TEOFILO V.

FERNANDEZ NATIONAL HIGH SCHOOL

SENIOR HIGH SCHOOL DEPARTMENT

Indangan, Davao City

BUSINESS PLAN

(Business Name)

In partial fulfillment for Entrepreneurship

HUMSS Grade 11

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JANUARY 2023

(LOGO HERE

(Business Name)

(Tagline)

(Address)

(Contact#)

(Website)

(Email)
 I. TABLE OF CONTENTS

Page

I. Table of Contents …………………………………………………………………………….. i

II. Executive Summary………………………………………………………………………….. 2

III. General Company Description………………………………………………………….. 4

Vision…………………………………………………………………………………..… 4
Mission…………………………………………………………………………………… 4
Goal………………………………………………………………….…………………….. 4
Objectives……………………………………………….………………………………. 4
Business Philosophy…………………….………………………………………….. 4
Legal Form of Ownership…….…………………………………………………… 4

IV. Products and Services…………………………………………………………………………. 6

Description of Products/Services ……………………………………………… 6

Competitive Advantages ………………………………………………………….. 7
Pricing Structure ………………………………………………………………………. 8

V. Marketing Plan…………………………………………………………………………………… 9

Market Research ………………………………………………………………………. 9

Economics/ Industry Analysis…… ……………………………………………… 12
Products ………………………………………………………………….………………… 15
Customers ……………………………………………………….………………………… 16
Competition …………………………………………….………………………………… 17
Strategy …………………………………………….………………………………………. 19
Sales Forecast ……………………………..……………………………………………… 19

VI. Operational Plan……………………………………………………………………………………. 20

Production………………………………………………………………………………….. 23
Location ……………………………………………………………………………………… 25
 Legal Environment ……………………………………………………………………… 26
Personnel ……………………………………………………………………………………. 26
Inventory ……………………………………………………………………………………….28
Suppliers ………………………………………………………………………………………..28
Waste Management……………………………………………………………………… 28

VII. Management and Organization…….………………………………………………………..… 29

Organizational Structure……………………………………………………………….. 29

VIII. Financial Plan ………………………………..…….…………………………………………………. 30

Start-up Costs and Capitalization …………………………………………………. 31

Important Financial Assumptions …………………………………………………. 32
Projected One year Statement of Financial Position …………………….. 33
Projected One year Income Statement ………………………………………… 34
Projected One year Statement of Changes in Equity …………………….. 35

IX. Appendices………………………………………………………………………………..…………….. 30
 Executive Summary

(Write at least 4 paragraphs in executive summary using guide question)

1st paragraphs (4 sentences)

Write an overview of your business idea in ONE or TWO sentences
Write who is the owner and why the owner wants to put up that kind of business.

2nd paragraphs (7 sentences)

What are your products and services offer and where it will be located
Why you choose that location
Who are your main target markets and how big is there population
Who are your secondary target markets?
Who is your final target market?

3rd paragraphs (2 sentences)

What is your business hour? Are you going to open even if holidays?
How many employees do you have and what are their respective job positions

4th paragraphs (5 sentences)

What type of ownership does your business have and how much will be the starting
capital?
Are you going to rent the place? If Yes, then how much?
Do you have any plan to expand? Why or Why not?
How long you can expect for the return of investment? ROI
How much profit you are expecting for the first year

General Company Description

st
1 paragraphs (3 sentences)
Explain how your logo describe your business
Describe the relationship of your logo to your product
What makes your product unique?

2nd paragraphs (4 sentences)

Describe your commitment to your customer
What are some good things that your customer can expect out of your products?
What are things that you can guarantee to your customer?

3rd paragraphs (2 sentences)

When will be the opening of your business?
What are your business hours?
Are you going to open during holidays?

Vision
 What is your company vision? Do you aim to become the number 1 choose in that
particular niche?

