BUSINESS PLAN

Members:
Mica Bagasala
Drare Marco Sandig
Creselyn Wasawas
Arvina B. Bailon
Alyssa Mae Navarro
Bernadeth Kate Baluyot

Submitted to:
Ms. Ma. Herbel Endencia
 TABLE OF CONTENTS

I. EXECUTIVE SUMMARY
II. BUSINESS DESCRIPTION
A. General Description of Business
B. Vision, Mission and Objectives of the Business
C. Industry Background
D. Uniqueness of Product
III. MARKETING SEGMENT
A. Research and Analysis
B. Marketing Strategy
IV. OPERATIONS SEGMENT
V. MANAGEMENT SEGMENT
A. Business Structure
B. Management Team
C. Board of directors, advisors, consultants
VI. FINANCIAL SEGMENT
A. Income Statement
B. Cash Flow
C. Statement of Financial Position
D. Break Even Analysis
VII. CRITICAL-RISKS SEGMENT
VIII. HARVEST SRATEGY SEGMENT
IX. MILESTONE SCHEDULE SEGMENT
X. APPENDIX OR BIBLIOGRAPHY SEGMENT
I. EXECUTIVE SUMMARY

Our business "Delitaw" is a kind of rice cake with a different flavors. Palitaw comes from
litaw, the Tagalog word for "float" or "rise" is a small, flat, sweet rice cake eaten in the
Philippines. The product's price will surely fit the students and other customer's budget and
whoever want to purchase. It is just 6.00 pesos for every piece of delicious and nutritious
palitaw. We have decided to sell in and outside the school because our target markets are
not just students and teachers. Our product is available for anyone who is craving for a
palitaw product. We want everyone to taste and experience the product that we offer. It is
very affordable for those who want to buy it.

The advantage of the business is focuses to serve one product that has a different features
and compare to the other competitors of the Delitaw business. And one of the purposes of
this product is to help people who want to be easily satisfied and nourished by eating
nutritious sticky rice cake that are delicious at a very affordable price. And it can also be
eaten by people who are on a diet because palitaw is highly digestible that is why the
palitaw can be substituted or can be replaced with rice.

The uniqueness of this product is that there is no entrepreneur build a business like Delitaw
here in Cabuyao City. Delitaw offers different kinds of Palitaw flavors and colors which are
very catchy and appealing to the eyes of the customers. The business has three kinds of
flavors, the Mango Palitaw or what we call "Manggalitaw", Pandan Palitaw or "Panlitaw",
and Ube Palitaw or "Ubelitaw".

The working capital of the business is Php25, 800.00 and it will be from our personal
investments and it will be divided by six that will cost us Php4,300.00 each. Our business is
available thrice a week during Monday, Tuesday, and Friday, we expect that for each day the
sales of the business is 720 pesos because we produce 120 pieces of Palitaw product. The
cash flow and the expenses will be recorded to monitor whether our business is going well
or not. The business decisions will come from our partners.

Palitaw being a native delicacy is a good product as long as it is innovated and provided a
new image as a dessert not only for fiesta but for all occasions. The manufacturing of the
product must be established to assure the quality of the product so that customers will be
satisfied, and will come back for more.

We believed that the best form of business ownership for this business is a general
partnership because it has a bigger capacity to provide finances and at the same time there
are more skilled worker that can help in the growth of the business.

Based on the results shown in the financial aspect this business is profitable. The payback
period is determined to be at 270 days. Therefore the owners will wait for 270 days for their
investment to be returned.
II. BUSINESS DESCRIPTION

A. General Description of Business

Filipinos love to eat rice. We cannot simply hide the fact that we eat rice from the start
of the day up to the end of it. We also eat rice sometimes as snacks or merienda.
Palitaw is a native delicacy that is available in the country. It is a sweet rice dumpling
that does precisely and it rises to the surface once it is cooked. It can be just made up of
galapong (glutinuous rice). And we see a huge potential to it as a product in the market.

Delitaw is a Filipino business that caters a well-known Filipino delicacy called Palitaw. It
offers variety of flavor like Mango, Pandan and Ube. It is officially opened as a business
to meet and satisfy the demand of Palitaw or rice cake. The Palitaw we will offer is
somehow an innovation in the Palitaw rice cake business.

B. Vision, Mission, and Objectives of the Business

VISION OF THE BUSINESS

In the next five (5) years, the partners envisions the Delitaw as the most well-known
Palitaw business around Luzon. And with over 5 branches and desires to expand and
open more branches around the Luzon. Delitaw will establish a name besides well-
known local and international stores that will show the uniqueness of the Filipino-made
palitaw rice cake.
 MISSION OF THE BUSINESS

To be recognize as one of the leading brand that offers quality delicacy business at
affordable price. And encourage individuals to promote and appreciate traditional
delicacy in their home country.

