TABLE OF CONTENTS

Page
I. Executive Summary 2-5

II. Description of the business

A. Company Names 6-7
B. Product/Service 7
C. Mission and Vision 7-8
D. SWOT Analysis 9-10

III. Marketing Plan

A. Target Market 11-12

B. Market Program
1. Product strategy 12-15
2. Place strategy 15-17
3. Promotional strategy 17-21
4. Pricing strategy 21-26
IV. Management Plan

A. Form of ownership 27-30

B. Organizational chart 31-33
C. Implementation and activities 34-37
V. Production/Technical Plan

A. Description of the product 38

B. Manufacturing process 38-41
C. Raw materials and supplier 41-42
VI. Financial Plan

A. Total project cost 43-47

B. Sources of financing 48-49
C. Financial statements 49-51

VII. Documentation

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I. Executive Summary

As food undergoes an unending phase of new discoveries, innovation and

distinctiveness plays a vital role in the presentation and introduction of products

in the market. And serving as the main course in every Filipino‟s meal, rice

continue to dominate food offerings served in most cuisines. But, as

entrepreneurs continue filling the craves of the society, rice gained its‟ own

identity, leading to experiments with its form, presentation and capability to fit the

dynamic taste and preference of consumers.

Sprice is a business under the food industry offering a full meal with rice

as the core ingredient of its product. It is fried rice mixed with meats and

vegetables, enfolded inside a crunchy lumpia wrap.

This product is intended for the consumption of individuals, of all ages, and

specifically for those who have a hard time having meals at an uncertain place

and time. With a ready-to-eat form, Sprice also comes in an affordable price, of

classic Filipino tastes made to satisfy the needs of consumers, whether on meal

preferences, flexibility on unusual time and destination or its‟ affordability.

Sprice, one of the first food businesses made to provide healthy,

affordable and convenient rice meals in a wrap. It focuses on providing rice meal

with the touch of homemade dishes. Rice being its main ingredient makes it more

appealing to the market, since Filipinos has a great love to rice. It is age adjusted

and suits the distinct tastes of every market in its 3 available flavors. This menu

will be change monthly by improving and adding new flavors to the normal menu

it offers. In addition, it is packed in a box where our customers can easily

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consume it, in any way they wanted. Sprice aims to reduce our customer‟s

expenses in buying their meals. It primarily targets busy and assiduous markets

that are too occupied in doing their works. Sprice does not only focused on

providing great tasting food but also gives an eye in the welfare of all the

customers same thing for its employees. And for them to feel that once they go

nearer in our area they will be greeted by our warming smiles, cause we believe

that happy employees makes a happy customer.

As a result of the analysis conducted present strengths, weaknesses

opportunities and possible threats of the business are identified. The curiosity

that may develop by the market within our product is one of the strengths our

business have .However, the possibility that customers remain loyal to their “suki”

stores is one of our weaknesses while the curiosity of the teenagers in trying new

things is an opportunity for us. If they decide to choose new food stall, our

business is just a distance. On the other hand, the possible suspension of

classes and vacation of students is a threat that can decrease our sales.

It was originally for off-trade distribution but for our customer‟s comport

ability we provide a vintage theme stall. It will be the perfect place to stop in for a

bite to eat for group bonding. In terms of location, it is placed in the area

reachable by our targeted customer. Sprice will be open 5 days a week and

offers special promos every Fridays, due to the reason that most of our target

market are students and they don‟t usually have classes on Saturdays and

Sundays. Time starts at 6am to 7pm for 5 days.

About the price, we use market skimming which is starting with high prices

then gradually decreasing to maintain our customers‟ loyalty. Although it is said to

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be in high price it is still affordable for our customers. The high price can induce a

high quality product that every customer is looking for. Considering all the

variables involve then computing for the production cost and adding a fixed mark

up percentage is an easy way to decide for our products price. But if market

responds negatively we can start reducing our price. Instead, we‟re going to use

psychological pricing by using our customers‟ emotional response to pricing. It

includes our special offers every Friday where if customers buy 2 orders they

could receive a piece of spice for free.

In promotion, we choose to use different kind of mediums such as Internet,

prints and personal interaction. Printing enough number of papers for

advertisements / tarpaulins that will be posted in designated areas will bring

customers the awareness that our product exists. It will be followed by opening

social media accounts in Facebook, twitter, and instagram. Through this media

we can easily reach even our farthest market with just one click.

This account will be updated to continue the knowledge impartation of our

product to customers. In line with this, to gain positive image and outlook towards

customers we are by to launch a short commercial story through the means of

social media again. Internet is a tool in marketing that every business should

never hold back. Comedy and societal condition is our commercial theme since

people love weird stories and at the same time they always pay attention with this

condition. While, for personal approach we‟re distributing our product‟s samples

in different rooms and sections for them to taste how good our product is. These

samples will be the basis of their feedback or satisfied they are with our product.

We are also open with criticisms and commentaries they offer. Through

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 marketing efforts Sprice will be a well known business after several working

years.

There will be a table for the assignment of tasks. These are based on their

position in the business and the strengths every member has as an individual. A

specified date starting from November, two months before the opening month is

the start of the promotional action.

For most business, setting a budget promotion is an expense but for us it

is an investment. Though promotion, the allotted budget must fit the overall

expected expenses of the business. Allotting small amount of money to persuade

the market is like investing and expecting sales as return. We are using

“objective and task” in setting our budget.

There are possible changes in sales; increase brought by advertising activities

and decrease depending on the market‟s schedule. At the end of the fiscal year,

a net profit of P68, 432.71 is expected since the price set to the product is

enough to carry on the expenses used by the business. As a junior business,

being wise is a must because we are competing with a wide range of market.

II. Description of the Business

This chapter presents the background of the business with the business

concept and description, the business logo , its‟ vision and mission , the product

offerings and justification.

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A. Company Name

Sprice Company is a food business that offers food primarily intended for

persons who are too busy to find time eating their meals. The business starts with

the question “What does the Market needs that most business doesn‟t offers?”,

but it precedes with the question “Who is our target market?‟‟. Sprice Company

rooted its name from the words SPice and RICE. Rice is the main ingredient of

our product. Hence, Filipinos love eating rice, more often they did not consider

their food as a complete meal if the presence of rice doesn‟t exist.

Considering that University Of Batangas community is our target market, it

was dominated by the students coming from different levels. In line with this, the

common problems of every student are their busy schedule and allowance

shortage. The special feature of our product which is meal in a wrap , in grab and

in bite form allows customers to eat meals conveniently even when walking or

doing works that are too important to leave and not too costly. Customers will not

worry about the time they will consume waiting in lines to order meals or how

they will push an important meal to their unending schedule and they don‟t need

to unwillingly skip meals.

