1

EXECUTIVE SUMMARY

Studies shows that charcoal products are often perceived to have devastating
ecological and environmental effects. The most commonly cited impact is
deforestation and the clearance of forest and woodland. At present, large amount of
waste in every household were observed. That gives us an opportunity to produce
alternative charcoal briquettes.

With that, BriCoal Company will offer eco-friendly, affordable, efficient and
effective, unique and good quality alternative charcoal briquette that is made up of
banana peelings.

Our business will use different marketing strategies to attract our costumers
this includes; social media (e.g. Facebook, Instagram, and Twitter), flyers and
posters, news paper advertisement, etc, to showcase our product. The products are
to be sold to the residents of different Barangay in Valencia City, Bukidnon, but the
main targets are the barbeque grill owner. The price of the product will not exceed
60% return from its expenses.
Initial Capitalization for the business is Php 86,375,good for one month
expense. Expected revenue for 1 year is Php 308,812, while total cost of goods sold
is Php 398,840.00
 2

INDUSTRY, TARGET COSTUMERS AND COMPETITOR ANALYSIS

The wood charcoal is the leading and number one source of charcoal in the
Philippines. Though it helps many Filipinos in terms of grilling and cooking, still we
cannot change the fact that production of this product damages our forest, and if this
continues it will cost a lot of problems that us humans will suffer.
And with that, we consider this aspect as an opportunity to produce an eco-
friendly and alternative charcoal, that does not cost that much and our target
costumer can still afford it. Production of our product does not only mean that we will
generate profit but also this movement can minimize the environmental problems
such as deforestation.
The products are to be sold to the residents of the different Barangay in
Valencia City Bukidnon. Additionally, those household are also part of our target
costumer since they are the one who mainly use charcoal for cooking. Also for those
people, that will have an outing, picnic, or bonding that will have a barbeque party.
Moreover, our main targets are the Barbeque grill owner, since our charcoal briquette
is somewhat exclusive for grilling,
People living in Valencia City, Bukidnon are fond of using charcoal as their
cooking agent. Also lots of snacks sold here are cooked through grilling. With that we
doubt that as the year pass by charcoals will be forgotten since us Filipinos
specifically here in Valencia are huge fans of grilled food.

COMPANY DESCRIPTION

History of the Company

Charcoal products are often perceived to have devastating ecological and
environmental effects. The most commonly cited impact is deforestation and the
clearance of forest and woodland. At present, large amount of waste in every
household were observed. Hence, recycling domestic waste in a careful approach
helps the problem in environment. It is therefore imperative to consider alternative
raw material in making charcoal product that are not harmful to the environment.
BriCoal Company brings you an eco-friendly, good and high quality Charcoal
briquettes product for grilling which is Filipino-made, with banana peelings as the
main raw material. Bricoal Company sells charcoal briquettes which is made from
waste specifically the banana peelings. The owner of BriCoal company, Crisha Jean
Dalimocon observed that there are many cases of deforestation due to
 3

“pagkakaingin” also there are a lot of banana peelings wasted here in our place, with
that she come out with an idea to use the banana peelings as the main raw materials
for making this charcoal briquettes that can be used for grilling. The owner saw the
potential of this business to grow and can compete with the commercial products.
BriCoal Company will be situated at the farmers market of Purok-5
Guinuyuran Road, Poblacion, Valencia City Bukidnon. We choose this location
because, in this market, this is where people do buy charcoal, with that it will be easy
for us to find customers. It is the best location for our business since it is an open
area and a good space for this kind of business.
We name our company as BriCoal, since our company focus on producing
Charcoal Briquettes, in which we get the “Bri” from the “Briquettes” and “Coal” from
the “Charcoal”, and ends up with the company name BriCoal. Also in the lower part
of our logo of our company there is this statement “BBQ’s CHARCOAL” since our
product which is the charcoal briquettes is mainly use for grilling. Our tagline is “Your
eco-friendly Charcoal”.

