In Partial Fulfillment of The subject

Entrepreneurial Mind

Submitted to: Mr. John Paul Catubig

Submitted by:

Sean Cedrick R Malabanan

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 ABSTRACT

The researcher study can be helpful for many people who are stress and

busy with their work, because we recommend our massage therapy, for the

workers who are working all day. This includes free wifi for all the customers.

We assure that this business can be popular to all millennial because

we also have computers that they can use for researching, gaming even

coding or create their own application. A lot of students can now study while

enjoying our best coffee.

As we all know that many tourists came to our country for vacation

and relaxing. A tourist is helping our country to develop the economy. We

assumed that our business can contribute to the economy by increasing the

tourists.

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 TABLE OF CONTENTS

Abstract 2

Table of Contents 3

Chapter I – Introduction 6

Background of the Study 6

Statement of The Problem 7

Scope and Limitations 9

Significance of the Study 9

Chapter II - Organization and Management Aspect 10

Form of Business Organization 10

Advantages of the chosen type of organization 11

Legal Requirements 12

Personnel Management & Definition of Function 14

Organizational Structure 17

Profit Sharing 17

Pre-operating Period 17

Chapter III - Market Aspects 18

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Product Description 19

Market Analysis 26

S.W.O.T Analysis 28

Competition 29

Marketing Programs 29

Target Market 30

Pricing 30

Advertising or Promotion 39

Sales Forecast 40

Chapter IV - Technical Aspect 42

Location 42

Land and Building 43

Waste Disposal and Safety Measures 44

Chapter V - Financial Aspect 45

Total Project Cost & Financial Projection 45

Source of Financing 46

Projected Income Statement 46

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Chapter VI - Socio-economic Aspect 47

Chapter VII - Findings, Conclusions and Recommendations 47

Findings 47

Conclusion 52

Potential Problem 52

Recommendation 52

Curriculum vitae 53

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 Chapter I -Introduction

Nowadays, lot of students and workers aiming for a good quality of

coffee and a place where they can relax and take a short break from their

hard work. Sometimes many people need to relax or bond with their friends.

We assure to ourselves that this business will be managed by the

people who can handle the business. They should be responsible, well

discipline, consistent and humble. They should know the limitation and one

should not go overboard in handling the business as if it’s his/her. They

should remember that no one should be the superior between the two

partners, it must be equal.

 Background of the study

I. Due to hard work and busy day of many student and workers, our business

is here to help them acquire the relaxing moment they really desire. A lot

of people was stress from they’re daily work and don’t have enough time

to relax because of their small amount of free time. We assure to them

that a small amount of time can be enough to relax and enjoyable to them.

II. We assure that the product we are serving is high quality of bean that

ordered from another country just to make a good quality of coffee for all

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 the customers not just coffee we are serving, we also have delicacies like

cake, sandwich and others.

We like to build our business in where a lot of students and workers came

to visit specifically the mall, where many students and workers look for a

place that they can hang out or bond.

III. The product we are serving is affordable for the customers. The price for

our product depends on what size and product ordered. Product ,size and

price will be shown in the table below

 Statement of the problem

This study is intended to evaluate the feasibility of selling café and

delicacies

 Specifically, it aims to evaluate and analyze the following areas:

 Product description

 Product process

 Equipment/materials

 Plant location

 Plant lay-out

 The target marketing aspect of the study

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  General business condition

 Competitive condition

 Target market

 Demand

 Product

 Pricing strategy

 Promotion

 Packaging

 The financial aspect of the study

 Capitalization

 Source of funds

 Total sales

 Total expenses

 Income statement ( 5 years projected)

 Balance sheet (5 years projected)

 Return of investment

 Ratio analysis

 Management aspect of the study

 Form of ownership

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  Structure

 Job analysis

 Company policies

 The Socio-economic aspect of the study

 Contribution to the government

 Contribution to the society

 Scope and limitation

The product concept, sales and services are restricted to Pasay City and will be

based on management, marketing, technical, socioeconomic, and financial

aspect of the product and business. The product will be disseminated through

direct selling and orders are also accepted from the costumer within in Pasay

City from those who are willing to purchase our product.

 Significant of the Study

The study of gives the consumer a product which is affordable but with

the same product quality with those sold at an expensive price

This section will provide a brief description on various significances of

the study given

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 To the customers – the researchers believe that the customers will benefit

because the study was made for them to be satisfied, and the researcher give

a product with low amount of priced for them

To the researchers- in doing the study, the researchers have acquired new

skill and knowledge that they can use in their profession. This research can

enlighten their thinking in building businesses.