Figure 1: Logo of Sprice Company

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 The simple yet striking-colored design of Sprice Company is a symbol of

happiness, delicative and joy of eating. With the colors of orange and yellow,

having orange as its prime identity, marks Filipino fun eating and helps in

stimulization of appetite. Since, orange is also considered as a striking color,

Sprice embraces its purpose meant for all ages, of all gender.

Our company offers an innovative, high quality, delicious and healthy

product that can be a great help to our target market.

B. Product / Service

Sprice Company will produce the first ever ready-to-eat full meal of classic

and healthy Filipino cuisine— fried rice, mixed with meats and vegetables,

enfolded in a crunchy lumpia wrap; with a recognition that a vital aspect of selling

products is to provide satisfactory output to inspire sales. The business‟ unique

proposition gives way to the society‟s new meal experience.

The Sprice food cart business provides a variety of offerings that could

appeal to consumers and contribute to further innovations regarding full meal

specialties. Such variety of offerings include: (1) Sprice Veggie, a fried rice mixed

with green peas, corn, carrots, potatoes and parsley; (2) Meaty Sprice, a fried

rice with pork meats; and (3) Mixed Sprice, a combination of vegetables and

meat.

C. Mission and Vision

Vision

Sprice Company envisions:

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 To be the business that provides an innovative food of high quality

ingredients and is credible in meeting the expectation of its‟ consumers for their

continuing patronization of the business‟ products. Through this, we also envision

the business to be the leading profit-generating business around the province of

Batangas in a few years‟ time through the continuous exemplary position in the

market and in the business world.

Mission

Sprice Company aims:

 To be the business that offers a high quality,delicious and healthy product in

an affordable price intended to showcase an innovative food offering to the

community.

 To be a consistent food cart business in the market in terms of stability and

profitability maintaining the competitiveness and innovative drive as a contribution

to the society‟s economic growth.

 To be the customer‟s choice in terms of product quality and offerings that

leads to continuous patronization to the product of new or return customers.

 To ensure the accommodating and professional relationship between the

customers and the employees for a better transactional environment.

 To be the employees‟ choice in terms of a healthy and developmental

workplace that urges the growth of each staff personally and professionally.

D. SWOT ANALYSIS

Performing a SWOT Analysis helps one thoroughly understand his business

by presenting a viewpoint of the company‟s operation from the different angle. For

new businesses, this analysis is critical to the organization‟s planning process.

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 Table 1

SWOT Analysis

STRENGTH OPPORTUNITIES

New in the market so if the market Location is only a distance with its target

develops curiosity within our product they market so attracting customers would be

tend to try exploring things to satisfy it. slightly easier than expected.

Convenient for on the go person Customers always like to try new so if

because it offers fast service of food they decided to choose to try new food

particularly made for easier meals. our business is just a distance and can

be easily recognized.

Offers wallet- friendly product in average People love rice and a day wouldn't end

prices that can be afforded by many. without it.

Location is beyond the reach of the Some business may offer something

target market which are students and that can benefit our business like buying

employees. a wholesale product specially rice and

received a trade discount in return.

Only few competitors are well-known by Development of technology in the form of

the market and mostly small dine in stalls internet and social media renders us a

are only present huge help to promote our business within

our socially inclined market

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 Local and district events offers an

We offer special promo "buy 2 take 1" opportunity for us to temporarily build

but only every Fridays, to gain customers stalls to sell our product near or within

the exact location.

Bigger events and programs that are

The vintage style of stall for every
chosen to be held in school
customer like students, lovers or solos
increases the number of our potential
attracts the market.
customer

WEAKNESSES THREATS

There could be possible increase in

The crispiness of the wrapper may
the price of our supplies or if there
lessen when exposed to air.
are calamities present.

When class suspension happens or

Consumers might prefer other well-
during holidays our possible customers
known food stalls.
lessen in number.

Most classes are only due for weekdays

so our sale will surely decrease during

weekends.

Chapter III. Marketing Plan

This chapter presents the target audience of the business as well as the

strategies of the business in the market.

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A. Target Market

Finding a potentially profitable location is also essential for a business to

attract the target market they want. The target market of the Sprice products are

individuals and citizens who have a hard time prioritizing the consumption of their

meals due to their busy schedules and workloads, regardless of age and gender.

Sprice business‟ specific main targeted markets are employees, students and

other staffs inside the University of Batangas, Main Campus‟ premises. There is an

estimated (no. of estimate) population on a normal school day. With more than 500

employees and staff, and 10,000 students residing in the main campus— each with

estimated spending capacity of Php 4,000 annually on Sprice‟s products, creating a

total expected initial market of Php 42,000,000 yearly.

Market Segmentation

a.Students

Individuals from ages 12 to 26 years old who resides inside the premises of UB

Main from Mondays to Fridays are one of the target markets. It covers the students

from the high school up to the college department, including graduates who are

taking extra classes. These high school to college students are assumed to belong

in middle class and high class of the society since the given school was considered

as private institution but still there are students who experience allowance shortage

since their allowances are mostly provided by their parents or guardians. It was

forecasted to be 63 % of approximated 10,000 possible customers may come from

this target market.

b.Employees and Staffs

Individuals from ages 22 years old and above, who works at UB Main from

Mondays to Fridays, may they be permanent or part-time staffs, are one of the

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 specific market of the product. . Compare to students they have higher income for

they are already receiving their wages. Being the busy people who does particular

jobs to earn money, every centavo they earn were only intended for important

things, and the daily meal is one these valuable things . They become wise in

choosing the most convenient food they could have and our food is definitely a

wise choice.

c.Event Attendees

Attendees of events held at UB Main, formed in groups or organizations

from different local areas, regardless of income, social status, education and

occupation, that often or seldom visits the campus are also included in the possible

market of the business.

B. Market Program

This presents the strategies of the business, in terms of its‟ product,

destination,promotion and pricing.

1. Product Strategies

As entrepreneurs, we want to earn profit as high as we can at the same time

giving benefit to the customers. We decided to choose this product , the sprice, to

help and comply on the customers‟ needs. In addition, this kind of product was also

new to market because it is innovative delicious, high quality,and healthy product.

Sprice is a product made directly from its‟ founders— with no other channel of

manufacturing but the manpower of the company and the ingredients purchased

from the suppliers

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a. Product Offerings

Sprice product of Sprice Company focuses on the wrapped fried rice to fill

the needs of consumers and target markets. The Sprice provides specific offerings

to match the preferences of the consumers.

