A Business Plan

Presented to the Faculty of

Institute of Education- Senior High School
University of Northern Philippines
Vigan City

In Partial Fulfillment
Of the Requirements for the Subject of
Business Mathematics

Members:
11 ABM-A
Erica Sablay
Angelica Elem
Teejay Lance Pascua
Karen Yvonne Tabangcura
Beverly Almazan
Elaisa Lingayo

September 2017

Mrs. DIGNA JACOB

Instructor
Business Name: SAFE Transportation Corps.
Office/Parking Address: Refaro, San Juan, Ilocos Sur
Bus Route: Vigan-Laoag, (vice versa)
Officers: Chairman/ Chief Executive Officer
Ms. Erica Sablay
President/ Chief Operating Officer
Ms. Angelica Elem
Vice President/ Chief Financial Officer
Mr. Teejay Lance D. Pascua
Phone Number: 7777-777
1111-111

Mission:
We are committed to provide comfortable and safe trip to our passengers until they
reach their destination.

Vision:
High quality service that everyone can afford to ride.

Tag line:
“ SAFE ka, SAFE ako, SAFE tayong lahat sa SAFE transpo.”
 Executive Summary

A. Description of Business

Transportation is one of the oldest businesses in the world and is one business

that can never go extinct, because as long as the world continuous, people

would always have the need to move around from place to place. Buses are

important part of public transport in places all over the world. Many people

who do not have vehicles, use buses to get around. A transportation business

wherein buses are the main priority is the kind of business we’re pursuing.

This is still a start-up business and will be in the form of a corporation since it

is owned by 6 people. We are not selling products but we ensure to provide

excellent transportation services for everyone. Our service is open for all –

student, mothers, fathers, grandmothers, grandfathers, kids, teenagers, etc. –

especially for the citizens who prefer to commute

We will see to it that our passengers are safe and comfortable until they reach

their destination and in addition to it, we will follow the 14 principles of

management in order for us to achieve the main goal of our business. Even

though we don’t have any experience yet in running and handling a business

like this, we guarantee you that we’ll apply here everything that was taught to

us in school. Thus, despite the fact that we’re not yet that good in this kind of

business, we believe that we can make it grow successfully through the efforts

that will be exerted by the owners.

B. Services

We’ll provide an affordable and convenient transportation service for

everyone which is very beneficial for the people who are going somewhere
 around Laoag to Vigan and vice versa. It will be more advantageous for the

people who prefer to commute and is saving, because their fare won’t be as

expensive as the other air-conditioned buses are.

Our buses will have CCTV’s that will be monitored by the principals to make

sure that everyone – passengers and the driver – are safe and secured. Our

buses will also be fully air conditioned wherein the passengers can freely

manipulate the designated air conditioners to them if they want to and can

freely adjust their seats. Students, senior citizens and PWD’s will be given

20% discount of their fare as a great boon they’ll get in riding one of our

buses. The buses are also provided with first aid kit, seat belts, and CCTV’s to

check the safety of passengers as they travel. The drivers must have the

qualifications that a bus driver should possess and they will undergo a training

before they operate. They are also required to have a professional license

without any bad records in driving.

We do reckon that our competitors have no CCTV’s in their buses yet and this

makes our services unique and desirable. We also know that there will be a lot

of passengers who are going to ride on our buses because the superb services

we offer.

C. Market Analysis

Our services are transportation and it is open for everyone who are willing

to ride on our buses. The route of our buses is Laoag-Vigan; Vigan-Laoag

and our main office is in Cabugao. In Laoag the terminal of our buses will

be in the Laoag-Vigan terminal and in Vigan their terminal would be in

Vigan-Laoag terminal. Wherein after they wait passengers in the said

 terminals they can pick up passengers in their way going to their designated

route.

And we are still working on the size of our market because we are still start-

up business.

In putting up the business, every one of us will share the expenses and

efforts. After receiving the income, it will be equally divided among us as

planned. Surely, the industry outlook would be good because we all know

that transportation industry is needed by everyone which makes it in

demand.

