DAVAO ORIENTAL STATE UNIVERISTY

GUANG-GUANG, DAHICAN, CITY OF MATI

BACHELOR OF TECHNOLOGY AND LIVELIHOOD EDUCATION
MAJOR IN INDUSTRIAL ARTS

A BUSINESS PLAN
OF
“LIGHTEA MILKTEA”
Guang-guang Dahican, City of Mati

Submitted by:
ANGELIKA M. REGIR
SANDRA JAY B. DANTAYAN

Course & Section:

BTLE-IA-3C

Submitted to:
MS. ASMA S. SAMEON

1ST SEMESTER
DECEMBER 2021

1
Executive Summary

Lightea Milktea is a delicious tea with an added milk and it has different variants

which you can choose. The variants are Salted Caramel, Chocolate, Wintermelon,

Mocha and Strawberry. You can also adjust its sugar level which is appropriate with

your taste, and these also has its sizes which you can only afford but will surely satisfy

you.

Lightea Milktea is a start-up business plan establishment that sell tastier milk

tea refreshment located at Phase 6, Block 5, Guang-guang, Dahican, City of Mati.

Lightea Milktea are good for the health because it is a mood enhancer, a great source

of energy it also reduces your stress and it is good for the heart.

The plan involves distribution, product positioning, pricing promotion and

showcasing investigate will be conservatively actualized to meet Lightea Milktea. The

marketing strategic arrange will be base upon wants and patterns of the market, so

that the customers will be completely satisfied.

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 TABLE OF CONTENTS

Executive summary………………………………………………2

Background and History…………………………………………4

Description of Products………………………………………….4

Market Description……………………………………………….4

Location…………………………………………………………...5

Demand…………………………………………………………...5

Competition……………………………………………………….5

Market Strategies………………………………………………...5-8

Manufacturing Plan………………………………………………8

Financial Projection………………………………………………9

Income Statement……………………………………….10-12

Cash Flow Analysis………………………………………13

Balance Sheet……………………………………………14-15

Financial Rations……………………………………….16

Contingency Plan……………………………………………….17

Appendices……………………………………………………...18

Letter of Endorsement…………………………………18

Resume of Management……………………………...19

Product Labels………………………………………….20

Business Store layout………………………………….21

3
Background and History
One of trends which attract most of the youth is chain of milktea shops. Although
there are several tea vendors that claim to have been first to create this now world-
famous drink, the most credible is Lightea Milktea of Guang-guang Dahican Mati City.
In early 20’s, we noted that Filipino people enjoyed the taste of Lightea Milktea. Our
business was so popular so, we decided to expand our business and opened several
new branches to pursue our product and services.

Description of Products

Lightea Milk Tea is a tastier fresh containing some combinations of tea and milk
that has different variants of flavors such as chocolate, that provide nutrients,
wintermelon that contains several essential nutrients that can boost health including
vitamin C and support immune system, mocha help that encourage weight loss,
strawberry that can boost energy. Milktea has (1) cashier and (1) sales assistant to
accommodate all the customers. The station uses serving with cups in different sizes
to measure the quantity of milktea according to its price.

It shows that having an milktea business with refreshing and delicious milkteA
with notorious flavouring in an effective way of helping the health of the consumers in
Guang-guang, Dahican, City of Mati. It can provide good profit to the business
because milktea is demandable for todays generation.

Market Description

The target market of Lightea Milktea are people who live within Mati City. The
proposed business will operate 6 days/week. It is a new product innovation which is
unique in the eyes of many people at very affordable prices where the other competitor
that has not have. The Lightea Milktea is serving station where customers can
effectively afford. The business person maintains the quality of product that will fulfil
the needs of the customers and to preserve the cleanliness of the said product.

4
Location

The propose business will be located at Phase 6, Block 5, Guang-guang,

Dahican, City of Mati. The location of the business is very accessible to the public and
gives more convenient to the customers.

Demand

Through the data gathered using the google form survey it shows that out of
1177,005 populations of Mati City ages from 18-59 not including the children below 12
years old, there are many teenagers most likely to drink milktea and they are willing to
spend at least ₱ 65.00 pesos a day. It is very demandable because everyone would
really love to drink milktea it gives refreshments to the body.

Competition

There are a lot of milktea shops who offers product in different area in Mati City.
We always make sure that those ingredients be bought are checked by one of the
agencies of the government that will assure everyone that the ingredients used in
making products is safe. We also assure that our customers will be satisfied and
captured their interest towards the product we offered. Satisfying the needs of our
customers will give positive and advantage to our business.

