A Business Plan Presented to the Faculty of the

College of Business Administration Education

University of Mindanao
Davao City

In Partial Fulfillment of the Requirements in

THE ENTREPRENEURIAL MIND(GE11-11248)

Presented to
Prof. Yolanda Barcelona
University of Mindanao, Davao City

Presented By:
Barcenal, Clarisse
Mesina, Aldrin
Nabuya, Karla Jane
Olaer, Rica Babe
Oyao, Ritzel
Orillo, Bridget Irish O.
Patricio, Jon Audrey
Peloriana, Stephanie
Peralta, Ronald

January 2020
 Table of Contents

Executive Summary………………………………………………………………1

Vision, Mission and Purpose...…………………………………………………..2

Business Description.…………………………………………………………….3 - 4

Marketing Analysis ..…………………………………..…………….…………..5 - 6

Competitor……………………………………...…………………..……………..7

Marketing Strategies …….……………….………………………………………8 - 9

Place, Promotion and People…………………………………………………….10 - 11

Process………………..…………………………………………………….……..12

Financial Plan………..…………………………………………………….……13 - 17
Executive Summary

The interest by consumers in the café industry is sweeping everywhere. Hence, Little

Einstein will be positioned to bring this to the city near the university area. Little Einstein is a

study hub that promotes the holistic development of the students and professionals which will

be their aid in their academic and career excellence and eventually, their global competence.

The study hub will offer comfortable environment for every student and professional who

needs a conducive and well-ventilated environment for studying. It will be accessibly located

at the Gravahan New Matina, Davao City.

In today’s setting, it is hard to pull an all-nighter just to get all your requirements done

in time. Moreover, it is also hard to pinpoint why most people find themselves more productive

when they are studying or working outside the comfort of their homes. Most students and even

professionals are present in most café typing away on their laptops or going through stacks of

reading as the power up through their deadlines. Furthermore, students prefer to have their

study group in a café. Nevertheless, not all cafes are made equal. There are some with unstable

internet, too few electrical outlets and loud crowds that might make it a little too distracting –

which is why the group proposed this kind of business to provide the potential customers an

environment well suited for their interest.

The study hub will ensure a comfortable environment and maximum productivity.

Hence, Little Einstein will provide learning ambiance, high-quality facility specifically studies

or work lounges, fast internet connection, and electronic gadgets for rent. Along with these

services, it will also offer variety of snacks and drinks

This business aims to help the potential customers take advantage of the hub to boost

their productivity in studying and working as well as to provide them delightful snacks and

drinks. It will be built so that customers will have a suitable place to finish their academic

related stuffs or any other paper works.

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Vision

Little Einstein Study Hub envisions to be one of the most prominent, accessible and

innovative café businesses in the city.

Mission

Little Einstein Study Hub prides itself in being an innovative café business which

endeavors to provide the consumer a quality and comfortable lounging place mainly focused

for their studies or works combined with preparing them delightful foods at an affordable and

reasonable price.

Purpose

The business clearly underlines the quality of food and its safety for the costumer’s

satisfaction and contentment. Its purpose is to gain the customer’s trust and direct interaction

to the students or professionals through the business’ service, way of handling everything and

by sustaining the potential customer’s needs and wants.

The strategy of the group is the market penetrate. The study hub is committed in

improving the customer’s experience in ways they believe few in the industry has done. The

business plan to execute a broader marketing strategy, not simply to build name recognition

and awareness, but also to build deeper relationships with the target customers whom they

believe will help to promote the brand.

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 Business Description

Nature of the Organization

An organization is a group of people who are involved in pursuing particular goals.

People must work together and cooperate in order for them to be productive. The organization

involves division of work between employees and making sure that their tasks are aligned

towards the goal of the company. In order to achieve the goals of the company, there must be

competent management that will guide them in performing their job efficiently and effectively.

Products or Service

We will provide quality service to our customer by providing them the tools that they

need to make their study effective. We will also offer snacks and drinks to help customers boost

their energy in studying. These snacks include: Oreo cake, Spinach Pancakes, Dark Chocolate,

Nuts and Berries, Black forest, Red Velvet, and Donut. Also, Little Einstein will serve coffee

mainly: Americano, Mocha, Cappuccino, Matcha Latte, and Caramel Macchiato and milk tea

like Original Milktea, Black Pearl Milktea and Uji Matcha.

Various Plant and Office Equipment

Some of the devices and equipment in our business are laptop, printer, photocopy

machine, projector and air-conditioned room.

