GROUP 9

”FROSTBITES”
Soft Ice Candy

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CHAPTER 1

“SOCIAL
SIGNIFICANCE”

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INTRODUCTION

Philippines is a tropical country, meaning we only have two

seasons: wet and dry. It is a problem for us when summer comes.

There are other chances that our temperature reached 38 to up to

40 degrees which is extremely hot. Filipino would go to beaches

and resorts just to ease the hotness they feel during summer

season. One thing that we do aside from going out of town is to

drink cold refreshments or eat frozen desserts like ice cream or ice

candy.

Ice candy is one of the usual and famous summer treats

here in the Philippines. It is like a frozen juice or smoothie in a

plastic like an ice pop. It is the best way to beat the heat and best

alternative for more expensive desserts and refreshments. Some of

the common varieties of Ice candy are fruits and chocolate. It has a

lot of benefits towards other alternatives. It is more affordable, easy

to prepare and more accessible.

Many people are finding their own way to cool down their

temperature, as a matter of fact, the special ice candy has become

a hit and fantastic cooler. Not only that it is literally cool, but also its

flavor is without a doubt delightfully and tasty. Now a day trend of

ice candy has been changed from the old traditional home made.

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Children are enjoying to eat their ice candy. Thus, an ice candy

distributor should offer many interesting flavors and create a fun

and positive experience for the customers, so that they want to

come back, or they will crave for more.

The following will benefit in our business:

CUSTOMERS

It is a cause of happiness and refreshment. Especially, a

child and teenager or even if the working age, who likes the ice

candy. The sweet of taste with soft of ice candy that dissolve in the

mouth, make everyone feel happy and very cheerful.

PROPRIETOR

In spite of high financial risk, running a business gives a

chance to make more money than to be an employee. It enables

to work in a field that you really enjoy and put your skills and

knowledge to use and gain personal satisfaction from

implementing your ideas. Establishing a business gives a sense

of pride that you have something to call your own. It creates a lot

of opportunities to challenge itself and learn something new.

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EMPLOYEES

Employment benefits mental and physical health. It

boosts self-esteem by giving a day-to-day purpose. It also gives

a clear and direct way to contribute to something bigger than just

their self. Employment helps structure time, gives opportunities

to meet people and ideally let them feel satisfied with a job well

done. It also makes people less likely to fall into debt or stress

about making ends meet, both of which can have major health

implications. People in work are also less likely to develop

harmful addictions or become depressed.

COMMUNITY

Locally made products can attract customers to a

community, support tourism and contributing to the local vibe.

Locally made goods are also attractive to local residents. These

establishments benefit our local economy, personal relationship

and help build the community. It generates new job and

contributes identity to the community. Rather than having to

commute to another city, employee works closer to home. Local

job creation teaches entrepreneurial skills to the local

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community. With all these initiatives it inspires entrepreneurship

and encouraged continued small business development in the

local community.

GOVERNMENT

Small local businesses have distinct benefits to local

economy. Major benefits of business in the local economy

include a boost in employment and discretionary income in the

community. It boosts tax income for local government, bringing in

more money to repair roads, develop schools and improve public

service.

PROPONENTS

This will enhance our creative in our skills. This will give us

opportunities that we can use in the future. This will serve as a

stepping stone for us that we can be better than who we are today.

This will serve a room for our improvements in ourselves.

BANKS/FINANCIAL INSTITUTIONS

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 Financial institutions will benefit on our business from the

interests of the loans they lend to us as a source of additional

capital and from the money that we will deposit from our income.

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CHAPTER 2

“ORGANIZATION
AND
MANAGEMENT”

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I. INTRODUCTION

Management is the sum total of several activities – making

plan, setting up, organization, giving command and direction,

motivating the employees, coordinating and controlling various

functions of the business. Efficient management largely depends on

strong organization. Organization is a systematic arrangement of

people established to accomplish specific purpose. It is the

structure by which a harmonious inter-relation is established

between the workers and their work. Organization is one of the

various functions of management. Organization aims at performing

the planned activities through creating proper work environment.

The objective of management is to supervise the

accomplishment of work of the subordinate employees and to give

necessary direction for getting the desired result of achieving the

pre-determined target. Through organization authority and

responsibility are delegated. These are organizational activities. As

part of management, organization helps it to execute its other

functions. Organization acts as tool in the hands of the managers.

With the help of organization the managers perform their duties and

responsibilities. The setting up of effective organization structure

depends on efficient management.

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 Therefore we want to build a business of dedicated work

force who will go all the way to ensure that our customers are

satisfied, enjoy ice candy bought from our store. In order to achieve

this, we ensure that it takes a business to the right employees and

structure to achieve all what we have set to achieve, which is why

will be putting structures and standard operating processes in place

that will help us meet our clients demand and run the business on

auto pilot. The success of our business will be anchored on the

team not on any individual.

ll. FORM OF OWNERSHIP

The form of our business is sole proprietorship. Sole

proprietorship has a simple organizational structure, it is are owned

and operated by a single individual who has the final say about

financial and marketing matters. Even if a sole proprietor hires

employees, a sole proprietorship is, in effect, a benevolent

dictatorship. A sole proprietor is the exclusive owner of a business,

entitled to keep all profits after tax have been paid but liable for all

losses.

Advantages

Easy to form

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 Start-up costs are low

Establishing and operating your business is simple

Owners enjoy sole control

Prompt decision

Easy Dissolution

Disadvantages

Limited resources

Limited business life

All the responsibility for making day-to-day decisions

is yours

You are tax as a single person

The owner is personally liable for all business losses

and liabilities

lll. ORGANIZATIONAL CHART

Owner/Cashier

Production Crew/Delivery Production Crew/Delivery

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 It is very difficult to form a particular form of organization.

The nature of business, financial and managerial requirements are

important considerations in selecting a form of organization. The

following are some characteristics of organizational chart.

IMPORTANCE OF ORGANIZATIONAL CHART

 Organizational chart helps and build design the

organization structure to meet the business

objectives.

 It can guide the employees to know the rights and

responsibilities.

 It also shows the relationships between the

organization’s staff members.

 Find out whether an employee is incompetent in this

work at important positions.

It is an important means of creating coordination and

communication among the various departments of the organization.

Different jobs and positions are interrelated by structural

relationship. It specifies the channel and mode of communication

among different members.

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CHAIN OF COMMAND

The order in which authority and power in an organization is

wielded and delegated from top management to every employee at

every level of the organization. Instructions flow downward along

the chain of command and accountability flows upward. Job

position within a chain of command of an organization that has a

responsibility for decisions involving the use of the organization’s

resources to generate revenue and to achieve its other objectives.

MODE OF FINANCING

We assumed that the owner has already had the capital in

operating a business.

PERSONNEL

Position Member of Personnel

Owner/Cashier 1

SALES/SELLER
Crew 2
PRODUCTION

lV. HIRING PROCEDURES

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 The hiring process is the process of reviewing applications,

selecting for interview, testing and choosing the right candidates to

make the hiring decision and performing various pre-employment

tests and checks.

Job Posting

Submission of Bio-data or Resume

Interview

Submission of requirements

Training/Orientation/Seminar

Contract Signing

Start of work

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TRAINING REQUIREMENTS INCLUDING JOB

QUALIFICATIONS

Requirements:

 Bio-data/Resume

 Birth Certificate

 Barangay Clearance

 NBI Clearance

 SSS No.

 PhilHeath No.

 2x2 (2pcs.) picture

JOB QUALIFICATION

 Production Crew/Delivery Man

 21 years old – 40 years old

 Resident of Malabon City.

 Willing to undergo training.