OBJECTIVES OF THE BUSINESS

●To contribute in Philippine Economy and offers job to Filipinos

●To serve quality products with the use of proper marketing strategy
●To determine if the location would have a plentiful of demand and favorable business
growth.
●Apply good quality service that a palitaw business could offer
●To identify if the cost of the products are affordable in the market
●To equate profitable to success

C. Industry Background

A logo is a symbol or other design adopted by an organization to identify its products,

uniform, and others.

We decide to put the combination of the color Yellow, Green and Violet background for
it represents the color for each flavor of our innovated Palitaw. Color Yellow for Mango
flavor. Color Green for Pandan flavor. And Color Violet for Ube flavor.
 We come up with the idea to put a toque blanche or the chef hat icon because it
remains a symbol of authority and knowledge. And it is also often worn by chefs and
other people that are working in the kitchen.

And we put a rice grain icon because the glutinous rice is one of the main ingredient and
commonly used when making a palitaw to achieve its sticky feeling.

Deli is short for the word Delight which means delightful because we claim that our
palitaw product has a very pleasant taste and smell.

An we combined the litaw word because Palitaw is from litaw, the Tagalog word for
"float" or "rise" is a small, flat, sweet rice cake eaten in the Philippines.

The business is considered a small scale business. We believe that we must start with a
low level of capital because we are in the market. Though we are a manufacturing and
merchandising business, only a minimal amount is needed since the raw materials are
abundant in the area.

This small business is owned by six persons namely:

1. Arvina Bailon 2. Drare Marco Sandig

09753881525 09487331833
Cabuyao City Calamba City
arvinabailon@gmail.com deomedes0sandig@gmail.com

3. Creselyn Wasawas 4. Alyssa Mae Clavano

09383231777 09467117946
Cabuyao City Cabuyao City
creswasawas15@gmail.com clavanomae08@gmail.com

5. Mica Bagasala 6. Bernadeth Kate Baluyot

09508505416 09083839224
Calamba City Cabuyao City
micabagasala22@gmail.com bernadethkatebaluyot@gmail.com

The partners agreed to contribute Php4, 300.00 each, amounting Php25, 800.00 in total.
The capital will be used to acquire equipment that is needed in the operation of the
business. It is also used to buy raw materials and supplies and to provide for the
operating expenses it requires to be established. The capitalization will be financed by
 the partners from their own savings. In addition, they will contribute their skill in
managing the business to its full extent to achieve the goals and success of the business.

D. Uniqueness of Product

The uniqueness of this product is that usually the palitaw or sticky rice cake which are
sold in the markets are just plain and do not have any flavors so we figured what if we
innovate the sticky rice cake into something different and extraordinary to make it more
interesting for customers to buy and eat palitaw especially for kids. Delitaw offers
different kind of Palitaw flavors. The business has three kinds of flavors, the Mango,
Pandan, and Ube.
III. MARKETING SEGMENT

A. RESEARCH AND ANALYSIS

 Target Market
The business aims to target not only students but also the households of
Cabuyao City, Laguna. Filipinos love to eat native delicacies especially during
celebrations like birthdays or fiesta. People now a days spending more time
eating various foods such as street foods, fast foods and instant foods.
According to Kantar Worldpanel, which tracks the behavior of 3,000 Filipino
homes in urban and rural areas across the country for a period of two years,
food categories strongly associated with native food choice registered notable
growth.

 Market Size
Cabuyao City is composed of 18 urbanized barangays with a total population of
308, 745 according to the 2015 census. Cabuyao City is one of the six
component cities in the province of Laguna. It is also known as "The Enterprise
City of the Philippines". People also in the area are well aware of different
variances of kakanin such as palitaw.

 Competition
The area to be covered is around the area of Cabuyao City, Laguna. There are no direct
competitors in the area, mostly rice meals and coffee shops are around the City. We choose five
(5) indirect competitors namely:

1. JOLLIBEE

Jollibee is arguably the most successful and iconic Filipino brand of all time. The
country's home-grown fast food chain is well-loved not only for its food but for the
happy experience it gives to its customers, something that is deeply-rooted in the local
Filipino culture. It has become the favorite destination of kids and kids at heart.
2. DON BENITO'S

Don Benito's is a company committed to provide quality Filipino delicacies to be enjoyed

worldwide. Don Benito's is known for their well known kakanin or rice cake such as
cassava cake and pichi-pichi.

3. 7/11

In the Philippines, 7-Eleven is run by the Philippine Seven Corporation (PSC). It's first
store, located in Quezon City, opened in 1984. In 2000, President Chain Store
Corporation (PCSC) of Taiwan, also a licensee of 7-Eleven, purchased the majority shares
of PSC and thus formed a strategic alliance for the convenience store industry within the
area.

