4.5.

1 Financial Aspect

4.5.2 Initial Investment and Sources of Funding

The Euphoria will have its source of funding or capital from the contribution of

the owner and a loan from a bank. This means that the owner will contribute Php

750,000.00 and will loan from BPI worth of Php 750,000. In total, the capital will be

Php 1.5 million to start-up the business.

4.5.3 Pre-Operating Expense

The table below shows the breakdown of approximated total pre-operating

expenses good for one year:

Pre-Operating Expenses Amount Total

Legal Requirements: Php 3,293.00
A. Barangay Clearance Php 75.00
B. Mayor’s Permit Php 1,780.00
C. Sanitary Permit Php 100.00

D. DTI Registration Php 500.00

E. DOLE Registration Php 100.00

F. BIR Annual Registration Fee Php 500.00

G. Fire Clearance Php 188.00

H. Documentary Stamp Tax Php 50.00

Promotion and Advertising: Php 1,800.00

A. Tarpaulin Php 1,200.00

B. Leaflets Php 300.00

 C. Business Cards Php 300.00

Working Capital: Php 150.00

A. Conatainer Pouch Php 60.00 x 500 pcs

= Php 75,000
B. Inflatable Pillow Php 60.00 x 2 months
C. Sleeping Mask Php 30.00 = Php 150,000.00
Grand Total Php 155,093.00

Table 2.2: Pre-Operating Expense

Table 2.2 shows the pre-operating expense breakdown of Php 155,093.00 in

The Euphoria. It comprises of the Legal Requirements, Promotion and Advertising, and

Working Capital.

4.5.3 Operating Expenses

The table below shows the breakdown of approximated total operating expenses good

for one year:

Operating Expenses Amount Total

Promotion and Advertising: Php 1,800.00

A. Tarpaulin Php 1,200.00

B. Leaflets Php 300.00

C. Business Cards Php 300.00

Working Capital: Php 1,155,900.00

A. Inventory - Conatainer Pouch Php 60.00

B. Inventory - Inflatable Pillow Php 60.00

 C. Inventory - Sleeping Mask Php 30.00

Php 150 x 500 pcs = Php 75,000 x 10 months

= Php 750,000.00
D. Rent Php 80,000.00

E. Utilities Php 15,900.00

F. Administrative Salaries

a. Procurement Staff Php 80,000.00

Php 8,000 x 10 months = Php 80,000

b. Marketing Staff Php 80,000.00

Php 8,000 x 10 months = Php 80,000

c. Sales Staffs Php 70,000.00

Php 7,000 x 10 months = Php 70,000

d. Cashier Php 40,000.00

Php 4,000 x 10 months = Php 40,000

e. Stock Clerk Php 40,000.00

Php 4,000 x 10 months = Php 40,000

Grand Total
Php 1,157,700.00

Table 2.3: Operating Expense

Table 2.3 shows the operating expense breakdown of Php 1,157,700.00 of The
Euphoria. It comprises of the Promotion and Advertising, and Working Capital.