 Hardworking

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JOB DESCRIPTION

 Production Crew

 Mixes ice candy ingredients by following, modifying

and formulating recipes to produce product of

specified flavor, texture and color.

 Maintain a clean and sterile environment for food

preparation, processing, storage and packaging.

 Adds ingredients or modifies forming operations as

needed.

 Delivery/Helper

 Ensure that products are deliver on time and in the

proper condition.

 Must do more than simply transport items from one

place to another.

 .Prepares and files the voucher and summary of

expenses.

 Prepares withdrawal slip.

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V. COMPENSATIONS, BENEFITS AND SALARIES

Compensation is defined as the total cash and non-cash

payments that you give to an employee in exchange for the work

they do for your business. It is typically one of the biggest expenses

for businesses with employees.

Salaries / Wages of Employees

Weekly Monthly Annually

Employee Daily (5 days) (22 days) (252 days)

Production Crew 1 P537 P2,685 P11,814 P135,324
Production Crew 2 P537 P2,685 P11,814 P135,324
Total P1,074 P13,425 P23,628 P270,648

*Wage and allowance of production and delivery man will be paid

at every 15th days of their work in the month in proportion of 8 hours

with a minimum basis of salary

BENEFITS

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 Since we are just starting in business we are not capable yet

of giving large benefits to employee, just the basic salary of our

employees and Philheath, Pag-ibig and SSS.

The employee will have their bonus after their contract to

the company. It will be based on their salaries for their whole

contract.

SOCIAL SECURITY SYSTEM (SSS)

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 The Philippine Social Security System is a state-run, social

insurance program in the Philippines to workers in the private,

professional and informal sectors. SSS is established by virtue of

Republic Act No.1161, better known as the Social Security Act of

1954.

*SSS contribution depends on salary: 70% for employers and

30% for employe

PHILHEALTH

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 The Philippine Health Insurance Corporation was created in

1995 to implement universal health coverage in the Philippines. It is

a tax-exempt, government-owned and controlled corporation of the

Philippines, and is attached to the Department of Health.

*PhilHealth contribution depends on salary: 50% for

employers and 50% for employees.

PAG-IBIG

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 The Home Development Mutual Fund (abbreviated

as HDMF), more popularly known as the Pag-IBIG Fund, is

a Philippine government-owned and controlled corporation under

the Housing and Urban Development Coordinating

Council responsible for the administration of the national savings

program and affordable shelter financing for Filipinos employed by

local and foreign-based employers as well as voluntary and self-

employed members. It offers its members short-term loans and

access to housing programs.

*Pag-Ibig contribution depends on salary: 50% for

employers and 50% for employees.

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VI. MANAGEMENT POLICIES

A. Democratic Leadership

We would like to adopt democratic leadership in the

organization/business so that the members are able to

participate in decision-making. This leadership style

emphasize collaboration and free-flow of ideas.

B. Authority and Responsibility Setting

This management style leads democratically

distribute responsibility among his group to facilitate

participation in decision making. Everyone is given an

opportunity to participate, ideas are exchange freely and

discussion is encouraged.

C. Communication Channel

To become a good and healthy working environment, the

decision making is shared between the leader and the group.

New change of ideas are welcome and a feeling of responsibility

is developed within the group.

D. Office work Attire

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 For Production Crew, White collar shirt and black

pants every Monday to Friday except Saturday.

For Delivery/Helper, White collar shirt and pants as

long as he is comfortable.

E. WORK SCHEDULE

This business shall open every Mondays-Saturdays

from 8.00 am to 5:00 pm.

TIME SCHEDULE

ACTIVITIES TIME
Opening time 8:00 am
Closing time 5:00 pm

LUNCH BREAK

Owner/Cashier 11:00-12:00

Production/Delivery 12:00-1:00

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 Production/Delivery is entitled to have two days or forty-

eight (48) hours of rest days and the Cashier/Owner is entitled

to have one day or twenty-four (24) hours of rest day after six

(6) consecutive working days. Rest day is not compensated.

POSITION REST-DAY
Cashier/Owner Sunday
Production/Delivery 1 Tuesday, Sunday
Production/Delivery 2 Thursday, Sunday

F. Attendance

Since we are new in this industry we need to be strict

in terms of attendance. And every employee shall ask

permission to the owner personally before taking a leave

from work.

PROPER WORK ATTIRE

FROSTBITES EMPLOYEE UNIFORM

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 Employees are required to wear proper uniform or dress

code advised by the management.

White Polo-shirt

Black Skinny Pants

Black shoes (Non-Slippery)

Apron

Hairnet

OTHER RULES AND REGULATIONS

 Dress code is to be follow strictly. Employees must

wear their uniforms at locations where uniforms are

required. You are expected to look neat and

presentable while on the job.

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  No employee shall drive a Company’s Vehicle or any

equipment while under the influence of alcohol.

 Designated break times are assigned to have meals.

 If employees do not meet the company’s expectations

of performance or conduct, necessary corrective

action may be taken. It is within the management’s

discretion to determine what measure would be

appropriate under each circumstance.

PENALTIES

Penalties to be imposed will depend upon the gravity of the

offense and its mitigating and aggravating circumstances, on the

discrepancy of the management, and on due process

1. Oral Reprimand

2. Written Reprimand

3. Suspension

4. Termination

CHAPTER 3

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 “MARKETING
ASPECTS”

I. INTRODUCTION

The starting of every project is the market study. It is virtually

the lifeblood of every project feasibility study, through profitability is

generally the focal point of every venture. It must ascertain if there

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is a demand, and weather such demand would be sufficient to

support a business undertaking.

After identifying the kind of business to establish, the target

market, its location and composition, as well as the services to be

offered, must be clearly defined. This is necessary in order to

ensure the existence of sufficient demand. Because, if at the

beginning it is discovered that there is not enough demand for the

service, then the project must be abandoned immediately before

substantial losses will be incurred.

And if the findings indicate that there is a sufficient demand

for the services, then the price to be adapted for the services

should be carefully studied. After which, the marketing follows.

The group has decided to put up a business which will build

an Ice candy store for the people of Longos, Malabon. This has

been determined after taking into account the situation, financial

capabilities of the people, and financial condition overall.

The researchers conducted a survey in different schools. To

know the demand and analyze it. In addition, the group also

projected the demand for the next five years.

The market study also includes coming up with an

appropriate marketing program, accurate assumptions, and

reasonable pricing strategy.

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 II. MARKETING OBJECTIVES

General Objective

 To determine the general marketability of the service to be

offered.

Specific Objectives

 to be able to identify who and where is the market

 to find out if there is specific demand for the service

 to project the demand for the next five years

 to come up with the long range plan

 to come up with an appropriate marketing program for the

service

III. FOUR (4) P’s OF THE BUSINESS

A. PRODUCT

Frostbites is a cheaper but equally delicious and

refreshing alternative to branded ice cream. It contains of

natural fruits for a more appetizing ice candy eating

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 experience. Not only it makes our ice candy taste better but

also makes it natural and healthier. This ice candy is

different from others for having an extra smooth texture that

melts in the mouth in every bite.

B. PLACE

Soft ice candy will be located at Block 44 Lot 13 Phase III

E2 Longos, MalabonCity near City of Malabon University, Ninoy

Aquino Elementary School and Longos National High School, a lot

that measures 24 square meters. It was chosen as the target

market of the study because it has a higher population compare to

other barangays in Malabon.

C. PROMOTION

Location itself is part of our promotion program wherein it is

situated along street passable by students together with their

guardians going school and home. We will be giving flyers near our

location and posting tarpaulin prints and create facebook page for

our store and post regular updates and store information. We will

engage with our customers and ask them about flavor suggestions

and other ways to improve the business.