4. MINISTOP

MINISTOP is a 24-hour convenience store chain and is a franchise of MINISTOP Co. Ltd.,
one of the largest convenience store chains in Japan . The store carries a wide
assortment of merchandise and an extensive selection of ready to eat products.
 5. MCDONALD'S

McDonald's is the world's largest chain of hamburger fast food restaurants, serving
around 68 million customers daily in 119 countries across 36, 538 outlets.

Palitaw is only sold through some micro enterprise in the area specifically in the market. And we
come up with the following analysis:

STRENGTHS
 Affordable price of products
 Fast service
 Easy access to the public, students and
busy people
 Lower employment costs
 Easy to adapt to changing environment
 Already prepared food
WEAKNESSES
 Low Instagram follower numbers
 Only offers glutinous rice snack or
limited options
 Not currently using food delivery
apps
 Limited advertising and marketing
budget
 Business management skills
 Low profit margins

OPPORTUNITIES
 No competitors on Instagram
 Expand to new locations
 Growing interest in support for locally
sourced ingredients
 Expand variations of product
 Gain customer loyalty
 Advertising Technology
THREATS
 Competitors increasing marketing
budgets
 Government regulations
 Rising costs of ingredients
 Uncertain economic environment
 Changing trends
 Cooking Technology
 Lack of Supplies from Suppliers
 Estimated Market Share

The figure below show the

market share of Delitaw
Market Share
from the competitors.
4%

17% The product forecast will

High-end
Medium-end enable us to manage our
Low-end business more effectively. The
50% Delitaw
minimum number of customer
we got from competitors is
30%
4%. For a day we produce 120
pieces of Palitaw, and we sell
it for 6 pesos per unit. The
total sales that we got per day is 720 pesos.

B. MARKETING STRATEGY
  Product

Palitaw – Sticky Rice Dumplings Coated with Sugar and Coconut and Stuffed
with Mango/Pandan/Ube.

Serves 15 Preparation Time: 10 min. Cook Time: 30 min. Total Time: 40 min.

PROCEDURE:

 In a pan, put in the sesame seeds then roast until slightly brown. Set aside.
 In a pan, combine the egg yolk, condensed creamer, mix slightly then turn on the heat.
 Keep stirring until smooth and sticky once cook, set aside to cool down.
 In a bowl, put in the Glutinous Rice Flour gradually add water to form a smooth, soft yet firm
enough to knead into a ball.
 Add 1 tablespoon of food coloring to the glutinous rice flour.
 Using your hands scoop about 1 tablespoon full of dough and then form into a ball. Repeat the
process with the rest of the dough until used up.
 Get one ball then flatten with your hands. Scoop about 1 teaspoon of the flavor filling and then
place in the middle. Close to secure the filling inside. Repeat the process. Once done, set aside.
 In a pot, put water then bring to a boil. Once boiling add in the stuffed palitaw one at a time. Let
it cook until dough floats into the surface then scoop out using a strainer. Rinse in a cold water
then set aside
 Cover the palitaw with grated coconut then transfer to a serving plate. Serve with the sugar and
sesame seeds.

 Pricing
Delitaw pricing strategy will be cost plus strategy. The cost to produce a piece of palitaw is
P2.65. The selling price for a every piece of palitaw is P6.00. Thus the gross margin per piece is
P3.35 or 55.83%.
Cost Plus Pricing for One Unit of Palitaw

Material Cost 1.50 pesos

Labor Cost 1.15 pesos
Total Costs 2.65 pesos
Gross Margin ÷ Selling Price = Gross Margin %
Profit Margin 3.35 pesos
3.35 ÷ 6.00 = 0.5583 or 55.83%
Selling Price 6.00 pesos
(Total Cost + Profit Margin)

 Place
The location of the business is very important factor when putting up a business.
This is what we choose the place in Southville 1 located at Brgy. Niugan Blk 47,
Cabuyao, Laguna. The place is near the schools and popular walk- in area of the
public that is why it is direct access to the students, residents, and employees.
  Advertising and Promotions

We decided to create our own Facebook page and instagram account. These websites will be a
great help to further promote the selling point of our product. In this site, customers can leave
messages, comments and suggestions to improve the products and service of the business. And
also we use Flyers to introduce the product of our business.

 Flyers
Flyers will be distributed around the area. The layout must contain the main
product that will be sell to the public. It must catch the attention of the
customers and attract more possible customers.

