A.

Introduction

Whether it's their beautiful frosting, their petite size, or their ability to light up a smile,

cupcakes really do have ultimate treat appeal. Every generation loves them and even

the grumpiest can’t help but help themselves to these tasty pieces of art.

Cupcakes come in many varieties and sizes but there are a few factors that are always

the same. Cupcakes are generally baked in muffin pans that are lined with baking

paper. They are small in size and are usually frosted and decorated. The best thing

about cupcakes is that you can be as basic or as unique as you want with them. Almost

any type of cake or brownie can be made into a cupcake with some tweaks of the recipe

and a little ingenuity.

Cupcakes may seem Americanized or westernized but you can find cupcakes almost

anywhere you go. In Southeast Asia, Thailand, Iceland, Brazil, Argentina, Britain,

Hungary etc. In the Philippines you can find rice cakes steamed in banana leaf cups.

The varieties are endless and the adaptions are unique to every baker.

Many great classic cupcakes can be served frosted, like Chocolate Butter cream

Cupcakes or Mint Chocolate Cupcakes. Others are great plain like Applesauce and

Cinnamon Cupcakes or Rum Raisin Cupcakes.

Whether you are a child or an adult, a novice or an experienced baker, once you get

started with my cupcake recipes you'll realize just how fun baking and decorating

cupcakes can be!

B. Projected Demand

Survey out of 100 x 12 months = Demand

( 100% x 12 = 1,200 )

In determining the Projected demand of RICZEL Cupcakes (Sweet place for you ), we
based our computation on the survey that we conducted among a number of people
living within the Angeles City especially , those Barangay and school which are near in
our market area.

Table B.1
YEAR TOTAL NO. OF DEMAND PER YEAR
2015 1, 200
2016 1,218
2017 1,236
2018 1,255
2019 1,274

As the population increase the demand of the services also increases. And as the
result, a percentage of 12% was recorded as an increase of demand per year.

C. Projected Supply

Table C.1
YEAR TOTAL NO. OF SUPPLY PER YEAR
2015 36, 000
2016 36, 540
2017 37, 088
2018 37, 644
2019 38, 209

D.Projected Demand and Supply

In determining the Projected Demand of Riczel cupcake, we based our computation on
the survey that we conducted among the number of people living within the Angeles City
specifically those barangays that are the near the market area. As a result of the survey
it shows that:
Table D.1
Age DEMAND SUPPLY GAP MARKET
SUPPLY

C. Potential number of Customer

Table D.2

BARANGAY POPULATION PERCENTAGE SAMPLE SIZE

F. Market Area

RICZEL Cupcakes (Sweet Place for you) is a hang out place here in Pampanga.
Pampanga is one of the better places to start up a business. Our business is operating
from 9 AM to 9 PM. Our target markets are: Students, Employees, Teenagers, Couples
Families and Others.

About the Students, we have three (3) student markets. The first is the High School
Students, then the College Students and the Elementary Students. High School teens
represent one of the fastest growing populations here in our country. Teen’s significant
buying power both in their own right and context of their family purchasing decisions.

College Students are difficult to reach, typically between 18 years old to 20 years old
something. They are also hard to find with direct mail because they are highly transient.
Our most critical step is to understand our customer’s needs and to meet those more
effectively than the competition. Constantly, we are focusing on the customer and what
he/she needs and wants to buy, not what products or services we need or want to sell.

G. Buying Power

Based on the survey, we found out that the potential consumers are as follows:

Table G.1

CUSTOMER FREQUENCY PERCENTAGE

Students 47 47%
Employees 34 34%
Couples 10 10%
Families 3 3%
Others 6 6%

TOTAL 100 100%

In determining the buying power for the potential customers. We the surveyors of the
feasibility study used questionnaires and acquire interviews to the people around the
market area in order to gather data.

H. Market Share
The market share determines the total share of each business. It is according to the
survey in which shows the computed share of each business.

Table H.1

36% of the respondents prefer to eat in Competitor 1, 30% in Competitor 2, 25% in

Competitor 3 and the remaining 11% prefer to eat at RICZEL Cupcakes.