To the students- the researchers believe that many students will gather to this

place to acquire knowledge and will be satisfy to our product, this will help the

speed their metabolism providing an immediate source of energy.

Chapter II-Organization and Management Aspect

 Form of Business Organization

The type of business ownership will be a partnership; in which

partners pool money, skills, and other resources, and share profit and loss in

accordance with the terms of the partnership agreement. In the absence of

such agreement, a partnership is assumed to exit where the participants in an

enterprise agree to share the associated risks and rewards proportionately.

Complementary skills and additional contacts of each pattern can lead to the

achievement of greater financial results together than would be possible

apart. Mutual support and motivation are needed for the business to last

longer.

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 Our goal is to be known by our products and service nationwide, that

way we get branches in other countries it can be very helpful to us by earning

a lot of income so that we can upgrade our business. The main goal of this

business is to satisfy all the costumers for relaxing way we can help.

The partnership of this business is form by a group of college friend,

they took bachelors of Science major in entrepreneurship in college, and

they’ve graduated in one of the most popular university in the Philippines.

After they’ve graduated they start talking about making a business that will

satisfy all the customers. They found out that they have the same idea of

making a coffee shop where millennial and worker can relax and take a short

break.

 Advantages of the chosen type of organization

The advantages of partnership are:

1. Easy to recognize. Like single proprietorship, a partnership is relatively

moderate to form, much easier than a corporation.

2. Availability of more capital and credit. Partners can pool their resources-

properties, equipment and others – and also can use these for security in

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 obtaining bank loans. Suppliers are willing to extend more credit to a

partnership than to a single proprietorship.

3. Retention of profits. Just like on the sole proprietorship, the partners gain

all the profits of their business. This stimulates the partners to improve their

operations.

4. Better business skills and knowledge. Each partner contributes his skills and

knowledge to the organization. Such combination provides better

management in terms of planning, decision making and implementation,

compared with a single proprietorship

 Legal Requirements

1. SEC registration – for registering as a partnership or corporation

2. DTI registration – for registering your business trade name (BTR)

3. Mayor’s business permit – for getting the license to operate in the city or

municipality and payment of your local business taxes.

4. BIR registration – for getting TIN, official receipts and invoices, registering

your books of accounts, and paying your national internal revenue taxes

(Income tax, VAT or Percentage Tax, Withholding Taxes, etc.,).

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5. SSS, PhilHealth, and Pag-Ibig Fund registration – for registering yourself or

company as an employer and for remitting your employees’ contribution

together with your employer’s share.

Usually, the BIR and the City/Municipality Office require the certificates of

registration with the SEC or DTI before a business can be registered with

them. Thus, you need to register through those offices to start commencing

your business.

In early 2012, the government has launched the Philippine Business Registry

(PBR) system – a one-stop shop for entrepreneurs who need to register with

the various government agencies, such as the DTI, SEC, BIR, SSS, Pag-Ibig Fund

and Philhealth. However, this service is only available to a few cities in Metro

Manila and is not yet available nationwide.

Special requirements

Aside from the basic requirements, there are also special

licenses or registrations that must be obtained by a business to start its

operation. For example, banks, financing company, lending company,

pawnshops, money changers, money remittance business, and other

financing institutions are required to be registered with the Bangko

Sentral ng Pilipinas (BSP). If you are manufacturing and selling products

related to food and drugs, you also have to register with Bureau of

Food and Drugs (BFAD). For schools and entities involved in providing

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 education, they should register with the Commission on Higher

Education (CHED) and Department of Education (DepEd).

 Personnel Management & Definition of Function

Store Manager:

 Responsible for managing the daily activities in the store

 Ensures that the store facility is in tip top shape and goods are properly

arranged and easy to locate

 Controls distribution and supply chain inventory

 Supervises the workforce in the sales floor

 Is the Role Model for outstanding service and “owner” of the service

initiative at his/her store.

 Pro-active in solving customer problems and satisfying customers in

various situations.

 Ensures that all team members are committed to and demonstrate

our Guiding Principles and House Rules.

 Ensures that all team members provide customers with ef ficient,

friendly, superior service on a consistent basis.