Nature of the Company

The company will provide an alternative cooking fuel to the people who
acquire the service of the company. The company will be a manufacturing company
for it turns raw materials into finished product. The company is a partnership form of
business organization. The said company is a startup company and could be a
potential producer of charcoal briquette.

Vision Statement
To be the leading company in terms of charcoal briquette production in the
Philippines; also to be the leading provider of good and high quality charcoal
briquette that are attuned to the needs of every household.

Mission Statement
To provide environmental friendly charcoal briquettes with a good and high
quality that satisfies our customers.

Product
Bricoal Company will manufacture a charcoal briquette product out of banana
peelings. This product will surely click because lot of Filipinos are fond of eating
different foods that is cooked through grilling, which means that charcoal briquette is
in demand. Also it can attract customers for its eco-friendly feature since it is made
 4

up of waste products. Moreover this charcoal briquette is very much affordable and
has a good and high quality.

PRODUCT OR SERVICE PLAN

BriCoal product has a number of competitive features that will be used to its
advantage to achieve market penetration, these are the following;

Eco-friendly

Our product is eco-friendly for it is made up of waste products, and does not
release black smoke.

Affordability

Our product is cheap in terms of price; it is very affordable, that everyone can
access our charcoal briquette.

Efficient and Effective

Our product can easily cook the food you grill.

Unique

Our product is unique and new to the target market, since no one had been
producing this charcoal briquette out of banana peelings.

Preserve our Mother Earth

 5

For we are only recycling waste products to produce this charcoal briquette, it
will help minimize the cutting of trees in our area.

MARKETING PLAN

Our company’s mission is to provide good and high quality charcoal

briquettes with a price that is affordable for everyone. With that our pricing will be
based from our expenses in manufacturing the product plus a small percentage of
interest. The price of the product will not exceed 60% return from its expenses.

Marketing Strategies
Our company will use variety of marketing strategies to promote our product.
Social Media
BriCoal Company will create a page to increase awareness and visibility of
our products to the citizen. We will be active in Facebook, Instagram, and Twitter to
promote our product.
Flyers
BriCoal Company will make flyers and distribute it to anyone, so that many
people will know that our company is producing this product. In the flyers the price of
the product will be given, the location, the telephone number, and the benefit of the
product will also be given.
News Paper ads
This is for that citizen just like oldies to know that our product exists. Since old
people rarely visit social media and fond of reading news paper. The details that we
will give will be same as the details given in the flyers
Sales Promotion
This is to attract customers, but this will only happen once the company
already generates its desired sales.
Good Costumer Service
Having excellent costumer service will help to generate more costumers,
since it will provide the costumer with the feeling that the business is looking out for
the costumer’s interest.
 6

Sales Projections
Quantity Year 1 Year 2
Unit Php Unit Php
Pcs. Price Per Month
100 35 php 2,000 24,000 840,000 26,400 924,000

Year 3 Year 4 Year 5

Unit Php Unit Php Unit Php
29,040 1,016,400 31,944 1,118,040 35,138 1,229,844
Note: There will be a 10 % increase in the quantity of Charcoal Briquettes to be sold
as well as its price

OPERATION AND DEVELOPMENTAL PLAN

Manufacturing Method

Collection of Banana
Peelings

Drying of Banana
Peelings

Carbonization of the Banana

Peelings

Pulverization of carbonized
banana peelings

Mixing of Pulverized Banana Peelings with

cornstarch and water

Molding and drying of the

briquette
 7

A. Collection of Banana Peelings

In the collection of banana peelings, the peelings were collected from different
banana cue vendors.

B. Drying of the Peelings

In drying the banana peelings, we dried it under the sun for several days.

C. Carbonization of the Banana Peelings

The dried briquette was burned in a low oxygen furnace using an empty
biscuit can.

D. Pulverization of Carbonized Banana Peelings

In Pulverizing the Banana Peelings we use a manual corn mill to turn the
banana peelings into a powder.

