1

Establishment of H2O Enterprise

Santo Tomas, Batangas

A Business Plan Presented to the

Faculty of Science, Technology, and Engineering and Mathematics

In Partial of Fulfillment of the Requirements for the Subject

Principles of Entrepreneurship

December 5, 2020
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CHAPTER I

GENERAL COMPANY DESCRIPTION

Vision Statement

H2O Enterprise aims to be one of the best disruptive small business marketing firm

in the industry. Building best-in-class platforms and productive service, to maintain long-

lasting and ever-present relationships with the audience.

Mission Statement

H2O Enterprise aspires to create a new marketing in order to improve the client’s

business and for the enterprise to produce more innovative services. Finding a way to do

more for the client than anybody does through analyzing the existing strategies to seek out

innovation and improvement to make some worth and difference.

Company Objectives

 Innovate engagement strategies to gain satisfaction from the company’s valued

clients through their positive feedbacks.

 Increase sales of the client’s product by 5% through creative and enlightening

advertisements in any kind of social media platform.

 Ensures to be open in new markets and new ideas to build and maintain a strong

relationship with the clients.

 Continually increasing the customers of the clients weekly to receive a commission

with the minimum of 5% and up.

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 Conduct a meeting weekly regarding on improving the service delivery for the

employees to improve their skills.

Description of the Service

"Here to Overcome"

To make some worth and difference, H2O Enterprise are here to overcome with

the problems of clients when it comes to marketing a business. This marketing firm will

give brand-new marketing that may help the clients in promoting the quality of their

product. Giving the best service to the clients by strengthening the engagement strategies

in innovative way and developing a strong relationship with the clients as well as to its

customers in order to increased sales and for the enterprise to have a loyal client. H2O

Enterprise are Here to Overcome. Best services are with you, a company you can rely on.
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CHAPTER II

MARKETING PLAN

MACRO-MARKET ANALYSIS

Political Factor

 The Client’s Rights

Since in business the rights for the customers will always be there, then as a

marketing firm it will be a client’s rights. So, in that case H2O Enterprise ensures that the

client’s right and needs are always met. As the client asks for details, questions or

additional services, the enterprise should willingly and openly address or provide what is

asked for to enable their client’s satisfaction. Because, the rule of thumb in services is to

satisfy clients by respecting and addressing their rights as clients, to gain and maintain their

trust to the marketing firm. For them to feel welcomed and appreciated from the service of

the marketing firm.

Economic Factor

 Level of Consumers Disposable Income

It has a lot of impact if disposable income of client’s business decreases, because it

may result for them to consume less and become more frugal that may also lead to decrease

the sales, earnings, and the value of the stocks of the business. So, with the service of H2O

Enterprise, clients can increase as well as maintain their disposable income in order to

increase consumptions and demand for their business to be more efficient and receive more

income in the business.

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Socio-cultural Factor

 Clients Preferences

Nowadays, many companies offer the same or very similar product because their

customers need, and tastes are becoming significantly similar. That makes the enterprisers

very conscious when choosing a marketing firm because they wanted to ensure the service

is reliable and worth to be trusted. So, the marketing firm needed to come up with their

best advertisements for the client’s business and get the best service from H2O Enterprise.

Technological Factor

 Access to Newest Technology

This factor enables the marketing firm to grow, shift and adapt in order to stay

competitive in today’s rapidly changing in online marketing. Together with the usage of

internet H2O Enterprise can give a convenient service through online which is helpful

during this pandemic. Also, it will help the business operations by keeping the clients and

customers connected to each other. As a result of that, H2O Enterprise will be able to offer

and give a better service to the clients and future clients.

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MICRO MARKET ANALYSIS

Customer Segmentation

Primary Target Market

The primary target market of H2O Enterprise is apparel industry. As their clients

sell affordable preloved ladies dresses that is suitable for both casual and formal wear for

ladies which can help to gain more confident by wearing those kinds of dresses.

Geographic

 Country: Philippines

 Region: IV-A (CALABARZON) – Focusing in places in Batangas

Demographic

 Nature of the Client’s Business: AD's FAB shop

 Form of Ownership: Partnership

 Physical Location of Client’s Business: San Francisco, Sto. Tomas Batangas

 Cyber Location of Client’s Business: https://www.facebook.com/adsfabshop.ph

 Target Customers: Ladies

Secondary Target Market

The secondary target market of H2O Enterprise is food industry. They wanted to

handle this kind of industry because food is one of the things that people cannot resist of

buying, which means customer are always there and mostly salable in any location.
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Competitive Analysis

It is inevitable to have competitors in our life specially when it comes to a business.

Knowing and understanding competitors’ procedures to know their strengths and

weaknesses, might help prevent competition from entering your market. H2O Enterprise

has three direct competitors and two indirect competitors. One of direct competitors are 9th

Avenue Enterprise, this marketing firm handles a business that targets the same market

with the business handled by H2O Enterprise. While indirect competitor is Bellisima

Enterprise, this marketing firm handles a business that is nature in cosmetics industry,

which has the same target but different products with the handled business of H2O

Enterprise.

