Professional Documents
Culture Documents
Business Plan
Business Plan
Angel O. Gamil
Executive Summary
Objectives
1. To create a service whose primary goal is to exceed costumer’s
expectation,
2. To enhance the various steps in purifying water in order to maintain
the highest quality of water purification, and;
3. To maintain loyalty of present costumers and attract other market
segments.
Mission Statement
To provide a finest quality of purified drinking water that is accessible and
safe for a better future and a healthier community
Keys to Success
1. Water business knowledge
2. Hands on sales, financial, and marketing management,
3. Effective marketing strategies, and;
4. Passion for a successful business.
Company Ownership
Serene Purified Drinking Water Refilling Station is a purified water refilling
station owned by five (5) general partners, all of which are Accountancy Business
and Management (ABM) students. Listed below are the partners’ background for
reference.
Location
The business would be structured at Central Mindanao University (CMU)
Industrial Complex. A location lacking with stationed water refilling
establishments. It withholds a large population of over 2137 household. Below is
the campus map of CMU showing the CMU market.
Hours of Operation
The business will be open at 8:00 AM to 6:00 PM everyday except Sunday.
Deliveries are also available anytime within the business hours which can be
accessed by calls or texts.
Manufacturing
Machinery and equipment that will be used would be the following:
1. Multimedia Sediment Filter – This type of filter removes
sediments such as rust, sand, and particles visible to the naked eye. This
employs five (5) filters.
2. Active Carbon Filter – This filter removes all organic chemicals,
pesticides, and other more chemicals that can result to foul taste and
odor.
3. Reverse Osmosis Membrane – This is the heart of the system
and the most expensive unit amongst. It removes inorganic materials,
bacteria and viruses while retaining its oxygen content.
4. Ultraviolet Lamp – This is used to ensure that water is free from
disease-causing micro-organisms.
5. Ozone Generator – The water is passed through this to prevent
bacteria growth in the product tank and prolongs the shelf life of the
water.
Management
Keziah Kyle C. Poonon – General Manager
Qualifications:
• Strong understanding of costumer and market dynamics and
requirements
• Excellent interpersonal skills (Communication, self-awareness,
trust building, problem solving and decision making)
• Excellent organizational skill
• Flexible and self motivated
Job Description:
• Maintains staff by recruiting, orienting, and training employees
• Accomplishes staff results by communicating job expectations
• Establishes strategic goals by gathering pertinent business,
financial, service, and operations information
• Accomplishes financial objectives by forecasting requirements
and maintains quality service by enforcing quality and
costumer service standards.
Technical Assistant
Qualifications:
• Ability to interact with different levels of personnel
• Flexibility and availability
• Has at least 2-year Vocational Diploma
• Knows how to operate and repair a water refilling station
equipment
• Male
Job Description:
• Ensure legal compliance of packaging, both suitability for
purpose and disposal
• Strive to minimize environmental impact of packaging,
operations and waste management
• Evaluating and trailing new machinery for water processing
and improving production processes
Front liner
Qualifications:
• At least High School graduate
• Pro-active team worker
• Knows how to deal with costumers
• Knows how to drive
• Male
Job description:
• Can be an all around except manager, assistant manager, and
bookkeeper
• Receive and refills the water containers from the costumers
• Operate the machine
• Provide costumer products and services
• Act as delivery man in case the delivery staff is unavailable
Delivery Staff
Qualifications:
• Knows how to drive a tricycle and has a driver’s license
• Male
Job Description:
• Delivers the order of the costumer via tricycle.
Marketing
Market Analysis
The target consumers are the residents of Central Mindanao University.
Approximately the size of our potential costumer base has 2,137 households as
of 2019. This projection is based on the data by Barangay Service Point, Barangay
Dologon.
Competition
Drinking water business within the campus is dominated my agua-boo
that offers free delivery services. However, the nearest drinking water refilling
station is stationed at Dologon, Maramag, Bukidnon about a kilometer away from
CMU. Other stations are also located at Valencia City, Bukidnon.
The edge of this business would be its accessibility anytime and would be
able to cater the consumers without waiting for scheduled delivery. Another
thing is its location. It is much more convenient to buy since it is only within the
campus and easier to call for its delivery service. It also offers a cheaper price in
coordination with convenience.
Opportunities
Water is the most basic need of an individual and with such a large
population, CMU lacks a stationed purified drinking water. This opens an
opportunity for the partnership into opening up a water refilling business. With
the competitors’ price range, the business foresees an opportunity of large
percentage of target consumers offering a cheaper and more convenient and
accessible product and services.
Pricing
The competitors’ price ranges from P35-P50. One competitor offers 3
galloons for P100 with free delivery. Other nearby stations offers P40 per galloon.
In comparison to the observation among the competitor’s price, the business
would be able to compete for P30 per galloon.
Advertising and Promotion
Customer awareness is the first step in promoting a new business. The
business will achieve this by advertisement by the tricycles around the campus,
social media (Facebook and Twitter) and hopefully through the word of mouth.
During the opening of the shop, the first 20 costumers will be given a card
that earns a point whenever they buy from the station. There will be certain
freebies when the card achieves a certain point.