(No. of pcs) (Unit price) (No.

of time per year)
(200) (P1.00) (3) = P600.00
  Sales and Distribution

The business is available during Monday, Tuesday, and Friday from 8:00 am to 5:00 pm. The
customer can enjoy eating the palitaw at home because Delitaw is open for takeout or delivery.
But the delivery fee is not free and customers should pay 30 pesos for the delivery fee.
Customers should have a minimum order of 10 pieces of Palitaw before they can avail the house
to house delivery.
The way of distributing the product is very common because most of the business are using
distribution channel like from Supplier to Deelitaw and finally to the customers . The supplier of
the business is located at Cabuyao, City Public Market. The figure below shown how the
distribution of raw materials to Delitaw and finally to the Customer

SUPPLIER DELITAW CUSTOMER

 Physical Evidence
 WINDOW

Community Table

Seats 10
STORAGE

SINK

MAIN COOKING
Food and Entrance/Exit
AREA
Service
Counter
Refrigerator

OFFICE AREA

Round Tables

Seats 15

CR MALE CR Window Tables

FEMALE Seats 9

Hand
washing
Area
WINDOW

IV. OPERATION SEGMENT

 A. VALUE CHAIN ANALYSIS

SUPPORT ACTIVITIES (Financial Management, Strategic Planning)

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT (Recruiting, Training, Staff planning) Margin

TECHNOLOGY DEVELOPMENT (R & D, Product and process improvement)

PROCUREMENT (Supplies, Purchase raw materials)

Inbound Operations Outbound Marketing and Service

Logistics Logistics Sales
-Maintenance -Installation
-Supply -Order handling -Market
schedules -Production research -Repair parts Margin
control -Distribution of
-Inventory final products -Sales Analysis
control -Quality
control -Invoicing -Advertising

-Promoting
PRIMARY ACTIVITIES

PRIMARY ACTIVITIES Inbound Logistics

 Delitaw used
supply schedule
method to know how much product we have to produce to meet consumer demand at a
specified price.
 Delitaw always check the inventory of raw materials. To maintain inventory at appropriate level
to avoid excessive or shortage of inventory.
 We will be the one who will purchase the raw materials from the suppliers located at Cabuyao
City Public Market. This will include the obtaining of our equipment that will be used in the
business operations.

MATERIALS

Picture Description Price Quantity Total Cost

in 1 month
 Glutinous rice flour P 45.00 18 pcs. P 810.00

Sugar P 15.00 6 pcs. P 90.00

Condensed P 34.50 6 pcs. P 207.00

(Ube, Pandan,
Mango)

Eggs P 6.00 12 pcs. P 72.00

Sesame seeds P 5.00 24 pcs. P 120.00

Grated coconut P 25.00 6 pcs. P 150.00

Food coloring P 41.00 3 pcs. P 123.00

(Violet, Green,
Yellow)
P 1572.00

EQUIPMENT

Picture Description Price Quantity Total Cost

Tupperware P 10.00 5 pcs. P 50.00

Apron P 70.00 1 pc. P 70.00

Food tong P 65.00 1 pc. P 65.00

 Pot holder P 25.00 2 pcs. P 50.00

Pot P 150.00 1 unit P 150.00

Pan P 120.00 1 unit P 120.00

Mini Gas Stove P 525.00 1 unit P 525.00

Plates P 9.00 3 pcs. P 27.00

Calculator P 136.00 1 pc. P 136.00

Bowl P 25.00 2 pcs. P50.00

Strainer P 70.00 1 pc. P 70.00

P 1313.00

SUPPLIES

Picture Description Price Quantity Total Cost in 1

month
Dishwashing liquid P 24.50 2pcs. P 49.00
 Sponge P 32.00 1 pc. P 32.00

Pen P 5.00 4 pcs P 20.00

Journal P 22.50 1 pc. P 22.50

P 123.50

Operations

 Checking the utilities if there are some problems to keep the production in good working order.
 Coordinating and directing of all manufacturing activities to ensure having goods made on time.

 Inspecting to prevent faulty products reaching the customer. We will ensure the food's safety
and sanitation to maintain the product quality. The supply of our ingredients will be segregated
carefully (fresh ingredients, dry ingredients, wet ingredients) that we will preserve its shelf life
in our food storage.

Outbound Logistics

 Dealing with orders from customers and making sure they arrive on time.
 Selling and delivering products to customer quickly.
 Consistently records every transaction from a buyer.

Arrival of
Customers.

Assisting of
Customers.

Taking of
orders.

Payment of
bills.
 Preparing
of orders.

Delivery or Serving
of orders.

Marketing and Sales

 Ask feedback and get opinions from consumers about their interest in our product or service.
 Regularly report if sales are increasing or declining.
 We will create a social media account such as facebook and instagram to attract new customers.
And handing flyers to people directly to be able to inform customers that our business is
officially open.

Service

 Installed equipment and connection to services such as power and water supply.
 Replacement of an equipment or machine to an acceptable working condition.