Size of the Proposed Business

It is considered a small business because it composes of more than 10 employees and

the size of its asset and equity capital is more than 3 million.

Future parties with whom contracts may be necessary

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Partnership Agreement: It outlines the relationship and individual obligation between two

or more partners, as well as their contributions to the business that they mutually agreed

upon.

Joint Venture Agreement: Spell out the mutual benefit, goals, obligation and financial

contributions of both parties involved in joint venture.

Non-disclosure Agreement: Can be helpful in order to avoid the leakage of confidential

information about your business to anyone or any party outside the organization. Also, it

gives the business owners a legal protection in case such information is shared.

General Employment Contract: Explicitly defines the relationship between an employer

and an employee, including compensation, benefits, terms and conditions, job description,

duration, grounds for termination and any other issues that relate to the business.

Small-business: Because it composes of more than 10 employees but less than 100

employees and was equally well served by a single small cell in order not to cause negligible.

Also, the size of its asset and equity capital is more than 3 million but less than 15 million.

The Little Einstein Study Hub is a business arranged by five entrepreneurs which operates as

partners.

Marketing Analysis

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A. MARKETING GOALS AND OBJECTIVES

GOALS OBJECTIVES

To help students be more productive Provide customers with conducive study

place.

Provide customers with accessible web

resources and reliable study materials.

Serve a diverse and healthy menu.

To be the number one choice of the target Provide excellent customer service.

customers. Offer affordable and wholesome prices on

food options.

To establish a name in the industry. Intensify public awareness and product and

service promotion through additional

advertisements (e.g. social media blogs).

Continue to create positive feedback from

customers and take into account their

suggestions.

Improve customer loyalty.

The table above illustrates the marketing goals and objectives of the Little Einstein’s

Study Hub. The goals are the possible outcome of the business’ objectives. Goals

communicate the long-term and broad direction of the business while objectives identify

specific actions that employees can perform. These objectives guide the business to attain the

standards set by the entrepreneurs.

B. TARGET MARKET

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 TARGET MARKET

Geographic Demographic Psychographic

Philippines Age Primary: 18-23 years’ old • Students who needs to

Davao City Age Secondary: Any age finish their school

Gravahan New Matina, Occupation: Students, Workers, works.

Schools/University etc. • Students who want to

Gender: Male and Female enjoy and relax with

peers.

COMPETITOR

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 The House of Venus Business Center that offers services such as accessible print,
photocopy and professional services, school supplies located in UM Matina Gravahan Beside
Minute Burger. However, the establishment is space is crowded, the table is not comfortable
enough when you prefer to study alone and not well ventilated which is differently compare
to Little Einstein. The table below shows the different services offered by The House of
Venus and The Little Einstein:

Services Little Einstein House Of Venus

Affordable Price/hour ✔ ✔

Fast Internet Connection ✔ ✔

Offer brewed coffee and ✔

pastries
With Reading ✔
books/thesis/newspaper
No corkage fees ✔ ✔

Rest Zone ✔

Comfortable and big space ✔

Air conditioned ✔ ✔

Well maintained ✔
establishment

Little Einstein Hub offers a more convenient services that customer needs and we are
guarantee you the comfortable and best hub for studying. We are open 24 hours from Monday
to Saturday 8:00 am located at University of Mindanao- Matina Gravahan beside Palawan
pawnshop.

MARKETING STRATEGIES

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 PRODUCT: Little Einstein’s Study Hub offers services wherein students can rent or avail

purchase items needed for finishing their school works. Moreover, it also serves snacks and

drinks which would help students to enhance their mental performance so as to concentrate

on their work.

ITEMS FOODS BEVERAGES

RENT AN ITEM PURCHASE SNACKS COFFEE

ITEMS

Laptop with Charger School Supplies Oreo Cake Americano

Spinach Pancakes Mocha

Dark Chocolates Cappuccino

Hygienic Items Nuts and Berries Matcha Latte

Black Forest Caramel Macchiato

MILKTEA

Red Velvet Original Milktea

Black Pearl Milktea

Donut Uji Matcha

The food served helps students to retain memory and have an active brain function.

Little Einstein’s Study Hub considers healthy food habit for students to stimulate their brain

activity and enhance brain retention and concentration. Other additional services such as

printing and photocopying are offered to minimize hassle problems.

PRICE: Little Einstein’s Study Hub target markets are high school, college and

undergraduate students. Although the study hub isn’t the first school friendly business near

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the university belt, it is rest assured that the costs will be based from the market price and is

affordable compared to the competitors. Price varies from table below.