Table 2

SPRICE OFFERINGS

OFFERINGS DESCRIPTION

Fried rice mixed with garlic,

 Sprice Veggie onion, green peas, carrots,
egg, sweet potato, chayote
and corn bits

 Sprice Meat Fried rice mixed with garlic,

onion, corn bits, and ground
pork

Fried rice with toppings of

Sprice Veggies and Sprice
Meat combination— such as
 Sprice Mix
garlic, onion, meat, carrots,
chayote, cabbage and corn
bits

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 Table 1. Sprice Offerings, shows the variety of Sprice products that the

business offers, together with its‟ every description. The offerings are (1) Sprice

Veggies, (2) Sprice Meat, and (3) Sprice Mix.

b. Packaging and Labeling

There are two types of packaging for Sprice products:

1. Three-In-One Box

This is made out of brown paper card, formed to a box with an enough space

for three different product offerings. The box has a vintage color with the print of

the business logo and tagline in front. Those are the two important things that our

customer should easily recognize. It holds our business‟ identity and it stands the

type of business we are. The upper portion of the packaging is provided to show

the type of Sprice they ordered. A transparent plastic covers the 1/6th portion of the

box for the visibility of the products inside. The basic information of the business is

printed at the back portion of the box. It includes our business name as the

manufacturer, our telephone number, website for contact details. Lastly,

ingredients use in our product is also cited in this part for customers‟ awareness in

terms of allergic situations. Words are properly printed so customers can easily

read it with their bare eye.

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 FRONT BACK
Figure 2.

Three-In-One Packaging of Sprice

2.) For Singles

This is the packaging intended for single orders and purchase. This

packaging is made out of brown paper with the size just enough to hold one

product. The business logo is printed in the front part of the brown paper.

Figure 3.

Single Packaging

2. Place Strategy

Once you know who your target customer is, you can select the right places

to sell your product or service. The businesses location is the key to successful

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 operations and overall growth. When choosing your location, the business must

consider company needs, customers, employees and equipment needed to

complete the service. The location of our food cart business is inside the campus of

University of Batangas.

Sprice as a start-up business intends to introduce its product through a stall

inside the canteen premises of UB Main Campus. Since it is still new to the market,

locating the product at an unfamiliar area with unfamiliar market could affect the

profit generation of the business. Because of this, the business intends to lease a

space at the university cafeteria to first and foremost, introduce the product to the

campus students.

Figure 4:

Sprice Stall

Distribution Channel

Sprice uses producer to consumer distribution channel. Since Sprice is a

new product, finding retailers would be risky since patronizing the product is not yet

guaranteed. Direct-to-consumer distribution is the shortest yet one of the most

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 applicable distribution strategies for a starting business with no permanent position

in the market.

C. Promotional Strategy

Promotion is essential for a business as this matter makes the customer

aware of it and attracts the market. Good promotion means good image to the

market and it makes the business popular to the citizen, eventually.

Aside from direct-to-consumer promotions or personal communication, the

business also practices online advertising and public promotions to inform the

consumers of the Sprice product.

Personal Communication or Direct-to-consumer Promotion

As the common medium of advertising the product to the public, Sprice

practices sales talks and offers free-taste to its consumers, specifically to the

students present at the campus premises.

No matter how good our product is, it will not make sense as long as it

doesn‟t catch our target market‟s interest. Personal interaction between customers

and our company develops trust and shows unfeigned intention of our business to

help customers solve their problems. Since every business build to provide solution

person to person marketing, product demonstration and trade show talks capture

market‟s attention a lot better than posted papers.

In addition , asking for the school‟s permission to allow us giving few samples

of our product to their students. The free taste may lead the consumer to the 3rd

stage at buying which is the liking. And having a positive feeling towards our

product is our expected outcome of this marketing action.

Non-Personal Communication

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 Public Promotion

For an additional medium of introducing and informing the product to the

public, the business provides poster displays and banners to evident areas in the

campus premises, as approved by the school‟s administration. We are posting

displays such as banners and posters of Sprice in areas where it can be easily

seen by our chosen market. Sprice's logo, the products it offers, its special

features and benefits of the product ,as well as all important information our market

should be aware to gain their interest where indicated in this poster. Through this

print advertisement we can inform the market that our product exists and

encourage them that they should give it a try.

We decided not to use flyers even it is better for broader

distribution because based on observation most printed papers are neglected by

costumers.They doesn't give attention in reading its content and most of the time

they just crumpled it, kept in their purses until forgotten to be read and throws at

the sidewalks. We assume that by these circumstances it will just be a waste

of money for printing flyers. It is more ideal to use posters that can catch our

market's attention.

Media and Online Advertising

THE THEMES OF OUR ADVERTISEMENT or Commercial

Getting a little weirder is another way of promoting our product. Netizens

enjoy funny, unusual and cranky posts. In addition, people pay attention to a thing

when it involves weird action, so we end up plotting our commercial with the

mixture of comedy and societal condition. The story goes this way:

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 The story starts with the scene of a woman literally pumping her leather

wallet. Ambulance were on the scene to rescue. The people were on panic as if

there was a person dying at the middle of the street. After many attempts of

pumping the wallet a P20 pesos come out. The woman, who is the owner of the

wallet was amazed when she saw the 20 pesos. She tried to buy some food on the

canteen only with the 20 -peso bill but she only got half hotdog sandwich which will

obviously not satisfy her cravings. Then suddenly someone offered her Sprice, for

only 20 pesos she already has a one complete meal. Together with her friends,

they tried and tasted the Sprice. Everyone was amazed of how it was delicious at

an affordable price of 20 pesos. DELICIOUS! AFFORDABLE! AND HEALTHY!

SPRICE! “Magugulat ka sa Sarap!” ;Sprice must Thrice!

Although doing commercial requires a lot of time and bit of expense, it is a

powerful way of marketing our product. A lot of people watches advertisements and

acknowledges a product by visual means.

Online Advertisement

Aside from the video commercial that of Sprice‟s production that is posted

on social media, the business also has accessible accounts online including

Facebook (Sprice), Twitter (@sprice_ph), and an Instagram account (@sprice_ph),

that is made available and active for the public to visit and check the variety of

offerings.

Nowadays, one of the best ways to promote a product to the market

is online.Having a strong socialmedia presence is another clearcut but too importan

t to ignore marketing strategy.