SUPPORT ACITIVITIES

Firm Infrastructure

 Covers the business' support systems. This includes financial management and strategic
planning to maintain operations. Such as having in contact with external companies.
 Delitaw has an eco-friendly workplace
 Delitaw uses recyclable materials

Human Resource Management

 Hire and train employees who will help design, market, and sell the product.
 Delitaw employees have a flexible schedule. And should join team building annually.

Technology Development

 Delitaw used research and development in designing and improving production techniques.
 Delitaw will use equipment and software in real time sales information.

Procurement

 Direct contact and progressive relationship with suppliers that includes negotiating prices with
suppliers.
  Delitaw real time inventory.

V. MANAGEMENT SEGMENT

A. Business Structure

The business will adopt a partnership form of business organization and each will be classified as
partners. It is to be registered with the Securities and Exchange Commission (SEC) for the contract called
articles of partnership.
All the members of the business will be liable for all business debts and obligations, including court
judgments and the members is equally manage the business. 100% of the total project cost will be
coming from personal investment of principal owners, and Partners will share profits equally.

Delitaw will be registered to different government agencies such as (SEC), Business Permit and Licensing
of Cabuyao City Hall, Bureau of Internal Revenue (BIR) and Social Security System.

ADVANTAGES

 Easy to establish
 There is an increased ability to raise funds when there is more than one owner.
 Wider pool of knowledge, skills, and contracts.
 Improved management with more than one owner.

DISADVANTAGES

 Each partner is individually liable for the debts and obligations of the business; if the business
does not have enough assets to pay back business debts, creditors can take the personal assets
of the partners.
 A partner cannot transfer interest in the business without the unanimous consent of the
partners.
 Partnerships can potentially be unstable because of the danger of dissolution if one partner
wants to withdrawal from the business or dies.

B. Management Team

Creselyn Wasawas
General Manager

Arvina Bailon
Finance Assistant
 Cashier

Before the business establish, the owners make first the plan to start the business and monitor first the
area where the best to sell their products. The owners of the business are studying at Pamantasan ng
Cabuyao and they are currently taking the same course which is Bachelor of Science in Business
Administration Major in Marketing Management.

Manager

Salary Range: Php 18, 000 per month

Duties and Responsibilities:

 Oversee budgets, staff and other executives in the organization.

 Work with board members to plan and implement a short-, mid- and long-term strategy for the
business.
  Meet with board members and other executives to assess the direction of the business and
ensure it is in line with the business' stated mission.
 Encourage business investment, act as a visionary and provide leadership for the business.
 Oversee the complete operation of the business ensuring it operates and goals are met based
on the direction established in the strategic plans.

Job Qualification:

 Innovative, with a vision of the future of the business that they can plan, strategize and
execute.
 Good communication skills, with the ability to communicate with board members,
executives and frontline employees.
 Financial and operational knowledge, as well as knowledge of regulations, policy and
procedures that affect the business.
 Ability to attract, develop and retain top talent.
 Have a high level of emotional intelligence.
 Strong leadership skills with the ability to inspire people to action through their influence.

Cashier

Salary Range: Php 13, 000 per month

Duties and Responsibilities:

 Direct and organize the work of the finance and operations team.
 Motivate the employees and at the same time clarify our goals.
 Monitor and supervise the financial health of the business such as keeping task on the
transactions and investments.
 Development of the business financial management strategy and contribute to the development
of the organization's strategic goals.

Job Qualification:

 Master's Degree in Finance, Accounting or Business with strong Accounting experience.

 Five (5) to Ten (10) year experience in a mid to senior level finance or accounting position, and a
CPA (preferred)
 Knowledge of finance, accounting, budgeting, and cost control principles including Generally
Accepted Accounting Principles.
 Ability to analyze financial data and prepare financial reports, statements and projections.
 Strong mentoring, coaching experience to a team with diverse levels of expertise.

Sales Staff

Salary Range: Php 12, 000 per month

Duties and Responsibilities:

 Seeking reliable or suppliers to provide quality goods at reasonable prices.

 Negotiating prices and contracts.
 Reviewing technical specifications for raw materials, components, equipment or buildings.
 Determining quantity and timing of deliveries (more commonly in small companies).
 Forecasting upcoming demand for services and products.
 Build and maintain good relationships with new and existing suppliers.
 Develop a purchasing strategy.
 Keep a constant check on stock levels.

Job Qualification:

 Bachelor's degree or higher

 Analytical and creative thinking skills
 Management skills
 Strategic thinking
 Business studies
 Purchasing and logistics
 Purchasing and supply
 Operations management

The employees will receive its wages and salaries once a month. Salary deductions are in accordance to
law abiding the SSS, PhilHealth, and PAG-IBIG it will automatically deduct to their salaries.

C. Board of directors, advisors, consultants

Aside from our employees, having an external support will help the business function. As our advisory
board or business coach, Ms. Maria Herbel Endencia having a graduate degree of Master in Business
Administration at Colegio de San Juan de Letran Calamba and also have an experience on how to run a
business she really teach us and have the patience and time to provide good advice in order for our
business to do well and it can also increase consumer and investor confidence.