E. Mixing of Pulverized Banana Peelings with Cornstarch and Water

The pulverized banana peelings were mix with cornstarch and water and for
to be molded. The cornstarch and water served as the thickening agent of the
charcoal.

F. Molding and Drying of the Briquette

In molding, a molder is used and after molding it, the mixture will be dried
under the sun for the water to evaporate.

Operating facilities

In manufacturing the raw materials into finished product, the needed

equipments are grinder, molder and furnace. The product will be produced at
Poblacion, Valencia City Bukidnon.

Quality Control Method

To control the quality of the product, the same materials will be used. The
weight of each briquette will be controlled at 100 grams using a digital weighing
scale. The shape of the briquette is identical with each other with the use of the
molder. The process will also be controlled by strictly following the right procedure in
producing the product.
 8

Sources of Supplies

The raw materials of the product are from the other existing businesses that
provide the needed number of supplies for producing the charcoal briquettes. The
banana peelings are from the banana cue vendors, the cornstarch are from the
public market, and the water is from the water line.

IX. MANAGEMENT TEAM

w
O
f
a
t
S
F
y
l
i
m
M
e
b
mnr
(
o
r
P
d u
i
t
c
(
a
M
e
k
r i
t
)
g
n
e
r
)
n
o

POSITIONS DUTIES AND RESPONSIBILITIES

1. Owner Responsible for planning all the
necessity of the business, from the
capitalization until to the hiring of staff
The owner should also ensure that her
doings are protected and registered in
the government.
2. Staff (Production) He/she will be the counterpart of the
owner in the production of the product.
Responsible for ensuring that the product
is processed and produced well.
3. Family Member (Marketing) He/she will be the counterpart of the
owner in selling the product. Responsible
for advertising the product through social
media or any promotional campaign.

Bricoal Company will be registered as a single proprietor enterprise with the

Department of Trade and Industry provincial office. A Barangay clearance will also be
secured before it applies for a Mayor’s permit to legally operate as a micro
enterprise. The BIR (Bureau of Internal Revenue) registration will also be done after
 9

getting all the necessary registration documents and permits from DTI (Department
of Trade and Industry), Barangay , and office of the Mayor. The owner and the staff
will be registered with the Social Security System. The wages of the staff will be
based on the daily rate as provided by law.

CRITICAL RISKS ASSOCIATED

Every business might also encounter risks within its venture but it is also
important to know the possible risks for it to avoid.

One of the possible risks that the business might encounter is the loss of
demands due to the uprising advancement of technologies that consumers would
change their preference. To prevent this risk, the company must adopt new
technologies and continue to innovate the product to satisfy the costumers’
preference.

The other risk that the business might encounter is the appearance of new
competitors that may affect the preference of the costumers. To avoid being left
behind by these competitors, the business should create new features.

CAPITALIZATION

The capital of the business is amounted to 86,375 pesos. The money will be
used to buy the supplies and equipment needed to conduct the production. 4,000
pesos will be used to buy banana peelings, 7,500 pesos for the one sack of
cornstarch, 6,000 for the purchase of furnace, 700 pesos for the paper bag, that will
be used for the packaging of the product, 615 pesos is for the drum container, 23,060
is for the grinder, 30,000 pesos is used to purchased machineries used to mold the
product, 3,000 pesos is for the payment of utilities, 10,000 pesos will be for the labor
cost and the remaining 1,500 is for the payment of taxes and licenses.
 10

FINANCIAL PLAN

Start-up Summary

Expenses Cost 2000 pack of Year 1

Charcoal
Briquette
Banana Peelings 10 php (10 kls) 4,000 48,000
Cornstarch 750 php (25kls) 7,500 90,000
Furnace 6 php (5 pcs) 6,000 72,000
Paper Bag 35 php (100 pcs) 700 8,400
Drum Container 205 615 7380
Grinder 5,765 23,060 23,060
Molder 15,000 30,000 30,000
Utilities 3,000 3,000 36,000
Labor Cost 10,000 120,000
Permits and Licenses 1,500 18,000
TOTAL 86,375 452,840