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D. PRICE

Considering the factors that may affect the price of our

product; like the operation, utility cost, and indirect competitors’

price, wherein we will base our price with that of

Malabon’s.Malabon’s price as the basis would cover the entire cost

incurred during the operations and still earn.

IV. FACTORS AFFECTING THE MARKET

a. Micro Environment

The task environment consists of factors that

directly affect and are affectedly by the organization’s

operations.

1. Competitors

Policies of the organization are often

influenced by the competitors. Competitive market

place of the business is to stay always and go further

ahead of the competitors. In the current world

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 economy, the competition and competitors in all

respects have increased tremendously.

The positive effect of this is that the customers

always have options and the overall quality of

products goes high.

2. Suppliers

Suppliers are the providers of production or service

materials. Dealing with suppliers is an important task of

management.

A good relationship between the organization and the

suppliers is important for an organization to keep a steady

flow of quality input materials.

3. Customers

“Satisfaction of customer” is the primary goal of every

organization. The customer is who pays money for the

organization’s products or services. They are the people

who hand them the profit that the businesses are

targeting. Managers should pay close attention to the

customers’ dimension of the task environment because

its customers purchase that keeps a business alive and

sound.

4. Public

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 Public is any group that has an actual or potential

interest or an impact in an organization’s ability to

achieve its objectives.

B. Macro Environment

The external environment is everything outside an

organization that might affect it.

1. Demographics

Demographics are various traits that can be

used to determine product preferences or buying

behavior of consumers.

This process involves taking a larger target

audience and breaking it down to a smaller, more

select market.

Demographics segmentation is a common

strategy where several socio-economic traits are used

to categorize customers, including age, gender,

marital status, race, income, education and

occupation.

2. Economic

Inflation, demand and supply, interest rates,

taxes and recession all influence how much money

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 people have to spend as well as the price of your

products. These factors have a direct impact on the

market as well as your customers.

3. Social

Social factors include reference groups, family,

role and status in the society. Small-business owners

should be aware of and understand these factors’

connection with buying habits. Population growth,

popular trends and change in consumer taste and

preference.

4. Technological

The technology that people use in their daily

lives is changing. Marketers need to stay on top of

those advances, so they can reach people on the

devices they spend the most time on. Technology is

also transforming the way marketers do business,

work together and create strategies.

5. Political

Political factors impacts any business

organization and can also introduce a risk factor can

cause the business to suffer losses or compromise

over its profit stream. Political environment can

change because of the policies and actions of the

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 prevailing government at every level. It is very

important that a business should plan for the

variability in the policies and regulations of the

government to maintain a stable business.

6. Culture

Culture compromises of factors such as

person’s belief, attitude and values which influence

his/ her buying behavior.

V. MARKETING STRATEGY

Marketing strategy is a long-term, forward-looking

approach to planning with the fundamental goal of achieving a

sustainable competitive advantage. A good marketing strategy

incorporate what you know about how your business fits into

the market.

Marketing strategy refers to a business’ overall game

plan for reaching prospective consumers and turning them into

customers of the products or services the business provides.

CHANNEL DISTRIBUTION

A distribution channel is a chain of businesses or

intermediaries through which a good or service passes until it

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 reaches the final buyer or the end consumer. It is the path by which

all goods and services must travel to arrive at the intended

consumer.

Producer Retailer Consumer

“In the above figure, the retailer the producer sell their goods

directly to retailers then sell onto the final consumers.

VI. DETAILED MARKET DESCRIPTION

S.W.O.T

SWOT (strengths, weaknesses, opportunities, and

threats) analysis is a framework used to evaluate a

company’s competitive position and to develop

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 A SWOT analysis generally require decision-makers

to first specify the objective they hope to achieve for the

business, organization, initiative or individual. As such, the

analysis aims to help an organization match its resources to

the competitive environment in which it operates and to

gain insight into its current and future position in the

marketplace or against a stated goal.

STRENGTHS

Strength is an internal attributes and resources that

support a successful outcome.

 Easy to access

 Staffs are approachable in dealing with customer

 Strong and harmonious relationship[ with the

customers would aid the business promotion and

marketing aspect

 Competitive and affordable

WEAKNESSES

Weaknesses are an internal attributes and resources

that work against a successful outcome.

 The business is newly operated

 Preference of the customers

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 OPPORTUNITIES

Opportunity is an external factor that the entity can

capitalize on or use to its advantage.

 Sales increase

 Funding source in case of expansion

THREATS

Threat is an external factor that could jeopardize the

entity’s success.

 Tough competitors

 Price war

VII. HISTORICAL AND PROJECTED POPULATION

Population refers to all elements, individual, or units that

meet the selection criteria for a group to be studied, and from

which a representative sample is taken for detailed

examination.

HISTORICAL POPULATION OF BARANGAY LONGOS

Historical population will be the basis of our market.

Based on the sources the following data is available.

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 YEAR POPULATION GROWTH RATE
2014 53,203 -----
2015 53,549 0.65%
2016 53,897 0.65%
2017 54,247 0.65%
2018 54,600 0.65%
2019 54,955 0.65%

COMPUTATION:

2014 ̶ 2015 = 53,549 ̶ 53,203∕53,549 = 0.65ᵡ100 = 0.65%

2015 ̶ 2016 = 53,897 ̶ 53,549∕53,897 = 0.65ᵡ100 = 0.65%

2016 ̶ 2017 = 54,247 ̶ 53,897∕54,247 = 0.65ᵡ100 = 0.65%

2017 ̶ 2018 = 54,600 ̶ 54,247∕54,600 = 0.65ᵡ100 = 0.65%

2018 ̶ 2019 = 54,955 ̶ 54,600∕54,955 = 0.65ᵡ100 = 0.65%

PROJECTED POPULATION OF BARANGAY LONGOS

The estimated count on how the population will grow in the

next five (5) years of business operation. This is based on the

following computations.

BARANGAY LONGOS, MALABON CITY

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 YEAR POPULATION GROWTH RATE
2020 55,312 0.65%
2021 55,672 0.65%
2022 56,034 0.65%
2023 56,398 0.65%
2024 56,756 0.65%

COMPUTATION: (PopulationᵡAnnual Growth Rate) + Population

2020: (55,312 ᵡ 0.65%) + 55,312 = 55,672

2021: (55,672 ᵡ 0.65%) + 55,672 = 56,034

2022: (56,034 ᵡ 0.65%) + 56,034 = 56,398

2023: (56,398 ᵡ 0.65%) + 56,398 = 56,756

SAMPLE SIZE DETERMINATION

SLOVEN’S FORMULA

Sloven’s Formula is used to calculate the sample size

(n) given the population size (N) and a margin of error (e). It’s a

random sampling technique formula to estimate sampling size/

n
S=
1+ Ne ²

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 Where: S ̶ sample size

n ̶ Population

e ̶ Margin of error

Target Population: 54,955

54,955
s = 1+¿ ¿

54,955
= 1+(54,955 ×0.0025)

54,955
= 1+137

= 138

*The Sloven’s Formula is used in computing the sample

size and standard error of 5% is applied

RATIO ANALYSIS

Barangay Longos

R = 54,955

R = 54,955∕138

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R = 398

Respondents Ratio: 1:398

The ratio shows that every one (1) respondent represents

three hundred ninety-eight (398) individuals .

VllI MARKET SEGMENTATION

Market segmentation is the process of identifying and

targeting groups of individuals who are similar to one

another. Markets can be segmented in many different ways:

by product or service needs, by sensitivity of price, by

geographic area, by demographic segment, or by

psychographics and lifestyles. Successful segmentation

depends on understanding what consumers need, how

groups of consumers differ from one another, and how

consumers decide among products.

