1.

Given the difficulties in accurately predicting the future, is a business plan

useful? Provide three reasons for writing one and three reasons for not preparing
a plan. What is your conclusion and why?

Reasons for writing a Business Plan

 To better understand the customers as well as the competitors. 
 For us to convince investors and lenders to fund our business.
 It helps us define and focus on our business ideas and strategies, such as
financial matters, management issues, human resource planning, and
technology.
Reasons for not writing a Business Plan
 Time-Consuming
 Business plans have no guarantees of whether they will fail or succeed.
 Everything changes, so sometimes some people think it may become useless

 A Business Plan identifies the essential detail of the business project and
provides a response to potential problems. Writing a business plan takes time,
but it is necessary if we want to have a successful venture that will survive the
startup process. Every company should create a business plan because the
process of creating one can help you make clear what you've been and where
you're heading.

2. What makes an excellent business plan?

 Excellent business plan should consist all information regarding the business. It
should provide the complete overview of the product and operations of the new
venture. The executive summary should be great because it is the summarizes
the main points of the business plan. It must identify well our venture such as the
problem that it solves, our target market, and the financial highlights. We must
assure first in the business plan that our goal ensures the objectives are
attainable.

3.  Would the entrepreneur be better off spending more time selling his or her
product rather than investing so much time in writing a business plan?
 All entrepreneurs want their businesses to expand and earn more money,
especially when they are just getting started, but in many instances, whenever a
business is not well planned, it is unlikely to succeed. Important financial
information, such as sales budgets, income statements, and cash flow
projections, are also included in a business plan. We will struggle to achieve
success if you do not have this information. Writing a business plan is essential,
but it should not consume all of our time, especially if we are just getting started
on our venture.
4. If a business plan is to be used to raise capital, then why would the entrepreneur
want to advertise the firm’s major risks by detailing them in the business plan?
 The potential problems that our company may face are included in our business
plan. As entrepreneurs, we must identify the risks in our venture and devise
potential solutions.

5. What is the purpose of the business plan if the audience is (a) the entrepreneur,
(b) an investor, or (c) a key supplier? How might the plan be adapted for these
audiences? Or do you believe that it is better to simply have one business plan
that serves all audiences?

A. Entrepreneur
- As entrepreneur, business plan is the key of the new venture. It aids in providing
guidance throughout the process, which can also aid in avoiding mistakes along
the way. It can provide us with information about the steps we have to take to
start our business as well as the resources we will need to obtain.

B. Investor
- We should provide to the investors a business plan because they need to see
whether the venture is worth it and to make sure the that they invest didn't go to
waste. We should convince them to fund and support our venture.

C. Key Supplier
- The goal of a business plan to key suppliers is to give proper complete cash flow
or financial statement to guarantee them that your company is able to pay them.

6. Personal Business Plan

A. Using the business plan outlines provided, create a plan in which YOU are the
business or enterprise at this point in your life. In other words, wherever “business”
appears in the template, substitute your own name.
B. Try to write the plan in terms of a comprehensive by integrating your group
personal and professional expectations.
 Lovabilitea
Nazarene 545-549 Quezon Blvd., Quiapo,
Manila 1001 Metro Manila
0928-899-1526
www.lovabilitea.com

Owner: Chloe Anne D. Cordial

Description of the Business:

The product created is milktea because our main goal is have our
customers feel they are in home while they are eating our product and
they can eat it anywhere they want and the benefits of our Milktea is
have a healthy and non-thirsty drink to know that the drink their
drinking is healthy and our store is located beside R. Ma Mon Luk and
at the back of Nazarene 545-549 Quezon Blvd., Quiapo, Manila 1001
Metro Manila and it opens 8:00am and close at 9:00pm and the best in
our store is it is colorful and Instagramable so if they go in our
store or buy some our products they can take pictures and post in
their social media sites.

Financing:
Initial financing requested is a P300,000 loan to be paid off
over 3 years. This debt will cover for the milk tea’s ingredients,
rent, bills, store appliances, insurance budget, wages, salary, and
advertisement. It is intended to use only by the persons to whom it is
transmitted, and any reproduction or divulgence of any of its contents
without the prior written consent of the company is prohibited.