I. Comparative Analysis Along Of Competitors

 Every Individual deserves the best value of their money. And it is practical to
choose the products with highly quality that will satisfy the constantly changing
demands of the customer at affordable price. The lower the price, the higher customer
you will have. But, quality must also be considered.

Table E.1

Product Name RICZEL CUPCAKES DOMINIC CUPCAKERY

Red Velvet 60 65
Chocolate 45 50
Vanilla Cupcakes 45 50
Peppermint Mocha 50 50
Dark Chocolate 55 70
Banana 40 45
Strawberry 45 50
Brown Sugar Butterscotch 50 60
Nutella Chocolate Chip 30 35
White Chocolate Molasses 30 35
Cookies

Red Velvet Oreo Brownies 30 35

Peanut Butter Cup Crunch 25 30
Brownies

Hot Coffee ( Brewed ) 30 30

Chocolate Shake 25 27
Fruit Shakes 25 27
Pandan Shakes 25 27
Coffee Shake 35 40

J. Gantt Chart
ACTIVITY SEPTEMBE OCTOBER NOVEMBE DECEMBE JANUARY
R R R

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Project and
Conceptual
preparation of
business plan

Incorporation
and business
registration
Construction
of the building
Recruitment,
selection,
hiring and
training of
employees

Purchased of
tools,
materials and
equipments

Advertising
and
Promotion
Dry run and
business
operation

K. SWOT Analysis
Is a structural analysis for analyzing the business strength, weaknesses, opportunities
and threats to know how to manage it right.

STRENGTH

 Colorful
 Accessible location
 Affordable products and Good customer service
 Relaxing ambiance
 Security Guard

WEAKNESSES

 Limited Space
 Limited Flavors to offer to the market
 The Business is new in the market
 No Delivery

OPPURTUNITIES

 Market Growth
 Seasons
 Innovation

THREATS

 Entry of new competitors

 Product Pricing
 Price increase of raw materials

L. Description of Products

CUPCAKE
RED VELVET PRICE
CUPCAKES
 60.00
Buttery red velvet
cupcakes with creamy
cheese frosting on top.

CHOCOLATE PRICE
CUPCAKES
 45.00
Rich, tender Chocolate
cupcakes made of
unsweetened natural
cocoa powder topped
with vanilla frosting and
sprinkles.

VANILLA CUPCAKES PRICE

Vanilla Cupcakes made of  45.00

vanilla almond milk &
yogurt with Vanilla bean
frosting.

PEPPERMINT MOCHA PRICE

CUPCAKES
 50.00
Deep Chocolate
cupcakes flavored with
peppermint and coffee
topped with peppermint
vanilla frosting, candy
canes and a chocolate
drizzle

DARK CHOCOLATE PRICE

CUPCAKES
 55.00
Dark Chocolate
Cupcakes topped with
dark chocolate frosting.
Good for Chocolate
lovers.

BANANA CUPCAKES PRICE

The ultimate trio of your  40.00

favorite flavors! Super-
moist banana chocolate
chip cupcakes with milk
chocolate and peanut
butter swirled frosting on
top.

STRAWBERRY PRICE
CUPCAKES
 45.00
These fresh strawberry
cupcakes are made
purely from scratch with
real strawberries. Top
them with strawberry
whipped cream.

BROWN SUGAR PRICE

 BUTTERSCOTCH
CUPCAKES  50.00

Brown sugar cupcakes

filled with homemade
butterscotch sauce,
topped with vanilla
frosting and more
butterscotch.

COOKIES

Nutella Chocolate Chip PRICE

Cookies
 30.00
Covered with butter and
nutella Chocolate.

White Chocolate Chip PRICE

Molasses Cookies
 30.00
Soft and chewy brown
sugared molasses
cookies with lots of
sweet white chocolate
chips.
BROWNIES

Red Velvet Oreo PRICE

Brownies
 30.00
red velvet brownies
layered with Oreo
frosting, chocolate
ganache, and topped
with Oreos.

Peanut Butter Cup

Crunch Brownies PRICE

Made of Semi-Sweet  25.00

Chocolate Baking Bars ,
topped with peanut and
creamy peanut butter

DRINKS

Brewed Coffe PRICE

Made of Coffee and  30.00

Milk
 Chocolate Shake PRICE

Made of Chocolate  25.00

powder & Milk for
sweet taste.