H2O Enterprise find out that 9th Avenue Enterprise is threatening to their business

because aside from they handle the same nature of business, they also got an active business

partner.

On the other hand, indirect competitors don’t have that much impact in the business

since it offers a different product and gives different kind of services.

Table 1. Competitors

Competitors
Name of the Business
th
9 Avenue Enterprise
Social Media Managing
Paraluman Marketing Firm
Bellisima Enterprise
CreateoriumPageX
Classification
Direct Competitor
Direct Competitor
Direct Competitor
Indirect Competitor
Indirect Competitor
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SWOT ANALYSIS

Strengths

1. Quick Approach

As a marketing firm, it is needed to response quickly to the valued customers and

clients not only to impress them but also to gain and maintain the trust as the clients wanted

the best service for them and for their customers. The marketing firm will ensure to give a

quick response to the approach of every clients and customers. So that long wait and

patience will not be an issue.

2. Content Creator

The content created and adapted for social media is a vital component of marketing.

Capturing pictures and video for Facebook page, writing short and effective posts, creating

buzzworthy content are some of the way’s of H2O Enterprise can incent. This is advantage

for the clients for them to not struggle when it comes to manage and make content with the

marketing firm, as the marketing firm have graphics software, efficient social media

management platforms, creativity, and excellent language proficiency.

3. Social Media Savvy

Being a regular user of social media and well-immersed in the social environment,

the marketing firm knows how to use effectively the social media for marketing a business.

Having a plan that will keep the efforts focused and create consistent content with the

approval of the clients. That will help their business to stay engage and interact with their

customers.
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4. Empathy and Patience

“Empathy is the key to great customer service.” To be a great marketing firm it is

needed to understand the client’s side. Anticipate the client’s needs and demonstrate how

the service will suit their needs. For the marketing firm to increase sales and loyalty to their

service.

5. A Sense of Humor

Laughter is a universal means of communication. Humor humanizes a brand, not

only in social media but also to all marketing business. Having a catchy and funny contents

is a great deal to make the service look approachable.

Weaknesses

1. Newbie

Most of the member of this marketing firm is new to this kind of business. That

means, experiences might not be enough as a guide to make some plan of running this kind

of business. So, it is time consuming when monitoring and improving the flow of the

business for it just to be successful.

2. Time Consuming

In the part of this enterprise company time is a must. It needs a lot of time when

promoting and maintaining regular postings, ensuring visuals align across profiles and even

evaluating trends. So being reliable, fascinating, and applicable consistently can likewise

be hard to keep up. This will lead the enterprise to learn some time management, so that

they can go a long way to boost their productivity.

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3. Distance

Since the world is facing a serious situation which is the pandemic. This affects the

members of H2O Enterprise on how they will manage the business because of the limited

areas of operations of the business-like meetings, to do discuss about managing the

business of the clients. As of now, the only way to do meetings is through social media.

Opportunities

1. Save Time

As we all know that having a business, needs a lot of time and focus. Just by letting

the marketing firm keep a watchful eye on accounts day-to-day, personalizing reputation,

evaluating trends, creating or curating content and scheduling posts in a streamline process

gives the business owner the opportunity to just focus on the sales. In that case the business

owner can saves their times.

2. Client Support

Using a social media as an engagement tool, it is normal to get some negative

feedbacks from some of the client’s customer. With open and honest strategies, it allows

the marketing firm to learn how to deal with complaints from the clients and customers. In

doing so, clients can rely to the marketing firm and support their strategies where the clients

are most comfortable with.

3. Social Listening

It helps the H2O Enterprise to monitor social media conversations and mentions

related to their service as well as to the client’s business. It can help to understand the

competitors and what they are struggling with, which can help the marketing firm to create
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content by addressing those pain points. This can be a guide to improve the strategy of the

marketing firm and gain some insights into what the client wants and how will the

marketing firm can give that.

4. Increased Traffic

Social media campaigns, when done effectively with a goal in mind, can be utilized

to drive traffic to website. Campaign goals could include marketing objectives such as

multiplying the audience, brand awareness, expanding reach, growing engagement, or

educating on the services. With analytics, H2O Enterprise can determine if a campaign is

hitting the mark to get the most out of marketing peso.

5. Engagement, Relationship Building

For many companies, social media can be viewed as a giant scoreboard, so it is a

big achievement to get a lot of followers. H2O Enterprise place focus on marketing

techniques to build meaningful connections such as effective hashtags and asking questions

to the audience, to connect with industry influencers and replying to comments or

mentions, these are some ways to build meaningful relationships with the audience for the

client to benefit as they get more customers.

Threats

1. Various Competitors

Due to sea of competitors online, H2O Enterprise may probably choose to deal

with various yet creative and attractive marketing firm. Well in some way, it is advantage

to a company to understand and learn from its competitors. So, it can produce goods and

better services or more cheaply than its rivals.

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2. Negative Feedback

“If you’re not open to constructive criticism, then you’re not open to truly growing

as a person.” Incorrect handling of criticism can affect the company to grow. This may

lead to get a bad review that can put the company in danger. As the marketing firm improve

the strategies and offer a good service to the clients and customer this threat can be reduced.

