Aldersgate College, Inc.

School of Business, Management and Accountancy

TUMMY
BUDDY
A Business Plan
Presented to the

Administration of Aldersgate College

School of Business, Management and Accountancy

BACHELOR OF SCIENCE IN ACCOUNTANCY

Solano, Nueva Vizcaya

Submitted by:

Dela Cruz, Marjelyn | Hombrebueno, Conie | Lopez, Princess

Mangligot, Raffy | Ramiro, Lorren Graze

Submitted to:

Mr. Rodel Tubaran

Entrepreneurial Mind Professor
 Aldersgate College, Inc.
School of Business, Management and Accountancy

Executive Summary

Tummy Buddy will be a small entrepreneurial store located in the premises of

Aldersgate College that will seek to address the scarcity of food. The food offerings will

come in variety of choices and combo promos for the convenience of the customers. The

store will have a minimal comfortable seating area and good ambiance, allowing

customers to stop in, sit down and enjoy the food experience.

Tummy Buddy will have an extensive market. The products and service of the

business will be open for all ACians; including faculty and staff and even visitors. The

product offerings are within the normal student’s budget and can be obtained by anyone.

With the numerous product options, convenient services and broad target market, this

business entity will surely meet the needs of a wide spectrum of AC students.

Product quality is critical in the food industry. In this reason, Tummy Buddy will

ensure product quality through the use of fresh ingredients; focus on cleanliness as well,

not only of the products but also to the store. Since Tummy Buddy will be set-up in a

single location, the business entity will dive into the online world; allowing customers to

view the various product offerings on its official Facebook page, as well as grant the

option for the customers to place orders.

Prices of products will strive to be competitive within the industry. Costs of and

expenses will be calculated to provide the business with a minimum price option,

preventing any losses.

 Aldersgate College, Inc.
School of Business, Management and Accountancy

By the time Tummy Buddy opens, it will host a grand opening to gain consumer

awareness. The business will implement its marketing strategies which in turn, will

increase customer purchases.

These plans for Tummy Buddy are intended for the growth of the business, to make

it more successful and profitable. Evaluating the effectiveness of different methods of

marketing plan, technical plan, organizational plan and financial plan, Tummy Buddy

will learn what are needed for the business to be an absolute success.

Chapter I

INTRODUCTION

Tummy Buddy is a locally owned and start-up food business that will provide a

combination of scrumptious foods with affordable prices, fun packaging and good store

ambiance. Tummy Buddy will seek to not just maximize the value of the business but also

provide solution to the scarcity of food within the campus since the product offerings of the

school canteen aren’t enough to suffice the needs of the students in terms of food. With these, the

college students just resort to going out of the school premises to buy food while the high school

and elementary students just suffer the hunger if the food offerings of the canteen ran out.

Consequently, Tummy Buddy will be of big help to lessen the number of students going

out of the school premises and to address the scarcity of food within the campus. The business

entity will offer foods that the school canteen don’t have, for the customers to have many variety
 Aldersgate College, Inc.
School of Business, Management and Accountancy

of choices. With these kinds of food offering, the customers will surely patronize the products

that will result to the sustainability of the business.

Chapter II

MARKETING PLAN

A. Marketing Program

To increase the sales of the business and to encourage the use or trial of the

products, Tummy Buddy will be appealing through the customer's visual sense such as

setting-up a store with a good ambiance. Moreover, one of Tummy Buddy’s techniques to

acquire customers' loyalty is to advertise the offered products online. Tummy Buddy will

have a Facebook page to inform the customers of the products’ availability and for the

customers’ concerns about the business. Hence, the customers would be free to place their

orders for faster and smoother transactions.

B. Pricing Strategy

The products’ prices will depend upon the computation of all the expenses incurred

and the mark up that would be added. Tummy Buddy will offer certain discount if the

customer will purchase in large quantities. Compared to the competitors, Tummy Buddy’s

products price would be competitive enough to gear up in the market place and are within the

average student’s buying capacity. In addition, the sales will all be in cash and the entity

wouldn’t be offering credit terms.