Market Strategies

Lightea Milktea needs to accomplish two things: first, to make potential

customers aware of Lightea Milktea opening and location; second, to educate potential
customers as to what Lightea Milktea is, and why it is so wonderful. During the
opening, the most effective way of promoting the product is to give discounts to the
customers like buy 1 take 1. For the advertisement, spreading of flyers can help for
the customers to be mindful of the presence of the business and putting a tarpaulin in
front of the store to attract customers. Every week we will try to offer a different
selection of our teas as a tasting, 4 to 5 small cups of different milktea, labeled and

5
 described, with appropriate accompaniments. These plates will allow customers to try
new kinds of tea without committing to a full pot. These tastings will be priced at 1/12
times the price of a regular pot. In addition, to our monthly tea tasting parties, Lightea
Milktea will offer customers the option of reserving the entire Lightea Milktea house for
a party or special event. We anticipate business for bridal and baby showers, as well
as children’s birthday parties, Christmas, valentines and any other holiday occasions.

Lightea Milk Tea Shop managed by private entrepreneurs offer a delicious Milk
Tea to everyone and being convenient to the public who live in Mati City wherein the
people can easily access to buy Milk Tea in the said location. Manpower requirements
may include Cashier, processor, and Sales assistant with special skills required for the
business.
Figure 1. Organizational Chart

Position Job Specification Job Description Yearly Salary

Cashier/ Owner P118,560.00

- having a friendly and - greeting customers

engaging personality who enter the shop

- must be helpful and - giving advice in

polite guidance on products

Sales Assistant - must be physically feet selection to the 99,840.00

- at least highschool customers

graduate - keep the store tidy

- 18-25 years old and clean

-male or female

6
 - graduate of 2 courses - prepare and serve

in HRM or food milktea drinks to

Processor
processing/serving customers in effective

manner.
- fresh graduate are

welcome to apply - process customers’

orders
- at least 18–30 years

old - help the customers to

settle down their

- male or female P113,050.00
orders.

- welcome the

customer and answer

to their queries

regarding the products

offer.

- maintain cleanliness

of the area and

responsible to check

the stocks in daily

Objectives

• To serve and provide the best quality and most interesting varieties of milk
tea.

7
 • To give a good service to everyone by operateing a business in dealing a
good satisfaction to the people within the community.

Purpose

• It can provide a healthy and nutritious milk tea and gives energy and
encourage to lose weight to all Matinians.
• Provide a customer’s satisfaction that help their body become fresh and have
healthy drinks as well.

Manufacturing Plan

The operation of the business involves the quality and quantity of the product
that is being produced in the market. Lightea Milktea has three branches, they offer a
variety range of products. For a portion of the production, they have facilities available
to them. The goods are dispersed in a variety of ways. Customers can enjoy their
milktea in the shop or outside. They will be given a menu by the employee to choose
what flavor they want to avail. They are patiently required to wait in a minute to receive
their orders.

8
Financial Project

To start a business is risky, risky in a way that no matter how great the business
idea is, business lives and dies based on its financial feasibility and profitability.

The following pages include multiyear projections for income, cash flow,
balance statement, as well as estimated financial ratios. These projections intended
for the Lightea Milktea only. Historical financial information Lightea Milktea is available
upon request.

9
 Lightea Milktea
Pro Forma Income Statement
January 2020 - December 2020

Net Sales 505, 000.00

Less: Cost of Goods Sold 445, 000.00

Gross income 60, 000.00

Operating expenses

Labor 40, 000.00

Utilities 29, 000.00

Insurance 20, 500.00

Sales promotion 15, 000.00

Delivery of transportation 15, 320.00

Miscellaneous 23, 500.00

Total Expenses 143, 320.00

Net income before taxes 150, 500.00

Less income taxes 25, 000.00

Net income after taxes 125, 500.00

The total projected profit for the end of 12 months operation of the business was at
125, 500 pesos.

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 Lightea Milktea
Pro Forma Income Statement
January 2021- December 2021

Net Sales 550, 000.00

Less: Cost of Goods Sold 475, 000.00

Gross income 75, 000.00

Operating expenses

Labor 43, 000.00

Utilities 30, 000.00

Insurance 22, 500.00

Sales promotion 15, 000.00

Delivery of transportation 18, 000.00

Miscellaneous 23, 500.00

Total Expenses 153, 000.00

Net income before taxes 170, 500.00

Less income taxes 27, 000.00

Net income after taxes 143, 000.00

The total projected profit for the end of 12 months operation of the business was at
143,000 pesos

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 Lightea Milktea
Pro Forma Income Statement
January 2022- December 2022

Net Sales 600, 000.00

Less: Cost of Goods Sold 575, 000.00

Gross income 85, 000.00

Operating expenses

Labor 45, 000.00

Utilities 32, 000.00

Insurance 25, 500.00

Sales promotion 15, 000.00

Delivery of transportation 21, 000.00

Miscellaneous 25, 500.00

Total Expenses 164, 000.00

Net income before taxes 200, 000.00

Less income taxes 30, 000.00

Net income after taxes 170, 000.00

The total projected profit for the end of 12 months operation of the business was at
170,000 pesos.