D. Marketing Plan

The services we will offer is not only beneficial for the owners because of

the income they’ll get, but also for our passengers for they are the

consumers of our products. We provide services that can surpass your

expectations, our workers/conductor are also approachable, in the sense that

you can freely state your concerns and suggestions without any hesitation

that they might get mad.

EVERYONE can be our costumer. Students, office workers, non-employed

workers, PWD’s, senior citizens, pregnant, can be our costumer. Those who

prefers to commute than to ride their own vehicles especially the students

and workers that travel every day.

Road to success…. Most important thing to be successful in a business is to

MOTIVATE your employees. We need to ensure that our passengers are in

safe hands, because the driver has a driver’s license and no issue on driving

like accidents. That way we can provide our passengers the most

comfortable travel they need with an affordable fare.

Service Strategies and Promotional Strategies

These are the strategies we are going to use to promote our business.

We will have a surprise gift for our passengers. By using the CCTV’s, we

will be able to determine the person who patronizes our services. When?

Not every day but every month, we will choose the Passenger of the Month

awardee, with a special price.

During the anniversary of our business, we will have promos and special

offers such as giving 50% discount on the 100th passenger. On our silver

anniversary, we will conduct raffle draws wherein the 30 winners will

receive special coupons with corresponding discounts: 40 %, 30 %, 20%.

In addition, we will use the media in promoting our services. We will make

a facebook page where all questions, suggestions, and inquiries of the

passengers regarding to our services are to be addressed by the

management. Everything that the public needs to know about our

employees, lost and found valuables, schedule of trips, activities and other

information regarding our business. Furthermore, we will also post

tarpaulins in different places like terminals in both Loaog and Vigan, in our

office and parking areas.

E. LOCATION

The bus’s route will be Vigan-Laoag,and Laoag-Vigan. The parking and

office address will be in Refaro, San Juan, Ilocos Sur.

F. COMPETITION
 What would be our biggest competitors?

 Tajardon Trans  Iloreta Trans

 Laforga Trans  GUB Trans

How will your operation be better than your competitors?

 Our advantages on our competitors, is that our buses will have CCTV’s to

ensure the safety of our passengers and will also be monitored always to

make sure that the drivers and conductors will not make any unnecessary

things that may affect the image of the business.

 We will make sure that our buses are in good condition every time despite

the fact that we are new in this business.

How will competition respond to your market entry?

There will surely be a large competition among transport corporations like

us but we will do our best to provide our passengers a safe, comfortable and

superb trip in order for them like the services that we have. Being on top is

not our main goal but we are aiming to provide satisfaction to our

passengers.

G. Management and Operations

The team has no experience yet in handling a business but we will undergo

trainings and seminars in putting up a business transportation We will be

dividing the functional areas among us according to our field of interest. We

will apply the 14 principles of management here in our business in order run

our business smoothly.

H. Personnel

 Drivers- must have a professional license and must finish a training before

they drive a bus. They must also have an experience for at least 2 years in

driving a bus without bad records.

 Conductor- must at least a high school graduate, no bad issues or

background, and must be approachable or has the ability to socialize to other

people.

 Mechanical Engineer- at least entered college that is expert on mechanical

work will be fit in this position and must have a TESDA Certification.

For the drivers; ranging from 25 years old to 60 years old they must have a

driver’s license and already have a driving experience.

I. Application for loan

Starting up a business like transportation business needs a big capital. One

of the reason why the business planners want to involve on a business is to

provide services to the public wherein the capital becomes productive. The

business planners decided to borrow money from the bank, the business

planners will loan one-fourth of the capital so that it will be easier to pay

off. The borrowed money from the bank will be paid monthly to earn a

higher amount of money for the payment. The loan will be paid on time to

avoid paying multiple interests, because high interest rates can have a

serious effect on small businesses, which tend to operate with limited cash

flow. When interest rates rise, small business owners must set aside more

money to repay loans and other debts. This in turn reduces a business'
 available income and can affect its ability to pay receivables. To start the

operation of the corporation the business planners needs 8 million pesos

wherein the six members will be contributing 1 million each and the

remaining 2 million pesos will be borrowed from a bank.

