Start-up Business Plan

Submitted to:
Miss Jelline Cuales

Submitted by:
Cortez, Jessica
De Lara, Wencel
Francia, Jose Manuel
Galolo, Ria Ysabella
Romero, Samantha Ysabel

2018
1.1 Objective:
 The goal of our operation is to sell at least 100 cups per day
 To provide excellent service among our customers
 To serve a product with a reasonable price and is enjoyed by the customers
 To generate and record a reasonable income and a positive cash flow

1.2 Mission and Vision:

To create and provide a drink that will leave a lasting impression among those who will
try and consume our beverage is our priority.

The staff in charge with the kiosk will sell the said product and provide great service and
hospitality as we prioritize the experience of the customers when indulging with our
product

In time, our vision is to expand our line of products beyond our only product which is
the ChocoChill Chocolate drink, and create more drinks with different flavors and
concepts.

Also, we are hopeful and dedicated to become known in farther places and areas. Our
vision in terms of relevance is to compete with companies catering chocolate drinks
such as Starbucks, Nestle, etc.

Even with success within our grasp, it is a heavy responsibility that we keep our values
and continue to fulfil them as our company grows. These values are:
 Ethical- It is a must that our company treat every worker with respect and just
fully listen to their rights and needs.
 Honesty- Our company's goal is to produce products that the market and
consumers will be satisfied with and get their money's worth.
 Satisfactory performance- We will motivate and uplift every member of our
company to contribute and to make this humble company afloat.

1.3 Keys to success

 Produce high quality products in order to build loyalty among the customer
 Efficient teamwork and systemized order in running the company with every sector
of the company working and contributing.
 Effective advertising that appeals to the millennials.
1.4 Start-up costs and funding
There will be an allotted time in searching where the store will be located. Once the
ideal location has been scouted, the owners will use the start-up capital for kitchen
 inventory, equipment, packaging, transport of the goods and materials, insurance, rent,
advertising and promotion, business sign, and legal expenses.

The total cost has been calculated and is stated in table below. It is estimated to be
priced at Php 7,000,884. For monthly expenses, it is calculated to be at Php 572,957.40.
Samantha and company will loan a hefty amount of cash. The specific amount to be
loaned is Php 5,000,000 and will be used to start the said company.

Interested investors are heavily welcomed as they will be of big contribution in

diminishing a portion of the expenses in operating the company.

According to the analysis, the company will have a positive cash flow and will be able to
repay loans and comply with interest payment obligations while still maintaining
adequate liquidity and positive cash flow along with satisfactory cash in stock which will
be used for the future.

1.5 Company Ownership

ChocoChill is partnership based company among individuals, with Samantha Romero
owning the majority of the company and her partners getting their shares. Future
Investors will have a part in discussing and participating in the company’s capital and its
concerns.

1.6 Products and Services

ChocoChill will provide a cool and chilled chocolate drink. The mixture will be made
inside the factory and will be delivered to the kiosk. The beverage will be served in a
paper and will be taken as a take-out.
1.7 Market
Intramuros is the first option where the kiosk will be located. Inside the said location
houses three universities (Mapua University, Lyceum Philippine University, and College
of Letran). The location is near the said schools. Students from the universities will
purchased our goods and will allow us the generate profit in the long run.
1.8 Strategy
The strategy of this company is to set location in an area near schools and universities.
The company will also learn and apply creative and effective advertising in order to attract
customers. Through the use of social networking sites and platforms, the company will
use the latter in order to attract millennials and the younger generation as they are the
targeted demographic of the product.
1.9 Management
It is expected that the company will use the resources properly, operate systematically
and profitably, and pay debts and expenses on time. Strict compliance with the
regulations and rules set upon the law will be observed. ChocoChill is rooted on respect,
understanding, and fair treatment among the workers of the company. The work
environment in this company is encouraging, motivating, and understanding and uplifts
its workers in order to acquire good performance.
A team comprising of Samantha Romero, Ria Galolo Wencel De Lara, Jessica Cortez, and
Manuel Francia, will be on the front in foreseeing how the company operates and
decisions will be made.
1.10 Financials
Within our estimates, it is expected that ChocoChill will continue to collect a healthy
amount of profit over the next 3 to 5 years of operation.

The first year of operation is expected to be a profitable one for the company. With
enough finances collected and growth of customers, branches of kiosk will be placed in
different areas in order to increase the operation.