Mission
What is your company mission? What are promises you can give to your customer?
How can you satisfy them and by addressing their needs

Goal
Specify your long-term and short-term goal as well as milestone or benchmarks you
will used to measure your progress. For example if your milestone is to open another branch
in the future state how much sales to need every months

Objectives
Write down your objectives in a bullet form at least 5 objectives

Example:

 To realize net operating income percentage of 6%, 21% and 28% on the first,
second and third years of operation, respectively

Business Philosophy/ Core Values:

Write down your company belief (4 sentences)

Example:
Polar Bar Smoothie + Ice Cream’s philosophy is “joy in indulgence”. It implies
that indulging in simple pleasures like the sweetness and decadence of Polar Bar’s
ice cream smoothies can bring the customers joy. It realizes that the only way to gain
profit is through customer satisfaction. Thus, it will strive hard to provide its
customers with the best and most reasonable products, prices and service.

Polar Bar will also be involved in keeping its environment clean and green by
implementing a proper waste disposal management and promoting the use of
reusable cups and straws in the shop.

Legal form of ownership

Write down what kind of business ownership is your business. Why did you choose
this particular form of business?
If there is more than one owner, explain how the percentage of sales be divided.

Products and Services

Write product and services at least (2 paragraphs)

1st paragraphs (3 sentences)

Describe your product (favors, ingredients, health benefits)
2nd paragraphs (3 sentences)
Describe out of your product and services what do you think is the most sealable?

Description of Products/Services

1st paragraphs (3 to 6 sentences)

Mention your entire product to be offered and give a little descriptions of each.

Table 1: Smoothie Flavors

Flavors of Smoothie Description Product Description

Cookies and Cream Smoothie A smoothie blend of Selecta cookies and
cream and full cream milk topped with a
swirl of soft served ice cream and sprinkled
With various toppings.
Vanilla A smoothie blend of Selecta super thick Vanilla
ice cream and full cream milk topped with a swirl
of soft served ice cream and sprinkled with
various toppings.
3. Strawberry A smoothie blend of Selecta super thick

Strawberry ice cream and full cream milk topped

with a swirl of soft served ice cream and

sprinkled with various toppings.

4. Chocolate A smoothie blend of Selecta super thick

Chocolate ice cream and full cream milk topped

with a swirl of soft served ice cream and

sprinkled with various toppings.

5. Mango A smoothie blend of Selecta super thick Mango

ice cream and full cream milk topped with a swirl

of soft served ice cream and sprinkled with

various toppings.

6. Ube A smoothie blend of Selecta super thick Ube ice

cream and full cream milk topped with a swirl of

soft served ice cream and sprinkled with various

 toppings.

2nd paragraphs (3 sentences)

Describe any other additional product.

Example:

There will also be snacks such as cupcakes and cookies sold in Polar Bar as
concessionaire products from Mama Michelle Cake’s and Pastries.
Competitive Advantages

(1 paragraph with 7 to 10 sentences)

Describe how many competitor you have with the barangay.

Describe your competitor product and services and what is your competitive advantage.
What makes your product different from their product? And why people will buy from you
instead of buying from them?
Aside from your main product, are there any freebies included that you can offer?
Describe variety of your product? (Flavors, size, ingredients)
Is your product affordable the competitors?

Pricing Structure

The pricing method that Polar bar is going to use is Cost plus Pricing. It involves
adding a markup to the cost of goods and services to arrive at a selling price.

Table 2 Product Costing

SIZE PRODUCT REGULAR SPECIAL CUSTOMIZED

FLAVOR FLAVOR FLAVOR
Small Milk Tea 80.00 120.00 180.00
Medium
Large

Marketing Plan

(This section provides details on your industry, the competitive landscape, your target
markets and how you will market your business to those customers.)
Market Research

(Write at least 5 a paragraph with 6 sentences each, using the following guide statement
below. Research on Google and do not forget to save references.)

 Total size of the industry with history ten years ago

 Trends in the industry- is it growing or shrinking
 The total size of your target market, and what share is realistic for you to
obtain
 Trends in the target market- is it growing or shrinking?. How are cutomer
needs or preferences changing?