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 Lightea Milktea
Pro Forma Cash Flow Statement
January 2020- December 2020

JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL

21,000 21,000 21,000 21,000 42,000 42,000 42,000 43,000 63,000 63,000 63,000 63,000 505,000
REVENUE

EXPENSES

COST OF 18,500 18,500 18,500 18,500 37,000 37,000 37,000 38,000 55,500 55,500 55,500 55,500 445,000
MILKTEA’S
SOLD

1,000 1,000 1,000 1,000 1,000 2,500 2,500 5,000 5,000 5,000 7,500 7,500 40,000

LABOR

2,000 2,000 2,000 2,000 2,000 2,000 2,000 3,000 3,000 3,000 3,000 3,000 29,000

Utilities

1,000 1,000 1,000 1,500 1,500 1,500 2,500 2,500 2,500 2,500 2,500 3,000 20,500

Insurance

Delivery and 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 2,000 2,000 2,320 15,320
transportation

Sales Promotion 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15, 000

Miscellaneous 1,500 1,500 1,500 1,500 1,500 1,500 2, 000 2, 000 2,500 3,000 3,000 3,000 23, 500

Total cash 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 22, 000 143, 000

flow

13
 Lightea Milktea
Pro Forma Balance Sheet
December 31, 2021

Current Assets

Cash 90,000.00

Accounts 180,000.00

Inventory 105,500.00

Pre-paid Expenses 18,000.00

Total current Expenses 528, 500.00

Fixed Assets

Building 40, 000.00

Equipment 85, 000.00

Gross Fixed Asset 125, 000.00

Less accumulated Depreciation 10, 000.00

Net Fixed Assets 135, 000.00

Total Asset 528, 000.00

LIABILITIES AND OWNER EQUITY

Liabilities

Current liabilities

Account Payable 80, 000.00

Accrued payable 28, 500.00

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Total current Liabilities 108, 500.00

Long term Liabilites

Mortgage payable 50, 000.00

Total Liabilities 158, 500.00

Owner equity 370, 000.00

Total Liabilities and owner equity 528, 500.00

15
 Lightea Milktea
Financial Ratios
December 31, 2021

Return on Equity = Net before Taxes = 150, 500.00 = 40.67%

Net equity 370,000.00
Current Ration= Current assets = 393, 500.00 = 3.62%

Current liabilities 108, 500.00

Quick Ration = Current Asset – Inventory = 288, 000.00 = 3.64%

Current Liabilities 60, 000.00

Debt to equity = Total Liabilities = 158, 500.00 = 42. 83 %

Net equity 370, 000.00

16
Contingency Plan

While careful planning was involved in setting the flavored taste and
creaminess and sweets, it might be these goals are not met. The Lightea Milktea
decides to set a zone of acceptability for meeting sales and financial objectives. For
both sales and financial objectives, a 10% negative deviation from expected sales and
projected returns on assets will accepted. On the other hand, if sales objectively and
return on investment are less than 90% of projection, specific action will be taken.
These actions include:

1. For unacceptable sales level during the first year: Lightea Milktea will combat
this problem by doubling in store promotion of shop in Mati City. They will personally
arrange and carry out these promotions on weekends at peak shopping times. If sales
do not increase within two months of the in-store promotion, Lightea Milktea will
advertise in the weekly shopping circulars of the store for one month.

2. For unacceptable business liquidity: If the business lacks liquidity, Lightea

Milktea will examine their accounts receivable procedures to ensure that payment
periods are just, and that payment are being received in an allotted time. Reviewing
cash flow will be conducted also to identify if unforeseen cash layout/ expenses are
undermining the financial health of the enterprise.

17
 Appendix

Letter of Endorsement

To,

Ms. Glenda P. Salvacion

Date: October 10, 2020

Subject: Promoting Lightea Milktea

Dear Ms. /Mr. / Mrs.

I would like to put this into your attention that as per our discussion we are very pleased
to let you know that you have been selected for the endorsement of Lightea Milktea.
The endorsement will be active from October 14, 2020 to October 15, 2020 after that
it will be due to renewal. The endorsement is for 40, 000.00.

Thank you.

With best regards,

Angelika & Sandra

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Resume of Management

19
Product Label (LIGHTEA MILKTEA FLAVORS)

WINTERMELON STRAWBERRY

CHOCOLATE

SALTED CARAMEL MATCHA

20
Layout of the Shop

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