With the projections of profit, the company will have a positive cash flow. With a stable
cash reserve, we will be able to comply with payments, fees, and unexpected expenses
or decisions needing cash.

1.11 Investor Considerations

The company is willing to partner with investors and to negotiate future plans.
1.12 Disclaimer
The economic conditions currently are unfavorable and is noted dutifully. Projections
are different from what the actual results may occur, so it is advised to the investors to
be cautious when considering investment alternatives.

The business plan prepared will help the investors understand the risk and tribulations
that the company may undergo in, the possible cost and profit of the business. It is
simply for sample purpose only.

2.0 Company Summary

ChocoChill is a company that sells chilled chocolate beverage, specifically in the
parameter of Intramuros, Manila. Ran by a couple of friends, it is a general partnership
type of business managed by Samantha Ysabel D. Romero.
Samantha, the CEO of the ChocoChill, has no experience in the business industry,
neither do her friends. Despite of their lack of experience concerning the industry, they
are knowledgeable and determined enough to run the business.
 Their focus is to meet or exceed the desires and expectations of the customers,
primarily the students inside Intramuros, with regards to the quality of the product and
to the service with outmost politeness. The company will serve over 49 000 students, 5
000 residents, and 300 tourists, total traffic population, in the said area. With a large
flow of customers, the company’s site is advantageous. Adding the fact that the
accounted rent for this plan is promising.
The entire selling process will be conducted through two stalls within the parameters of
Intramuros. In addition, there will be a delivery truck for transferring the premade
beverages from the factory to the stalls.
Given the fact that the sellers are new to the business industry, it is not guaranteed that
the demand of the product in the first months will be that high. But with perseverance
and dedication to their work, they believe that they will gain the customers’ loyalty and
trust regarding to the promising quality of the product, as well as the service.

2.1 Start-up Summary

Table 1. Start-up expenses

As a starting business, in the first three months, the owners decided to lease a
commercial space in Intramuros, where flocks of pedestrians pass by. The start-up
capital will be used for legal expenses, factory inventory and equipment, transportation
means of the goods, stalls and office equipment and other materials, insurance, rent, as
shown in the table below.

Rent. The stalls, factory, and office space will be leased for a maximum of 3 months,
with the optio to extend the lease for several more period.

Transportation includes the buying of secondhand truck.

Factory inventory will include specific tools and accessories needed for the production
of the premade beverage which includes giant mixers and heaters.
Other expensed equipment consists of dispenser which is found in the stalls of
ChocoChill, and the airconditioner, printers, computers that are found in the office.
Inventory on hand at start-up includes specific ingredients for beverage preparation,
sugar, chocolate, and condensed milk. It also includes supplies that are used during the
packing, sale, and delivery process, and miscellaneous supplies such as paper cups, lids,
and straws.

Insurance premium for business risk coverage regarding fire and theft is established at
Php 137916 and will be paid on a monthly basis.

Buildout/renovations is for the office construction.

Office supplies include anything consumable such as papers, inks, and ball pens.

License and permits expenses are the additional costs incurred to operate legally in the
area of Intramuros.
2.2 Start-up Funding

Table 1. Start-up Funding (1 year)