 Consistently monitors, coaches and encourages team members to

meet the Company’s service standards.

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  Assesses and provides adequate staffing to provide efficient and

friendly, superior service.

 Maintains high cleanliness standards consistently throughout the

store in the areas of store appearance, merchandise and equipment.

Accountant/Cashier:

 take orders for customers 

 ring up the total purchase amount in addition to collecting payment for

purchases

 also verbally relay orders to other employees

  Issue receipts, refunds, credits, or change due to customers.

Barista Job Responsibilities:

 Promotes coffee consumption by educating customers; selling coffee

and coffee grinding and brewing equipment, accessories, and supplies;

preparing and serving a variety of coffee drinks, along with pastries and

cookies.

 Welcomes customers by determining their coffee interests and needs.

 Educates customers by presenting and explaining the coffee drink

menu; answering questions.

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 Sells coffees and coffee grinding and brewing equipment by explaining

differences in coffee beans and coffee preparation machines;

demonstrating how brewing equipment operates.

 Generates revenues by attracting new customers; defining new and

expanded services and products.

 Maintains inventories by replenishing coffee bean supply; stocking

coffee brewing equipment; maintaining supplies, pastries, and cookies

for coffee bar.

 Keeps equipment operating by following operating instructions;

troubleshooting breakdowns; maintaining supplies; performing

preventive maintenance; calling for repairs.

 Maintains safe and healthy work environment by following

organization standards and sanitation regulations.

 Improves quality results by studying, evaluating, and re-designing

processes; implementing changes; maintaining and improving the

appearance of the store and coffee bar.

 Updates job knowledge by participating in educational opportunities;

reading coffee, retail trade, and food service publications; maintaining

personal networks.

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  Enhances coffee shop reputation by accepting ownership for

accomplishing new and different requests; exploring opportunities to

add value to job accomplishments.

 Organizational Structure

CORE CAFÉ is a business that can make the costumer feel to be

satisfied. This proposal is to present the idea of the business we desire to

open this is to take every Filipinos to feel the relaxation and forget even a few

minutes the problem they had and enjoy the moment taking by our service.

The concept of this business is to gather every people that have their own

problem and emotions and to have the peaceful mind while taking our

services

 Profit Sharing

As a matter of fact, profit-sharing arrangement will be made available

to all our management staff and it will be based on their performance for a

period of three years or more.

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 We know that if that is put in place, we will be able to successfully hire and

retain the best hands we can get in the industry; they will be more committed

to help us build the business of our dreams

 Pre-operating Period

Creating a unique and desirable company name and logo, finding the

source of finance, each member contributed the different amount for their

personal savings that support to the group.

Chapter III - Market Aspects

Core café will offer its customers the best tasting coffee beverages in

the area. This will be achieved by using high-quality ingredients and strictly

following preparation guidelines. The store layout, menu listings and

marketing activities will be focused on maximizing the sales of higher margin

espresso drinks. Along with the espresso drinks, brewed coffee and teas, as

well as some refreshment beverages, will be sold in the coffee bar. Core café

will also offer its clients delicacies and sandwiches. For the gourmet clientele

that prefers to prepare its coffee at home, Core cafe will also be selling coffee

beans.

The menu offerings will be supplemented by free books and magazines

that customers can read inside the coffee bar.

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 Product Specifications

Menu

Brewed Coffee

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23
24
CORE CAFÉ Delicacies

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Market Analysis

U.S. coffee consumption has shown steady growth, with gourmet coffee

having the strongest growth. Coffee drinkers in the Pacific Northwest are among the

most demanding ones. They favor well-brewed gourmet coffee drinks and demand

great service. Eugene, OR, with its liberal and outgoing populace and long rainy

winter, has traditionally been a great place for coffee establishments. Java Culture

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 will strive to build a loyal customer base by offering a great tasting coffee in

a relaxing environment of its coffee bar located close to market Harrison Plaza

The chart and table below outline the total market potential (

MARKET ANALYSIS

YEAR YEAR YEAR YEAR YEAR

1 2 3 4 5

Potential Customers Growth CAGR

Students and Faculty 2% 18,000 18,360 18,727 19,102 19,484 2.00%

Teenagers 1% 3,000 3,030 3,060 3,091 3,122 1.00%

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Office workers 2% 8,000 8,160 8,323 8,489 8,659 2.00%