VI. FINANCIAL SEGMENT

Summary of Basic Financial Assumptions

a. 100% of the total project cost will be coming from personal investment of principal

owners.

b. Partners’ will not be withdrawing their share from the profit until the end of 5 th year.

c. Partners’ will share profits equally.

d. The depreciation method that the business will use is straight line method.

e. The useful life of the equipment is 5 years with no salvage value.

f. The sales price will increase annually at 10% and the cost of raw materials will increase

at 2% every year.

g. Salaries and wages, advertising expense, supplies expenses, utilities, permits and

licenses will increase by 3% every year.

h. All finished goods inventory are sold out.

i. All sales and purchases transactions are cash basis.

j. Each year we double the total units we produce.

Delitaw Business (Manggalitaw, Ubelitaw, Panlitaw)

Project Cost (in Php)
 Working Capital

Materials Php1, 572.00

Salaries and wages Php15, 473.50
Equipment Php1, 313.00
Supplies Php123.50
Rent Php250.00
Permits and License Php3, 000.00
Business Insurance Php1, 500.00
Transportation Costs Php300.00
Advertising Expense Php800.00
Utilities Php1, 468.00
Total Working Capital Php25, 800.00

The project cost represents the amount needed to operate the entity. The estimated amount is
P25, 800. It is planned that no liability shall be loaned from financing institutions.

A. Income Statement (3-Year Projection)

The Statement of Financial Performance or Income Statement shows the result operations of an
entity. The entity's operation for 2020-2022 is projected and presented in the next table. It can
be noted that the sales 2020, 2021, and 2022 are increasing. The cost of goods sold or the
necessary amount to produce the products for 2020, 2021, and 2022. Net Profit is defined as the
residual amount after deducting all expenses from operations and selling.
Income Statement (3-Year Projection)

Product 2020 2021 2022

Sales Php172, 800.00 Php456, 192.00 Php746, 496.00
Less: Cost of Sales Php31, 440.00 Php63, 823.20 Php97, 177.90
Gross Profit Margin Php141, 360.00 Php392, 368.80 Php649, 318.10
Less: Operating Expenses
Salaries and Marketing Expenses
Internet Php3, 600.00 Php6, 708.00 Php10, 509.24
Flyers Php600.00 Php1, 218.00 Php1, 854.54
Total Sales and Marketing Expenses Php4, 200.00 Php7, 926.00 Php12, 363.78
General Administrative Expenses
Permit and Licenses Php3, 000.00 Php6, 090.00 Php9, 272.70
Supplies Php2, 470.00 Php5, 014.10 Php7, 634.53
Business Insurance Php1, 500.00 Php3, 045.00 Php4, 636.35
Total General and Administrative Expenses Php6, 970.00 Php14, 149.10 Php21, 543.58
Motor Vehicle Expenses
Transportation Costs Php4, 800.00 Php9, 744.00 Php14, 836.32
Total Motor Vehicle Expenses Php4, 800.00 Php9, 744.00 Php14, 836.32
Permanent Employment Expenses
Salaries and Wages Php27, 000.00 Php54, 810.00 Php83, 454.30
Fringe Benefits Php3, 000.00 Php6, 090.00 Php9, 272.70
Total Permanent Employment Expenses Php40, 000.00 Php60, 900.00 Php92, 727.00
Occupancy Costs
Electricity Php3, 000.00 Php6, 090.00 Php9, 272.70
Gas Php4, 880.00 Php9, 906.40 Php15, 083.60
Water Php2, 400.00 Php4, 872.00 Php7, 418.16
Rent Php3, 000.00 Php6, 090.00 Php9, 272.70
Repair and Maintenance Php1, 000.00 Php2, 030.00 Php3, 090.90
Waste Disposal Php400.00 Php812.00 Php1, 236.36
Total Occupancy Costs Php14, 680.00 Php29, 800.40 Php45, 374.42
Depreciation Expense Php1, 000 Php1, 000.00 Php1, 000.00
Total Operating Expenses Php71, 650.00 Php123, 519.50 Php187, 845.10
Operating Income Php69, 710.00 Php268, 849.30 Php461, 473
Income Taxes 5% Php8, 640.00 Php22, 809.60 Php37, 324.80
Net Profit (Loss) Php61, 070.00 Php246, 039.70 Php424, 148.20

B. Cash Flow (3-Year Projection)

Cash Flow projections show the cash inflows and outflows of the entity from its operation. The
entities cash shows a significant shift upwards which implies that the business is doing well.