The partners will provide equal portions of funding to establish the equal
amount of power they share. For the first three months, inclusive of one-time
start-up costs, a total of P7,573,841 will be required. A business loan of
P6,059,072.8 will be acquired to support the start-up, which leaves P1,514,768.2.
The partnership is comprised of five people each with their respective valuable
contributions although not all publicly recognized. To solidify their agreement,
each one will provide P302,953.64 to the start-up fund. The estimated time of 8
months will be required to cover up all the expenses. The following table
presents the company's capability to generate sufficient net assets and working
capital to support the continued business, repay the loan and generate positive
cash flow. The annual interest rate was provided by the participating bank
according to their special deals for business owners (BPI).
2.3 Company Ownership
ChocoChill is partnership based company among individuals, with Samantha Romero
owning the majority of the company and her partners getting their shares. Future
Investors will have a part in discussing and participating in the company’s capital and its
concerns.
3.0 Products and Services
ChocoChill will offer a one type of beverage, which is chilled chocolate.
The chocolate mixture will be premade in the company’s factory, then delivered by the
company’s truck to the two stalls in Intramuros. The staff in the stall will serve as both
the cashier and the server of the drinks. The iced premade goods will be poured by the
staff in a paper cup matching it with a lid and straw, then served to the customers.
The beverage is only available for take-outs.
3.1 Business Model
ChocoChill is a take-out stall wherein customers order beverage, and leave as soon as
they got their order, as oppose to the other businesses that provide table service. Thus,
wait-staff is not included in the work team.
As stated earlier, the beverage is premade in the company’s factory, transported by the
company’s truck to the two stalls in the area of Intramuros, then served to the
customers.
In the preparation of the beverage, the sellers used their secret ingredients and recipe.
With the availability of good quality equipment and technology regarding the
production of the beverage will be used by the factory staffs, for the sellers plan to
invest their capital in valuable long-term assets.
The drink is only served cold.
3.1.1 Competitive Landscape
There are a wide variety of competitors especially in the cold drinks market. ChocoChill
will offer a better product, at a reasonable price, and convenient to the consumers, due
to the fact that it is a take-out stall. Starbucks, milk tea shops and cafes can be found in
Intramuros so the competition is tight with Starbucks as a direct competitor because of
the similar flavors their products and our product share. But the appeal of our product is
the high-quality taste at a much lower price. Customers will be surprised to taste
something as delicious as expensive drinks in cafes and coffee shops for only fifty pesos.
Once the product’s presence is established it will become popular among students
because it can serve as a great but cheap substitute for expensive drinks. The main
 competitors identified in the area of Intramuros are: Starbucks, D’ Cream, and Moonleaf
Tea.

Competitors We have, they don’t They have, we don’t

Starbucks Lower prices Table service, variety of
goods
D’ Cream Lower prices Table service, variety of
goods
Moonleaf Tea Lower prices Table service, variety of
goods
Beanleaf Lower prices Ambience, table service,
variety of goods
Café Pression Lower prices Ambience, table service,
variety of goods
Grace in a Cup Lower prices Table service, variety of
goods

4.0 Market Analysis Summary

Intramuros has over 5 000 residents, 300 tourists, and 49 000 students. The number of
students continuously grows every year due to the senior high implementation. There
are a high number of businesses within Intramuros, some of which are owned by the
residents. The town’s average income is .
Business is steady because of the high flow of pedestrians comprised of tourists,
students and professionals. Coffee shops and cafes are popular among this population
which supports the possible success of ChocoChill.
As Intramuros continues to thrive, the opportunities to serve its population will
increase. The business will provide convenient and cheap high-quality drinks to the
individuals. All of our sales will go to individuals and even if it is not possible to sell by
bulk, many products will still be sold by the “tingi-tingi” or “by piece” process.
4.1 Market Segmentation

The main market segments are a) students accounting for most of our sales, b) tourists
which may be harder to attract because of their tendency to settle for classic options, c)
professionals and workers which will also be difficult to attract because of their financial
independence and preference for ambience, and d) residents which will account for
very little since they are familiar with many other alternatives.

4.2 Target Market Segment Strategy

 The target market will be the focus of ChocoChill which is the student population of
Intramuros. According to our observations of the target market, they prefer cheap and
cold drinks and only occasionally splurges on high class drinks. Students prefer easy to
access drinks as well especially those around the area of their school.

To establish our presence among the students, we will offer high quality sweet drinks at
a low price to consider the tight budget and their financial dependence. Additionally,
they will be attended to with a warm and helpful customer service and an openness to
suggestions and criticisms.

Because we are not focused on earning as much as possible but instead on satisfying the
customer, a harmonious relationship will be built between us and our consumers where
we mutually benefit each other. Therefore, we will gain their loyalty and trust as well as
word-of-mouth promotion which will surely help a lot in increasing visibility.

Target Market Share. The estimated total market in Intramuros is 2467.5, roughly 2467
to 2468 drinks per month. The target consumers of this business are students, given the
fact that there are 49350 students in Intramuros, and according to a survey 50 percent
of individuals prefer cold chocolate drinks over other options presented (49350 x 0.5 =
24 675). Since there are other competitors available in the Intramuros, the product is
then multiplied to 10 percent (24675 x .10 = 2467.5).

