BUSINESS ENTERPRISE SIMULATION

PERFORMANCE TASK NO. 4

Group 5

BUSINESS PLAN

CHAPTER 1
Project Summary

1.1 Name of the Business

We named our business based on what we were going to sell, so that it’d be easily
remembered by our future customers. Our business is called "Home of Desserts." We chose
this name because we, the founders, are so fond of desserts and sweets. So, we came up with
the idea of sharing that positivity with other people by opening a business.

1.2 Goal of the Business

The goal of our business is to share positivity, to light up our customers' moods, and to
give good quality products and service. and also, to open more branches and make a name in
the business world. Lastly, to give jobs to those people who have been unemployed because of
the pandemic.

1.3 Location of the Business

 Home of Desserts located at National Road Cor. Road, Pantok, Binangonan, 1940
Rizal

We choose National Road Cor. Road, Pantok, Binangonan, 1940 Rizal for the location of
our business. This location is in the main road, and it is a very busy street. This is where all of
the commuters get their cabs or jeeps, and it's a good business opportunity for us.
1.4 Brief Description of the Business
Our business is like a café for desserts. We have graham balls with a twist, ice cream
waffles, leche flan cheesecake, ice cream sundaes, beverages, and several flavors of cake in a
cup to choose from. We assure that our products will satisfy all the cravings of our sweet’s lover
costumers. Our food is available for both dining in and takeout.

1.5 Objectives of the Study

 To gain familiarity of the customers in our products.
 To maintain the good quality of our products.
 To gain the target sales
 To attain 88% of the overall target market.
 To produce more products every cycle.

1.6 Scope and Limitation

 The House of Desserts is located at Pantok, Binangonan, Rizal. Our target market for
our business has no age limit. It can be toddlers, teenagers, young adults, adults, or
elderly people as long as they have sweet cravings. because our products are perfectly
made for all of them. The taste, flavor, and texture will be later improved by cooking the
whole thing. Orders for special occasions are also accepted.
 CHAPTER 2
Marketing Aspect

2.1 Objectives of the Study

 To gain familiarity of the customers in our products.
 To maintain the good quality of our products.
 To gain the target sales
 To attain 88% of the overall target market.
 To produce more products every cycle.

2.2 Market Description

The house desserts will mainly market cakes and cheesecakes with beverages. Filipinos
has undoubted fond of food especially desserts. According to the study of Philstar.com, Filipinos
become more obsessed of sweets and desserts when pandemic happen. Desserts brought a
large comfort to one each of us whenever we feel stressed. In the study of Healthline (2016),
sugary foods like desserts can weaken the body’s ability to respond to stress. Mostly Filipinas,
love the desserts as it reduces their feelings of anxiety, tensions, and satisfy menstruation
cravings.

2.3 Mission
Our company's first objective is to give customers with high-quality, tasty desserts that
will alleviate them of the stress that comes with this 'new-normal' condition. Our café will also
act as a stress-relieving space for them, where they can relax alone or with their loved ones and
friends. On the other hand, customers won’t be pleased to enjoy our desserts that may rip off
their wallets. Aside from the quality, the team will also ensure the cleanliness and safety of the
product. Although the business is still small, the team will undoubtedly deliver tasty desserts
with an attractive presentation for clients' social media.

2.4 Vision
The business vision is to establish a business that would benefit both sides, the sellers
and the costumers. The team sought to provide the costumers the satisfactory that they deserve
and also to serve as a stress reliver place for them. Where they can have their piece of mind
while spending time with their love once or friends.

2.5 Values
 Always give positive vibes.
 Maintain good relationship with the costumers
 Maintain the cleanliness and good quality of the products.
 Eco-friendly
 Give and aim always for the best.

2.6 Methodology
This section describes the methods of financial distribution that will be used by
"House of Desserts" to address the entity's financial concerns. These are based on
research data gathered from interviews with business competitors.
2.6.1 Revenue
This section provides the computation interpretation of assumptive
revenue for "House of Desserts".
1. The revenue increases 5% every month.
2. Net income will all go to the owner.
3. The service transaction is on cash/card basis.
2.6.2 Expenses
This section provides the computation interpretation of assumptive
expenses for "House of Desserts".
1. Monthly expenses for utility have a fixed cost of PHP
23,500.00.
2. The expenses for the equipment have a total of PHP
150,500.00 in the starting of the business
3. The assumptive supply expense for the first month have a total
of PHP 301,500.00.
 4. All the tax and permit will be outright each year
5. 13th month and benefits will be provided for the staff