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 The use of different sites especially facebook and instagram in posting high-

quality, drool-inducing photos are necessary for drawing our market's hungry eyes

at Sprice. The photo provides the best visual content to the dominating

percentage of tech-based citizens. A certain study states that most netizens gain

interest in visiting a food business is by browsing through their social media

accounts. The continues post of our account will update the market of

our latest product improvement and promo. Through this way of promotion, we're

going to use it as a key strength to the other business and attract more customers.

Figure 5: Figure 6:
Instagram account Twitter account

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 Figure 7: Facebook account

D. Pricing Strategy

Pricing a product looks very easy but in fact, it is one of the toughest part

specially in small business. A business should consider different variables that are

involved in the production. As per based on the different variables involved in the

production of the product, the selling price is decided upon. With this, the cost of

production, including the direct materials, direct labor and overhead is considered in the

pricing process of the product, together with the percentage mark-up. The pricing

strategy we are going to use affects the possible sales we could get for each transaction

so it is important to choose the right pricing strategy for our product.

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1. Cost of Production

Table 3

Specific Product Composition

Ingredients Meat Veggies Mix

Wrapper 1.133144476 1.133144476 1.133144476

Vegetable 1.980169972 1.980169972 1.980169972

Oyster Sauce 1.529745042 1.529745042 1.529745042

Egg 0.5099150142 0.5099150142 0.5099150142

Meat 1.671388102 1.671388102 1.671388102

Rice 1.558073654 1.558073654 1.558073654

Oil 1.019830028 1.019830028 1.019830028

Corn 0.6798866856 0.6798866856 0.6798866856

Seasoning 0.5325779037 0.5325779037 0.5325779037

Total Amount /
3,747/353 3,747/353 3,747/353
No.of units

Unadjusted Unit Price 10.61473088 10.61473088 10.61473088

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Direct Materials

Table 4

Direct Materials
Original Useful life
Tools Monthly Day Per Piece
Cost years

Chopping
50 5 0.8333 0.0321 0.0001
Board

Knife 50 5 0.8333 0.0321 0.0001

Kitchen
75 5 1.25 0.0481 0.0002
Turner

Equipment

Pan 250 7 2.9762 0.1145 0.0004

Kitchen
1,000 7 11.9048 0.4579 0.0015
Stove

Talyasi 1,500 7 17.8571 0.6868 0.0023

TOTAL 5,175 61.8452 2.3788 0.008

Table 3. Direct Materials, shows the materials used in the production of the

product, together with the original cost of every tools, its‟ useful life years, and

depreciated values as divided into monthly, daily or per piece.

Direct Labor
Php.2.10 per pieces.

x 353

Php. 741.30
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Direct Overhead

Table 5
Direct Overhead
Utilities

Consumption Per Month Per Day Per Piece

Gas Consumption 290 11.1538 0.0372

Water Consumption 500 19.2308 0.0641

TOTAL 790 30.3846 0.1013

Product Cost Estimation

Direct Material 10.61473088 + 0.008

Direct Labor 2.10

Direct Overhead 0.1013

Php. 12.81683088

Markup 30%

12.81683088 x 1.30 = Php.16.66188014

Selling Price: Php.20.00

2. Pricing Strategy

The primary objective of business‟ pricing is to earn profit. We can either

decrease or increase the mark up percentage of our product based on the pricing

strategy we want to apply, Sprice chooses the latter.

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 Market skimming is designed to help our businesses maximize our sales on

new product or services. Though we cannot deny the fact that there is a

possibility that market feels negative on buying lower-priced products because of

the doubt in the quality of the product. For this reason we chooses Price

skimming, which involves setting rates high during our introductory phase. This

strategy works on our products that are highly anticipated products like rice.

Then, gradually reduce our price to get our next income tiers as our competitors

also starts to appear the market. The "high" prices create an illusion of quality

and exclusivity when our product was first introduced in the market. Though it is

entirely not an illusion because we are offering quality foods.

For pricing strategy we will start by adding our decided percentage mark up.

30% Markup may seem to be a low for the view of other businesses but looking

to our chosen market it is still high. If the market starts to patronize our product

even at slightly high price we will continue with our first planned, market

skimming. However, if the market reacts opposite to the expected, we will start

doing other strategies. Psychological pricing, a pricing strategy that deals with the

market's emotional response and whose primary goal is to increase sales by

attracting customers. Through free pricing we are offering buy 2 take 1 orders for

Fridays. We chose Friday because it is the day where workers got their salaries.

This pricing strategy focuses more on attracting customers but still helpful in

increasing sales.

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3. Comparison to competitor

In our chosen location, existing food stalls like kerrimo , waffle , shawarma

,potato wraps are our dominant competitors. Small retail stores that offers

everyday items such as dips, confectionary, bottled drinks and other products

that are mostly processed foods. The products they offered are intended for light

meals or snacks that aren‟t good for children‟s appetite.

Existing stalls in the canteen of University of Batangas seems to offer more

expensive product than what we offer and “carinderias” outside the vicinity seems

to offer cheaper products that those products offered by the University of

Batanagas but usually the charge significantly higher prices compare to the

amount of the product we offer. They are located along sides of busy roads so

their products are exposed to dirt and polluted air from the environment. Unlike in

our business, we provide a comfortable environment and ensure that our

workplace is well maintained to produce a clean and delicious product. Our

products are not just for snacks but are also intended for meals but unlike what

our competitors offer, our products are in lower prices.

Another thing, the unsafe condition of the surroundings may affects the

security of the customers. There are possible accidents that may happen outside,

but the stalls we have, can accommodate and secure customers since it was

located inside the campus of University of Batangas . We are not saying that our

customers are hundred percent safe but our business is trying our best to provide

the best environment for them. In addition, Sprice‟s products are better for meals

than air-filled junk foods our competitors offer.

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 On the other hand, “carenderias” which are convenient food stall for

customers, who wants to save and doesn‟t have any choice where to go. Sprice

offer a new choice for the market where they can avail meals easily and

affordable.

Chapter IV. Management Plan

This chapter presents the form of ownership, together with the

organizational chart and hierarchal form of the business.

A. Form of Ownership

Sprice Company is a form of a sole proprietorship business that is owned

and managed by only one person. The owner of this business was Ms. Ana

Grace O. Vidal. This is an unincorporated business with a single owner, Ms.

Vidal, who earns all the income gained by sprice company and pays personal

income tax on profits earned from the business. This type of business was

chosen because it is the simplest form and best suits for the product it offers.

With little government regulation, a sole proprietorship is the easiest business to

set up or take apart, making sole proprietorships popular among individual self-
contractors, consultants or small business owner.