3. Unstable Internet Connection

Getting a low signal right from its resources are one of the reasons why people

having an unstable internet connection. This might affect the posting promotional

campaigns of marketing firm in the social media page. In that case, every member of this

enterprise should backup each other if one of them got an unstable internet connection.
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MARKETING MIX

PRODUCT

Level 1: Core Benefits of the Service

H2O Enterprise builds the image of a business which is important for the

survivability of every entrepreneurs. Analyzing the existing strategies to improve and

providing a service which will benefit the future clients as it boosts sales and increases

revenue of their business. Being responsible for handling the cyber location of the clients

to lessen some works and to make it easier for them to sell their products. Also, having

some knowledge to overcome a business competition. All of this will surely can help the

future clients to build the image of their business.

Level 2: Physical Characteristics of the Service

H2O Enterprise offers a full-service in which clients business requires for

marketing, promotions and advertising. With the firm that consists of a group of skilled

individuals for being a social media manager. Offering a comprehensive strategies and

solutions custom-fit for the client’s business from start to finish. Leading the edge of trends

and technology, the firm will use social media platform as advertising tools for the client’s

business to keep updated in its desires. Showing in Image 1, 2 and 3 how the firm put the

efforts and how organized the page for its business.

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Image 1. Facebook Page

Image 2. First Post

Image 3. Second Post

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Level 3: Augmented Benefits of the Service

H2O Enterprise will provide a service in five whole days for the first client which

will serve as their trial period. The service includes the handling of cyber location in

different social media platform to use as advertising channel to promote the client’s

products for the business to attract more audiences. Once the trial is done, the client should

pay the service for a specific amount.

PLACE

Physical Location

H2O Enterprise decided to choose LTK Bldg. as a location based on the criteria

below:

 Parking and Accessibility: Considering the parking and accessibility of the

location for every person is one of the marketing firm. LTK Bldg. has enough
parking lot for clients and employees. Just as with foot traffic, H2O Enterprise
monitors the facility and see how the parking demand fluctuates. Also, the location
is easily accessible to those people with disabilities because there will be a walkway
for PWD in front of the office.
 Competition: LTK Bldg. is a commercial building where H2O Enterprise is
located. Fortunately, the adjacent businesses are most likely food, cybercafé and
convenience store businesses. In some instances, this can be advantageous for the
enterprise.
 Proximity to Market: Aside from the enterprise’s adjacent businesses, there are
also a lot of food business situated around where the LTK Bldg. is located. Since,
the secondary target of the enterprise is food industry, this can be beneficial to the
enterprise if the target market is near.
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Cyber Location

Using a different social media platform as a medium for business which is more

reliable especially now that the world is facing a pandemic. As the people always use

different social media platform specially Facebook, this means that there will be many

audiences which an opportunity for the marketing firm. The H2O Enterprise come up with

this idea for the clients to easily reach out the marketing firm since these platforms are easy

to access as well as to catch more attention of targeted audiences. The cyber location of

H2O Enterprise can be seen in Figure 1.

PRICE
Table 2. Commission
Product Price (Php) Commission Rate Commission (Php)
Dress 100.00
80.00 10% 10.00
60.00
Pots 25.00 5% 5.00

PROMOTION

Image 4. Advertisement Poster

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Advertisement

H2O Enterprise poster which will be posted in its Facebook page or other social

media platform. The poster itself contains its logo, enterprise name, the kind of service to

offer for the client, as well as the contact information, physical and cyber location.

Providing the statement of good services, it can attract the audience to know about what

the marketing firm will offer for the clients.

Image 5. Sales Promotion Poster

Sales Promotion

Since Christmas is coming H2O Enterprise will offer a promotion for Christmas

specials. In this upcoming December one and December two, clients will enjoy the early

Christmas gift as they can avail the 20% off discount for all the kinds of services from the

H2O Enterprise. This Christmas specials promotion includes the improving the strategies

and promotion of the client’s product in twenty days with the theme of Christmas for the

ambiance of the social media page for the appropriate holiday.

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PEOPLE

The General Manager Ms. Mariane C. Carandang handles the overall operations

and decision making for the marketing firm after counseling her fellow student

entrepreneurs. The Marketing Manager Ms. Kiana Cassandra O. Castillo is assigned to

prepare and improve the sales of the marketing firm as well as building relationships with

the customers. Research and Development Manager Mr. Gian Remiel B. Maranan and Mr.

John Mark L. Tosino is assigned for researching, planning and implementing new

programs and protocol for the enterprise to maintain its competitiveness. The Financial

Officer Mr. Mark Dhanwel R. Liwanag are responsible for the financial health, as he

manages the daily counting and financial of the marketing firm. Lastly, Accounting

Manager Mr. Ivan H. Dalisay are responsible for monitoring and analyzing accounting data

and producing financial reports or statements.