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TARGET MARKET SEGMENTATION

Household Popula tion by Age Group and Sex by

City/Municipality National Statistics Office (NSO), 2015.

Age group Population Age group

(2019) percentage
Under 1 115 2.03%

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Age group Population Age group
(2019) percentage
1 to 4 4,379 7.97%
5 to 9 5,303 9.65%
10 to 14 5,237 9.53%
15 to 19 5,665 10.31%
20 to 24 5,698 10.37%
25 to 29 5,083 9.25%
30 to 34 4,484 8.16%
35 to 39 3,967 7.22%
40 to 44 3,390 6.17%
45 to 49 2,874 5.23%
50 to 54 2,336 4.25%
55 to 59 1,966 3.58%
60 to 64 1,467 2.67%
65 to 69 934 1.70%
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Age group Population Age group
(2019) percentage
70 to 74 516 .94%
75 to 79 302 .55%
80 and over 241 .44%
Total 54,955 100.00%

Age group Population Age group

(2019) percentage
5 to 9 5,303 9.65%
10 to 14 5,237 9.53%

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15 to 19 5,665 10.31%
20 to 24 5,698 10.37%
25 to 29 5,083 9.25%
30 to 34 4,484 8.16%
35 to 39 3,967 7.22%
40 to 44 3,390 6.17%
45 to 49 2,874 5.23%
50 to 54 2,335 4.25%
55 to 59 1,966 3.58%
60 to 64 1,467 2.67%
65 to 69 934 1.70%
Total 48,403

Total age is from 5 – 49 years old.

= Total Target Age / Total Population

= 48,403 / 54,955

= 88%
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CAPACITY RATIO

To get the annually total number of product available for sale

of the Frostbites Ice candy, first we compute for how many days a

worker will work for a year. The workers of Frostbites Ice candy will

work for six (6) days a week. We have 52 weeks a year, multiply by

how many days a worker work week.

52 weeks x 5 days = 260 days

We have 260 days less the 3% assumption for fortuitous

events, which is 11 days for a year.

260days ̶ 11 days (3% for fortuitous events which is 8 days,

we got 252 days for a year.

252 days ( Total number of days a worker works a year)

Next we will compute for how many product a worker can

make for a year. Worker can make 1000 pieces of Ice candy,

multiply by how many days a worker works for a year (252 days),

equals to 252, 000 pieces of ice candy a year.

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 No. of days No. of

Name of working Production per Product

Product days day available for

annually sale annually

Ice candy

252 1500 378,000

Total 252 15000 378,000

Number of product available for sale annually = Number of working

days annually x production per day

TARGET MARKET DETERMINATION

54,955 Target population

X 88% Segmented Ages

48,360 Segmented Potential Market

X 11% Percentage of willing to buy

5,320 Population of target market

Note:Percentage are based on Survey Questions #4.

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DEMAND

The computed demand is based on the total population of

Barangay Longos. The computation of projected five years are

followed. The proponents assumed the 94% of total population

want to buy ice candy. The proponents cannot survey the whole

area because of limited resources. Therefore, the proponents used

one survey form for the 100 respondents from which how many ice

candy they are going to produce are calculated.

PROJECTED DEMAND

YEAR POPULATION % DEMAND

2020 55,312 94% 51,993

2021 55,672 94% 52,331

2022 56,034 94% 52,672

2023 56,398 94% 53,014

2024 56,756 94% 53,350

Note:The proponents assumed the 94% of total population want to

buy ice candy.

SUPPLY

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 The computed supply is based on the total population of

Barangay Longos and its adjacent Barangays. The computations of

projected five years are followed. Based on our survey, (percent)

rate of population of the barangay’s prefers to (based on the

question). The proponents cannot survey the whole area because

of limited resources. Therefore, the proponents used one survey

form for 100 respondents.

PROJECTED SUPPLY

YEAR POPULATION % SUPPLY

2020 55,312 76.8% 42,480

2021 55,672 76.8% 42,756

2022 56,034 76.8% 43,034

2023 56,398 76.8% 43,314

2024 56,756 76.8% 43,589

Note:76.8% rate of population of Barangay Longos and its adjacent

barangays prefers to eat chocolate flavor of ice candy.

DEMAN AND SUPPLY ANALYSIS

The table below shows the demand supply gap for the

incoming five (5) years.

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 YEAR DEMAND SUPPLY UNSATISFIED % GAP
DEMAND
2020 51,993 42,480 9,513 18%

2021 52,331 42,756 9,575 18%

2022 52,672 43,034 9,638 18%

2023 53,014 43,314 9,700 18%

2024 53,350 43,589 9,761 18%

Unsatisfied Demand = Demand ̶ Supply

Unsatisfied Demand
% Gap =
Demand

PROJECTED REVENUE

No. of No. of
Name of Product Working Product Price of Projected
Product produced days per produced Product Revenue
per day year annually
Ice candy 1,500 252 378,000 5 1,890,000

Total 1,500 252 378,000 5 1,890,000

SURVEY QUESTIONAIRE

Name:_____________________________ Age:_________

School:____________________________ Grade:_______

1. Do you buy ice candy?

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 Yes No

2.Do you eat ice candy during rainy season?

Yes No

3. With whom you normally eat ice candy?

Friends Family Children

4. How frequently do you eat ice candy?

Daily Once a week

3-4 times a week Once every 2 weeks

5. Which of the below flavors of ice candy do you like?

Chocolate Avocado

Buko Melon

Cheese & corn Coffee jelly

Mango graham

6. How much you afford to buy it?

Php 5.00- 7.00

Php 8.00-10.00

Php 11.00-15.00

7. What time do you prefer in eating ice candy?

Morning

Afternoon

Night

SURVEY QUESTIONAIRE

Name:_____________________________ Age:_________

School:____________________________ Grade:_______

1. Do you buy ice candy?

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 95 Yes 5No

2.Do you eat ice candy during rainy season?

52Yes 48 No

3. With whom you normally eat ice candy?

73 Friends 26Family 6 Children

4. How frequently do you eat ice candy?

11 Daily 52Once a week

17 3-4 times a week 17Once every 2 weeks

5. Which of the below flavors of ice candy do you like?

56Chocolate 32 Avocado

31Buko 11 Melon

6Cheese & corn 20 Coffee jelly

41 Mango graham

6. How much you afford to buy it?

77 Php 5.00- 7.00

18 Php 8.00-10.00

6 Php 11.00-15.00

7. What time do you prefer in eating ice candy?

5 Morning

92 Afternoon

8 Night

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CHAPTER 4

“TECHICAL
ASPECT”

INTRODUCTION

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 The technical study aims to determine the feasible

product to be offered, facilities to be provided, utilities

requirements, store layout, store location, and other technical

factors that will enable the business to operate at minimum

cost and/ or at maximum profit. This process must be

meticulously done as consequences of error or miscalculation

can be extremely serious and may lead to major capital losses

of the business.

The study specially covered the calculation of the initial

capital outlay and the total project costs. The prices of the

products offered were based on the actual survey conducted

by the group with different direct and indirect competitors.

OBJECTIVES:

 To identify the business location and the store

layout

 To determine the quality of products to be offered

 To identify the labor needed, utilities to be used

 To provide estimates of the project costs and

enumerating the major terms of capital cost.

 To provide estimated product price

BUSINESS NAME
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One of the most important steps in starting a new business is

finding and establishing a business’ name. it will be place

everywhere – on documents, advertisements, contracts,

products and government agencies. The business name is the

medium through which customers meet for the first time.