Rate per Hours Room Laptop with Charger

1-5 hours Php 100 (20 x 5 = 100) Php 25

6-11 hours Php 160 (20 x 8 = 160) Php 50

12-17 hours Php 252 (18 x 14 = 252) Php 75

18-24 hours Php 357 (17 x 21 = 357) Php 100

Little Einstein’s Study Hub provides foods which improves brain activity and also,

diet and budgeted friendly. Study Hub helps students to be well-focused to attain their study

goals. Customers can request for different additional kind of food but will be charged with

additional price. The foods are shown in the table with their individual prices.

ITEMS FOODS BEVERAGES

RENT AN ITEM PURCHASE SNACKS COFFEE

ITEMS
Laptop with Charger School Supplies Oreo Cake - Php 99 Americano -Php 100

Spinach Pancakes - Mocha - Php 120

Php 49
Dark Chocolates - Cappuccino -
Php 89
Php 110

Hygienic Items Nuts and Berries - Matcha Latte -

Php 79
Php 120

Black Forest - Php 99 Caramel Macchiato

Php 120

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 MILKTEA

Red Velvet - Php 89 Original Milktea -

Php 100
Black Pearl Milktea -
Php 110
Donut - Php 59 Uji Matcha -
Php 110

PLACE: Little Einstein’s Study Hub is a place where they can comfort and where students

can concentrate their attention in their school works. Little Einstein’s Study Hub will be located

at Gravahan New Matina, Davao City. The entrepreneurs had observed that putting study hub

near the university can attract students to come inside especially when deadlines are

approaching and homework are needed to be rushed. The location of the business is near the

university where students are often found which the Little Einstein’s Study Hub will be located

there for convenience.

PROMOTIONS: To strengthen public awareness and product/service promotion, the Little

Einstein’s Study Hub will apply 360 advertising and Loyalty Card Promotion. The 360

advertising is a combination of “above the line” and “below line” type of advertising and it s a

good way to promote business in the industry.

Above the Line Advertising: Includes the website of Little Einstein’s Study Hub where they

can search for information and check-out product and services’ prices. There will be a social

media for the customer to visit and post some comments and feedbacks. This type of

promotional activity will cover a wide range of existing and potential customer which can help

the business to earn shares in the market.

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Below the Line Advertising: Little Einstein’s Study Hub will be giving out flyers with

discounted coupons on selected food items. The discounted coupons will be used by the

customers to purchase food items.

Loyalty Cards: Loyalty Cards are given to “loyal customers”. Loyal customers are those

customers who purchase the business products and services over an extended period of time.

This will be presented to the registrar so the customer can avail the 10% discount in renting the

room or a laptop.

PHYSICAL ENVIRONMENT: The study rooms are equipped with shock and sound proof

glass walls and are well ventilated. Each room has soft cushions and is air conditioned. If

customers choose to stay overnight, well-maintained cubicle and hygienic kits are offered in

the place.

PEOPLE: The Little Einstein’s Study Hub does not only offer quality and affordable services

but the business also gives importance to the people who largely contributes for its growth and

betterment.

Marketing Management: The department who handles the development and planning of the

business growth and helps to identify potential customers in the market.

Staff: Are the asset of the business and are considered as a part of Little Einstein’s Study Hub’s

family.

Micro-Environment: It helps the Little Einstein’s Study Hub to be resilient and keeps the

business alive.

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PROCESS: Students or customers who wanted to stay at the Little Einstein’s Study Hub can

complete the following steps:

1. Present a valid ID in the Registrar or Counter to accommodate room. If customers are below

18 years old, they must present a waiver given by the Little Einstein’s Study Hub as a

confirmation that they were allowed to stay in the place.

2. Customers can bring their laptops or any school supplies to be used in making their school

projects. If they don’t have these tools, they can rent a laptop and purchase items in the counter.

3. Customers are allowed to bring their hygienic kits if they planned to stay overnight.

4. Customers can order foods in the place so they will not worry going outside the vicinity to

buy food.

5. Separate comfort rooms for male and female are utilized for privacy.

6. The rate per hour will be computed based on the time they checked in and checked out

including the purchasing of food and items and laptop rentals (if there are any).

Financial Plan

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A financial plan is a comprehensive statement of a business' long-term objectives for security

and well-being and a detailed savings and investing strategy for achieving those objectives.

This includes the financial objectives, sources of financing and estimated financial statements.

Financial Objectives

• Profitability. To maximize gains and exceed daily target sales.

• Liquidity. To easily convert assets into cash.

• Efficiency. To achieve revenue growth of at least 10% per year.