 Aldersgate College, Inc.
School of Business, Management and Accountancy

Chapter III

ORGANIZATIONAL PLAN

Tummy Buddy expects to hire 2-3 employees. Together, the entrepreneurs will

personally select each candidate. They will choose the highly qualified people for the position.

Each applicant will be evaluated according to the standards designed for the position.

Background checks will be utilized for that position to minimize problems.

A. Management team

Tummy Buddy will be owned by Marjelyn Dela Cruz, Conie Hombrebueno, Princess

Lopez, Raffy Mangligot and Lorren Ramiro. At the age of 18-20, through this business they will

earn and at the same time continue their schooling. They are all second year students of

Aldersgate College and currently taking up BS in Accountancy. As accountancy students, they

will apply what they have learned to make this business work and continue to grow.

B. Positions

 Business Manager- responsible for overseeing and supervising company’s activities and

employees

 Warehouse Food service - has regular attendance and always punctual

-creative in storing and making the product

 Aldersgate College, Inc.
School of Business, Management and Accountancy

 Food Service Director- responsible for supervising, coordinating and directing the

work duties of all food service personnel, including providing evaluative input to the

District Administrator and the preparation and distribution of meals in the district.

 Food Service Secretary- relay messages and instructions to staff either by phone, e-mail,

or voice mail. Updates computer and enters food orders, check for accuracy, and transmit

order

 Kitchen Lead and Assistants- responsible for the overall operations for the back of house

and kitchen area of a restaurant.

 Kitchen managers- hire staff, purchase food and stock, and make sure everyone is trained

on proper food preparation and kitchen safety techniques.

Chapter IV
OPERATIONAL PLAN

The day today basis operation of our business includes a focus on supplying the scarcity

of foods and creating a stronger relationship with the students. The entrepreneurs understand that

putting up this kind of business would not be easy with the existence of other businesses

providing the same kind of product, yet remain focus on using the resources available to provide

a variety of healthy and one of a kind product that would be served to the customers.
 Aldersgate College, Inc.
School of Business, Management and Accountancy

A big part of the operational plan is to continue to improve the business operations in

finding other products relating to the business that could help the customers on their needs as a

student of Aldersgate College.

The entrepreneurs have found that heavy meals at a favorable price is the selling point in

this kind of business, and they intend to use the drawing power of popular local and regional

brands to bring new people through our doors.

The business proponents feel that these relationships are mutually beneficial, providing

new fans for the best local brands, while at the same time providing the customers with the finest

product at a price that they can afford.

Special give aways or sales are another big part of the operational plan, and they will

continue to use these operational techniques to bring new customers through the doors.

Operations of Tummy Buddy will be led by all of the owners of the business. They will

oversee daily transactions as well as inventory levels, marketing and other miscellaneous duties.

The store will be open from 7am to 7pm every weekdays. They believe in the effectiveness of

this strategy and they intend to fully exploit this strategy in the future.
 Aldersgate College, Inc.
School of Business, Management and Accountancy

CHAPTER V

PRODUCTION PLAN

The production system shall strive to attain service excellence in addition to quality

products and safety of food. The business proponents also intend to ensure that the supplies

are legitimate to avoid disappointments from the customers in terms of quality of the product.

In order to improve productivity in the business, business culture that focuses on

teamwork would be instilled rather than individual productivity. The business will optimize

productivity using available resources.

Recognizing that the receiving of materials is an essential element in the entire

business, the business intends to ensure that it is done by the responsible person. It shall be the

policy of the business to ensure that all materials are stored in a secure, clean and pest-free

manner. Stock takes and recons shall be undertaken on a regular basis, initially done at least

everyday. The stock principle of first in first out will be implemented.

CHAPTER VI

TECHNICAL PLAN

A. The product/s

What motivated the business proponents to come up with this idea is the problem

which concerns the scarcity of food within the campus. With this, the entrepreneurs have
 Aldersgate College, Inc.
School of Business, Management and Accountancy

decided to help their fellow ACians to get through this situation so they could become

more productive in their respective activities; academics.

Meanwhile, the production and process of coming up with the product is depicted

below:
 Aldersgate College, Inc.
School of Business, Management and Accountancy

Collection of funds
among the partners
Purchasing the raw materials
to accumulate the
needed for the production;
business’ working
packed siomai, packed
capital amounting to
hotdog, rice, coffee, creamer,
5000 pesos.
etc. Hence, the receipts will
be kept as well and be
submitted to the finance
manager for accounting
purposes.