Report Confidentiality Statement:

This document is strictly confidential communication to and
solely for the use of the recipient and may not be reproduced or
circulated without Pastillicious’ prior written consent. If you are
not the intended recipient, you may not disclose or use the
information in this documentation in any way. The information is not
intended as an offer or solicitation with respect to the purchase or
sale of any security.
 Executive Summary
Product
The product of Lovabilitea is different kinds of milk tea like
matcha, winter melon, and triple chocolate that can overcome their
thirst and there are pastry that they can partner in milk tea like
cookies, cake, and donut.
Price
Because our target market is millennials, we find a product that
they can drink while they are outside their house to overcome the
thirst. It is not expensive, so we can make sure the drink they buy is
going to enjoy it at a cheap price. The milk tea price starts from
P70.00 to P100.00 and the pastry starts from P150.00 to P200.00.
Financing
From the money that I loan which is PHP 300,000. The plans for
our investment are: 100,000 for Lovabilitea to milktea products,
20,000 for rent, 20,000 for bills, 30,000 for store appliances, 30,000
for insurance budget, 50,000 for wages and salary in our employment
and 150,000 is for emergency purposes. Those are the main expenses
that are needed for our Lovabilitea Shop. In 5 years, our sales will
grow and getting higher because of our hard work and success.
Place
The lovabilitea will have a launching beside R. Ma Mon Luk and at
the back of Nazarene 545-549 Quezon Blvd., Quiapo, Manila 1001 Metro
Manila and it opens 8:00am and close at 9:00pm Therefore, the
marketing place is for anyone who attends the mass, workers or just
passerby to create a broad daily customer base, which would be the
dominant target market.
Target Market
The target audience for lovabilitea milktea shop is individuals
who has a sweet tooth and loves the combination of milk and the tea.
Those individuals are mostly at the age of 07 to 60 years old. We will
introduce our product to them by serving a good quality and to fulfill
their satisfaction
Market Size
The Market Size of lovabilitea Milktea Shop is below ages 10 to
60 years old because of the trend all over the world. Milktea became
one of the most popular drink in the world especially here in the
Philippines because of its look, taste and its popularity.
Vision
To have a milk tea that everyone will know in the Metro Manila.
Mission
To serve and overcome the thirst of the customers and to make
sure that our ingredients to our business in fresh.

Objectives Key Result Areas

1. To provide good 1a. Number of good
quality and affordable feedback and satisfaction of
products that might satisfy the customer
our customers.

2. To meet the 2a. The increasing sales

satisfactions of our volume
customers and to avoid the
sales slumping due to our
increasing sales
3. To give our 3a. Different flavors of
customers an affordable milktea and a clean process
drink yet tasty for them how to make a milktea.
that can satisfy their taste
4. To create a safe and 4a. Giving metal straw
healthy environment. to the customer and having a
paper bag instead of plastic
bag
 Industry Analysis
1. TREAT OF NEW ENTRANTS(HIGH)
There is a high threat in new entrants because our company
lovability is not famous yet compare to the other milktea company
that already know.
2. THREAT OF SUBSTITUTES(LOW)
There is low threat in substitutes because our product
milktea would be the same and nothing will change.
3. RIVALRY AMONG EXISTING COMPETITION(HIGH)
There is high threat in rivalry among existing competition
because our company would like to provide the customer a best
quality of products.
4. BARGAINING POWER OF CUSTOMERS(HIGH)
There is high threat in bargaining power of customers
because we need to sell our product to the customer in a low
price so they will love our product and comeback for more.
5. BARGAINING POWER OF SUPPLIER(HIGH)
There is high threat in bargaining power of supplier because
have a power to supply a lot of product to our company.
Competitive Analysis
SWOT Analysis
Strengths Weaknesses
 Convenient and fast  Security
 Affordable price  Man Power
 Various kinds of flavor  High Rental Cost
 Good service  Employees Salary
 Long business hours  Customer Behavior