PHYSICAL EVIDENCE

Figure 1. Blueprint of the Office

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The H2O Enterprise is renting a space located at the LTK Building. The space is

fitted for small businesses which makes it suitable for H2O Enterprise. The office of the

marketing firm will be located at the first floor of the building. The marketing firm chooses

the space to be minimal. Basically, the space has seven areas which are the five office

rooms, break room and kitchen. The office 1 is the General Manager’s office, which is why

it is wider than the rest of the rooms. The marketing firm also chooses the break room to

be wide and open as much as possible for resting and bonding purposes during breaktime.

All in all, it is lovely for the marketing firm as a workspace because of its minimalist and

more on neat design.

Figure 2. Logo of the Enterprise

The logo represents how the H2O Enterprise came up with its name and how it

serves clients. It has its own meaning or connotation which reflects the marketing firm’s

ways of service and how it manages the business especially its customers.

Firstly, the hands represent helping hands which means the company is always here

to extend its service. The two hands also imply teamwork where the company works as a

team to help clients overcome the struggles in handling a business. On the other hand, the
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name of the company “H2O” or water simply defines one of the company’s core values –

transparency. H2O serves its clients without secrecy and hidden agenda. This means the

marketing firm ensures that every business transaction with the clients are well-

documented and the company is open to any inquiries. As the water is known for its

viscosity which is another core value, marketing firm instill to each employee and a value

all future clients. It will stick to its contract and most especially, stick to its clients’ needs.

Thus, the logo intricately defines what quality of service the companies has to offer

and the company’s attitude towards the rendition of its service and toward its approach to

clients.
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CHAPTER III

OPERATIONAL PLAN

Service Blueprint

MARKETING
CUSTOMERS
FIRM

BUSINESS
PARTNER

Figure 3. Service Blueprint

As a marketing firm H2O Enterprise aims to boost the sales of its business partner

by creating marketing strategies and providing recommendations to enhance the quality of

their product or service. Through careful assessment plans of the marketing firm, it will

provide attainable and sustainable goals for its business partner. Meanwhile, utilizing the

marketing strategy will enable the business partner to attract customers. Customers will

then be satisfied with the business partner’s service or product. In this way, H2O Enterprise

meets its goal to boost the partner’s sales.

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Manpower Requirement

H2O Enterprise recruit two additional staff that can help to develop the company

in order to gain success in business in which these people are skilled enough to enhance

and boost the operations of the marketing firm. The additional manpower of business with

their duties and allowance are shown below in Table 3.

Table 3. Manpower Requirements

Position Duties Allowance

(per month)

A brand ambassador acts as the “face” of a brand

Brand for a company. Ideally, he or she is hired by the
Ambassador company to help increase brand awareness and 500.00
sales by using their already established networks
and relationships to market the brand.

Search Engine Search Engine Optimization improves your site

Optimization to increase its visibility for relevant searches to
(SEO) garner attention and attract prospective and P 500.00
existing clients and customers to your business.

Quality Control Requirements

Clients and customers satisfaction are very important concepts that companies must

understand in order to remain competitive in business and hence grow. H2O Enterprise

used the SERVQUAL Model to measure these constructs from the consumers’ perspective

in order to better understand their needs and hence satisfy them to gain clients loyalty and

retention.
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Reliability

H2O Enterprise is a reliable marketing firm which offers the best service for the

future clients to build a strong relationship with them. Analyzing the recent strategies of

the business in order to seek out innovation and improvement.

Assurance

For the assurance, H2O Enterprise ensures to be open in new way of marketing and

new ideas with the best of their ability to provide excellent service to the clients while

forming trust in the process.

Tangible

The members of the H2O Enterprise will assure that their office is always clean,

and the furniture are well-organized to make the future clients feel welcomed as they enter

the office of marketing firm.

Empathy

The employees of H2O Enterprise are trained to empathize with the concerns and

insights of clients and customers and gain some valuable information to piece into their

strategy for bettering the business.

Responsiveness

The employees of H2O Enterprise will accept inquiries from 7:00 am to 2:00 am

on weekends while 9:00 am to 5:00 pm on weekdays through their different social media

platform in open hours.

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CHAPTER IV

ORGANIZATIONAL PLAN

Organization Chart

MARIANE CARANDANG
General Manager

KIANA GIAN JOHN MARK IVAN

CASTILLO MARANAN TOSINO LIWANAG DALISAY
Marketing Research and Research and Financial Accounting
Manager Development Development Officer Manager
Manager Manager

Job Description

General Manager

The General Manager or GM is an executive who has overall responsibility for

handling both the sales and expense elements of the income statement of a business, known

as the responsibility for profit & loss. A general manager typically oversees most or all the

marketing and distribution activities of the organization as well as the business's day-to-

day operations. Ms. Mariane Carandang is the one who is responsible for efficient

preparation, delegation, coordination, staffing, organization, and decision-making for an

organization to produce optimal profit-making results. Also, the General Manager's duties

will include allocating budget resources, formulating strategies, overseeing company

activities, tracking and empowering workers, controlling operating costs, ensuring good
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customer service, enhancing administration procedures, working with suppliers, recruiting

and training staff.

Marketing Manager

The role of this position presupposes to manage the marketing of the enterprise.

