow

Kapalong Garden Memorial Park

Projected Cash Flow Statement
For the Year 1-5
Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow from
Operation Activities
Net Income 6,765,657.6 7,822,557.12 9,993,196.54 12,663,507.35 15,994,345.73
Increase: Depreciation 2,305,000 2,305,000 2,305,000 2,305,000 2,305,000
Less: Inventory (840,000) (840,000) (840,000) (840,000) (840,000)
Net Cash Flow from
Operating Activities 8,230,657.6 9,287,557.12 11,458,196.54 14,128,507.35 17,459,345.73

Cash Flow from

Investing Activities
Land 10,000,000 - - - -
Building and Equipment 6,370,000 - - - -
Net Cash Flow from
Investing Activities 16,370,000 - - - -

Cash Flow from

Financing Activities
Investing of Partners 11,306,000 - - - -
Drawing 6,515,158 7,360,930 8,581,631 9,116,290 10,190,639
Net Cash Flow from
Financing Activities 4,790,842 7,360,930 8,581,631 9,116,290 10,190,639

Net Increase (Decrease)

in Cash 2,300,000 110,000 270,000 100,000 120,000
Add: Cash Balance,
Beginning 2,300,000 2,410,000 2,680,000 2,780,000
Cash Balance, End 2,300,000 2,410,000 2,680,000 2,780,000 2,900,000