People can identify the products offered easily because of the

good business name. it should reflect our brand, so the whole

package serves as a strong integrated representation of what

our business stands for and will do to our customers.

“FROSTBITES” defines what our business is “Frost” since it is

a frozen juice and “Bites” because you can bite it easily due to

its extra smooth texture not like any ordinary ice candy.

BUSINESS LOGO

LOGO DESCRIPTION

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`

A logo is a business first introduction to consumers.

Before a person tries your product or services, they assess

appearance. In fact, it helps create a unique and effective image

to represent a product’s best quality.

SERVICE MARK AND BUSINESS BANNER

Tagline is a short phrase that can be easily

remembered that a business can use in the advertisement of

a business. A good tagline can helps to set you apart from

other business that provides product like yours.

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 ”It’s not an ice cream, it’s Fostbites!” is the tagline that

we chose in our business. We used it to emphasize the

distinction of our ice candy to other ice candy sellers.

UTILITIES REQUIREMENTS

ELECTRICITY

The business will use appliances with inverter to

reduce electricity consumption and the supply of electricity will

come from Meralco.

WATER

The water supply will come from Maynilad but the

water that will be used in making our products will be purified to

ensure safety from microorganisms coming from water.

DISPOSAL SYSTEM

Trash bins will be put outside the business

premises which will be collected daily by the garbage collector.

The water waste will flow in the drainage system.

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 Garbage disposal is considered an essential activity in

any business especially into food business to ensure good

sanitation.

PLAN LOCATION

An establishment where business is conducted,

goods that are process and stored and where services are
rendered.

We located our business in the front of Ninoy Aquino

Elementary School. Through the use of the right place, a business

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can increase sales and maintain over a longer period of time. Near

Ninoy Aquino Elementary School the researchers find it a perfect

spot to set-up the business it surrounds with many students .

FLOOR PLAN

Service Flow Chart

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SERVICE FLOW CHART

Welcoming the Customers

The very first thing that a business will do to their customers

is to welcome or greet them through phone or personal. Greeting

them with a smile or greeting them lively through phone calls will

make them feel our warm welcome.

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Get the Orders

The next thing to do is to get the orders of the customers. It

involves asking what flavor or flavors they want.

Prepare the Orders

The next thing is to prepare the orders of the customers.

Putting the ice candy into the styroboxes that will be delivered to

various schools. If over the counter transaction, we will prepare the

orders by getting the ice candy from the freezer and hand it to the

customer.

Delivery of Orders

The next thing is to delivner the orders to the adjacent

schools in our stores.

Collection of Payment

The last thing to do is to collect the payment from the

customers. It also involves the pulling-out of left-over product from

the schools.

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RECIPE’S OF ICE CANDY

MILKY BUCO

INGREDIENTS:

 8 pieces young coconut, scraped into shredded

 1.6 kg sugar

 4 kilos condensed milk

 2 cans all purpose cream ( 370ml )

 150 grams cornstarch

 12 liters water

PROCEDURE:

 In a mixing bowl, combine cornstarch into coconut water and

stir until dissolved.

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  Heat the mixture on medium heat with constant stirring until

it thickens like syrup. (Adding cornstarch is a method to

make the ice candy becomes soft and smooth).

 Let it cool down before adding the remaining ingredients.

 Pour mixture into a large mixing bowl, add the sugar and stir

until fully dissolves.

 Add in sweetened condensed milk and all purpose cream.

 Stir thoroughly until well blended and add shredded coconut

and mix well.

 Use a funnel and ladle and pour the mixture into each ice

candy bag about 5 inches high.

 Tie the top tightly.

 Arrange the ice candy in the freezer and freeze until frozen.

 Serve the milky buco ice candy anytime and enjoy!

MAIS con QUESO ICE CANDY

 4 cans cream style corn ( 425g )

 400 grams cheese, grated

 1.6 kilo sugar

 4 kilos condensed milk

 2 cans all purpose cream ( 370 ml )

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  150 grams cornstarch

 12 liters water

 1/2 tsp. food coloring ( egg yellow) )

PROCEDURE:

 In a mixing bowl, combine cornstarch into 1 liter water and

stir until dissolved.

 Heat the mixture on medium heat with constant stirring until

it thickens like syrup. (Adding cornstarch is a method to

make the ice candy becomes soft and smooth).

 Let it cool down a little bit before adding the remaining

ingredients.

 Pour mixture in a large mixing bowl, add the sugar and stir

until fully dissolves.

 Add in sweetened condensed milk and all purpose cream.

 Stir thoroughly until well blended and add corn, cheese and

food coloring and mix well.

 Use a funnel and ladle and pour the mixture into each ice

candy bag about 5 inches high.

 Tie the top tightly.

 Arrange the ice candy in the freezer and freeze until frozen.

 Serve the mais con queso ice candy anytime and enjoy!

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CHOCOLATE ICE CANDY

INGREDIENTS:

 1.6 kilo sugar

 500 grams cocoa powder

 4 kilos condensed milk

 2 cansall purpose cream ( 370 ml )

 150 grams cornstarch

 12 liters water

PROCEDURE:

 In a mixing bowl, mix cocoa powder and 1 liter hot water. Set

aside.

 In a mixing bowl, combine cornstarch into water and stir until

dissolved.

 Heat the mixture on medium heat with constant stirring until

it thickens like syrup. (Adding cornstarch is a method to

make the ice candy becomes soft and smooth).

 Let it cool down a little bit before adding the remaining

ingredients.

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  Pour mixture into a large mixing bowl, add the sugar and stir

until fully dissolves.

 Add in sweetened condensed milk and all purpose cream.

 Stir thoroughly until well blended and add chocolate

suspension.

 Use a funnel and ladle and pour the mixture into each ice

candy bag about 5 inches high.

 Tie the top tightly.

 Arrange the ice candy in the freezer and freeze until frozen.

 Serve the chocolate ice candy anytime and enjoy!

LUSCIOUS MELON

INGREDIENTS:

 4 kilos melon, scraped into strings

 1.6 kilo sugar

 4 kilos condensed milk

 2 cups all purpose cream ( 370 ml )

 150 grams cornstarch

 12 liters water

 ½ tsp. food coloring ( orange )

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PROCEDURE:

 In a mixing bowl, combine cornstarch into water and stir until

dissolved.

 Heat the mixture on medium heat with constant stirring until

it thickens like syrup. (Adding cornstarch is a method to

make the ice candy becomes soft and smooth).

 Let it cool down a little bit before adding the remaining

ingredients.

 Pour mixture into a large mixing bowl, add the sugar and stir

until fully dissolves.

 Add in sweetened condensed milk and all purpose cream.

 Stir thoroughly until well blended and add shredded melon

and mix well.

 Use a funnel and ladle and pour the mixture into each ice

candy bag about 5 inches high.

 Tie the top tightly.

 Arrange the ice candy in the freezer and freeze until frozen.

 Serve the luscious melon ice candy anytime and enjoy!

MANGO GRAHAM

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INGREDIENTS:

 4 kilos mangoes

 2 packs 200 grams M.Y San Graham crackers ( honey )

 1.6 kilos sugar

 4 kilos condensed milk

 2 cans all purpose cream ( 370 ml )

 150 grams cornstarch

 12 liters water

PROCEDURE:

 Scrape mango meat and use a blender but don’t blend it too

well to retain bits and pieces.

 Break the Graham crackers into pieces but not crushed.

 In a mixing bowl, combine cornstarch into water and stir until

dissolved.