Ms. Vidal, the owner is in direct control of all elements and is legally

accountable for the finances of such business and this may include debts, loans,

loss, etc. As a sole trader, she does not necessarily work 'alone'—it is possible

for the sole trader to employ other people such as one service crew who will be

trained to work and operate the Sprice food cart.

27 | P a g e
 1. Legalities

Sprice is a legal form of business owned by only one sole trader

namely Ms. Ana Grace O. Vidal. Specifically, The sole trader receives all profits

(subject to taxation specific to the business) and has unlimited responsibility for

all losses and debts. Every asset of the business is owned by the proprietor and

all debts of the business are the proprietor's. In creating a business, many things

should be considered. One of the very essential things is obtaining business

permits and licenses. The business must be consistent in realizing its legalities;

otherwise, it might end up in facing lawsuits. Below are the important business

permits and licences that are required to operate a business in the Philippines:

a. Barangay Clearance

This clearance certifies that your business complies with the requirements

of the local barangay where your business will operate.

These are the requirements needed to secure a barangay clearance:

 Community tax certificate or cedula

 Application form, and
 Valid ID (SSS ID, passport, postal ID, or any government-issued ID)

It clarifies that the business successfully complies with the requirements of the

local barangay where the business will operate.

b. Department of Trade and Industry (DTI) Business Name Registration

Certificate

Obtaining a registration certificate from DTI is also important. This

certificate authorizes you to use your own trading name for any business-related

operation. It also secures your name from being used by someone else. Although

28 | P a g e
you are given a right over your business name, running a business without TIN,

barangay clearance, or other licenses is useless.

This requirement authorizes the business to use its own trading name. It

also secures the business name that it won't be used by other related

businesses.

c. Mayor's Permit or Business Permit

Mayor‟s permit is sometimes referred to as business permit, since it is

processed in the office of the mayor. Since all cities have different ordinances,

securing a mayor‟s permit ensures that your business is safe to operate under

your city‟s ordinance. Take note that receiving a mayor‟s permit can only be done

after registering your business with DTI (for self-employed individuals) and

Securities and Exchange Commission (SEC; for corporations and partnerships).

Mayor‟s permit needs to be renewed annually.

Since all localities have different ordinances, securing a Mayor's permit

ensures that your business is safe to operate under the rules of the city. This

permit is renewed annually and can only be done after registering the business

with DTI.

d. School Permit

It is necessary to get permission from the school head allowing the

business to operate. Academe ensures that all products available on the school

canteen were safe and healthy. A permit to operate is a prerequisite in securing

a business permit for the existing businesses inside the school premises

29 | P a g e
 2. Business Type

The business is a manufacturing and service type since it makes sprice goods

by hand that when, it is done, and it will be sold to the customers. The items used

in manufacturing will be raw materials and ingredients. The other business type

used is the customer service. It is the process of ensuring customer satisfaction

with a product or service. This often takes place while performing a transaction

for the customer, such as making a sale. This can be taken in the form of in-

person interaction, a phone call or by other means. This is important in maintaining

ongoing client relationships, which are keys to continue the revenue. Manufacturing

and service type best fit the business because we are giving services while

producing our product. This is a very common type used in every existing business

in the world.

3. Product/ Service Benefit

Sprice Company is not only targeting to have a financial rewards which

comprises profits and gains. It also wants to provide their customers with benefits

and high quality service taken professionally. Aside from offering clean and

healthy products Sprice Company is also determined to become a daily necessity

for every man, it is a food of every customers who craves not only for delicious

and healthy but a handy food where they could eat anytime and anywhere. Since

this food is convenient to eat and provides proper nutrients from the vegetables

most specially the for the vegetarian students, professors and all other school

personnels will be benefitted. Sprice Company will provide the most affordable

yet palatable meal available for all people inside the school premises. The

30 | P a g e
 business will make its best effort to maintain serving a well cooked and fresh

product because for the company, consistency on providing high quality product,

clean working area and excellent customer relationship is the most important

B. Organizational Chart

Figure 8. Sprice Organizational Chart, shows the organizational hierarchy of

the business, starting from the top level management, to the middle level

management, then to the lower level management. This also shows the position of

each individual in the business operations.

Figure 8.
Sprice Organizational Chart

Ana Grace Vidal

President

Dara Fae Gocon

Auditor

Josef Ree Diamond Cusi

Vice President

Clouie Mendoza
Secretary

Khrizcia Marie Medina Alondra Almazan Jeferson Latorre

Finance Manager Sales Manager Production Manager

Tim Aracel Tolentino Francis Emmanuel Eloida Ilagan

Treasurer Tolentino Purchasing
Marketing

Raychelle Mendoza Jamelah Ramirez

Janella Magtaas Monique Perez Bernadeth Catral
Alexa Dela Cruz Verna Imperial Ann Joshua Quenery
Staff Angelee Vin Garcia Staff
Precious Kaila Sawali
Staff

31 | P a g e
 Top Level Management

The highest positions in the hierarchal system of operations composes the President/

Business Owner, its‟ Auditor, the Vice President, and the Secretary.

1.) The President, Ana Grace Vidal, who is the sole proprietor of the Sprice

business, is responsible in providing the strategic leadership to the company by

working with the other top level managers. The president is responsible in

establishing long- range plans of the business, as well as the goals, the policies

and strategies. She handles the overall planning, developing, organizing,

implementing, directing and evaluating the business‟ fiscal function and

performance.

2.) The Auditor, Dara Fae Gocon, practices the final analysis of the financial

statements and monetary records of the business for the assurance of its‟

credibility and validity. She is also responsible in the inspection of financial

accounts before its‟ official release to the president‟s records.

3.) The Vice President, Josef Ree Diamond Cusi, oversights the specific operations

of each departments. The vice president is also perceived as the executive

external affairs manager, responsible in communicating with the general public.

She tracks the routinary activities of each operating departments, as well as the

result of operations.

4.) The Secretary, Clouie Mendoza, is responsible in the efficient administration of

the business, particularly with regard to ensuring compliance of each staff and

managers to their respective goals. She is also responsible in tracking down the

minutes of the meeting.

Middle Level Management

The secondary positions in the hierarchal level of operations in the business

comprise the Finance Manager, the Sales Manager, and the Production Manager.

32 | P a g e
 (1) The Finance Manager, Khrizcia Marie Medina, overlooks the general financial

opportunities through acquisition deals to various suppliers and potential

sponsors. She is responsible in managing the overall financial funds and the

general buy and sell of the business.

(2) The Sales Manager, Joahna Alondra Almazan, is responsible in meeting the

sales target through effective planning and budgeting. She oversees the overall

system of selling and marketing of the products.