Economics (Industry Analysis)

Write an analysis of the chosen industry

1st paragraphs (5 sentences)

Describe status of the industry (Philippines)

2nd paragraphs (5 sentences)

Describe status of the industry (Davao City)

3rd paragraphs (5 sentences)

Describe status of the industry (Brgy. Wherein your business located)

4th paragraphs (5 sentences)

Why the owners comes up with that particular business idea

Demand and Supply Analysis

Table 3 Projected Demands

Year of Operation Total Total Projected Demand

2023 1423
2024 1487
2025 1509
Source: Barangay Hall of 7-A General Malvar, General Malvar Street

Table 4 Projected Supplies

Year of Operation Projected Supply

2023 1200
2024 1100
2025 1000

Table 5 Demand and Supply Analysis

Year (1) Demand (D)(2) Supply (S)(3) D-S GAP (4)=(2)- Percent Unserved

(3) (5)=(4)/(2)x 100%

2023 1423 1200 223 1.56%

2024 1487 1100 387 2.60%

2025 1509 1000 509 3.37%

Products
Describe all your product or services, being sure to focus on the customer’s point of view.
For each product or services: (2 Paragraph with 5 sentences)

 Describe the most important features. What is special about it

 Describe the most important benefits. What does it do for the customer?

Customers

Describe your target customer in one paragraph with at least 4 sentences

Table 8. Population of (your Target market)

YEAR AVERAGE POPULATION

2023 989
2024 1347
2025 1826
Ave Growth Rate
Write additional target market or secondary target market in one paragraph with 3
sentences.

Competition

Write down who are your competitors and what is your competitive advantage (one
paragraph with 3 sentences)

Table 9. Indirect Competitors

Factor Your Strength Weakness Competitor Competitor Importance

Company A B to
Customer
Food A blend A mixture A mixture
Quality of ice of of
/
cream powdered powdered 1

and full flavors, tea flavors,

cream and sugar tea and
milk syrup sugar
syrup
Price

Ambiance
Services
LEGEND: 1 = Critical 7 = Not very important

Strategy

Describe how you will introduce your product to the market in 3 paragraphs with at least 5
sentences of each paragraph.

Table 10. Promotional Expense

Promotional Quantity Budget Total Cost

Expenses
Total Cost

Sales Forecast

Describe your target sales in one paragraph with at least 5 sentences

Table 11. Sales Forecast for Year 1 (Monthly)

Product Quantity Cost

Operational Plan

Explain your business hour operation (considering Holidays) in one or two sentences

Figure 1 Service Process Flow

Write a brief explanation how you will serve your customer. Write it in sequence
Production

Write a brief explanation how you will produce your product from manufacturing to the
store. (1 paragraph with 5 to 10 sentences)

Location

Describe the exact location of your business including the size or the floor plan of the store.
Is the building is owned by you or you are going to rent. If rent then state how much rent
per month. (1 paragraph with 5 to 10 sentences)

Legal Environment

Describe what are those permit and licenses that you are going to secure in your business.
(1 paragraph with 5 to 10 sentences)

Personnel

Describe your Team, how many employees you need including manager and write their
schedule of work and their job description, salaries and benefits (1 paragraph per employee
with at least 3 to 5 sentences)

Inventory

Explain how you will conduct inventory

Example:
At the end of each month, the company will stock inventory that would cover the next
month of operation to ensure smooth operation in the coming month.

Suppliers

Explain how you will acquire supplies needed in your business

Example:
The company will partner with Mama Michelle’s cakes and pastries for the daily delivery of
fresh cupcakes. Further, it has a reliable supplier from Mama Genie’s Love Enterprises will
ship the plastic cups, straws, rainbow sprinkles, chocolate chips and mini marshmallows by
bulk and supply them to the company. All the ice cream flavors, corn flakes and Hershey’s
syrup (Chocolate, strawberry & caramel) will be bought in Felcris Grocery store or Gaisano
Grand Mall Ilustre which are both walking distance from the location of Polar Bar. For the
vanilla soft serve ice cream, Polar Bar has partnered with In Joy products.

Table 12. List of Suppliers

Supplier Product Locations

Mama Michelle’s cakes and Cupcakes and cookies Brgy San Isidro,
pastries Buhangin, Davao
City

Waste Management

Explain how your waste management Plan

Example:
Polar Bar will provide colorful and informative trash bins outside its physical store so that
they are easily seen by the customers. This is to ensure that they are aware of the
availability of trash bins where they can conveniently throw their plastic cups and straws.
The employees will also do their part of reminding the customers of the importance of
waste disposal and the location of the trash bins. The customers will also be encouraged to
enjoy their ice cream smoothies, cupcakes and cookies inside the store to avoid take-outs
that may possibly lead to improper waste disposal.
Every time that the trash bins eventually become full, one of the baristas or the
cashier will immediately replace the biodegradable garbage bags that lined the inside of the
bin. The full garbage bag will now be securely tied and taken to the back of the store to wait
for the city’s garbage collection team which arrives every Monday and Wednesday at 7:00
to 8:00 PM.
 Management and Organization