 Heat the mixture on medium heat with constant stirring until

it thickens like syrup. (Adding cornstarch is a method to

make the ice candy becomes soft and smooth).

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  Let it cool down a little bit before adding the remaining

ingredients.

 Pour mixture into a large mixing bowl, add the sugar and stir

until fully dissolves.

 Add in sweetened condensed milk and all purpose cream.

 Stir thoroughly until well blended and add mangoes and

Graham crackers and mix well.

 Use a funnel and ladle and pour the mixture into each ice

candy bag about 5 inches high.

 Tie the top tightly.

 Arrange the ice candy in the freezer and freeze until frozen.

 Serve the mango graham ice candy anytime and enjoy!

CREAMY AVOCADO

INGREDIENTS:

 4 kilos avocado

 1.6 kilos sugar

 4 kilos condensed milk

 2 cans all purpose cream ( 370 ml )

 150 grams cornstarch

 12 liters water

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PROCEDURE:

 Scrape avocado meat and use a blender but don’t blend it

too well to retain bits and pieces.

 In a mixing bowl, combine cornstarch into water and stir until

dissolved.

 Heat the mixture on medium heat with constant stirring until

it thickens like syrup. (Adding cornstarch is a method to

make the ice candy becomes soft and smooth).

 Let it cool down a little bit before adding the remaining

ingredients.

 Pour mixture into a large mixing bowl, add the sugar and stir

until fully dissolves.

 Add in sweetened condensed milk and all purpose cream.

 Stir thoroughly until well blended and add avocado and mix

well.

 Use a funnel and ladle and pour the mixture into each ice

candy bag about 5 inches high.

 Tie the top tightly.

 Arrange the ice candy in the freezer and freeze until frozen.

 Serve the creamy avocado ice candy anytime and enjoy!

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PRODUCT COSTING

RAW MATERIAL QUANTITY MARKET USED

PRICE AMOUNT
Sugar

1.6KG 50.00 80.00

Condensed Milk

4kls 75.00 300.00

Cornstarch

1kl 50.00 50.00

All-Purpose Cream

2 cans 45.00 90.00

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Coconut

8pcs 25.00 200.00

Kernel Corn in Can

4 cans 32.00 128.00

Cheese

1 45.00 45.00

Food Coloring

1 small 5.00 5.00

sachet

Cocoa Powder

1klo 350.00 350.00

Melon

4kls 50.00 200.00

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Mango

4kls 100.00 400.00

Crushed Graham

2 packs 35.00 70.00

Avocado

4kls 70.00 280.00

Total: ₱1,998.00

NOTE: We will produce fruit flavored soft ice candy according to

their season.

CLEANING MATERIALS

RAW MATERIAL QUANTITY MARKET USED

PRICE AMOUNT
Liquid Dishwashing
Soap

12 gals. 62.5 750.00

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Mop

1pc 750.00 750.00

Broom

1pcs 100.00 100.00

Dustpan

1pc 50.00 50.00

Trash Bin

1pc 100.00 100.00

Sponge

5pc 20.00 100.00

TOTAL ₱1,900.00

APPLIANCES

Wall fan

2 1,200.00 2,400.00

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Upright Freezer

2 pc 18,000.00 36,000.00

Ice Candy Machine

1 pc 210,000.0 210,000.00
0

Total ₱248,400.
00

FURNITURES AND FIXTURES

RAW MATERIAL QUANTITY MARKET USED

PRICE AMOUNT
Chair

3 120 360

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Plastic Table

1 1,000 1,000

Cash Drawer Table

1 1,500 1,500

TOTAL ₱2,860.00

TOOLS AND EQUIPMENT

RAW MATERIAL QUANTITY MARKET USED

PRICE AMOUNT
Stove

1 1,000 1,000

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Stainless Mixing
Bowl
2pcs 150.00 300.00

Pail

3pcs 200.00 600.00

Grater

1 100.00 100.00

Soup Ladle

2 60.00 120.00

Measuring Spoon

1 set 75.00 75.00

Styrobox

15 pcs 230.00 3,450.00

Total ₱5,465

PACKAGING

RAW MATERIAL QUANTITY MARKET USED

PRICE AMOUNT

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Ice Candy Plastic 50 1489.04 74,452.00

TOTAL ₱74,452.00

LEASEHOLD IMPROVEMENTS

RAW QUANTITY MARKET USED

MATERIAL PRICE AMOUNT
Primer

4 gal. 360.00 1,440.00

Paint Roller

2 pcs 45.00 90.00

Paint Brush

2pcs 40.00 80.00

TOTAL: ₱1,610.00
OFFICE SUPPLIES

RAW MATERIAL QUANTITY MARKET USED

PRICE AMOUNT

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Ballpen

1 box 50.00 50.00

Record Book

2 70.00 70.00

Receipt

15 booklets 24.00 360.00

Calculator

1 pc 350.00 350.00

Wall Clock

1 pc 300.00 300.00

Stapler

1 pc 135,.00 135.00

Puncher

1 pc 200.00 200.00

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Fastener

3 boxes 40.00 120.00

Bond Paper

1 rim 150.00 150.00

Folder

10 pcs. 70.00 70.00

Total ₱2,101.00

BUSINESS EXPENSES

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Appliances ₱ 248,400
Offi ce Supplies ₱ 2,101.00
Tools and Equipment ₱ 5,645.00
Cleaning Materials ₱ 3,065.00
Packaging ₱ 74,542.00
Leasehold Improvements ₱ 1,610.00
Fire Prevention Supply ₱ 1,299.00

BUSINESS SUPPLIES

Raw Materials Malabon Public Market

Appliances Abad Santos
Offi ce Supplies Malabon Public Market
Tools and Equipment 5th Ave
Cleaning Materials Malabon Public Market
Packaging Abad Santos

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TAXES AND LICENSES

DTI Fee ̶ Sole Proprietor with Documentary stamp ₱ 530.00

BIR Registration with Documentary Stamp ₱ 500.00

Mayor’s Permit ₱ 2,200.00
Mayor’s Certificate ₱ 55.00
Barangay Permit Fee ₱ 200.00
Electric Inspection Fee ₱ 110.00
Sanitation Fee ₱ 110.00
Garbage Fee ₱ 220.00
Health Certification Fee ₱ 200.00
Building Inspection Fee ₱ 400.00
Plumbing Inspection Fee ₱ 400.00
Occupational permit ₱ 400.00
Fire Inspection Fee ₱ 220.00
Business Plate Fee ₱ 220.00
Signboard Inspection Fee ₱ 400.00
Business Stickers ₱ 55.00
Food and Drugs Administration Fee ₱ 2,000.00

Barangay Micro Business Enterprise (BMBEs( Fee ₱ 1,000.00

Total Licenses Expense ₱ 9,220.00

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STEPS IN APPLYING FOR A NEW BUSINESS

Department of Trade and Industry Permit

Barangay Business Permit

Mayor’s Permit (Business Permit & Licensing Office)

Bureau of Internal Revenue Registration

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BUSINESS REGISTRATION PROCESS

A sole proprietorship business must be register in

Department of Trade and Industry (DTI), Local Government and

Bureau of Internal Revenue (BIR) for the legality of a business.

A business proprietor must register his business with the

Department of Trade and Industry (DTI). By registering the

business name with the Department of Trade and Industry (DTI),

the proprietor is assured that no matter individual or organization

will use the business name anywhere in the Philippines.