(3) The Production Manager, Jeferson Latorre, ensures that the manufacturing

process run efficiently. He plans and organizes production schedules, resource

requirements and estimating budgets with the finance manager.

Lower Level Management

The tertiary positions in the hierarchal level of operations in the business

comprise the Finance Manager, the Sales Manager, and the Production Manager.

(1) The Treasurer, Tim Aracel Tolentino, holds the monetary funds from different

operations department such as from the sales and production budgeting

divisions. She tracks the inflow and outflow of every peso from the treasury.

(2) The Marketing Officer, Francis Emmanuel Tolentino, oversees the general

promotion and advertising of the product to the public. He is responsible in the

networking, online and actual.

(3) The Purchasing Officer, Eloida Ilagan, sets the direct materials and ingredients

needed for the production process. She assigns specific budgets on specific

staffs.

C.Implementation and Activities

Tasks assignment for each marketing strategy is based on personal strengths every

member of our business have. In terms of: skills in various things ,prior knowledge in the

flow of business, experiences that we can share together.

33 | P a g e
 TASKS DESCRIPTION PERSON COMPLETION

RESPONSIBLE DATE

Cusi, Josef Ree

Diamond
October 25 2018

Writes and decide the proper lines (Vice President)

Script Writer
and the plot of the story. As planned
Mendoza, Clouie May
it should follow the theme “comedy
M.
and societal condition”.

(Secretary)

Records and takes shots from Cusi, Josef Ree October 26,
Diamond
different angles for better video clips 2018
Camera man (Vice President)
that are based on the written script.
Tolentino, Francis

(Marketing)

Play the roles needed by each LEADING ACTOR: October 26,

scene.Actors must portray based on 2018

Quenery, Ann Joshua
what the planned needed.
Actors ALL GROUP 2

MEMBERS

Helps in the preparation of actors Mendoza, Clouie May October 26,2018

and arrangement of setting like M.

Assistant
choosing customes and props to
Vidal, Ana Grace
make setting alive.

34 | P a g e
 Prepare the commercial by editing Tolentino,Francis October 26-

and adding effects for more refine Emmanuel 27,2018

Editing
public presentation.

Posts the finished commercial in the October 28

Commercialization social media accounts for Onwards

Dela Cruz, Alexa
advertising.

Online Advertisement

TASKS DESCRIPTION PERSON COMPLETION

RESPONSIBLE DATE

Research Delve ways on effective online Atienza, Kristine October 5, 2018

advertisement.
Medina ,Khrizhia

Medina

Setting up Sprice‟ social media account

for Facebook, Instagram and

Creation of an Vidal, Ana Grace October 10,2018
twiiter.Information about Sprice should
Account.
be properly post. Ramirez, Jm

Works on taking top-notch photos of Perez, Monique October 10-

our products and business for 30,2018

Photography Sawali, Precious
posting.Images should be eye-catchy

and vintage type. Imperial, Verna

Galicia, Angeline

35 | P a g e
 Updates the netizens with the latest and Gocon, Dara Fae October 10-30,

important offers and announcement they 2018

Posting Tolentino, Tim
should be aware. It includes new menus
Aracel
offered and prices involve.

Examine positive or negative feedbacks

or comments for our business from

Monitoring Latorre, Jeferson October 15, 2018
online users and analyze how we could

act to improve those negative sides. Ilagan, Loida

Personal Communication

TASKS DESCRIPTION PERSON COMPLETION

RESPONSIBLE DATE

Authorization Asking the school‟s permisssion Clouie Mendoza September

for the market testing.One should 1,2018

walk to the principals office to

negotiate by properly asking for

its approval in sample

distribution.

Perez, Monique

Purchase the ingredients needed Quenery, Ann October 15, 2018

for sample making.Ingredients Joshua

Marketing
should be all fresh and finely
Mendoza,
chosen to produce quality food.
Raychelle

36 | P a g e
 Sawali, Precious

Mendoza, Clouie

May M.

Preparation Do the kitchen works from Gocon, Dara Fae October 10-

and Cooking preparation of ingredients to October 30, 2018

Tolentino, Tim
cooking.It includes “mise en
Aracel
place” as well as the use of

company‟s recipe. Vidal, Ana Grace

Sales Talk Works on verbal advertising to

students by explaining what our

Almazan, Alondra November 1
business offers;product, price,
onwards
place, and accounts to be visited. Catral, Bernadeth

Mendoza, Clouie

May M.

Magtaas, Janella

November 1

onwards
Divides each Sprice piece into Jeferson Latorre

cannape type and pin in a stick

Segmentation
for convenient distribution.

Evaluation Distribute evaluation Francis Emmanuel November 1

questionnaires to the sample Tolentino onwards

market to assess their comment

Almazan, Alondra
for our product‟s improvement.

37 | P a g e
Evaluatiion Analyze the Market‟s feedback Clouie Mendoza November 1

analysis on our product and decide for the onwards

next marketing action .

IV. Production/Technical Plan

This chapter presents the product description, the manufacturing process and

production and the source of the raw materials, as well as the suppliers.

A. Description of the Product

Sprice originated from the words “spice” and “rice”, by which the product is described

literally. Rice serves as the main ingredient, mixed with classic Filipino spices, then enfolded

in a lumpia wrap. Since rice dominates most Filipino meal preferences— wherein a dine will

not be complete without the presence of rice, this product could definitely cater to the wants

and needs of consumers. Sprice is a home-processed food product that offers a variety of

flavors and gives a nutritious and dynamic taste to its‟ customers.

The fried rice is mixed with meats and vegetables depending on the offerings; then

wrapped and fried deep in a vegetable oil until it reaches its‟ crunch. For an affordable yet,

bigger composition and ready-to-it form, individuals who have a hard time prioritizing meals

against workloads could fill their hunger in an instant grab and bite.

The variety of offering of Sprice products will depend whether it is— (1) Sprice

Veggies, (2) Sprice Meat, or (3) Sprice Mix, wherein the toppings mixed with the brown rice

inside varies.

B. Manufacturing Process

Figure 9. General Manufacturing Flow, shows the inputs, which are the raw

materials, together with the tools and equipment, then the general processes of preparation,

38 | P a g e
preheating, cooking, mixing, wrapping, frying and presentation of the finished output which

are— (1) Sprice Veggies, (2) Sprice Meat, (3) Sprice Mix.

The general manufacturing procedure of the product is summarized below:

Figure 9.