Strategy and Implementation
The strategy is to concentrate on the target market and to actively work in
developing a dealership network, specifically local businesses. Market strategy
would include offering the latest trend in technology in purifying water to attract
costumers also through social media. Product strategy includes offering a bottling
cleaning before refilling and delivery of product anywhere, anytime.
Appendices
Start up expenses:
Water refilling machine 250,000.00
Delivery Vehicle (Tricycle with side cart) 80,000.00
Renovation 62,700.00
Business Permit and other legal documents 15,000.00
Training of employees 25,000.00
Initial Supplies 21,800.00
Operational Expenses:
Salary 23,000.00
Rental 5,000.00
Electricity 8,000.00
Fuel 2,500.00
Water 7,000.00
Total Cash Out 500,000.00
Assumptions:
1 Operational expenses is good for one month
2 Loan is payable in 5 years at 10% interest
3 Water refilling machine and delivery vehicle are part of non-current assets
Cash Outflows:
Renovation (62,700)
Business Permit and other legal documents (15,000)
Training of employees (25,000)
Initial Supplies (21,800)
Salary (276,000) (289,800) (304,290) (319,505) (335,480)
Rental (60,000) (60,000) (60,000) (60,000) (60,000)
Electricity (96,000) (100,800) (105,840) (111,132) (116,689)
Fuel (30,000) (31,500) (33,075) (34,729) (36,465)
Water (84,000) (84,000) (84,000) (84,000) (84,000)
Tax (153,469) (192,072) (198,348) (204,670) (211,033)
Total outflows (823,969) (758,172) (785,553) (814,035) (843,667)
Cash balance from operating activities 176,313 605,545 619,075 632,732 646,503
Assumptions:
1 Cash sales is 75% while accounts receivable is 25% of the total sales
2 Accounts receivables are collected the following fiscal year
3 Salary expense, electricity expense, and fuel expense is expected ti increase at 5% per year
Expenses:
Business Permit and other legal documents 15,000
Training of employees 25,000
Renovation 62,700
Initial Supplies 21,800
Salary 276,000 289,800 304,290 319,505 335,479.73
Rental 60,000 60,000 60,000 60,000 60,000
Electricity 96,000 100,800 105,840 111,132 116,688.60
Fuel 30,000 31,500 33,075 34,729 36,465.19
Water 84,000 84,000 84,000 84,000 84,000
Depreciation Expense 19,333 19,333 19,333 19,333 19,333
Interest Expense 25,000 20,000 15,000 10,000 5,000
Service Charge 5,000
Total Expenses 719,833 605,433 621,538 638,699 656,967
Assumption:
1. Refer to sales projection for total sales
2. Salary expense, electricity expense, and fuel expense is expected to increase at 5% per year
3. Tax rate is 25% of the net income before tax
4. Refer to table below for depreciation
Delivery Vehicle (Tricycle with side cart) 80,000 80,000 80,000 80000 80000
less: accumulated depreciation 6000 12,000 18,000 24000 30000
Net book value 74,000 68,000 62,000 56,000 50,000
Partner's Equity
Poonon's Equity 50,000 50,000 50,000 50,000 50,000
Tabudlong's Equity 50,000 50,000 50,000 50,000 50,000
Paquera's Equity 50,000 50,000 50,000 50,000 50,000
Gamil's Equity 50,000 50,000 50,000 50,000 50,000
Dahinog's Equity 50,000 50,000 50,000 50,000 50,000
Total Capital 250,000 250,000 250,000 250,000 250,000
add: Retained earnings 460,406 576,215 595,045 614,011 633,100
less: dividends distributed to partners: 460,406 576,215 595,045 614,011
Total liabilities and Capital 910,406 976,215 945,045 914,011 883,100
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Assumptions:
1. Retained earnings is distributed as dividends to the partners the following year
2. Loans payable is amortized for 5 years.
Projected Sales
2019 2020 2021 2022 2023
No. of galloons 44,457 45,791 47,164 48,579 50,037
Unit Price 30 30 30 30 30
Projected Sales 1,333,709 1,373,720 1,414,932 1,457,379 1,501,101
Assumptions:
1. Refer to the table below for the projected production volume
Assumption:
1. Production volume is 20% of the total annual household consumption
Break-even Analysis
2019 2020 2021 2022 2023
Projected Expenses
2019 2020 2021 2022 2023
Variable Expenses:
Electricity 96,000 100,800 105,840 111,132 116,688.60
Fuel 30,000 31,500 33,075 34,729 36,465.19
Water 84,000 84,000 84,000 84,000 84,000
Supplies 21,800
Tax 153,469 192,072 198348.294 204,670 211033.498
Total Variable Expenses 385,269 408,372 421,263 434,531 448,187
Fixed Expenses:
Salary 276,000 289,800 304,290 319,505 335,479.73
Rental 60,000 60,000 60,000 60,000 60,000
Depreciation Expense 19,333 19,333 19,333 19,333 19,333
Business Permit and other legal documents 15,000
Training of employees 25,000
Renovation 62,700
Interest Expense 25,000 20,000 15,000 10,000 5,000
Service Charge 5,000
Total Fixed Expenses 488,033 389,133 398,623 408,838 419,813
Total Expenses 873,302 797,505 819,887 843,369 868,000