REQUIREMENTS

Single Proprietorship

 Registration fee of

 Two (2) copies 2x2 recent pictures of owner

 Three (3) alternative names asides from the preferred

name

 Three (3) pieces documentary stamps

 Application forms duly filled-up by owne

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PROCEDURES:

Barangay Clearance

REQUIREMENTS

 Application Form

 Application Fee

 Recent Community Tax Certificate or Cedula

PROCEDURES

 Go to your place’s Barangay Hall. Inform the officer

that you are applying for a Barangay Clearance

 State the reason why you need a Barangay

Clearance (ID requirements, employment, Postal ID,

etc.)

 Present your Cedula. You can also get this form from

the Barangay.

 Pay the application and processing fees.

 Wait for your Barangay Clearance to be released.

Department of Trade and Industry (DTI)

REQUIREMENTS

1. Barangay Business Permit

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 2. Valid ID of the owner

3. Fully accomplished (DTI) application form

 Business Name Approval

 Registration Fee

 Pay registration fee and documentary stamp

 Encoding of DTI permit

 Releasing of DTI registration

PROCEDURE

 Go to any DTI office or Negosyo Center.

 Submit all the DTI business registration requirements.

Make sure to have a list of backups in case your three

proposed business names are already taken.

 Pay the business name registration fee.

 Once DTI approves your business name, it will issue

a Certificate of Business Name Registration to you.

Mayor’s Permit

REQUIREMENTS

Fully accomplished application form

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  DTI registration

 Barangay Business Permit

 Cedula

If take place is not owned. Xerox copy of contract of lease.

 Sketch of location

 Picture of the business location (inside and outside)

Fire Department Regulatory Office

 Zoning Office

 Health Office – for sanitary permit

 Local Building Office – for RPT Clearance

 Treasury Office – for certificate of no property

 Assessor’s Office – for certificate of no property

 Inspection – for new business

PROCEDURE

1. Application for Locational Clearance

Before filing your application at the Business

Permits and Licensing Office (BLPO) you must

first have a Locational Clearance. Ask for the

application

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  File your notarized application form and complete

requirements (3 minutes)

 Pay the filing fee

 Return to Zoning Division and present the

Official Receipt for the recording of O.R.

number

Inspection and Evaluation

 Return to Zoning Division after 5 days and

secure Order of Payment (5 minutes)

 Pay the necessary fees (5 minutes)

 Return to the Zoning Division (2 minutes)

Present the Official Receipt for the recording of

O.R. number and claim your Locational

Clearance

2. Assessment of fees

 Go to the BLPO ask for the business

registration form at one of the windows.

 Fill out and have it notarized.

The insurance can be bought at the credited

insurance company, while the Cedula can be bought

at the City Treasurer’s Office. Submit your application

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 to the BLPO assessor. He will then assess how much

your fees will be. After the assessment, go to the

BLPO officer to have assessment validated.

3. Submission

Submit your application and assessment to the

receiving section of the BLPO. The BLPO staff will give

you a receiving copy. You can process the payment the

day after the BLPO turned over your application to the

cashier’s office. That means you cannot finish this in one

day.

4. Payment of Mayor’s Permit Fee

Go to the Cashier’s. the available modes of

payment are through the following:

 Cash

 Manager’s Check

5. Fire Permit

After the payment, go to the assigned Fire

Department personnel. Present your paid application for

the issuance of the permit.

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 6. Sanitary Permit

Go to the Sanitary Division, Submit your paid

application. Wait for 15 to 3o minutes for the release of

the temporary sanitary permit.

Issuance of Sanitary Permit will take place after completing these:

 Microbiological water analysis (company office)

 Pest control from accredited pest control operators (sanitary

office have the list of their accredited pest control operators)

 Health certificate for all employees.

7. Release of Business / Mayor’s Permit

Go back to the Releasing of Permits. Submit the paid

applications together with the fire and temporary

sanitary permit. Wait for 15 to 30 minutes for the

issuance of Mayor’s / Business Permit.

Acquiring New Business Permit

REQUIREMENTS

 Duly Accomplished application Form

 DTI or SEC Registration

 Barangay Clearance

 Tax Clearance or Certification of No Real Properties

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  Locational Clearance (from City Planning and

Development Department – Local Zoning

Administrations

 Certificate of Occupancy/Clearance from the Local

Building Official

 Health Certificate (from City Health Department)

 Community Tax Certificate (Cedula)

 Fire Safety inspection Certificate (FSIC)

 CENRO Form (Hygienic Septic Tank)

 PESO Form (City Ordinance No. 07-2003)

Note: Applications for New Business Permit will not be accepted

during renewal period (January 1-20)

PROCEDURES

Inquire / secure application form and list of requirements.

Fill-up the application form and complete all the

requirements.

 File your notarized duly accomplished application

form and complete requirements

 Wait for the valuation and assessment of application

Pay the corresponding business taxes and all regulatory

fees

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  Return to One-Stop-Shop Receiving Section

 Present the official receipts and wait for the final

validation, approval and releasing of Mayor’s Permit

and business plate/sticker

Bureau of Internal Revenue (BIR)

REQUIREMENTS

 DTI Certification

 Mayor’s Permit or Duly Received Application for Mayor’s

Permit if the same is still pending with the LGU

 Contract of Lease or Certificate of Occupancy, if you are

renting or Land Title/Tax Declaration, if you own the land

 Duly notarized Special Power of Attorney and ID of the

authorized person, in case someone else will transact with the

Bureau on your behalf.

PROCEDURES

 Prepare/accomplish in 3 copies the following BIR forms

needed for your business.

 Go to the Revenue District Office (RDO) that has jurisdiction

over your registered address. 

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  Go to the officer of the day. He will assess how much to pay

for the registration. Normally, the registration fee is P500.00

while the Documentary Stamp Tax on Subscription depends

on how much your capital is, while the Documentary Stamp

Tax on Lease depends on your monthly rental.

 After the assessment, go to the accredited banks for

payment. Usually accredited banks are within the vicinity of

the RDO or you can ask anyone from the BIR in that RDO to

be sure. 

  After the payment has been made, go back to your RDO.

Get a queue number from the guard. Go to the registration

section for the receiving of your application. Wait for your

turn to be called and submit a photocopy of BIR form

payments, special BIR payment form (all Accredited Banks

of  RDO have a special payment form for BIR only) and

other documentary requirements.

 Schedule for release. Some RDOs may request you to

attend a seminar about the filing of your taxes before the

actual release of Certificate of Registration but some do not;

be prepared just in case.  Also, don’t forget to ask for an

“Ask for Receipt” sign. Some RDOs will automatically give it

to you together with the COR and some do not. So to be

sure, just ask for it.

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  Purchase Books of Accounts. Normally for VAT (Value

Added Tax)

 Register the Books of Accounts

•  Accomplished BIR Form 1905

•  Books of Accounts

•  Submit BIR Form 1905 and Books of Accounts to the

Registration Section and wait for the release.

 Apply for Authority to Print (ATP)

•  Accomplished BIR Form 1906

•  Photocopy of COR and paid Registration BIR 0605

 Lastly, printing of your receipts (Official Receipts and/or

Invoices). This normally takes one to two weeks to be

printed.

Renewal of Business Permit

Step 1: Renewal of Barangay Permit

REQUIREMENTS

 Previous year’s barangay permit, original

 Previous year’s official receipt / proof of payment

PROCEDURE

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  Submit your accomplished form together with the

requirements at the Barangay permit Division

 Wait for the assessment

 Pay corresponding fees

 Release of Barangay Permit, securing of Barangay Permit

can be done within a day.