Other 0% 5,000 5,000 5,000 5,000 5,000 0.00%

Total 1.63% 34,000 34,550 35,110 35,682 36,265 1.63%

 S.W.O.T Analysis

STRENGTH

• Natural product

• Come variety of flavour and size

• Great packaging

• Accessibility of the location

WEAKNESS

• new in business

• Lack of experience for the boss to manage

OPPORTUNITIES

• Accessibility of the location of the business is easy to reach by the

market

• Large target potential

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 TREATS

• New entrant in the area

• Well-known business in the area

 Competition

Core Cafe direct competitors will be other coffee bars located near the

Harrison Plaza. These include Starbucks, and other Food service

establishments that offer coffee. Starbucks will definitely be one of the major

competitors because of its strong financial position and established marketing

and operational practices. However, despite of Starbuck's entrenched market

position, many customers favor smaller, independent establishments that

offer cozy atmosphere and good coffee at affordable prices

 Marketing Programs

Due to hard work and busy day of many student and workers, our

business is here to help them acquire the relaxing moment they really desire.

A lot of people was stress from they’re daily work and don’t have enough time

31
 to relax because of their small amount of free time. We assure to them that a

small amount of time can be enough to relax and enjoyable to them

We assure that the product we are serving is high quality of bean that ordered

from another country just to make a good quality of coffee for all the cus-

tomers not just coffee we are serving, we also have delicacies like cake, sand-

wich and others.

 Target Market

The target of this business is to satisfy the entire customer to our products

and services. We assume that this business can help many people to relax or

to bond with their friends, assuring that the business we are building can help

the economy by giving a proper service to the tourists

 Pricing

Since the place of this business is in the huge place, where mostly

students and workers are here. The price of our products is suitable for our

customers, which is mostly the students and workers. As we say, it only tastes

expensive. We prioritize the Quality over Quantity that's why the price of our

products is convent to our customer.

Menu

Brewed Coffee

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 Size Price

Small (8 oz) Php 45.00

Medium (12 oz) Php 50.00

Large (16 oz) Php 55.00

Small (8 oz) Php 45.00

Medium (12 oz) Php 50.00

Large (16 oz) Php 55.00

Small (8 oz) Php 45.00

Medium (12 oz) Php 50.00

Large (16 oz) Php 55.00

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 Small (8 oz) Php 45.00

Medium (12 oz) Php 50.00

Large (16 oz) Php 55.00

Small (8 oz) Php 50.00

Medium (12 oz) Php 55.00

Large (16 oz Php 60.00

Small (8 oz) Php 50.00

Medium (12 oz) Php 55.00

Large (16 oz Php 60.00

Small (8 oz) Php 50.00

Medium (12 oz) Php 55.00

Large (16 oz Php 60.00

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 Small (8 oz) Php 50.00

Medium (12 oz) Php 55.00

Large (16 oz Php 60.00

Small (8 oz) Php 70.00

Medium (12 oz) Php 80.00

Large (16 oz Php 85.00

Small (8 oz) Php 70.00

Medium (12 oz) Php 80.00

Large (16 oz Php 85.00

Small (8 oz) Php 70.00

Medium (12 oz) Php 80.00

Large (16 oz Php 85.00

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 Small (8 oz) Php 65.00

Medium (12 oz) Php 70.00

Large (16 oz Php 75.00

Small (8 oz) Php 65.00

Medium (12 oz) Php 70.00

Large (16 oz Php 75.00

Small (8 oz) Php 75.00

Medium (12 oz) Php 80.00

Large (16 oz Php 85.00

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 Small (8 oz) Php 75.00

Medium (12 oz) Php 80.00

Large (16 oz Php 85.00

Small (8 oz) Php 75.00

Medium (12 oz) Php 80.00

Large (16 oz Php 85.00

Small (8 oz) Php 75.00

Medium (12 oz) Php 80.00

Large (16 oz Php 85.00

CORE CAFÉ Delicacies

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Php. 46.00

Php. 50.00

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Php. 50.00

Php. 50.00

39
Php. 90.00

40
Php. 60.00

Php. 112.00

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 Php. 105.00

Php. 130.00

 Advertising or Promotion

We can promote this business by the use of social media, everything is

possible. We can use this opportunity to promote our business by creating

advertisement. Also, we can create flyers and give to people to catch their

attention to encourage them to visit us.

Leverage on the internet and social media platforms like Instagram,

Facebook, Twitter, YouTube, Google+, et al to promote our services.