General Manufacturing Flow

Process
Input Output
 Preparing
  Sprice Veggies
Raw Materials  Preheating
  Sprice Meat
Tools and  Cooking
 Sprice Mix
Equipment  Mixing
 Wrapping
 Frying
 Presenting

Specific Processes Procedure in Making the product/service

 Sprice Veggies

The following are the specific procedure in the production of the Sprice Veggies:

1. Prepare all the ingredients needed.

2. Preheat a pan. Add oil and ground pork, season with salt and pepper and wait until
its color turn to golden brown.

3. On a seperate pan, saute the minced onion and garlic.

4. Prepare the cooked rice. It's better if the grains are dissociate.

39 | P a g e
 5. Once prepared, add the cooked ground pork and rice. Seasoned with salt and
pepper. Add 22.5 ml of oyster sauce. Mix them well.

6. After that, transfer it to a bowl.

7. Scoop a portion of rice and wrap it into thin rolls using a wrapper. Then, fry it
again.

8. Once the product is turned into golden brown, transfer it in a strainer with paper
towels.

9. Place in the prepared packaging/plating and serve while still hot/warm.

•Sprice Meat

The following are the specific procedure in the production of the Sprice Meat:

1. Prepare all the ingredients needed.

2. Saute minced onion and garlic in a pan.

3. Add the potato and wait until it softens.

4. Add the cooked rice, then season with salt and pepper.

5. In a bowl, scramble the egg then pour it in the pan while stirring the rice.

6. Once the egg is evenly mixed, add the minced carrots, chayote then the bean
sprout, corn bits and baguio beans.

7. If the vegetables are already cooked add the cabbage and season again to taste.

8. Once cooked, transfer it in a bowl.

9. Scoop a portion of rice and wrap it into thin rolls using a wrapper. Then, fry it
again.

10. Once the product is turned into golden brown, transfer it in a strainer with paper
towels.

11. Place in the prepared packaging/plating and serve while still hot/warm.

• Sprice Mix

The following are the specific procedure in the production of the Sprice Mix:

1) Prepare all the ingredients needed.

2) Saute minced onion and garlic in a pan.

3) Then add the ground pork and wait until its color turn to golden brown

4) Add the cooked rice, then season with salt and pepper.

5) Then add the minced carrots, chayote, corn bits and baguio beans.

6) If the vegetables are already cooked add the cabbage and season again to
taste.

40 | P a g e
 7) Once cooked, transfer it in a bowl.

8) Scoop a portion of rice and wrap it into thin rolls using a wrapper. Then, fry it
again.

9) Once the product is turned into golden brown, transfer it in a strainer with
paper towels.

10) Place in the prepared packaging/plating and serve while still hot/warm.

C. Raw Materials and Suppliers

Raw Materials

The raw materials used in the production process are stated below.

Table 6
Specific Raw Materials Used

Sprice Veggies Sprice Meat Sprice Mix

(Veggies and Meat)

 Onion  Onion  Garlic

 Garlic  Garlic  Onion
 Rice  Ground pork  Meat
 Egg  Rice  Rice
 Carrots  Corn bits  Carrots
 Sweet potato  Seasonings  Chayote
 Chayote - salt  Cabbage
 Corn bits - pepper  Seasonings
 Seasonings - vetsin - oyster sauce
- salt - oyster sauce - pepper
- pepper  Wrapper - magic sarap
- vetsin - vetsin
 Wrapper  Wrapper

41 | P a g e
 Table 6. Specific Raw Materials Used, shows the specific ingredients used as an

input in the process of producing each product offerings.

Suppliers

The raw materials of the business are derived from the following sources of supplies:

 Lipa City Public Market

De Julio St, Lipa, Batangas
(043) 757 2109

Figure 7.
Lipa Public Market

The public market is the busiest source of supplies in the city, from

“carinderias”, to wet market, pharmaceutical and tailoring services. It is open

and available 24 hours, widely accessible to the public, and offers

accommodation to buyers through a systematized parking.

42 | P a g e
  Batangas City Old Market
Evangelista St. Batangas City
Figure 7.
Batangas Public Market

The old market is open to the public 24 hours, and offers tailoring, pharmaceutical,

wet market, merchandising and loaning services. It is accessible to the public and gives a

variety of product choices through business investors.

VI. Financial Plan

A. Total Project Cost and Sales Forecast

Promotion is one of the important keys in achieving a successful business. A good

marketing strategy can pull bunch of the market into a business. It is one of the most

complicated decisions every business go through. Several promotional strategies can be

made but the problem is the financial capability of a business to support it. Same thing as

setting a budget for a family, setting our promotional budget should be weighted properly to

provide the necessities of all our marketing activities.

Direct selling may not require a lot of cash investment, but it requires plenty of time

and energy to make a sale—both of which may be in short supply if you are also processing

43 | P a g e
and packaging your own products. On the other hand, selling indirect usually costs more in

terms of labor and shelf-space fees. Paying others to represent your product to potential

wholesale customers frees you up to work on improving your products and creating new

ones.We as a food stall business , need to be more wise in making decisions because our

co-competitors are sprouting everywhere. So, we end-up of promoting our business in a way

that is creative but inexpensive. We starts on promoting through prints, personal interaction

and internet based.

The plan for setting the budget is to use the “Objective and Task” method of setting

workable promotion budget. Setting our budget on what is needed may seem to be profligate

but since were using simple and practical promotion it will not cost a lot.

Online advertisement is one of the easiest way in marketing our product because we

just need to „click‟ and „pick‟ with the internet connection. Information can easily spread and

influenced the netizens in sites like Facebook, Twitter, Instagram and other social media

accounts. Unlike other promotional activities it is convenient and does not require money,

since we have our own mobiles and internet connection at home. It only requires time,

creativity and effort in making attractive posts, and updating online viewers. It is easy to be

watched by the people if it is uploaded through social media sites. In line with this, our

commercial will also be posted online instead of TV and radio networks to avoid greater

expense.

On the other hand, print advertisement like tarpaulin and posters is another good way

of promotion. That's why we choose to have it also in promoting our products. We also do

use some alternatives like instead of printing several tarpaulins we could use cardboards in

some which are also reliable. We decided to make 15 pieces of 2x2.5 ft. costing Php.100.00

each. Also, a 6x8 ft. costing Php.1800.00 which is to be posed near the hallway of UB

Batangas Campus because our location is not noticeable at its front view of canteen even it

is walking distance.