Cash Flow(3-Year Projection)

 Cash Flow 2020 2021 2022
Cash Beginning Php25, 800 Php97, 870.00 Php350, 991.20

Cash Receipts
Sales Php172, 800.00 Php456, 192.00 Php746, 496.00

Cash Disbursement
Cost of Goods Sold Php31, 440.00 Php63, 832.20 Php97, 177.90
Internet Php3, 600.00 Php6, 708.00 Php10, 509.24
Flyers Php600.00 Php1, 218.00 Php1, 854.54
Permit and Licenses Php3, 000.00 Php6,090.00 Php9, 272.70
Supplies Php2, 470.00 Php5, 014.10 Php7, 634.53
Business Insurance Php1, 500.00 Php3, 045.00 Php4, 636.35
Transportation Costs Php4, 800.00 Php9, 744.00 Php14, 836.32
Salaries and Wages Php27, 000.00 Php54, 810.00 Php83, 454.30
Fringe Benefits Php3, 000.00 Php6, 090.00 Php9, 272.70
Electricity Php3, 000.00 Php6, 090.00 Php9, 272.70
Gas Php4, 880.00 Php9, 906.40 Php15, 083.60
Water Php2, 400.00 Php4, 872.00 Php7, 418.16
Rent Php3, 000.00 Php6, 090.00 Php9, 272.70
Repair and Maintenance Php1, 000.00 Php2, 030.00 Php3, 090.90
Waste Disposal Php400.00 Php812.00 Php1, 236.36
Income Taxes 5% Php8, 640.00 Php22. 809.60 Php37, 324.80
Total Expenses Php100, 730.00 Php203, 070.80 Php321, 347.80
Cash Ending Php97, 870.00 Php350, 991.20 Php776, 139.40

C. Statement of Financial Position (3-Year Projection)

All assets are financed by the partners through their personal funds. Also the entity is operating
on a cash basis thus there are no liabilities incurred. The total owner's equity for the year 2020
to 2022 are the same with the assets, it is also shows an increasing trend.
 Projected Statement of Financial Position or Balance Sheet (3-Year Projection)

Assets
Current Assets Pre- Operation 2020 2021 2022
Cash. Php25, 800.00 Php97, 870.00 Php350, 991.20 Php776, 139.40
Total Current Assets Php25, 800.00 Php97, 870.00 Php350, 991.20 Php776, 139.40
Non-Current Assets
Machineries and Equipment Php5, 000.00 Php5, 000.00 Php5, 000.00 Php5, 000.00
Accumulated Depreciation- Php1, 000.00 Php2, 000.00 Php3, 000.00
Machineries and Equipment
Total Non-Current Assets Php5, 000.00 Php4, 000.00 Php3, 000.00 Php2, 000.00
Total Assets Php30, 800.00 Php101, 870.00 Php353, 991.20 Php778, 139.40

Liabilities
Current Liabilities
Accounts Payable
Total Current Liabilities
Non-Current Liabilities
Notes Payable
Total Non-Current Liabilities
Partner's Equity
Bailon, Arvina Php5, 133.33 Php16, 978.33 Php58, 988.53 Php129, 689.90
Wasawas, Creselyn Php5, 133.33 Php16, 978.33 Php58, 988.53 Php129, 689.90
Bagasala, Mica Php5, 133.33 Php16, 978.33 Php58, 988.53 Php129, 689.90
Sandig, Drare Marco Php5, 133.33 Php16, 978.33 Php58, 988.53 Php129, 689.90
Navarro, Alyssa Mae Php5, 133.33 Php16, 978.33 Php58, 988.53 Php129, 689.90
Baluyot, Bernadeth Kate Php5, 133.33 Php16, 978.33 Php58, 988.53 Php129, 689.90
Total Partner's Equity Php30, 800.00 Php101, 870.00 Php353, 991.20 Php778, 139.40
Total Liabilities and Partner's Php30, 800.00 Php101, 870.00 Php353, 991.20 Php778, 139.40
Equity

D. Break Even Analysis (3-Year Projection)

Break Even Analysis is a management tool to determine the required units to be sold by the
entity to cover its fixed cost. The fixed cost is the amount incurred by the entity that doesn't
fluctuate with production. In the first year operation the entity needs to sell 13, 525 units in
2020, 23, 520 units in 2021, and 31, 490 units in 2022. Though there is an increase in the fixed
cost every year the entity can be able to cover these costs. Because each year we double the
 total units we produce because our business continues to grow and we also ensure that its
supply doubles to meet consumer demand. It can be inferred that the entity is profitable.