The banana peelings cost 10 php for 10 kls, and in every pack of charcoal
briquette, we need 2 kls, with that to produce 2,000 packs of the product, the banana
peelings should be 4,000 php. For every 1 sack of cornstarch that cost 750, there is
total of 250 kls of cornstarch is need to produce 2000 pack of products. For the
furnace, it cost 6 pesos for every 5 pieces; a total of 30 pieces of furnace that cost 30
pesos is needed to produce 10 packs of product, in order to produce 2000 packs of
product a total of 6,000 pesos of furnace is needed. For the packaging of the product,
we will use a brown paper bag, which cost 35 pesos and contains 100 pieces. For
every 2000 packs of product, the total amount will be 700 pesos. The drum container
cost 205 each, in order to produce 2000 packs we will need 3 drums that cost 615.
The grinder cost 5765 each, and for the faster production of the product we
approximately need 4 grinders. The molder cost 15,000 and to produce 2000 pack of
products in a month we need 2 molder machines. The utilities estimated cost of
utilities will be 3000 pesos every month. The cost of labor will cost 10,000 a month,
and for the permits and licenses will approximately cost 1,500.

5 Years Profit/Loss Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 840,000 924,000 1,016,400 1,118,040 1,229,844
Cost of 398,840 438,724 482,596 530,856 583,942
Goods Sold:
 11

Materials 278,840 306,724 337,396 371,136 408,250

Other direct 120,000 132,000 145,200 159,720 175,692
expenses
Gross Profit 441,160 485,276 533,804 587,184 645,902
(Loss)
Gross 441,160 485,276 533,804 587,184 645,902
Income
Expenses:
Other Operational Expenses
Permits 1,500 1,500 1,500 1,500 1,500
Utilities 36,000 39,600 43,560 47,916 52,708
Income 441,160 485,276 533,804 587,184 645,902
before
interest and
taxes
Tax 132,348 145,583 160,141 176,155 193,771
Net Income 308,812 339,693 373,663 411,028 452,131
(Loss)

5-Years Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5

Beginning Cash 86,375 271,312 298,593 328,603 361,613
Balance
Cash Inflows
(Income):
Cash Sales 840,000 924,000 1,016,400 1,118,040 1,229,844
Total Cash 840,000 924,000 1,016,400 1,118,040 1,229,844
Inflows
Cash Outflows (Expenses):
 12

Payroll 120,000 132,000 145,200 159,720 175,692

Supplies 278,840 306,724 337,396 371,136 408,250
Taxes & 1,500 1,500 1,500 1,500 1,500
Licenses
Utilities 36,000 39,600 43,560 47,916 52,708
Other: 132,348 145,583 160,141 176,155 193,771
Total Cash 568,688 625,407 687,797 756,427 831,921
Outflows:
Ending Cash 271,312 298,593 328,603 361,613 397,923
Balance

5 Years Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets:
Cash on hand 308,812 339,693 373,663 411,028 411,028
Total Current 308,812 339,693 373,663 411,028 452,131
Assets:
Fixed Assets:
Molder 30,000 30,000 30,000 30,000 30,000
Grinder 23,060 23,060 23,060 23,060 23,060
Total Fixed 53,060 53,060 53,060 53,060 53,060
Assets:
Total Assets: 361,872 392,753 426,693 464,088 505,191
LIABILITIES AND EQUITY
Current Liabilities
Income Taxes 132,348 145,583 160,141 176,155 193,771
 13

Payable
Total Current 132,348 145,583 160,141 176,155 193,771
Liabilities
Capital 86,375
Add: Net Profit 308,812 339,693 373,663 411,028 452,131
Net 395,187 426,068 460,038 497,403 538,506
Capital
Total Liabilities 308,812 339,693 373,663 411,028 452,131
and Equity