( 2 x 2.25 tarpaulin ) 5pcs. x Php.100 = Php. 500.00

( 1.5 x 2 poster ) 10 pcs. X Php.12 = Php. 120.00

44 | P a g e
+ ( 4 x 6 tarpaulin ) 1pc. x Php.1,000 = Php. 1,000.00

= Print advertisement Php. 1,620.00

 Above all promotion strategies, personal promotion which includes distribution of

product sample in our possible customers is the most expensive or would cost a lot of

money from the materials of the samples to be made. It is also unsure move because giving

free tastes is like giving a bet on a thing without any assurance that we could earn

customers in return . We‟re going to prepare 100 pieces of Sprice which will be divided in 8

pcs. A total of 800 pieces will be distributed in different sections

( Product Samples) 100 pcs. x Php.14.71 = Php.1,471.00

= Php.1,471.00

Tables for the Marketing Budget

Advertising Expense

Promotional Activities Materials Total Cost

Print advertisement Tarpaulins Php.1,620.00

Personal Promotion Product Sample Php.1,471.00

TOTAL Php. 3,091.00

Utilities Expense

No. of Months Amount per month Utilities Expense

12 Php.7,000.00 Php.84,000.00

Furniture

Remarks Amount

Food Stall Php 11,200.00 x 1 qty Php.11,200.00

TOTAL Php.11,200.00

45 | P a g e
Equipment

Remarks Amount

Desk Fan Php 600.00 x 1 qty Php.600.00

Cooler Php 200.00 x 1 qty Php. 200.00

Warmer/ Heater Php 0 (Production Cost)

Other cooking Equip. Php 0 (Production Cost)

Serving Wares Php. 25.00 x (4 x 12 months Php.1,500.00

in a year) +Php 300.00
TOTAL Php.2,300.00

Forecast of Sales

With the expected increase in Sales by Marketing Strategies:

Month Units Sold Price/unit Rate of sales Net Sales

November 1911 20 - PHP 38,220.00

December 1805 20 5% PHP 36,100.00

January 2506 20 28% PHP 50,120.00

February 3155 20 20% PHP 63,100.00

March 3344 20 6% PHP 66,886.00

April 3211 20 -4% PHP 64,211.00

May 3532 20 10% PHP 70,632.00

June 3602 20 2% PHP 72,045.00

July 3782 20 5% PHP 75,647.00

August 4236 20 12% PHP 84,725.00

September 4067 20 -4% PHP 81,336.00

October 4230 20 4% PHP 84,589.00

TOTAL 39381 20 100% PHP 787,611.00

46 | P a g e
 This table shows that on the first month November which is also the start of
the operation there is an assumed 1911 units of Sprice sold.It is equivalent to 95
orders a day which is a normal number for a new business.On this month, we are
just starting to introduce Sprice to the market. On the second and third month there
is an increase in sales as a result of sample distribution on the first month and online
advertisement. There is an expected decrease in sale by December and January
due to Christmas breaks and semester break, it is usually the month where students
are not around. However there are still college students nearby that are still present
for school works. As class resume by the middle of the month of January, there will
be an increase in sales.By this month, launching of the commercial for the second
quarter will be post. The increase in sales will continue until the month of May. By
this month there is a constant updates to be post and online contest for netizens.
Months of April and May ,graduations and recognition in schools are done so there is
also an increase in possible customers and sales. As months of June and July
starts,there is also an expected decrease in sale due to school ends

Cost of Sales

Month Units Sold Price/unit Rate of Cost Cost of Sales

November 1911 16.66 - PHP 31,837.26

December 1805 16.66 5% PHP 30,071.13

January 2506 16.66 28% PHP 41,749.96

February 3155 16.66 20% PHP 52,562.30

March 3344 16.66 6% PHP 55,711.04

April 3211 16.66 -4% PHP 53,495.26

May 3532 16.66 10% PHP 58,843.12

June 3602 16.66 2% PHP 60,009.32

July 3782 16.66 5% PHP 63,008.12

47 | P a g e
 August 4236 16.66 12% PHP 70,571.76

September 4067 16.66 -4% PHP 67,756.22

October 4230 16.66 4% PHP 70,471.80

TOTAL 39381 16.66 100% PHP 656,087.29

B. SOURCES OF FINANCING

This section of the business plan is intended to provide an overview of the

funds that the business will require. It include all of the startup costs required as well
as the working capital to sustain your business until it becomes cash-flow positive
A. Start-up Costs

Administrative

Fees and Permits P 1,500

Utilities Expenses P 84,000

Marketing

Print Advertisements P 1,620

Personal Promotions P 1,471

Facilities and Furnitures

Food Cart P 11,200

Food Equipment P 2,300

Total Startup Costs P 102,091

Working Capital

12-Month w/c P 611,008

Contingency P 50,000
Total Working Capital P 661,008

Total Use of Funds P 763,099

Owner’s Cash Investment P 381,549.50

Loan Sought P 381,549.50 48 | P a g e

Total P 1,178,349
 The startup costs are those costs required to open the business. Working capital
is the money it takes to pay your bills (including labor) until your business is generating
sufficient cash to fund itself.

Working capital is the capital of the business that is used in day-to-day trading
operations. It represents operating liquidity available to a business ,organisation, or
other entity. While contingency is a reserve fund of the business set aside to cover
possible unforeseen future expenses.

C. Financial Statements

This represents the Pojected Income Statement, Balance Sheet and Statement
of Changes in Equity.

SPRICE’ Food Business

Income Statement

For the period ended October 31,2019

NET SALES PHP 787,611.00

LESS:COST OF SALES 656,087.29

GROSS PROFIT PHP 131,523

LESS:EXPENSES

ADVERTISING EXPENSE 3,091.00

UTILITIES EXPENSE 60,000.00 PHP 63,091.00

NET INCOME PHP 68,432.71

NET PROFIT
As expected there is a net income on the first fiscal year,amounting Php. 68,432.71. The
gross income earned fills most of the general administrative and selling expense which includes
advertising expense and utilities expense.

P a g e | 49
 As for the business, a net profit is still expected for the following years.On the second
year , Return of investment is expected. And through effective advertising activities sales will
eventually increase.

SPRICE’ Food business

Statement of Changes in Equity

For the period ended October 31,2019

Vidal, Capital Nov 2018 Php 381,549.50

Add:Additional investment 0

Total Php 381,549.50

Add: Net Income 68,432.71

Total 449,982.21

Less: Withdrawals 0

Vidal, Capital Oct 31,2019 Php 449,982.21

P a g e | 50
 SPRICE’S Food Business

Balance Sheet

As of October 31,2019

Assets

Cash Php 449,982.21

Furniture 11,200.00

Equipment 2,300.00

Total assets Php 831,531.71

Liability

Loans payable Php 381,549.50

Equity

Vidal, Capital Oct 31,2019 Php 449,982.21

Total Liability and Owners equity Php 831,531.71

P a g e | 51