2.7 Historical & Projected Demand

The global cake market was worth USD 42.94 billion in 2019 and is expected to increase at a
CAGR of 3.3 percent from 2020 to 2027. Over the next several years, the high popularity of
commemorating all types of special occasions and success through cake cutting is projected to be
a major driving force. Furthermore, the growing demand for cakes as desserts after meals during
dine-out and weekend events among millennials and Generation Z customers around the world is
expected to grow the market in the near future.
As a result of an increasing number of health-conscious people at home, market share for
innovative and healthy products has been increasing in the above-mentioned locations.
Furthermore, as more people adopt western lifestyles and nutrition, demand for cakes is
expanding in Asia and the Middle East's developing economies.

Because of changing consumer preferences toward improved baked varieties, the bread
business has seen fresh gains. The rising popularity of western-style bakeries in Asian countries
such as China, Japan, and South Korea, for example, is projected to remain a positive trend.

2.8 Historical & Projected Supply

Specialist retailers emerged as the most popular product group in 2019, with a share of
over 50.0 percent, and are expected to maintain their dominance in the next years. Various
domestic players have their own specialized shops selling artesian cakes, dessert cakes, and
sponge cakes. Cupcakes and other baked items with a long shelf life are also commonly available
at major grocery chains like Walmart, Sainsbury's, Tesco, 7Eleven, Apar, and Aldi. In order to
entice clients, these big-budget industry players are increasing their product offers.

2.9 Demand Supply Gap

Projected Annual Projected Annual
Year Demand-Supply Gap
Demand Supply
D S (G= D-S)
2022 42,000 30,000 12,000
2023 46,200 30,300 15,900
2024 53,130 34,845 18,285
2025 61,100 40,072 21,028

2.10 Market Share

Here in the Province of Rizal, there’s a lot of bakery shops but there’s only few desserts
centered business. Since we are one of the few centered desserts cafés here in Rizal, we are
assuming to get at least 50% of market share in the Province of Rizal.

2.11 Marketing Plan

Our marketing strategy for this year is to reach 88 percent of our whole target customer
base. Maintain the product's high quality. To create new products. To have a variety of branches in
CALABARZON. The most important thing is to develop a positive relationship with customers in
exchange for their loyalty, which will help us expand and get recognition in the business food
industry.

2.12 Marketing Strategies

Here are some marketing strategies we plan to perform in first year of our business.
1. Word of Mouth
 We would value and enhance customers’ relationships and support in order to
receive positive feedbacks or, at the very least, a positive word for our product from
potential customers.
2. Mark Downs and Special Offers
 We will make sure exclusive deals for our grand opening, holidays, anniversary, and
bulk orders. Customers will receive discounts during those said events.
3. Social Media
  Social Media websites like Facebook, TikTok, and Instagram will help the business
known faster. Through social media, we can strengthen the image of the business.
This will attract potential customers.
4. Content Creating
 Viewers will establish trust, attention, and curiosity by providing videos and images of
the products and the venue. With this method, many potential customers will visit the
business's location and provide comments. This will assist the company in building a
brand and increasing client inquiries.
5. Print Media

2.13 Target Market

The products are to be sold to everyone, toddlers, students, workers, or just a regular
people who:
 Love to eat every time they feel stress from school, works, and who believe that
eating desserts can relieve or reduce stress.
 Love to share their adventure on social media
 People who have sweet tooth cravings

2.14 Advertising Materials

 Flyers – a simple way of advertising material by handing out it to the people who are
passing buy and/or while events who visits your business venue.
 Business Cards – a professional way of introducing a business to a client or investors.
It’s a handy advertising material where you can carry whenever you go outside the
working place.
 Social Media – through ads, or by simply making a page and posting it on it’s news
feed. Through ads it can gather many people in online world to check out the business
we’re introducing. Posting aesthetic videos and pictures will also gather social media
influencers.