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  Sales Forecast

Food costs are assumed at 25% for coffee beverages and 50% for retail beans and

pastries. Proximity to the University campus will dictate certain sales seasonality with

revenues slightly decreasing during the school vacation periods.

The chart and table below outline our projected sales forecast for the next three

years.

Sales YEAR 1 YEAR 2 YEAR 3

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Coffee beverages P350,400 P385,440 P423,984

Coffee beans P87,600 P96,360 P105,996

Pastries, etc. P146,000 P160,600 P176,660

TOTAL SALES P584,000 P642,400 P706,640

Direct Cost of Sales Year 1 Year 2 Year 3

Coffee beverages P87,600 P96,360 P105,996

Coffee beans P43,800 P48,180 P52,998

Pastries, etc. P73,000 P80,300 P88,330

Subtotal Direct Cost of Sales P204,400 P224,840 P247,324

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 Chapter IV - Technical Aspect

 Location

To accomplish this business, we find the best spot where we can get the

customer attention. Vito Cruz manila is the best spot for this. Vito Cruz is the

boundary of Pasay and Manila. This place is the one of the busiest place in

Manila because many students are studying here and also lot of people are

working here. We believe that this business will help them to ooze their stress

and give them the best service that they deserve.

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 Land and Building

183 square meters

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 Air conditioning

Fire Exits

Fire Alarm

Fully functional 24-hour Security & Alarm System

CCTV Cameras

 Waste Disposal and Safety Measures

We will include within our manuals the proper way of disposing cups

and the reasons why it is necessary to do so. Although, we will highly

encourage our users to simply ship back any faulty or worn parts to our Shop

for us to properly assess and to potentially recycle or properly dispose. This

way we can help both save the environment and society from potential

chemical harm as well as inform our users of the effects of proper cups waste

disposal.

Chapter V - Financial Aspect

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 Total Project Cost & Financial Projection

 Source of Financing

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 To make this business happen we need a capital to do it. This plan shall be

passed by the standards of bank. We must prove to them that the capital

we've been asking is eager to ease. The capital we've been needed is surreal

will be worthy at any cost. This business can also help the community itself to

promote local businesses here in the country.

 Projected Income Statement

Income Statement
As of 2019

Sales
1,273,824.00
Cost of Sales
254,990.00

1,018,834.00
less: Operating Expenses
Salaries Expense 490,152.00
Rent Expense 120,000.00
Advertising Expense 9,500.00
Utilities Expense 96,600.00
Permit and license Expense 50,000.00
Transportation Expense 40,000.00
depreciation Expense
Equipment 9,900.00
Furniture 1,420.00

(817,572.00)
Net income before tax

201,262.00
less: income tax Expense 3o % 60,378.6
Net Income after tax 140,883.4

Chapter VI - Socio-economic Aspect

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In this certain project, the researcher considers the whole part of the business

especially the social impact in the community.

Chapter VII - Findings, Conclusions and Recommendations

 Findings

Our finding that many of people we survey where student and workers most

of them are female, many of them like a good quality of coffee and delicacy,

and also they want to have only the classic type of coffee

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 Here lies the data for the survey we have conducted. This data serves us as a

guideline to what approach we will take for the clients. Their preferred attributes as

well as programs used to further modify our product to cater to their specific needs.

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 Conclusion

We conclude that this business will help a lot, not just in the people but also in

the Industry. We are promoting the natural Ingredients and the advantages of

it among the others. The study verified that this business can make some

people acquire the satisfaction they wanted.

 Potential Problem

This business is entering an industry where in no matter how innovative your

product or method is, how new it is, there will always be competition due to

many branches and product that have the same value and quality that my

business have

 Recommendation

After bearing in mind the significant factors in the study that we conducted

such factors like the marketing financial technical and management and socio-

economic study, it is therefore recommended that Core Café will be pursued

and the business establishes at Vito Cruz near Harrison plaza.

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 Curriculum Vitae

Name: Sean Cedrick R. Malabanan

Age: 21 yrs old
Birthday : December 10 1996
Address: 128, Maginhawa St. Pasay City
Elementary Graduate: Gotamco Elementary School
Highschool Graduate: Malate Catholic School
Weight: 92 kgs.
Height: 5’5
Motto : A hard beginning makes a good ending
Weakness: Family
Strenght: Family and Friends
Goal in life: To have my own company

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