Break Even Analysis (3-Year Projection)

Break Even Analysis 2020 2021 2022

Fixed Cost
Depreciation Expense Php1, 000.00 Php1, 000.00 Php1, 000.00
Permit and Licenses Php3, 000.00 Php6, 090.00 Php9, 272.70
Business Insurance Php1, 500.00 Php3, 045.00 Php4, 636.35
Salaries and Wages Php27, 000.00 Php54, 810.00 Php83, 454.30
Fringe Benefits Php3, 000.00 Php6, 090.00 Php9, 272.70
Rent Php3, 000.00 Php6, 090.00 Php9, 272.70
Repair and Maintenance Php1, 000.00 Php2, 030.00 Php3, 090.90
Waste Disposal Php400.00 Php812.00 Php1, 236.36
Total Fixed Cost Php39, 900.00 Php79, 967.00 Php121, 236.01

Divided by Weighted Contribution Margin Per Php2.95 Php3.40 Php3.85

Unit
Break Even Point 13525 23, 520 31490

Break Even Point Formula:

Units = Fixed Costs ÷ Unit Sales Price – Unit Variable Costs

VII. CRITICAL-RISKS SEGMENT

A. Evaluate Weakness of Business

 Business weakness that the principals of the business should consider the possible problems can
encounter such as Market risk, Technology risk, Regulatory risk, Financial risk, Season, and Lack
of Supplies from suppliers that can affect the operation of the business.

1. Market Risks
Market may not grow as expected for a new product or service resulting in cash crisis
for a startup business.

2. Technology Risks
The new technology for business is emerging and many well established businesses are
taking advantage of this new technology for business. For our business to succeed and
gain competitive advantage, we need to drop old out-aged technologies for business
and implement new technologies which will make our services better.
● Use Internet Resources
● Fridge, Freezer-storage

3. Regulatory Risks
The government can bring in new laws and cost of compliance may affect financial
viability of the business.

4. Financial Risks
Cost of finance may go up or margins may drop due to excess supply or low cost
alternatives.

5. Natural Risks
Risks that are caused by natural occurrences. They can result in loss or damage of
property and may cause a business to shut down for a period of time.

In order to respond to these risks. The key is acknowledging that things can go wrong
and demonstrating some creativity in finding a solution.

VIII. HARVEST STRATEGY SEGMENT

 Exit Strategy
Original
Owner

COMPANY
Market Acquisition
New
Owner

Planning how to exit your business is just as important as how you start it. The goal is to maximize the
value of your company before converting it to cash, and to minimize the amount of time consumed. A
harvest strategy or business exit strategy is a plan for the transition of business ownership either to
another company or investors. It is important to have exit strategy because there may come a time
when the owner wants to leave and venture into something different.

These are some of the exit plans or exit strategies we will use whenever our business may encounter
difficulties in profitability and fortuitous event.

 In the years before exiting the business, we the owners should increase our personal salary and
pay bonuses to ourselves. However, we will make sure that we are able to meet obligations.
 We will liquidate all our assets at market value. And use the revenue to pay off obligations and
keep the rest.
 Go through an initial public offering (IPO).
 Merge with another business or be acquired.
 Pass on the business to a family member.
 Close down when our Delitaw business is non-profitable
 Close down our business in the event of a significant change in market conditions
 Sell the business to limit losses
 Reduce ownership in Delitaw business or give up control.

IX. MILESTONE SCHEDULE

 GOAL DATE
Select Suppliers January 17, 2020
Install equipment and training of personnel February 6, 2020
Opening of the Business March 1, 2020
Advertising the Business March 10, 2020
Delivering Service April 3, 2020
Seasonal Promo December 6, 2020
Launching of New Variety of products February 14, 2021
Renovation and Adding of Furniture September 26, 2021
Website Design December 20, 2021
Launching of New Branch January 8, 2022
Redeemable and Discount Cards December 23, 2022
Free Access to Internet inside the store May 1, 2023
Launching a mobile application December 1, 2023
Summer Fest Concert or Summer Music April 20, 2024
Festival

X. APPENDIX AND/OR BIBLIOGRAPHY SEGMENT

https://www.google.com/search?
q=7ps+of+marketing+example&oq=7Ps+&aqs=chrome.3.69i57j0l3.3569j0j7&client=ms-
android-samsung&sourceid=chrome-mobile&ie=UTF-8

https://en.m.wikipedia.org/wiki/Palitaw

https://www.bizfilings.com/toolkit/research-topics/launching-your-
business/planning/market-analysis-for-your-business-plan

https://www.thestrategywatch.com/7-ps-marketing-example/

https://www.thebalancesmb.com/small-business-exit-strategies-2947988

https://www.google.com/amp/s/simplicable.com/amp/business-risk

https://www.entrepreneur.com/article/281416

https://www.thebalancesmb.com/management-section-of-business-plan-2947028

https://wholesalesuiteplugin.com/different-types-pricing-strategies-can-use-wholesale-
marketing/

https://www.google.com/amp/s/www.wikihow.com/Write-a-Basic-Advertising-Plan
%3famp=1

DOCUMENTATION