6.0 MANAGEMENT SUMMARY

The management is expected to perform and operate tasks succesfully, maximize resources and
fulfill the standards that we have set upon the management. Our management’s philosophy is
based on integrity, ethical treatment of workers and customers and passion. Individuals who
work at Choco Chill would want to take part with the management of our team as we operate
with open ears for suggestions, a friendly environment and encourages their participation not
only in their assigned duty but also as a vallied and equal member.
Samantha Romero will be the Manager of Choco Chill and will be assisted by Ria Galolo. They
are both under the guidance of Romero’s father who is a graduate in BS Management and her
mother who is a graduate in BS HRM and a former manager in Greenwich.
Samanatha Romero is a graduate of BS Electronics and Communication Engineering at Mapua
University in 2008. She uses her income to help fund her family’s ice cream business and aids in
the management of funds as well as brainstorming for product innovation. When she was in
college she enjoyed going on low budget food trips with her peers and she wanted to recreate
that experience for the younger generations.
Ria Galolo has a background on financing back in Junior High School. She holds a degree and is
Summa Cum Laude in Accountancy from the University of the Philippines. She has multiple
certificates from different countries for partcipating events in terms of business improvement.
 Samantha Romero and Ria Galolo hosts seminars that educates young entrepreneurs on how to
manage a starting and growing business. They regularly seek ways on how to improve their
existing business in ways that are acceptable to their team and modern societal standards.

6.1 PERSONELL PLAN

Choco Chill will have the following workforce:

 Manager
 Assistant Manager
 Factory Workers
 Kiosks Workers

For our proposed plan in each Kiosks there will have two workers, two for the morning shift
(a.m.) and two for the afternoon shift (p.m). Our workers will be focusing on handling with
customers and payments as our products are already pre-made.

The selection of members and workers will be done through a review process which involves
application, background check and interview.

Each of our Kiosks will have four workers overall for the whole day, there will be a change of
shift for the morning and the afternoon, two workers each. Our Kiosks will be open from
Monday To Saturday, Monday to Friday time will be opened from 8:00 a.m. to 8:00 p.m. while
Saturday time will be opened from 8:00 a.m. to 8:00 p.m.. The morning shift for Monday to
Friday is from 8:00 a.m. to 12:00 p.m. and the afternoon shift is from 2:01 p.m to 8:00 p.m.. The
morning shift for Saturday is from 8:00 a.m. to 1:30 p.m. and the afternoon shift is from 1:31
p.m. to 6:00p.m.

Kiosks Schedule (Morning Shift)

DAY BEGIN TIME (AM) END TIME (PM) HOURS WORKED

Monday 8:00 a.m. 2:00 p.m. 6hours
Tuesday 8:00 a.m. 2:00 p.m. 6hours
Wednesday 8:00 a.m. 2:00 p.m. 6hours
Thursday 8:00 a.m. 2:00 p.m. 6hours
Friday 8:00 a.m. 2:00 p.m. 6hours
Saturday 8:00 a.m. 1:30 p.m. 5hours and 30
minutes

Kiosks Schedule (Afternoon Shift)

DAY BEGIN TIME (AM) END TIME (PM) HOURS WORKED

Monday 2:01 p.m. 8:00 p.m. 6hours
 Tuesday 2:01 p.m. 8:00 p.m. 6hours
Wednesday 2:01 p.m. 8:00 p.m. 6hours
Thursday 2:01 p.m. 8:00 p.m. 6hours
Friday 2:01 p.m. 8:00 p.m. 6hours
Saturday 1:31 p.m. 6:00 p.m. 5hours and 30
minutes

TOTAL WORK HOURS/ DAY (Mon-Fri): 12 hours

TOTAL WORK HOURS (Sat): 10 hours

Aside from the given wage, there will be an additional bonus and incentives for workers to
reward those with exemplary performance, that will be on a performance based pay. By this
method it will motivate workers to maximize areas possible and increase their productivity and
develop a strong commitment to the job at hand.

The goal that the company tries to achieve, customer satisfaction, can be met with the
reasonable action done upon. Workers are further motivated to enegage with customers by
developing good interaction by communication and tone.

Table: Personell Wages

Personell Wage
Manager 1,000,000 Php
Assistant Manager 300,000 Php
Factory Worker 192,000 Php
Kiosk Worker 160,000 Php
Total Personell: 4

These wages are the minimum for the year since it is just a start-up. They are subject to salary
increase when the sales increase and performance is exemplary.

Total Payroll: 1,652,000 Php