Financial Data

The estimated expenses for setting up the business is 8 million pesos

Capital will raise from the following:

Erica Sablay………………………………… Php. 1, 000, 000

Angelica Elem………………………………..Php. 1, 000, 000.00

Teejay Lance Pascua…………………….…. Php. 1, 000, 000.00

Beverly Almazan…………………………… Php. 1,000, 000.00

Karen Yvonne Tabangcura………………… Php. 1, 000, 000.00

Elaisa Lingayo………………………………. Php. 1, 000, 000.00

Total………………………………………….Php. 6, 000, 000.00

And the remaining Php 2, 000, 000.00 needed for the star-up cost will be loan in

the bank

Expense List (Estimated)

Fixed Asset Description Cost

1. 3 Buses 6 million pesos
2. Other miscellaneous 500, 000 pesos
3. Legal/Organization Costs 150, 000 pesos
4. Initial Marketing Promotion 5, 000 Pesos
5. License and Permits 20, 000 Pesos
Total 6 675 000 thousand pesos
The other remaining money which will be 1 325 000 pesos will be used for other

expenses that will be needed for the company.

What would be our total income for a month?

TOTAL EARNINGS: Php. 540, 000.00 (Php. 180, 000 per bus monthly)

Insurance Business (Insurance for Employees and for the pasengers)...Php. 3,

000.00

Insurance Health (Phil health for the employees)………………… ……Php. 3,

000.00

Salaries (Php. 20, 000/driver & Php 15, 000/conducto)……………….Php. 105,

000.00

Busses Maintenance (Php. 3, 000/bus)……………………………………..Php. 9,

000.00

Gas (Php. 45, 000/ buses)……………………………………………………...135,

000.00

TOTAL………………………………………Php. 255, 000.00

REMAINING BALANCE: Php. 285, 000.00

TAX (15%) …….………………………………..……………………Php.

42, 750

OWNERS SHARE (Php. 30, 000/ head) ……..……………………Php.

180, 000

MONTHLY LOAN PAYMENT………………………………….….Php.

45,000
 TOTAL…………………………………………………..……….Php.267,

750.00

CORPORATION’S FUND for a MONTH: Php. 17, 250

What would be our total income for a year?

TOTAL EARNINGS: Php. 6, 480, 000.00 (Php. 2, 160, 000 per bus monthly)

Insurance Business (Insurance for Employees and for the pasengers).Php. 36,

000.00

Insurance Health (Phil health for the employees)………………… ……Php. 36,

000.00

Salaries (Php. 240, 000/driver & Php 180, 000/conductor…………..Php. 1, 260,

000.00

Busses Maintenance (Php. 36, 000/bus)…………………………….....Php. 108,

000.00

Gas (Php. 540, 000/ buses)…………………………………………..…Php. 1, 620,

000.00

TOTAL………………………………………Php. 3, 060, 000.00

REMAINING BALANCE: Php. 3, 420, 000.00

TAX (15%) …….………………………………..……………………Php.

513,000

OWNERS SHARE (Php. 360, 000/ head) ……..………………Php. 2,

160, 000
 MONTHLY LOAN PAYMENT……………………………….….Php.

540,000

TOTAL…………………………………………………..……….Php.3,

213, 000

CORPORATION’S FUND for a MONTH: Php. 207, 000

In a year it was estimated to have Php. 207 000 fund for the business, using this

fund the business can expand, may add busses, can build the business’s office, and

the bus routes can be added like Laoag to Manila trip…. Sounds interesting…. We

will be ready in different problems that may arise in our business and we will

overcome it with a peaceful and working mind!