Region I

Schools Division of Laoag

ILOCOS NORTE REGIONAL SCHOOL OF FISHERIES
La Paz, Laoag City

ENTREPRENEURSHIP

Horseradish Wine
A Business Plan

SHYNNAH P. VENTURA
10-Yellowfin

Teacher III, SHS

July 2019
HORSERADISH
WINE
III. Business Plan
The Needs
A. Liquor is one of the causes of troubles. Filipinos have a habit of drinking too much liquor
that leads them to diseases like lung cancer. This has been the problem of most Filipinos.
The Horseradish Liquor Wine has the common wine, common taste and flavor because
this was a healthy and nutritious wine.
B. Horseradish Wine will surely help to reduce the risk of having diseases like kidney
cancer. This healthy and nutritious wine will also prevent cancer including tuberculosis
and it can cure urinary tract infection (UTI). With this, other entrepreneurs serve this as
basis to discover and innovate more nutritious vegetables or fruit flavored food. The
proponents believe that the clientele will support the product because of its unique flavor
and its health benefits.

IV. Vision, Mission and Values

Vision
The horseradish Wine is the most nutritious and natural wine products, working
with the horseradish farmers cooperatively.

Mission
Horseradish Wine aims to sell healthy, nutritious and less alcohol for the help of
the cooperatively works of the horseradish farmers. This is through the dedication and
passion of the management to produce this kind of product.

Values
Horseradish Wine as a business commits to give its customers the best product. It
will maintain its hygiene and sanitation in food preparation, handing and packaging. Also the
personnel and the other owner have high personal and proper work etiquette. The dedicated
management will their best to deliver with full sincerity and honesty for a better customer
service. It will give a fast, accurate and best service for its clients. The management also sets
to create a support system for the horseradish growing farmers in order to improve, sustain
and maintain the quality of the product.
 V. Market Profile

A. Research Analysis

Horseradish Wine believe to have a little improvement to the customers

satisfactory. The proponents decided that they must undergo a careful observation in
the business location. The proponents found out that the customers who drink too
much alcohol content get a high risk of having a disease. The management believes
that action must be taken primarily to make a new twist in preparing and serving
wines.
With these premises, the proponent decided to produce a healthy and nutritious
wine which reduce the risk of getting a cancer. The market will be five (5) barangays.
The targets are adult who loves to drink alcoholic beverages.

B. Marketing Plan
Table 1
Number of Heaven’s Liquor Palace Target per Consumer Group

Populace #32- A #32-B #32-C #33-A #33-B Total

Total 45 43 50 33 40 221
Daily 45 43 50 33 40 221
Monthly 990 1,946 1,100 726 880 4,642
Yearly 11,880 11, 352 13,200 8,712 10,560 55,704
Based on the given consumer groups, the daily, monthly and yearly target buyers are
reflected through the assumption that 10% from all the five (5) barangays.

VI. Production/ Technical Plan

A. Product Description
Horseradish Wine is a business selling a horseradish – flavored wine. The
finished product will be placed in a bottle. The product as researched was proven
nutritious palatable. Today’s beverages are dangerous to health. Horseradish wine made a
new twist by using the most nutritious vegetable.
B. Operating Strategies
The business will produce a horseradish wine with high quality contents and
nutritious value as well. Horseradish wine needs raw materials to produce the goods to be
sold. These include yeast, sugar and the main ingredient – Horseradish. The proponents
will be the one to produce the product. Raw materials will be purchased at SM
Hypermarket or Laoag City Public Market where we can assure the quality. The
proponent tried to interview some of the adults each barangay by offering them a free
taste and made a comment after.
 C. Critical Risk

Table 2
Horseradish Wines Position in the Market

Competitors Market Share Target

Carrot’s Wine 45% 40%
Red Wine 30% 30%
Avelino 25% 20%
Horseradish Wine 10%

Base on the table shown, there are three competitors who dominate the market of wine in
Laoag. Horseradish wine aims 10% of the market share. Through creativity, uniqueness and
innovation, the management belie

VII. Organizational Plan

A. Team Members

OWNERS/
MANAGEMENT

SALES PERSONNEL

B. Contribution to the Business

Owners. This are responsible for the management and accountability of the business
itself, at the same time they are the ones who will produce the product
Sales Personnel. They are responsible for the advertisement, selling promotion of the
product.
VIII. Operational Plan

A. Workflow

Inventory and estimation of Purchasing of

the number of Horseradish Ingredients and Raw
wine to be produced Materials Needed

Selling of Production, Stocking/

the finished fermenting and
product Packaging of the Wine

Horseradish Wine has a very simple operational plan. It start from inventory and
estimation of the volume of wine to be produced daily, the purchasing of ingredients and
raw materials needed. After purchasing, the production, stocking/ fermenting and
packaging. Lastly, the marketing or the selling of the products.