Step 2: Renewal of Mayor’s / Business Permit

REQUIREMENTS

 New Barangay Permit

 Previous year’s Mayor’s Permit, original

 Previous year’s official receipt/proof of payment,

original

 Previous year’s Income Statement, audited or

unaudited

 Contract of Lease

 Local Insurance (Paid at City or external companies)

 Community tax Certificate (CTC)/Cedula (Paid and

acquired at City Hall)

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PROCEDURE

 Submission of application form

 Submit accomplished application form together with

the complete requirements for evaluation. Application

form is available at the Business Permits and

Licensing Office of City Hall

 Assessment

 Assessment of necessary fees at the Business

Permits and Licensing Office

 Payment

 Payment of fees is made at the City Treasurer’s

Office

 Receiving

 After processing of payment the City Treasurer’s

Office will give you a receiving copy. The receiving

copy of payment will be presented upon claiming of

Mayor’s Permit.

 Release of Mayor’s Permit

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  Present the proof of payment at Business permits and

Licensing Office to claim your renewed Mayor’s

Permit

 Releasing of renewed Mayor’s Permit will takes 1 to 2

weeks depending on the volume of renewal

transactions.

Step 3: Renewal of Registration with the BIR

PROCEDURES

 Accomplished BIR from 0605

 Go to officer-of-the-day in your RDO for assessment

 Pay the annual registration fee amounting to P 530.00 at

any BIR – accredited bank in your RDO.

Barangay Micro Business Enterprises (BMBEs)

Is defined as any business enterprise engaged in

Production, Processing, Manufacturing of Products, including

agro-processing, as well as trading and services, with total

assets of not more than P3,000,000.00 million. Such assets

shall include those arising from loans but not the land on which

the plant and equipment are located.

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 REQUIREMENTS

 Registration as a business entity

 Taxpayer Identification Number (TIN)

 Certificate of Registration from the Bureau of Internal

Revenue (BIR)

 Mayor’s Permit or City/Municipal Business Permit.

 Sworn Affidavit executed by the sole proprietor or the

President of the enterprise

 Sworn Statement of Assets and Liabilities supported by

pertinent documents

 Pictures of the place of business an its assets, other than

Cash, receivable and intangibles

 Copy of Loan Contract/s, if any, and duly notarized

 Certification of Amortization Payments on the Loan

 Income Tax Return (ITR)

PROCEDURES

 Accomplish BMBE Form 01 in triplicate and submit to the

Office of the Municipal or City Treasurer.

 The Municipal or City Treasurer evaluates the application.

The application shall be processed within 15 working days

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 upon submission; otherwise, the BMBE shall be deemed

registered.

 A registered BMBE shall be issued a Certificate of Authority

as proof of registration, effective for two years. The

application is renewable every two years.

Department of Health – Food and Drugs Administration

Also formerly Bureau if Food and Drugs was created under

the Department of Health to license, monitor, and regulate the flow

of food, drugs, cosmetics, medical devices, and household

hazardous waste in the Philippines.

REQUIREMENTS

 Accomplished Integrated Application Form as prescribed by

current FDA regulation

 Proof of Payment of Fees

 Proof of Business Registration (DTI)

 Proof of Occupancy (If the facility is not owned)

 Notarized valid Contract of Lease of the space or

building occupied

 Lists of products to be distrusted, or offered for sale or use

 Location Map

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  Floor Plan

PROCEDURE

 Submit application and all requirements to Public Assistance

Information and Compliance Section of FDA for Assessment

 Proceed to Accounting and Billing Department to have

registration fees assesses and paid for

 Obtain endorsement for Certificate of Registration after

evaluation of Product Services Division

 Secure signed Certificate of Registration and Product

Registration documents from FDA

Renewal of Food and Drugs administration Permit

REQUIREMENT

 Accomplished Integrated Application Form as prescribed by

current FDA regulation

 Proof of payment of Fees

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CONTRACT OF LEASE

LEASE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at the City

of Malabon, this day of ________, 20 ______, by and between.

(NAME OF LESSOR), of legal age, single / married to

(Name of spouse if any), Filipino, and with residence and postal

address at

-AND-

FROSTBITES SOFT ICE CANDY, herein after referred to as the

LESSEE.

WITNESSETH; That

WHEREAS, the LESSOR is the owner of THE LEASED

PREMISES, a commercial property situated at (Address of

property to be leased);

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 WHEREAS, the LESSOR agrees to lease-out the property to

the LESSEE and the LESSEE is willing to lease the same;

NOW THEREFORE, for and in consideration of the foregoing

premises, the LESSOR leases unto the LESSEE and the

LESSEE hereby accepts from the LESSOR and the LEASED

premises, subject to the following:

TERMS AND CONDITIONS

1) PURPOSES: That premises hereby leased shall be used

exclusively by the LESSEE for commercial business

purposes only and shall not be diverted to other uses. It is

hereby expressly agreed that if at any time the premises are

used for other purposes, the LESSOR shall have the right to

rescind this contract without prejudice to its other righths

under the law.

2) TERM: This term of lease is for FIFTHTEEN (15) Years from

January, 2019 to December, 2033 inclusive. Upon its

expiration, this lease may be renewed under such terms and

conditions as my be mutually agreed upon by both parties,

written notice of intention to renew the lease shall be served

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 to the LESSOR not later than seven (7) days prior to the

expiry date of the period herein agreed upon.

3) RENTAL RATE: The monthly rental rate for the leased

premises shall be in PESOS: EIGHT THOUSAND PESOS

(₱ 8,000.00), Philippine Currency. All rental payments shall

be payable to LESSOR.

4) DEFAULT PAYMENT: In case of default by the LESSEE in

the payment of rent, such as when the checks are

dishonored, the LESSOR at its option may terminate this

contract and eject the LESSE. The LESSOR has the right to

padlock the premises when the LESSEE is in default of

payment for one (1) month and may forfeit whatever rental

deposit or advances have been given by the LESSEE.

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CHAPTER 5

“FINANCIAL
ASPECTS”

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INTRODUCTION

In this chapter we will discuss about the financial aspect of

the business. Every business owners must know and learn the

basic principles in terms of financial to run your business

effectively. Financial aspect can help the business the owners to

make better decisions by using numbers and analytical tools. It

helps the management to gain a clear understanding in financial

position, particularly whether the business is profitable or not.

This chapter also includes the source of funds, Statement of

Financial Position, Statement of Comprehensive Income,

Statement of Changes in Owner’s Equity, and Statement of Cash

Flow.

Objectives:

 To be able to see if the business can survive the 5 years

projected sales and expense.

 To be able to find ways in maximizing the profit of the

business.

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  To determine the number of years before the business can

recover its capital.

Financial Assumptions

1. All projection are made for 5 years from 2019-2024

2. Tools and office supplies are used and replenished every

end of quarter.

3. First In, First Out (FIFO) system will be used for inventory

valuation.

4. Furniture and fixtures have 10-year useful life.

5. Machinery and equipment have a 10-year useful life.

6. We will be using a straight-line method in depreciating.

7. Lease Contract requires a 1 month deposit and 1 months

advance payment. Monthly rental fee is, P8,000. Monthly fee

will be made at the beginning of the month.

8. Utilities Expense such as water utilities, electricity, and

telephone bills will be paid at the beginning of the next

month following the month of the incurrence.

9. Salaries will be paid every 15th day of the month and every

end of the month.

10. Employees will be working for 8 hours a day for 6 days.

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 11. Break-times and rest days of the employees are not

compensated.

12. Employee benefits including SSS, PhilHealth, and Pag-ibig

shall be deducted in their salaries according to their shares.

13. The capital investment of the business is P400,000. We

assumed that the owner has already had the capital.

14. The owner is allowed to withdraw P180,000 every moth.

15. Expenses are increased every year.

16. Sales are evenly distributed for the whole year.

17. The net income of the business is subject to tax.

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