Fruit Shakes PRICE

Made of Different Fruit  25.00

Flavors and Milk

M. Promotional Activites
Advertisement and Promotion

First week to Second Week

 Posting of banners and Tarpaulins

 Distribution of flyers

Third week to Fourth Week

 Social Network Advertisement

Fifth week to sixth week

 Promo and Free Taste

FLOOR PLAN

59.5 SQ.M
KITCHEN
7.50 M

CR
OFFICE
1.73 m 43.75
M m
COUNTER
8m

2.30 m

VICINITY MAP 3M

Vi

Great AUF AUF Mega

Medical Mister 7-eleven
Dames Jollibee College X
AUF Center
Salon Frosty (7/11)
 MC ARTHUR HI-WAY

DOÑA AURORA ST.

Professi
Gene onal MCDO
Mercury ROYALE Burgasm
Dominic Acqua- Drug
rics School ( AUF )
Cupcake Phar Oro
( AUF )
ry macy
Shoulder RICZEL CUPCAKES
Boulder “A Sweet place for
you”
Diego Silang St.

RICZEL
RICZEL
CUPCAKES
CUPCAKES
“A
“A Sweet
Sweet place
place for
for
you”

5 Rat
Internet
Cafes
 RICZEL
CUPCAKES
“A Sweet place for
you”
J. Perspective View

CUPCAKES-COOKIES- RICZEL
RICZEL
CUPCAKES
CUPCAKES
“A
“A Sweet
Sweet place
place for
for you”
BROWNIES
you”
 Chapter 3

In this Chapter, all the Management process of the business is tackled, starting from the
organizational structure down to Vicinity Map.

The nature of our business is Partnership. A partnership that is composed of five

partners, each partner will invest a 20 % share and will get a 20% dividend annually.

A. ORGANIZATIONAL STRUCTURE

MANAGER

BAKER (1) BAKER (2)

CASHIER/ CASHIER/ MAINTENANCE

CREW (1) CREW (2) / CREW (3)
B. Job Description

POSITION JOB JOB SALARIES AND

SPECIFICATION DESCRIPTION BENEFITS
Manager He/she must be 24 Responsible for 500/day
years old. managing all the Other mandatory
Graduate of a 4 aspects of the benefits by law such
years business business. as SSS, PHIL-
course. Responsible for HEALTH, PAG-IBIG
Must have at least 2 applying and 13th Month pay.
year experience of commercial skills to
managing a meet sales and
business. cost.

Baker He/she must have a Responsible for 400/day

passion for food or baking, decorating Other mandatory
in baking. and create new benefits by law such
Creativity for product. as SSS, PHIL-
developing new HEALTH, PAG-IBIG
products or and 13th Month pay.
decorating
confectionery.

Cashier/ Crew He/she must be 18 -A cashier is 300/day

years old and responsible for Other mandatory
above. receiving payments benefits by law such
At least College or cash handling. as SSS, PHIL-
Level must be a - A crew is HEALTH, PAG-IBIG
trust worthy person. responsible for and 13th Month pay
-A crew must be 18 serving the order
years old above, and assisting
easy to train and customers.
have a pleasing
personality.

Maintenance Must be 20-25 Responsible in 300/day

years old and maintaining and Other mandatory
graduate of any repairing the benefits by law such
related course equipments. as SSS, PHIL-
about maintenance. HEALTH, PAG-IBIG
and 13th Month pay
Security Guard Must be 20-25 Responsible in 300/day
years old and have securing the store.
an experience.
C. Employees Benefits

Social Security System(SSS)

All employees hired by private companies are become an SSS
member(Republic Act No. 8282) . This system aims to protect its member for
when they are unable to work such as sickness, disability, maternity, old age and
death, or other such contingencies not stated but will result in loss of income or
result to a financial burden.

Philippine Health Insurance(PhilHealth)

The Philippine Health Insurance Corporation is the medical insurance company
of the Philippine. All employees are required to be contributors of this service
(Republic Act 7875). Members are given health and hospitalization subsidies
should they or a dependent be hospitalized. Monthly contribution are based on
actual employee monthly salaries and the amount of employee contribution is
matched equally by the employer.