Organizational Structure

Explain the structure of your organization

Example:
The owner will personally manage the business but will hire a reliable third party
bookkeeper to check on the income flow every end of the month. Polar Bar will also employ
1 cashier that will work from 9:00 AM to 9:00 PM. The cashier will be paid for the overtime
of three hours that he/she has rendered on top of the regular work schedule of 8 hours.
Two of the three baristas will work from 9:00 AM to 6:00 PM while the third barista will be
working from 6:00 PM to 9:00 PM only.

Organizational Structure

Manager

Bookkeeper

Service Service
Cashier
Crew Crew

Table 13. List of Regular Employees

Job Tittle Qualification Job Description Pay Rate
Manager *Must be a business *Managing day- * P15,000 per Month
course graduate today operations.
*With 1 year working *Scheduling shifts for
experience baristas and wait
*Customer service staff.
attitude *Monitoring daily
expenses and
revenues.
*Ordering supplies
like ice cream, milk
and toppings, as
needed.
Bookkeeper
Cashier
Service Crew

Table 14: Employee Work Schedule

Employee Work Schedule Job Description

Manager 9:00 AM- 9:00 PM The cashier will be the one
Monday- Saturday taking the orders, taking the
12 hours payments and writing the
names and order codes of
the customers in their
designated cups. The cashier
will also spear head the
waste management and may
assign his co-employees help
him collect the trash. With 1
hour lunch break and 1 hour
dinner break
Bookkeeper
Cashier
Service Crew

Additional Explanation: In one or two paragraph describe how you achieve goal for the first
year. What are training and seminars that your employee should undergo before the
opening of your business?

Financial Plan

Describe your financial plan projection

Example:
Polar Bar’s financial plan consists of a three year profit and loss projection, together with
the start- up cost and capitalization; other parts of financial statements and financial ratios.
The starting capital amounting to ₱ 508, 250.00 will be financed by the owner.

Start-up Costs and Capitalization

Polar Bar Smoothies and Ice Cream

Start-up Cost and Capitalization
For the Period Ended Year 1

1. START-UP COSTS
A. PRE-OPERATING EXPENSES
Promotional Expense 20,000
Supplies Expense 14,473
Prepaid Rent 24,000
Permits and Licenses 22,234 80,707
B . CAPITAL EXPENDITURES
Leasehold Improvement 150,000
Machinery and Equipment’s 66,514
Furniture and Fixtures 56,492 273,006
C . WORKING CAPITAL 146,288
START-UP COST 500,000

2. CAPITALIZATIONS
Investment from Owner 500,000
Important Financial Assumption

Income Statement
1. A 10% increase in sales annually is assumed. Prices are based on the market survey
conducted.
2. Revenues and expenses are cash basis and will be collected and paid during the
accounting period.
3. The utilities expenses are subject to 5% increase each year to reflect the average inflation
rate.
4. Depreciation Expense is on the straight line basis with no residual value.
5. Supplies Expense increases by 10% annually relative to the increase in sales volume per
year.
6. Working Capital is AT LEAST equal to 3 months of direct material requirements for first
year.

Cash Flow Statement

1. The business uses indirect method.

Equity
1. Owner's withdrawal is at least 80% of current years' net income and shall commence in
the first year of operation.

Projected One year Statement of Financial Position

Polar Bar Smoothies and Ice Cream

Statement of Financial Position
As of Year Ended Year 1

(Table for Balance Sheet should be done Excel and paste here)
Projected One year Income Statement

Polar Bar Smoothies and Ice Cream

Statement of Financial Performance
For the Period Ended Year 1

(Table for Income Statement should be done Excel and paste here)

Projected One year Statement of Changes in Equity

Polar Bar Smoothies and Ice Cream

Statement of Owner's Equity
For the Period Ended Year 1

(Table for changes in equity should be done Excel and paste here)

Appendices