Also, the one who is responsible for several services or be in-charge of a single product. In

addition to that, a marketing manager needs to have an outgoing, gregarious, and

spontaneous nature. In concert with these traits, it is needed to be highly focused, detail-

oriented, and very conscientious of meeting budget restraints and timelines. Ms. Kiana

Cassandra Castillo is the one who is in-charge of putting together estimates and budgets

for marketing campaigns, submitting them for approval, working with advertising

agencies, being involved in negotiations, preparing sales, advertising contracts, and

reviewing advertising material such as print material, tv commercials, and online

advertisements. Also, regulating the marketability of the service, they test out the level of

public interest for a new service.

Research and Development Manager

Research and development manager perform a highly important roles within an

organization. They are responsible for research, planning, and implementing new programs

and protocols into their company and overseeing the development of new strategies in

giving a service. Mr. Gian Maranan and Mr. John Mark Tosino are responsible for selecting

the appropriate research methodology and supporting techniques to meet a defined business

objective. Depending upon the selected methods, they develop or assists in the

development of the research instrument. This position oversees the research projects,

analyzes results and provides recommendations based on findings. Also, this position sets
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strategies and procedures for collecting business dynamics, rivals and consumer

preferences analysis.

Financial Officers

A Financial Officer distributes a company's financial capital, is accountable for

budget preparation and assists the executive management team by providing insights and

financial advice to help the company's best business decisions. Financial officer Mr. Mark

Liwanag have knowledge of the problems, tax laws and laws that are unique to their

business or sector. Also, this position involves producing reports and research on the

company’s financial situation, as well as its short- and long-term goals. As well as,

providing inputs into key business decisions, such as mergers and acquisitions, expansion

and large deals.

Accounting Manager

The Accounting Manager will be responsible for managing and overseeing all

aspects of financial operations and employee relation which is needed to report directly to

the general manager. Mr. Ivan Dalisay goal is to fulfill revenue objectives and adhere to

accounting and reporting policies in which includes reviewing and analyzing finances,

ensuring compliance with regulations and refining reporting documentation. All of these

are performed while verifying the integrity and accuracy of financial operations,

safeguarding organizational assets and developing efficient business processes to record

revenue. Also, this position is responsible for overseeing certain contracts as it relates to

financial reporting, leading strategic planning for accounting policies and maintaining

internal controls over financial transactions.

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Legal Form of Ownership

H2O Enterprise will exploit general partnership as the form of business

organization in which the entrepreneurs have both responsibility for the business and

unlimited liability for business depts. This means that each general partner shares the both

benefits and the obligations. Managing the business by contributing different knowledge,

skills, experience or any kind of involvement with the business. With the contract of

general partnership, the entrepreneurs are jointly binding themselves to provide their full-

time services and best efforts on behalf of the partnership. Also, the marketing firm shall

receive a commission or salary for services rendered to the partnership. The marketing firm

have the power to manage the any kind of social media platform by assigning different task

and duty for the members to operate the business. Additionally, all partners are liable for

all the debts and obligation acquired in the business and the distribution of losses or profits

will be allocated equally among the partners. The following are the advantages of the

proponents on utilizing and selecting this form of ownership:

 Easy to establish. The marketing firm is simpler, cheaper, and requires less

paperwork which makes it easy to start.

 Easy to raise capital. The more partners there are, the more money there may be

available from their combined resources to invest into the business, which can help

to fuel growth.

 Ownership and control are combined. The partners both own and control the

business. If the partners can agree how to operate and drive forward the partnership,

they’re free to pursue that without interference from any shareholders. This can
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make a partnership business potentially more flexible than a limited company, with

the ability to adapt more quickly to changing circumstances.

 Better Decision-making. Compared with operating on your own, with the

marketing firm the business benefits from the unique perspective brought by each

partner. It is very often two heads really are better than one, with the combined

conclusion of debating a situation far better than what each partner could have

achieved individually.

 Wider pool of knowledge, skills, experience and contacts. Each partner will

bring and contribute their own knowledge, skills, experience and contacts to the

business, potentially giving it a better chance of success than any of the partners

trading individually.

 Partnerships do not pay income tax. Each partner files the profits or losses of the

business on his or her own personal income tax return. This way the business does

not get taxed separately.

Personnel Policies

 The normal work week for H2O Enterprise shall consist of five, seven-hour days.

Ordinarily, work hours are from 9:00 a.m. ‐ 5:00 p.m., Monday through Friday,

including one hour (unpaid) for lunch and 8: 00 a.m. – 3: 00 p.m. in weekends.

 Overtime pay, which is applicable only to Non‐Exempt Employees, is for any time

worked in excess of 40 hours in a work week. Only the Executive Director or his

or her designee, upon the request of an employee’s supervisor, may authorize

overtime. Payment of overtime will be provided in the pay period following the

period in which it is earned.

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 Paychecks are distributed on the 15th and the last day of each month, except when

either of those days falls on a Saturday, Sunday or holiday, in which case paychecks

will be distributed on the preceding workday.

 Anti-discriminatory policies pertaining to sexual harassment, orientation, religious

and political freedom, and cultural acceptance shall be implemented.