2.15 Map of the Business Location

 House of Desserts (National Road Cor. Road, Pantok, Binangonan, 1940 Rizal)
 CHAPTER 3
Management Aspect
3.1 Management Description
The owner, who is also the manager of House of Desserts, will be in charge of managing
the shop on a daily basis, planning how the business will run, and giving orders to all other
shop employees. The owner will hire staff who meet her qualifications and requirements.
3.2 Process of Securing Licenses and Permits
*Apply for the business name (DTI)
Accomplished Application Form 16
• 2x2 ID Picture taken w/ In 1 year immediately preceding the filing of the application
• Documentary stamps
Then apply for the business permit (Barangay Unit of the City or Municipality Where You Will
Locate)
Apply for business clearance
• Community Tax Certificate and
• Barangay Clearance Fee
Apply for Building Permit and Electrical Inspection Certificate (City or Municipal Hall
Where you will locate)
• Building plans (including fencing, signboard, etc.)
• Lot plan
• Clearances (locational, home owners, barangay, MMDA, etc.)
• Fire safety requirements
• Contract of lease and authorization of owner (if rented)
• Title, tax declaration, tax receipt (if owned)
• Contractor’s business permit
• Sketch
• Old building permit
• Bill of materials, specifications, structural computation
• PRC/PTF of the Engineer
Apply for Fire Safety Inspection Certificate (Fire Department of the City or Municipality
where you will locate)
• Building plans
• Building permit
• Barangay Business clearance
• Fire insurance coverage
• Compliance to requirements and recommendations from fire safety
Inspectors
Apply for Sanitary Permit (Health Office of the City or Municipality where you will locate)
• Chest X-Ray
• 1x1 picture
• Inspection of said establishment
• Sanitary Permit Fee
• Payment of sanitary permit and sanitation inspection fees
• Medical Certificate / Health Card issued by the City Health
Officer or duly authorized representative
Apply for Certificate of Occupancy (City or Municipal Hall Where you will locate)
• Pictures of the site
• Fire Inspection Certificate
Apply for Mayor’s Permit
• DTI / SEC Registration Certificate / CDA Registration
• Community Tax Certificate
• Barangay Business Clearance
• Locational Clearance
• Certificate of Occupancy
• Building Permit
• Fire Safety Inspection Permit
• Electrical Inspection Certificate
• Contract of Lease or TCT
• Pictures of the site

3.3 Organizational Structure

3.4 Duties and Responsibilities of the Personnel
1. Baker
 The duties and responsibilities of the baker is to ensure the taste and quality of
the desserts. The baker also monitors the baking and ingredients supply.
2. Cashiers
 Should welcome the costumer with warm and welcoming smile. The duties of the
cashiers are to secure and ensure the bill transactions both cash/credit cards way
of paying. And all the orders must be handled well and correct.
3. Janitors
 The duties and responsibilities of the janitors is to ensure the cleanliness of the
café, equipment, and specially the kitchen. The janitor also monitors the
sanitary/cleaning supplies.

3.5 Qualifications of Personnel

All the personnel must be;
 18 years old and above
 At least Highschool Graduate/ Senior High School Graduate
 For Cashier took ABM strand/ with at least 1-2 years’ experience
 Baker at least has 3-4 years of experience

3.6 Hiring Process and its Requirements

All personnel will undergo the same process, such as requirements, interview
and others. After the interview they will be assess then hire them if ever they are
qualified.

All applicants must submit their resume, police and barangay clearance. They
must also present a valid I.D and bio data.

3.7 Employer/Employee Schedule

Their work schedule will be from Monday to Sunday from 8 am – 5pm.

 Cashier- 8am - 5pm

 Baker- 8am - 5pm
 Janitor 8 am – 5pm
 And with all 1-hour breaktime.
 CHAPTER 4
Technical Aspect
4.1 Technical Description
Desserts are usually served in a small serving. Some desserts like cake and cheese
cakes are baked and other disserts like graham balls, ice cream put in the fridge to freeze.
Waffles is served ice cream toppings partnered with beverages.
Dessert’s appearance is the one of the concern, cause desserts should be perfectly
designed so that the customers won’t be bored while eating it.
4.2 Main Product Offered
1. Cake in a Cup 2. Cheesecakes 3. Ice Cream Sundae

4.3 Pictures of Equipment

1. Baking Equipment 2. Oven

3. Freezer 4. Ice cream Maker 5. Cash Register

6. Waffle maker
4.4 Pictures of Furniture and Fixtures
 Reference for Interior Design

4.5 Pictures of Maintenance Supply

4.6 Pictures of Sanitary Supply

4.7 Floor Plan
 CHAPTER 5
Financial Aspect
The financial forecast for the proposed “House of Desserts” including financial
assumptions, budget, financial description, is shown and discussed in this chapter. This chapter
also summarizes the funding sources and funds.