PAG IBIG Fund

Home Development Mutual Fund Decree No. 1530, a system of employee-
employer contribution for housing purpose.

13th Month Pay

According to Presidential Decree No. 851, all Filipino employees are entitled to a
year-end bonus equivalent to one (1) month salary regardless of the nature of
their employment.

Chapter 4
Financial Aspect

Pre Operating Expense

Capital Fixed Cost

Building Improvement 100,000

Equipments 123, 681.50
Furniture & Fixtures 79, 310.00
Baking Utensils 4,406.00
Office Equipments 12,421.00

Total Capital Fixed Cost 219,818.50

Working Capital

Salaries & wages 65,000

Electricity 5000
Water 800
Advertising 2,500
Permits & License 3,468
Raw Materials 29,340
Office Supply 500
Repair maintenance 2,000
Employee Contribution 4, 833.50

Total 113,441.50

Total Capital Fixed Cost 219,818.50

Total Working Capital 113,441.50

Total 333,260.00
Salaries & Wages
Position Daily Monthl Year 1 Year 2 Year 3 Year 4 Year
y

Manager 500 13, 000 156, 171,600 188,760 207,636 228,399.60

000

Baker 1 400 10, 400 11,440 12,584 13,842.40 15,226.64 16,749.30

Baker 2 400 10, 400 11,440 12,584 13,842.40 15,226.64 16,749.30

Cashier/Crew 300 7,800 8,580 9,438 10,381.80 11,419.98 12,561.98

Cashier/Crew 300 7,800 8,580 9,438 10,381.80 11,419.98 12,561.98

Cashier/Crew 300 7.800 8,580 9,438 10,381.80 11,419.98 12,561.98

Security 300 7,800 8,580 9,438 10,381.80 11,419.98 12,561.98

Guard

2,500 65,000 213,200 234,520 257,972.1 283,769.2 312,146.12

Total
SSS Payments

Position Monthly Year 1 Year 2 Year 3 Year 4 Year 5

Manager 333.30 3,999.6 4,399.56 4,839.56 5,323.47 5,855.82

Baker 1 266.70 3,200.40 3,520.44 3,872.48 4,259.73 4,685.70

Baker 2 266.70 3,200.40 3,520.44 3,872.48 4,259.73 4,685.70

Cashier/Crew 266.70 3,200.40 3,520.44 3,872.48 4,259.73 4,685.70

Cashier/Crew 266.70 3,200.40 3,520.44 3,872.48 4,259.73 4,685.70

Cashier/Crew 266.70 3,200.40 3,520.44 3,872.48 4,259.73 4,685.70

Security 266.70 3,200.40 3,520.44 3,872.48 4,259.73 4,685.70

Guard

Total 19,335.50 23,202 25,522.20 28,074.40 30,881.85 33,970

Phil health
Position Monthly Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Manager 250 3,000.00 3,300.00 3,630.00 3,993.00 4,392

Baker 1 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Baker 2 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Cashier/Crew 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Cashier/Crew 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Cashier/Crew 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Security 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Guard

Total 1,450 17, 19,140.00 21,054.00 23,159.4 25,475.00

400.00

Pag-ibig
Position Monthly Year 1 Year 2 Year 3 Year 4 Year 5

Manager 250 3,000.00 3,300.00 3,630.00 3,993.00 4,392

Baker 1 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Baker 2 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Cashier/Crew 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Cashier/Crew 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Cashier/Crew 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Security 200 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84

Guard

Total 1,450 17, 400.00 19,140.00 21,054.00 23,159.4 25,475.00

Statement of Major Assumption

In getting the projected sales for RICZEL Cupcakes , based on our survey we
conducted out of 50 person, 48 person are willing to have the product in service
we offer.

Formula:

Projected sales x transaction/day x 30 days x 12 month.

= 645 x 48 x 30 x 12

=11, 145,600 projected sales on first year of the business.

- There would be a 10 % increase of gross income every year.