 During the first 90 days of employment full‐ and part‐time employees will not earn

Vacation benefits. During the remaining nine months of first year employment, a

full‐time employee will earn two weeks of paid Vacation.

 Scheduling policies also define the company protocol that deals with jury duty, sick

leave or family illness shall be implemented. It is to set rules and ramifications for

tardiness or unexcused absences.

 Employers should have a standard method of interviewing – meaning that each

candidate brought in should be subject to the same set of interview questions. In

standardizing hiring practices, if anyone is given a test, everyone should be given

the same test. In other words, employers can't pick and choose when to do

something.

 Employees may take one to fifteen-minute rest period for each four hours worked.

Such rest periods shall be considered a privilege and not a right and shall never

interfere with proper performance of the work responsibilities and work schedule

of each department. Break time shall not reduce working time.

 New and rehired employees shall serve a probationary period of six months

commencing with their first day of employment. Upon promotion, probation is six

months unless specified in the position or at the time of the promotion opportunity.
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 To voluntarily resign in good standing, an employee must submit a written letter of

resignation to the department head allowing at least ten working day’s advance

notice. Failure to submit a timely written resignation may preclude the individual

from future employment opportunities with the enterprise.

 Documents containing medical information shall be kept in a separate confidential

file that is not part of the employee’s personnel file. While these records shall be

treated as confidential, general manager may be informed regarding necessary work

restrictions and accommodations.

 If an employee is injured on the job, in most cases the injured worker will be entitled

to benefits under the state workers’ compensation law. The enterprise carries

employees’ compensation coverage and will assist employees in obtaining all

benefits to which they are legally entitled.

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CHAPTER V

FINANCIAL PLAN

Table 3. Actual Breakdown of Sales

Actual Breakdown of Sales

Name
of Product Commission Number of
Name Product Price Rate (%) Units Sold Commission
Dalisay, Ivan
H. Pots 20 5% 40 40
Liwanag, Mark
Dhanwel R. Dress 100 10% 5 50
Pots 20 5% 25 25
Maranan, Gian
Remiel B. Pots 20 5% 30 30
Tosino, John
Mark L. Dress 100 10% 3 30
Pots 20 5% 22 22
Carandang,
Mariane C. Pots 20 5% 50 50
Castillo, Kiana
Cassandra O. Pots 20 5% 30 30
Total 277
 32

Table 4. Statement of Financial Performance

H2O Enterprise

Statement of Financial Performance

For the quarter ended, 2020

Note Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4

Service ₱ ₱ ₱ ₱ ₱
Revenue 1 270,000.00 297,000.00 341,550.00 409,860.00 491,832.00
Less:
Cost of ₱ ₱ ₱ ₱ ₱
Services 2 136,500.00 137,700.00 139,020.00 143,376.00 143,376.00
Gross ₱ ₱ ₱ ₱ ₱
Revenue 133,500.00 159,300.00 202,530.00 266,484.00 348,456.00
Less:
Operating ₱ ₱ ₱ ₱ ₱
Expenses 3 254,500.00 244,800.00 245,295.00 253,554.00 254,464.80
Income
Before -₱ -₱ -₱ ₱ ₱
Taxes 121,000.00 85,500.00 42,765.00 12,930.00 93,991.20
Less:
Income -₱ -₱ -₱ ₱ ₱
Taxes 36,300.00 25,650.00 12,829.50 3,879.00 28,197.36
NET -₱ -₱ -₱ ₱ ₱
PROFIT 84,700.00 59,850.00 29,935.50 9,051.00 65,793.84
 33

Table 5. Statement of Financial Position

H2O Enterprise
Statement of Financial Position
As of Quarter 4, 2020
Not
e Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4
ASSETS
Current Assets
₱
-₱ -₱ -₱ ₱ 110,431.7
Cash 17,125.00 46,825.00 44,440.00 819.50 0
Total ₱
Current -₱ -₱ -₱ ₱ 110,431.7
Assets 17,125.00 46,825.00 44,440.00 819.50 0

Non-current
Asstes
Land &
Building, ₱ ₱ ₱ ₱ ₱
net 4 - - - - -

Machinerie ₱ ₱ ₱ ₱ ₱
s, net 5 13,500.00 12,000.00 10,500.00 9,000.00 7,500.00
Factory
Furnitures
& Fixtures, ₱ ₱ ₱ ₱ ₱
net 6 72,000.00 54,000.00 36,000.00 18,000.00 -
Total Non-
current ₱ ₱ ₱ ₱ ₱
Assets 85,500.00 66,000.00 46,500.00 27,000.00 7,500.00
₱
TOTAL ₱ ₱ ₱ ₱ 117,931.7
ASSETS 68,375.00 19,175.00 2,060.00 27,819.50 0

LIABILITIES
Current
Liabilities
Income Tax -₱ -₱ -₱ ₱ ₱
Liability 36,300.00 25,650.00 12,829.50 3,879.00 28,197.36
 34