5.1 Financial Description

This section contains the budget, projected daily sales, labor, monthly information, and
12 - month profit and loss statement. This section also shows the financial assumptions of the
plan.
5.1.1 Budget
Desserts Café is really expensive business to start but it will be all worth it in
the long run. Our estimated budget is PHP 300,000.00, including the interior design,
rent, supplies needed for the whole month and the cost of the equipment.
5.1.2 Projected Daily Sales
Daily Sales
Material
Number Price Total Revenues Total Cost Profit
Cost
Cake in a cup 20 180 120 3,600 2,400 1,200
Cheesecake 20 180 120 3,600 2,400 1,200
Waffle 30 75 50 2,250 1,500 750
Graham Balls 50 25 15 1,250 750 500
Ice Cream 50 100 50 5,000 2,500 2,500
Beverages 20 50 25 1,000 500 500
Total 190 16,700.00 10,050.00 6,650.00
The projected daily sales state the number of products
sold, price for each, material cost, total revenues, total cost and profit
made in a day in this projection, we can make profit of PHP 6,650.00
in a day.
5.1.3 Projected Labor
Labor
Employee Rate Hours Total Pay
TheEmployee
owner hired1 5 employees
55 to 8 440
workEmployee
for the café.
2 The table
55 8 440
shows the projected
Employee 3 labor in
55 a 8 440
day Employee
of 5 worker.
4 55 8 440
Employee 5 50 8 400
Total 270 40 2160

5.1.4 Projected Monthly Information

Monthly Information
The monthly information contains
Management 13,000
monthly expenses of the shop. This
Rent 10,000
includes rent, electricity, water, internet
Electricity 6,000 bill. The monthly expenses have a total
Water 1,500 of PHP 23,500.
Internet 3,000
Advertising 3,000
Total 23,500

5.1.5 Projected Profit and loss

 12 Month Profit and Loss Statement – 12 Month Cash Badget

This table presented the number of projected profits of the business within a year
spam. It also shows that it has a 5% growth monthly.

5.2 Financial Assumptions

This section describes the financial assumptions that will be used by "House of
Desserts" to address the entity's financial concerns. These are based on research data
gathered from interviews with business competitors.
5.2.1 Revenue
This section provides the computation interpretation of assumptive
revenue for "House of Desserts".
4. The revenue increases 5% every month.
5. Net income will all go to the owner.
6. The service transaction is on cash/card basis.
5.2.2 Expenses
This section provides the computation interpretation of assumptive
expenses for "House of Desserts".
6. Monthly expenses for utility have a fixed cost of PHP
23,500.00.
7. The expenses for the equipment have a total of PHP
150,500.00 in the starting of the business
8. The assumptive supply expense for the first month have a total
of PHP 301,500.00.
9. All the tax and permit will be outright each year
10. 13th month and benefits will be provided for the staff

Chapter 6
 Socio-Economic Aspect
The proposed business “Home of Dessert’s” will bring satisfaction to customers, who are
looking for inexpensive sweets and enhances access to care to millions of households at the
soonest possible time. The business is committed to promoting deliciousness among people by
making quality affordable desserts available to all. This will also produce products made from
non-chemical, delicious yet low priced and attracted a budget conscious consumer’s party.

6.1 To the Customer

The business’ customers will be the sole source of our earnings. Given that fact, the
business will ensure that all customers will receive fair service from the Home of Dessert’s. Any
concerns will be dealt with accordingly by the management. Affordable desserts will be offered.
This will ensure that even middle men or the poor can afford a sweets product. However, the
business will make sure that high quality service will be provided during your stay in our shop.

6.2 To the Community

Every company's first responsibility is its economic responsibility which means a
company must attain its objective of maximizing its profits. The business will produce services
that the community wants and to maximize profit for the owners consequently contributing to the
betterment of the community. The business will provide the best to our product. This will result
in more productivity. It is also a part of the business’ corporate social responsibilities to give
support to different charities. Through these, the company’s relationship towards the community
within
which it operates will be maintained to be amicable.

6.3 To the Government

The business owners and business will pay their tax obligation as provided by law. Tax
will help the government generate funds for the improvement of public service and government
projects.

6.4 To the Employers/ Employees

The business will provide diversity, health and safety, training and mentoring, employee
relations, and wages and benefits that will sustain the needs of its employees.

6.5 To the Environment

The activities performed by the business will promote environmental awareness and its
impacts on the living and non-living systems will be taken into consideration ensuring that no
harm will be caused to further damage the environment. In the process of the development of its
business, Home of Dessert's is committed to the implementation of pro-active sustainable
activities such as the environmental preservation with full consciousness of the importance of its
Corporate Social Responsibilities. Environmentally friendly business practices can reduce
business risk, improve reputation, and drive market opportunities.