B. Monitoring and Evaluation

Horseradish Wine will manufacture at least 300 bottle of wine per day. It takes an
hour to prepare and cook the mixture before stocking. The five (5) proponents divide the
work among themselves. The production hour will be done after classes as not to affect
their studies.

IX. Sustainability
I. Financial Plan
Horse radish wine will need at least Php55, 000.00 to start its operation in the
market. This will be coming from the investment of the students who are willing to be
involved in the entrepreneurial practice like this. Also, since they are three (3) of my
proponents are Hotel and Restaurant Management (HRM) and two (2) Marketing
Management students, they may use their talents and apply on the business what they’ve
learn, this may help to increase to capital investment of the business.
 Table 3
Monthly Expenses of Horseradish Wine

Product/Service Unit Price Quantity Total

Fixed Cost of Horseradish Wine:
Rental Php 1,000.00 1 month Php 1,000.00
Salaries 5,000.00 5 crews 25,000.00
Advertising 1,000.00 1 month 1,000.00
Depreciation Account- Stainles Steel 10,080.00 1 Stainless Steel 5,000.00
Tank tank
Depreciation Account- Chairs and 900.00/set 1 sets 550.00
Tables
Depreciation Account –Tools and 1,000.00 2 set of tools & 2,000.00
Utensils utensils
Utility and Sanitation 1,500.00 1 month 180.00
(A) Total Fixed Cost PhP 34,230.00
Variable Cost:
Raw Materials:
Yeast 100.00 50 Packs 5,000.00
Sugar 48.00/kg 20 packs 3,360.00
Bottle 25.00/pcs 8 kilos 7,500.00
Gas Tank 650.00 20 packs 1,300.00
Electricity 500.00 1 month 500.00
Water Supply 600.00 1 month 1,000.00
Transportation 300.00 1 month 250.00
Miscellaneous 1,500.00 1 month 1,500.00
(B) Total Variable Cost PhP 19,410.00
(A+B) Total Cost of Production PhP 53,640.00

Table 3 shows the variable and fixed cost of the operation of horse radish wine. This will
serve as basis for computing the breakeven point sales price and volume. Based on the table, FC
and VC, the business is capable of producing 300 bottles per month.
 Table 4
PROJECTED REVENUE
Projected
Horseradish Projected Yearly
Costing Volume Daily
Flavour Volume Monthly Projected
(in bottle) Revenue
Revenue Revenue
Daily Monthly
C- 60
Horse Php Php Php
M- 2 221 4,642
Raddish 13,702.00 287,804.00 3,453,648.00
SP- 62

LEGEND:
Cost – C
Mark-up – M
Sales price – SP

Table 5
MONTHLY PROJECTED COST & REVENUE

Jan Feb Mar Apr May Jun

Revenue 287,804.00 287,804.00 287,804.00 287,804.00 287,804.00 287,804.00
Cost 53,640.00 53,640.00 53,640.00 53,640.00 53,640.00 53,640.00
Projected Net 234,164.00 234,164.00 234,164.00 234,164.00 234,164.00 234,164.00
Profit

Jul Aug Sep Oct Nov Dec Total

287,804.00 287,804.00 287,804.00 287,804.00 287,804.00 287,804.00 Php 3,453,648.00
53,640.00 53,640.00 53,640.00 53,640.00 53,640.00 53,640.00 Php 643,680.00
234,164.00 234,164.00 234,164.00 234,164.00 234,164.00 234,164.00 Php 2,809,968.00

Break-Even Guide
Total Revenue (TR) = Fixed Cost (FC) + Variable Cost (VC)
When TR is > then FC and VC means the business is earning profit.
When TR is < the FC + VC means the business is losing.
When TR = the FC +VC, the business is break-even.

Table 5 shows the monthly projected cost and revenue. As shown, the business projected
Php 3,453,648.00 gross sales for a year which is graeter than the cost at Php 643,680.00, thus, a
net annual profit of Php 2,809,968.00

Table 6
 Project Cost

PARTICULAR EQUITY LOAN TOTAL

Fixed Assets
Equipment Php 6,640.00 Php 15,000.00 Php 21, 440.00
TOTAL Php 6,640.00 Php 15,000.00 Php 21, 440.00

Other Assets
Rent Deposit Php 3,000.00 0.00 Php 3,000.00

Working Capital
(3 months)

Supplies and Materials Php 30, 075.00 Php 117,000.00 Php 147, 075.00
Other Operational Php 7,650.00 0.00 Php 7,650.00
Supplies
Salaries Php 35,000.00 Php 40,000.00 Php 75,000.00
Rent Php 3,000.00 0.00 Php 3,000.00
Utilities Php 4,500.00 0.00 Php 4,500.00
TOTAL

Pre-Operating Expense Php 15,000.00 0.00 Php 15,000.00

Grand Total (Pesos) Php 104,665.00 Php 172,000.00 Php 267,665.00
Grand Total (%) 37.8% 62.2% 100 %