Total
Current -₱ -₱ -₱ ₱ ₱
Liabilities 36,300.00 25,650.00 12,829.50 3,879.00 28,197.36
TOTAL -₱ -₱ -₱ ₱ ₱
LIABILITIES 36,300.00 25,650.00 12,829.50 3,879.00 28,197.36

EQUITY
₱ ₱ ₱ ₱ ₱
Owners' 189,375.0 189,375.0 189,375.0 189,375.0 189,375.0
Capital 0 0 0 0 0
-₱ -₱ -₱
Net -₱ 144,550.0 174,485.5 165,434.5 -₱
Profit/Loss 84,700.00 0 0 0 99,640.66
₱
TOTAL 104,675.0 ₱ ₱ ₱ ₱
EQUITY 0 44,825.00 14,889.50 23,940.50 89,734.34
TOTAL ₱
LIABILITES ₱ ₱ ₱ ₱ 117,931.7
AND EQUITY 68,375.00 19,175.00 2,060.00 27,819.50 0
 35

Table 6. Statement of Cash Flows

H2O Enterprise
Statement of Cash Flows
As of Quarter 4, 2020
Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Beginning ₱ -₱ -₱ -₱ ₱
Balance - 17,125.00 46,825.00 44,440.00 819.50
OPERATING
ACTIVITIES
Cash
received
from ₱ ₱ ₱ ₱ ₱
customers 270,000.00 297,000.00 341,550.00 409,860.00 491,832.00
Cost of
services ₱ ₱ ₱ ₱ ₱
actually paid 136,500.00 137,700.00 139,020.00 143,376.00 143,376.00
Other
operating
expenses ₱ ₱ ₱ ₱ ₱
paid 235,000.00 189,000.00 200,145.00 221,224.50 238,843.80
NET CASH
FROM
OPERATING -₱ -₱ ₱ ₱ ₱
ACTIVITIES 101,500.00 29,700.00 2,385.00 45,259.50 109,612.20

INVESTING
ACTIVITIES
Initial ₱ ₱ ₱ ₱ ₱
Investment 189,375.00 - - - -
Sale of ₱ ₱ ₱ ₱ ₱
Land - - - - -
Purchase of ₱ ₱ ₱ ₱ ₱
Assets 105,000.00 - - - -
NET CASH
FROM
INVESTING ₱ ₱ ₱ ₱ ₱
ACTIVITIES 84,375.00 - - - -

FINANCING
ACTIVITIES
 36

Payment of
long-term ₱ ₱ ₱ ₱ ₱
debt - - - - -
NET CASH
FROM
FINANCING ₱ ₱ ₱ ₱ ₱
ACTIVITIES - - - - -
TOTAL
CASH -₱ -₱ -₱ ₱ ₱
FLOWS 17,125.00 46,825.00 44,440.00 819.50 110,431.70

Table 7. Service Revenue

Service Revenue
%
Quarter
Service revenue increase Service revenue
₱ ₱
4 270,000.00 270,000.00
₱ ₱
1 270,000.00 10% 297,000.00
₱ ₱
2 297,000.00 15% 341,550.00
₱ ₱
3 341,550.00 20% 409,860.00
₱ ₱
4 409,860.00 20% 491,832.00

Table 8. Cost of Service

Cost of Services
Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Salaries ₱ ₱ ₱ ₱ ₱
expenses* 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Transportation ₱ ₱ ₱ ₱ ₱
expense 12,000.00 13,200.00 14,520.00 18,876.00 18,876.00
Other ₱ ₱ ₱ ₱ ₱
expenses** 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00
₱ ₱ ₱ ₱ ₱
Total 136,500.00 137,700.00 139,020.00 143,376.00 143,376.00
 37

Table 9. Operating Expenses

Operating Expenses
SELLING EXPENSES
Expenses Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Advertising ₱ ₱ ₱ ₱ ₱
Expenses 3,000.00 3,300.00 3,795.00 4,554.00 5,464.80
Total Selling ₱ ₱ ₱ ₱ ₱
Expenses 3,000.00 3,300.00 3,795.00 4,554.00 5,464.80
ADMINISTRATIVE EXPENSES
Office Supplies ₱ ₱ ₱ ₱ ₱
Expense 9,000.00 9,000.00 9,000.00 15,000.00 15,000.00
Maintenance
Supplies ₱ ₱ ₱ ₱ ₱
Expense 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Utilities ₱ ₱ ₱ ₱ ₱
Expense 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Rent Expense, ₱ ₱ ₱ ₱ ₱
if any 15,000.00 15,000.00 15,000.00 16,500.00 16,500.00
Salaries ₱ ₱ ₱ ₱ ₱
Expense*** 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00
Pre-operating ₱ ₱ ₱ ₱ ₱
expenses 10,000.00 - - - -
Depreciation ₱ ₱ ₱ ₱ ₱
Expense 19,500.00 19,500.00 19,500.00 19,500.00 19,500.00
Total
Administrative ₱ ₱ ₱ ₱ ₱
Expenses 251,500.00 241,500.00 241,500.00 249,000.00 249,000.00
TOTAL
OPERATING ₱ ₱ ₱ ₱ ₱
EXPENSES 254,500.00 244,800.00 245,295.00 253,554.00 254,464.80
 38