• Stability. To continue having a positive growth rate and positive cash flows.

• Cost minimization. To lower cost of operations and to be able to find loyal suppliers

providing lowest prices.

Sources of Financing

The business is a partnership of 5 individuals in which each part will invest 1.5 million. It will

yield a capital money of 7.5 million. The estimated total cost of the business is 6.5 million. The

total amount of expenses is break into the expenses for permits, purchase of equipment and

supplies, operations, salaries, and construction. The partners added an extra amount of money

for the unforeseen expenses worth 100000.00.

The following is the breakdown of the 6.5 million estimated expenses:

• Government application and permits - Php 15,500

• Purchase of Equipment - Php 1.4 million

• Purchase of supplies - Php 570,000

• Operations expenses - Php 584,500

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• Cost of labor - Php 680,000

• Construction - Php 3,250,000

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 Little Einstein Study Hub

Income Statement for the 1st quarter of (year) 2020 2021 2022

Sales

Services 4668000 5023200 5776680

Products 505800 558900 642735

Total Sales 5173800 5582100 6419415

Cost of Sales

Cost of Service 112600 1512806 1736696

Gross Profit 5061200 4069294 4682719

Operating Expenses

Direct Costs

Accrued Expenses 126500 135400 158000

Permits and License Expense 15500 16000 16500

Advertising Expense 10000 15000 17000

Wages 680000 750000 800000

Maintenance Expense 5500 6000 7500

Light and Water Expense 25000 26000 28000

TOTAL EXPENSES 862500 948400 1027000

NET INCOME BEFORE INCOME TAXES 1940306 3120894 3655719

INCOME TAX (15%) 291045.9 468134.1 548357.85

NET INCOME 1649260.1 2652759.9 3107361.15

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 The income statement shows the firm’s revenues, expenses and profits during a

reporting period, generally every quarter or year. As observed in the financial performance

above, the projected amounts were done through thorough analysis. The key metrics are the

cost of sales, operating expenses, earnings before tax, income tax, and the net income. We look

across the income statement at the year-over-year (YoY) change in each line item. The financial

objectives such as the profitability and efficiency were clearly achieved.

Little Einstein Study Hub

Balance Sheet Statement as of 2020 2021 2022

ASSETS

Current Assets

Cash 145800 295800 445800

Petty Cash Fund 32500 475000 625000

Supplies Unused 35600 506000 656000

Inventory 10500 255000 405000

Prepaid Insurance 50000 200000 350000

Total Current Assets 274400 424400 574400

Non-Current Assets

Property, plant and equipment 305000 455000 605000

Intangible Assets 12000 162000 312000

Furniture’s and Fixture 730106 853106 1003106

Gross Fixed Assets 1491000 1641000 1791000

Less Depreciation 46200 196200 346200

Net Fixed Assets 1444800 1594800 1744800

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 Total Non-Current Assets 2491906 2641906 2791906

TOTAL ASSETS 2766306 2916306 3066306

LIABILITIES

Current Liabilities

Accounts Payable 155600 305600 455600

Income Tax Payable 291045.9 441045.9 591045.9

Customs Fees 5400 155400 305400

Medical Payable 10000 160000 310000

State/Provincial Tax Payable 5000 155000 305000

Total Current Liabilities 467045.9 617045.9 767045.9

Long-term Loans 150000 300000 450000

Total Non-current Liabilities 150000 300000 450000

EQUITY

Partners’ Capital(Total) 1649260.1 1799260.1 1949260.1

Partners Drawing 500000 650000 800000

Total Equity 2149260.1 2299260.1 2449260.1

TOTAL LIABILITIES AND

EQUITY 2766306 2916306 3066306

The balance sheet shows the financial position of the business at a specific point in

time. The largest asset of the business is its fixed assets comprising of the land and building.

The business also has a significant amount of cash in three consecutive years as estimated. This

signifies that the business will be in a good state in the years to come. The business will achieve

the stability objective for its projected net worth (total assets-total liabilities) increase annually.

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References:

Albert, R.A., Gaspar, R. & Raymundo, MJ. (2015, July 8). Who are Middle Class? Retrieved

from: https://amp.rappler.com

Lyster,D.(2018, September 3). Business Plan Output. Retrieved

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(n.a). January 2011. Financial Plan. Retrieved from:

https://www.investopedia.com/terms/f/financial_plan.asp

(n.a). 2017. Template of Financial Statements. Retrieved from:

https://www.thebalancesmb.com/writing-the-business-plan-section-8-2947026

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