Opportunities
 They can sell old or original
flavor
 Introduce new and unique flavor or
product
 Building a brand that is ensure
attractive to customers
Threats
 A competitor has a new,
innovative product service
 Competitors have superior
access to channels of
distribution
 Seasonal Demand: Winter and
  Social media and e- commerce Summer Different
marketing  Shoplifting
 Growing market demand of notorious
drink.
Target Market
The target audience for lovabilitea milktea shop is individuals
who has a sweet tooth and loves the combination of milk and the tea.
Those individuals are mostly at the age of 7 to 40 years old. We will
introduce our product to them by serving a good quality and to fulfill
their satisfaction. This is it distinguish between bubble and another,
then the products of bright colors, taste or flavors focus on to cater
the tastes of young people in order to attracting their eye catching.
If our business will be successful in the future, we will expand it
and make a new product that may combine in milktea.
Market Size
The Market Size of lovabilitea Milktea Shop is below ages 13 to
40 years old because of the trend all over the world. Milktea became
one of the most popular drink in the world especially here in the
Philippines because of its look, taste and its popularity. Milktea
drink is not just worth it but also instagrammable that is why each
and every people patronize it.You can also have your own milktea in
just affordable price, there's a lot of way to do your own flavour or
experiment in your Milktea drink.
Market Segmentation
The bubble tea market has been segmented on the basis of on base
ingredient, flavors, component, and region. By base ingredient, it is
divided into matcha, winter melon, and triple chocolate. On the basis
of flavor, it is categorized into original flavor, coffee flavor,
fruit flavor, chocolate flavor, and others.
Demographic Segmentation
The customers of bubble tea prefer young or teenager and adult
who also prefer low and affordable price. If people can’t afford your
product or service, there is no point in targeting them. After all,
you wouldn’t promote a Bubble tea or milk tea someone who can’t
afford.
Psychographic Segmentation
The product focuses on interest of taste of the customers who
want trendier, delicious or tasty bubble tea. On digital ad services,
you can target audiences by their age, location, purchasing habits,
interests, and more. When you use market segmentation to define your
audience, you know these detailed characteristics and can use them to
create more effective, targeted digital ad campaigns.

Description of the Product

Product
The product of Lovabilitea is different kinds milktea like
matcha, winter melon, triple chocolate, that can overcome their thirst
and there are some pastry that they can partner in the milktea like
cookies,cake and donut.
Mission
To serve and overcome the thirst of the customers and to make
sure that our ingredients to our business in fresh.
Equipments and Personnel
For the equipment, the most common equipment and supplies used in
a milk tea shop are: Tea Brewing Machine, Stove or Table Burner,
Cooking Pot, Blender, Strainer, Tapioca Container, Measuring Scoop,
Cup Sealing Machine, Shaking Cups, Water Dispenser, Refrigerator, Cash
Register, Cups and Lids, Dome Lids, Oversized Straws, and Utensils. As
for personnel I will hire one or two employees for my business who can
operate every day since I just open my business. The employees I would
hire must be people persons as they will be dealing with all types of
customers all day long. They must be able to deal with daily
challenges and must stay calm every time, regardless of the situation
they are facing.
Background of Entrepreneur
My name is Chloe Anne D. Cordial. I helped my family in their
small business, and now the business is still going. As an
entrepreneur, I am able to make decisions quickly because I know that
they can be the difference between success and failure. I am motivated
by nature. I refuse to give in to a fear of failure. Having a strong
motivation, not to mention a steely focus, is needed to stick with
ventures over the long haul. I also tend to be more driven by a
passion for their offering as well as a desire to make a difference.
This passion or drive also helps me to sustain myself during periods
where discouragement might otherwise manifest itself.
 Marketing Plan
Pricing
Because our target market is millennials, we find a product that
they can drink while they are outside their house to overcome the
thirst. It is not expensive, so we can make sure the drink they buy is
going to enjoy it at a cheap price. The milk tea price starts from
P55.00 to P75.00 and the pastry starts from P100.00 to P150.00.
Distribution
The product that we manage to package is milk tea. We use plastic
cups, cup lids and also straw for our milk tea product. We put our
logo design to our package for identification of our brand. We serve
our product neat and clean for eye-catchy and also satisfy our
customer expectation. Retail channels deliver tea directly to the consumer
for consumption without involvement of a third party, Retail channels
generally involve gourmet markets, high end grocery stores, health food
stores and other outlets where the consumer can visit and make an informed
tea selection. Retail also includes mail order and the internet
equivalent e-commerce shopping. E commerce has grown dramatically as
web sites become more informative and selections of quality teas are
expanded. E-commerce allows the convenience of shopping at home and
has become a highly efficient way to purchase quality tea products.
Promotion
Lovabilitea offers a promotion and discounts, buy 1 take 1 if you
buy a large milktea and 5% off to 1 selected pastry product and if you
manage to buy 10 milktea you have a free pastry of you like.
Product Forecast
According to the bubble tea market share, based on flavor, the
fruit flavor segment was the most prominent segment accounting for the
highest share in the bubble tea market, in 2019. This can be
attributed to change in preference of consumers toward healthy
beverages and better taste. However, the chocolate flavor segment is
expected to witness highest growth, owing to increase in its
popularity of in all age groups for all flavored beverages and rise in
awareness of health benefits of chocolate among consumers.
 Organizational Plan
Form of Ownership
A sole proprietorship is the simplest and most common structure
chosen to start a business. It is an unincorporated business owned and
run by one individual with no distinction between the business and the
owner. Easy and inexpensive to form: A sole proprietorship is the
simplest and least expensive business structure to establish. Complete
control. Because you are the sole owner of the business, you have
complete control over all decisions. Simplified tax preparation. Your
business is not taxed separately, so it’s easy to fulfill the tax
reporting requirements.
Roles and Responsibilities of Members of Organization
Manager:

 Display a commitment to learning and developing yourself. Leaders

must invest in themselves. If you aren’t educated, you can’t help
the uneducated; if you are sick, you can’t minister to the sick;
if you are poor, you can’t help the poor.
 Learn to relate to those who are less fortunate. Good leaders are
inclusive, even though that isn’t easy.
 Realize the importance of loyalty to organization, profession,
community, society, and, above all, family. Most of our
achievements would be impossible without our families’ support.
 Be concerned about the problems of the poor and the disabled,
accept human weaknesses, laugh at yourself—and avoid the
temptation to play God.
Employee:

 follow your employer's instructions on safety and health – ask

for assistance if you do not understand the information
 take care of any protective clothing and equipment (PPE) in the
way you have been instructed and report any concerns about it;
 report any hazards, injuries or ill health to your supervisor or
employer to avoid putting themselves or others in danger.
 Financial Plan
From the money that I loan which is PHP 300,000. The plans for
our investment are: 100,000 for Lovabilitea to milktea products,
40,000 for rent, 15,000 for bills, 50,000 for store appliances, 30,000
for insurance budget, 20,000 for wages and salary in our employment.
Those are the main expenses that are needed for our Lovabilitea Shop.
In 5 years, our sales will grow and getting higher because of our hard
work and success.

INCOME STATEMENT IN 5 YEARS

1st Year 2nd Year 3rd Year 4th Year 5th Year
(20%) (20%) (20%) (20%) (20%)
COST OF GOOD SOLD
Net Sales 500,000 600,000 720,000 864,000 1,036,800
Purchases 150,000 180,000 216,000 259,200 311,040
Freight-in 5,000 6,000 7,200 8,640 10,356
Total goods 20,000 24,000 28,800 34,560 41,472
available
Purchase 10,000 12,000 14,400 17,280 20,736
Discount
Total goods 15,000 18,000 21,600 25,920 31,104
for sale
Inventory 25,000 30,000 36,000 43,200 51,840
Total cost 225,000 270,000 324,000 388,800 466,560
of goods
Gross 275,000 330,000 396,000 475,200 570,240
Profit
OPERATING EXPENSES
Advertising 10,000 12,000 14,400 17,280 20,736
Salary 20,000 24,000 28,800 34,560 41,472
 Expense
Office 5,000 6,000 7,200 8,640 10,368
Expense
Utilities 15,000 18,000 21,600 25,920 31,104
Expense
Total 50,000 60,000 72,000 86,400 103,680
Operating
Expense
Net Income 225,000 270,000 324,000 388,800 466,560

STATEMENT OF FINANCIAL POSITION

1st Year 2nd Year 3rd Year 4th Year 5th Year
(20%) (20%) (20%) (20%) (20%)
CURRENT ASSETS
Cash 150,000 180,000 216,000 292,200 344,040
Accounts 40,000 48,000 57,600 69,120 82,944
Receivable
Inventory 30,000 36,000 43,200 51,840 62,208
NON-CURRENT ASSETS
Building 40,000 48,000 57,600 69,120 82,944
Equipment 20,000 24,000 28,800 34,560 41,472
Permit 5,000 6,000 7,200 8,640 10,356
Bills 15,000 18,000 21,600 25,920 31,104
OWNER’S EQUITY
Lovabilitea 300,000 360,000 432,000 518,400 622,080
Shop

Sales Projection in 5 years

Sales 500,000 600,000 720,000 864,000 1,036,800

Revenue 225,000 270,000 324,000 388,800 466,560