Table 10. Financial Expenses

FINANCIAL EXPENSES
Expenses Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4
-₱ -₱ -₱ ₱ ₱
Taxes Paid 36,300.00 25,650.00 12,829.50 3,879.00 28,197.36
Total
Financial -₱ -₱ -₱ ₱ ₱
Expenses 36,300.00 25,650.00 12,829.50 3,879.00 28,197.36

Table 11. Machineries, net

Machineries, net
Useful
Description Total Cost
life Depreciation Expense
Business Telephone ₱ ₱
System 3,000.00 10 300.00
₱ ₱
Printer
12,000.00 10 1,200.00
₱ ₱
Total
15,000.00 1,500.00

Depreciation Accumulated
Quarter Expense Depreciation Machineries, net
₱ ₱ ₱
Beginning of quarter 4 - - 15,000.00
₱ ₱ ₱
End of quarter 4 1,500.00 1,500.00 13,500.00
₱ ₱ ₱
End of quarter 1 1,500.00 3,000.00 12,000.00
₱ ₱ ₱
End of quarter 2 1,500.00 4,500.00 10,500.00
₱ ₱ ₱
End of quarter 3 1,500.00 6,000.00 9,000.00
₱ ₱ ₱
End of quarter 4 1,500.00 7,500.00 7,500.00
 39

Table 12. Furniture & Fixtures, net

Furnitures & Fixtures, net

Useful
Description Total Cost
life Depreciation Expense
₱ ₱
Chair
10,000.00 5 2,000.00
₱ ₱
Table
15,000.00 5 3,000.00
₱ ₱
Desk
15,000.00 5 3,000.00
₱ ₱
Other Furnitures
50,000.00 5 10,000.00
₱ ₱
Total
90,000.00 18,000.00

Depreciation Accumulated
Year Expense Depreciation Machineries, net
₱ ₱ ₱
Beginning of quarter 4 - - 90,000.00
₱ ₱ ₱
End of quarter 4 18,000.00 18,000.00 72,000.00
₱ ₱ ₱
End of quarter 1 18,000.00 36,000.00 54,000.00
₱ ₱ ₱
End of quarter 2 18,000.00 54,000.00 36,000.00
₱ ₱ ₱
End of quarter 3 18,000.00 72,000.00 18,000.00
₱ ₱ ₱
End of quarter 4 18,000.00 90,000.00 -
 40

Financial Statements Analysis

Table 13. Liquidity

Current Ratio
Current ratio = Current Assets / Current Liability
Quarter Current Assets Current Liability Current Ratio
4 -₱ 17,125.00 -₱ 36,300.00 0.47
1 -₱ 46,825.00 -₱ 25,650.00 1.83
2 -₱ 44,440.00 -₱ 12,829.50 3.46
3 ₱ 819.50 ₱ 3,879.00 0.21
4 ₱ 110,431.70 ₱ 28,197.36 3.92

Table 14. Profitability

PROFITABILITY
Return on Sales
Return on Sales = Net Profit / Total Sales X 100
Quarter Net Profit Total Sales Return on Sales
4 -₱ 84,700.00 ₱ 270,000.00 -31%
1 -₱ 59,850.00 ₱ 297,000.00 -20%
2 -₱ 29,935.50 ₱ 341,550.00 -9%
3 ₱ 9,051.00 ₱ 409,860.00 2%
4 ₱ 65,793.84 ₱ 491,832.00 13%
 41

Table 15. Payback Period

Payback Period
Cost of Investment Average Annual Cash Flows Payback Period
More than 8
₱ 189,375.00 ₱ 22,086.34 8.57 quaters

Table 16. Return on Investment

Return on Investment
Return on Investment = Net Profit / Cost of Investment X 100
Cost of Return on
Quarter Net Profit Investment Investment
-₱ ₱
4 84,700.00 189,375.00 -45%
-₱ ₱
1 59,850.00 189,375.00 -32%
-₱ ₱
2 29,935.50 189,375.00 -16%
₱ ₱
3 9,051.00 189,375.00 5%
₱ ₱
4 65,793.84 189,375.00 35%
 42

Table 17. Total Project Cost

TOTAL PROJECT COST

Acquisition of Assets/ Payment for pre-operating expenses
Purchase of Assets ₱ 105,000.00
Payment for prepaid expenses ₱ 8,250.00
Purchase of materials needed ₱ 1,125.00
Pre-operating expenses ₱ 10,000.00
Total ₱ 114,375.00
Working Capital
Salaries expense (Direct labor) (3 mos.) ₱ 30,000.00
Salaries Expense (3 mos.) ₱ 45,000.00
Total Working capital ₱ 75,000.00
TOTAL ₱ 189,375.00

Table 18. Initial Capital Requirements

Initial Capital Requirements

Member 1 ₱ 31,562.50
Member 2 ₱ 31,562.50
Member 3 ₱ 31,562.50
Member 4 ₱ 31,562.50
Member 5 ₱ 31,562.50
Member 6 ₱ 31,562.50