Production & process

o The products will only be cooked and prepared

upon order to avoid spoilage and contamination.

The cooked products will be placed in the

appropriate packaging.

Assurance of the product’s quality and consistency

before serving it to the customer.
 Aldersgate College, Inc.
School of Business, Management and Accountancy

Transport Inspection Storage

Operation
Delay

B. Services Offered

Our products basically serve as a food for the AC community. Furthermore, the

business entity could accommodate orders and be delivered afterwards, but service charges

would be integrated to the total purchase price. Might as well, it should just be within the

boundaries of Aldersgate College.

C. Packaging

The products will be placed in transparent plastic containers with attached logo of the

business entity. The use of transparent plastic containers will enable an easier inspection of

the products’ quality and consistency before serving to the customer.

D. Site Analysis

There are direct competitors in the market when it comes to food business such as

the school canteen. But by offering sufficient, new and variety of products, Tummy Buddy

will have a unique opportunity to brand itself.

E. Waste Disposal

The business’ waste will be disposed through the use of garbage bags and bins to

assure proper sanitation within the area; biodegradable, non-biodegradable and even

recyclable. The entity will dispose the business’ waste to ensure that the products would be

secured and assured of the absence of viruses and bacteria. Meanwhile, if possible, the
 Aldersgate College, Inc.
School of Business, Management and Accountancy

entity will sell the recyclable wastes such as cans and bottles for additional income.

F. Pre-operating activities

Before the normal operation of the business entity, the working capital will be

allocated for various expenses the entity might incur; procurement of supplies and raw

materials, transportation expense, and initial marketing expense which are significant and

eventually be used in the operating cycle.

Chapter VII

FINANCIAL PLAN

Presented below are the projected financial capital needed for the operation of the

business:

Pre-operating Cost

Packaging Materials and P 300.00

Supplies
Raw materials 2,000.00
Initial Marketing Expense 200.00
Transportation Expense 50.00
Total P 2,550.00
 Aldersgate College, Inc.
School of Business, Management and Accountancy

TUMMY BUDDY
Projected Sales
For the Month ended December 2019

WEEKS
1 2 3 4 TOTAL
Expected
100 150 200 250 700
Sales
Selling
x P20 x P20 x P20 x P20 x P20
price
Total P2,000 P3,000 P4,000 P5,000 P14,000
Sales
 Aldersgate College, Inc.
School of Business, Management and Accountancy

TUMMY BUDDY
Projected Income Statement
For the Month ended December 2019

Sales (700 products at P20)

Siomai Rice
(50 customers per day x 20 pesos each x 20 days) 20,000
Hotdog Rice
(50 customers per day x 20 pesos each x 20 days) 20,000
Coffee Jelly
(50 customers per day x 20 pesos each x 20 days) 20,000
Beverages
(50 customers per day x 20 pesos each x 20 days) 20,000
TOTAL SALES 80,000
Less: Cost of Sales
Variable Cost
Raw Materials 30,000
Plastic cups 4,800 , 34,800
Fixed Cost
Electricity 200
Wages (3 workers,
P250/day for
20 days) 15,000 , 15,200 , 50,000
Profit from sales 30,000
Less: Other Operating Expenses 333.33
Operating Profit for one month P 26,667
 Aldersgate College, Inc.
School of Business, Management and Accountancy

TUMMY BUDDY
Balance Sheet
As of December 31, 2019

Assets
Current Assets
Cash P 10, 000
Inventory 3, 000
Prepaid Expenses 2, 000
Total Current Assets 15, 000
Noncurrent Assets
Equipment 20,000
Accumulated Depreciation ( 333 ) , 19, 667
Total Assets 31, 000
Liabilities
Accounts Payable to Suppliers 10, 000
Notes Payable 2, 000 ,
Total Liabilities 12, 000

Owner’s Equity
Tummy Buddy, Capital 20, 000
Net Income 26, 667 , 46, 667

Total Liabilities and Owner’s Equity