Table 7
Loan Repayment Schedule

YEAR TOTAL INTEREST PRINCIPAL BALANCE

AMORTIZATION
0 Php 172,000.00
1 Php 197,800.00 Php 25,800.00 Php 172,000.00 0.00
2 0.00 0.00 0.00 0.00
3 0.00 0.00 0.00 0.00

**Interest at 15%

Table 8
HORSERADISH WINE
PROJECTED INCOME STATEMENT
FOR THE YEARS ENDED 2013-2015
 2013 2014 2015

Php 729,146.00
REVENUE Php 506,352.00 Php 607,622.00

Php 735,937.00
Cost/ Expenses Php 511,068.00 Php 613,281.00

Php 4,716.00 Php 5,659.00 Php 6,790.00

Projected Net Income

Projected Income for the year is expected to by at least rise by 20%

II. Social Impact

A. Long-Term Desired Outcomes
Horseradish Wine will supply all the barangay of La Paz. The proponents
will also prioritize the patient or the entire person who has disease. They are
currently negotiation with the Barangay Chairman and officials regarding the
inclusion of the horseradish wine supplement among the all person in the
barangay its advocacy program for horseradish farmers as part of their corporate
social responsibility.

B. Social Impact in the Community

The business will not only help to reduce the risk of having a disease bit it
also help the producers of these goods that will be the main thrust of the business.
The proponents of the business will also be the educator of the students taking the
T.V.E (Technical Vocational Education). Food processing since our school is
implementing this kind of curriculum.

C. Business Impact in the Community

Horseradish wine believes in co-existing with nature and business
environment. Since the main product is made from horseradish, it promotes
healthy, affordable and satisfying horse radish derivative products. The business
has the potential to survive in the market because of its affordability, high
nutritional value and have high social desirability.

RUBRICS FOR BUSINESS PLAN PAPER EVALUATION

 Description Rubric Rating
Executive Summary 10 8 6 4

Personal Details
I. Names & Brief Biography
II. Name of Adviser/s & Brief Biography
Overview of the Business
I. Name of the Business
II. Description of the Business Model
III. Statement of Vision, Mission, and Values
Business Plan Proper
I. The Problem/Need
A. Description of the exact problem/need addressed
B. Reasons/rationale why the problem/need must be
Addressed by the business
C. Descriptions on how the business has solved
The problem/need
II. Statement of Vision, Mission, and Values
A. Vision
Description/statement of what the proponent
Sees if the problem need is solved.
B. Mission
Clear description of goals and objectives that
Present practical steps to achieve the vision.
C. Clear statement of values critical to the culture,
Integrity and activities of the business
III. The Marketing Plan
A. Research & Analysis
1. Description of the Target Market
2. Market Size
3. Competiton/Market Share
4. Market Trends
B. Marketing Strategies
1. How the product/service be introduced in the
market?
2. How will the costumers be reached and served?
3. How will the investors be served?
4. Description of the business ownership, roles
Of the partners.
5. Value Added Features
6. Location of the business
IV. Production and Technical Plan
A. Detailed description of products/services
B. Operating Strategies
1. Description/Illustration of production model
2. Detailed description of raw material,
Suppliers, transportation needed and how
These will have accessed
 3. Detailed/data presented on how the
Products/services will be further developed
And the help needed and the agency or
Company who can do it.
C. Critical Risks
a. Data on existing competitors
b. Statement on how the proposed business
is different from the others
c. Description/Illustration of the proposed
business` competitive strategy
d. Partners are identified, their roles, and
added value to maximize impact.
e. Detailed description of the risks and
opportunities (SWOT Analysis)
f. Description on how the business would
capitalize to prevent the risks.
V. Organizational/Management Plan
A. Members of the team
B. Team`s contribution to the business
C. Others who can be part the team
IV. Operational Plan
A. Detailed description on how the business will
be implemented
a. Assignment of tasks
b. Schedules of deliverables
c. Data of necessary resources
d. Description/Illustration of operational
model and work flow
e. Description of business back progress and
division of works
f. Data on estimates of the business operations
B. Monitoring and Evaluation
a. Statement of outcome the business will
achieve based on targets
b. Descriptions/Illustrations on how you will
monitor achievement
c. Statement of performance targets
d. Time line on when the targets will be achieved
Sustainability
I. Financial Plan
A. Soundness of the average investment needed
B. Data/Scheduled of the specific investments
needed in 1-2 years
C. Percentage share on investments/capital of each
member of the proponents
D. Detailed description on how funds will be raised
to start the business
E. Data/Statement on how many years the
business will earn profit
II. Social Impact
A. Statement of the business long-term
desired outcomes
B. Statement of the social impact generated
from each of the business activities
C. Statement/data on the benefit and impact of
the business to the community