- Income tax rate from year 1 to 5 remain constant ( 32 % )

- Electricity, water, salaries and wages, advertising expense, office supplies

and
raw materials will increase 10 % annually.

- From 1st year to 5th year the depreciation of fixed assets, repair and
maintenance, permits and licenses will remain constant.
Income Statement
Year Year 1 Year 2 Year 3 Year 4 Year 5
Gross 11, 145,600 12, 260, 160 13,486,176 14, 16,318,272.9
Income 834,793.6 6
Operating
Expense
Salaries & 213,200 234,520 257,972.1 283,769.2 312,146.12
wages
Electricity 60, 000 66,000 72, 600 79.860 87, 846
Water 9,600 10,560 11,616 12,777.6 14,055.36
Advertiseme 30,000 33,000 36,300 39,390 43,923
nt
Office 6000 6,600 7,260 7,986 8,784.6
expense
Raw 29,340 32,274 35,501.40 39,051.54 42,956.69
materials
Permit & 3,468 3,468 3,468 3,468 3,468
license
Repair & 24,000 24,000 24,000 24,000 24,000
maintenance
Annual 58, 002 63,802 70,182.42 77,200.66 84,920.73
Depreciation
Total 315, 608.00 474,224 446,299.92 487,722.86 534,254.50
Operating
Expense

Net Income 10, 11,785,936.0 13, 14, 15,784,018.4

829,992.00 0 039,876.08 347,070.74 6
Less Income 3,465,597.4 3,771,499.52 4,172,760.3 4,591,062.6 5,050,885.91
Tax 32 % 4 5 4
Net Income 7,364,394.5 8,014,436.48 8,867,115.7 9,756,008.1 10,733,132.5
After tax 6 3 5

Net Book Value

 Fixed Assests Cost Useful Life Annual
Contributrion

Building 100, 000.00 10 10, 000.00

Improvement

Equipments 115, 501.00 10 11, 550.00

Furniture & Fixture 44, 122.00 10 4, 412.00

Total 259, 623 25, 962

Permits & License

DTI 200.00

BIR 500.00

MAYORS PERMIT 300.00

SANITARY PERMIT 150.00

FIRE SAFETY 518.00

BUSINESS PERMIT 1,650.00

BARANGAY CLEARANCE 150

TOTAL 3,468.00

Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash Inflow

Investment 333,260

Gross 11,145,600 12, 260,160 13,486,176 14,834,793.6 16,318

Income

Total Cash 333,260 11,145,600 12, 260,160 13,486,176 14,834,793.6 16,318

Inflow

Cash Out
Flow

Building 100,000
Improvement

Equipments 123,681.50

Furniture & 79,310.00

Fixtures

Operating 315, 608.00 474,224 446,299.92 487,722.86 534,25

Expenses

Tax 3,465,597.44 3,771,499.52 4,172,760.35 4,591,062.64 5,050,

Payments
(32%)

Total 302,991.50 3,781,205.44 4,245,723.52 4,619,060.27 5,078,785.50 5.585,

Outflow

Net5 Cash 30,268.50 10,829,992.00 11,785,936.00 13,039,876.08 14,347,070.74 15,784

Flow

Add. Cash 30,268.50 10,860,260.50 22,646,196.50 35,686,072.58 50,033

Beg. Balance

Cash Ending 30,268.50 10,860,260.50 22,646,196.50 35,686,072.58 50,033,143.32 65,817

Balance

Statement of Cash flow

\

Balance Sheet

Year Year 1 Year 2 Year 3 Year 4 Year 5

Current 10,860,260. 22,646,196. 35,686,072. 50,033,143. 65,817,161.

Asset 50 50 58 32 77

Total 10,860,260. 22,646,196. 35,686,072. 50,033,143. 65,817,161.

Current 50 50 58 32 77
Asset

Fixed Asset

Building 90, 000 80, 000 70, 000 60, 000 50, 000
Improveme
nt

Equipments 111,313.35 100,182.01 90,163.81 81,147,43 73,032.69

Furniture &
Fixtures

Raw
Materials

Total Fixed
Asset

Liabilities
and
Equities

Accounts
payable

Equity

Capital

Retained
earnings

Total equity

Less:
Annual
Contributiu
on