CHAPTER I

BUSINESS CONCEPT

I. Introduction

It has been a culture of most Filipinos to response

“Bisan Asa” when asked by somebody of what place to go. “Bisan

Asa” is a Visayan phrase which means “anywhere”.

Filipinos are known to be hospitable and conservative.

Aside from such traits, Filipinos also value education,

considering education as a primary means of lifting families

from poverty.

Students nowadays are getting busier with lots of

subjects, projects, and other matters that are school-related.

They usually find it hard to find some time to study the

topics and retrieve their lessons in school. And even if they

could find time for studying, they would still end up doing

nothing because there’s no place to study in.

As a response to the growing needs for studying and

brainstorming places, the researchers, after a thorough

understanding of the market environment, came up with the idea

of establishing a study hub business to cater the students

with a wholesome, quiet place to spend their vacant time.

The study hub will be named after the famous expression of

Butuanons, “Bisan Asa” which means “anywhere” to create a

local statement more unique and different. The name will also

make the study hub easy to remember.

Although the business is a study hub, this will not only

be open for students, but to other interested parties as well.

Office people are also welcome to come to “Bisan Asa” Study

Hub to spend quality time reading their books.

II. Vision and Mission

VISION

“BISAN ASA” Quality Time is a Butuanon, modern, studying

and brainstorming place, envisions providing a wholesome,

peaceful ambience for studying experience, and a perfect place

for the motivation of personal growth through quality time.

The belief of Bisan Asa management is that the beautiful

environment can help improve the way people look at studying

and brainstorming.

MISSION

“BISAN ASA” Quality Time is committed to provide quality

customer service in all levels, and a continued improvement on

the facilities and the approach of environment modifications

to achieve ideal ambience of a suitable place for studying and

brainstorming within the reach of the majority at a reasonable

price.
III. Service Description

“Bisan Asa” Quality Time is a business that offers a

study with a small café. The proposed study hub is set to

establish a place for study where students can find a

suitable area that provides a wholesome, peaceful ambience

for studying experience, and a perfect place for the

motivation of personal growth through quality time. It also

intended for those office workers who likes to do their

works outside their office.

The study hub has a cubicle for individuals who wants to

work alone and an area for a group where they can have

meetings or discussions.

The study hub has a café that caters every customer who

likes to have their snacks while studying or working. They

can buy at the café and then bring it to their designated

area. The café also accommodates by passers for takeout who

likes to buy the snacks offered. The café offers some usual

snacks like milkshakes, coffee, peanuts, fries, and a slice

of cake.

IV. BUSINESS LOGO

 Figure 1. Business Logo

Four salient features can be observed in the above logo: (1)

the O-shape, (2) the book, (3) the cloud, and (4) the bulb

light.

1. The O-shape. This feature symbolizes a repetitive process

and sustainability of the business. The business

perceives a going concern lifeline and sustainability

that will survive for decades, even if the operation is

simple.

2. The Book. The book symbolizes the source of knowledge and

learning, which is the basic goal of Bisan Asa Quality

Time – to recreate knowledge and learnings in different,

effective ways.

3. The cloud. This cloud where the book leans on symbolizes

the comfort of the clients while they are studying inside

the Bisan Asa Quality Time study hub. The cloud also

symbolizes the affordability of the prices of the offers.

4. The light Bulb. The light bulb symbolizes the ideas and

the good results from using the Bisan Asa Quality Time as

study area. Bisan Asa Quality Time serves a preferred.

V. BUSINESS LOCATION

One of the main factors to consider upon putting up a

feasible business establishment is the location. Being

located in the middle of the city, replacing the former

location of the first Chowking fast-food branch in Butuan

City, with many schools and other establishments nearby,

“BISAN ASA” Quality Time has a huge advantage of

attracting potential target markets. The location will

also be an advantage for the business, for it can be

easily seen by the public, and with its unique name, it

will surely be easily remembered.

 CHAPTER 2

Market Aspect

Location is the place where a firm decides to site its

operations. Location decisions can have a big impact on costs

and revenues. A business needs to decide on the best location

taking into account factors such as customers, staff, support

services and cost.

Figure 1 shows the location of “Bisan Asa” study hub

located at A.D Curato Street, Butuan City. A perfect location

for this kind of business covering the schools of Butuan City,

which help the students find a suitable place for study and

provide a peaceful ambiance for those people who want to focus

on their work outside their offices. The target market of

‘Bisan Asa” as shows on the second figure is the nearest

schools such as Butuan Central Elementary School, Agusan

National High School, Father Saturnino Urios University and

other nearest offices. Location is crucial to the success of a

startup but being located in the middle of the city with many

schools and other establishments nearby is a huge advantage of

attracting potential target markets.

ROAD MAP

Figure 2. Business Location

Figure 3. Target Market

 I. Marketing Objectives

• To help the students find a suitable place for

study.

• To provide a peaceful ambience for those people who

want to focus on their work outside their offices.

• To become the top leading study place in the city.

II. Sampling Method

Our target market was determined to be the students and

office workers in the near area that are in need of a quiet

place to study with.

In order to know the sampling size from the population given

to project the demand for the proposed study hub business, the

proponents used the Slovin’s formula. From estimated number of

students and office workers total 5000 (see table) and a

margin of error of 5% the sampling sized identified was 370,

as presented below.

Slovin’s Formula

n= N/(1+N*e^2)

n=5000/(1+5000*5%^2)

n=370 respondents

Where:

n = Number of respondents
N = Total population

E = Margin of error

The sampling procedure (survey questionnaires) used the random

sampling by proportional allocation. The proponents

proportionately allocated the sample size based on the number

of population per area of market over the total population. So

the actual distribution of questionnaires would be as follows:

Area Covered Total population Atual

(estimated Data) Distributions

Students 4500 320

Office worker 500 50

Total 5000 370

Table 1. Sampling Distribution

III. Marketing Plan

Target Market Analysis

“Bisan Asa” aims to capture students around the city

considering the recent implementation of k-12 in the

Philippines. Many students have so many paper works and

research so it is favourable for them to do it in the

hub. Other than the students we also aim to capture those

office workers who prefer to work outside their offices.

Age: 10 years and above

Gender: Male and Female

Occupation: Students and Office workers

 “Bisan Asa” customers are ranging from 10 and above

particularly, those students in elementary, high schools,

college and even office workers. Generally, the above

category mostly focuses on people who prefers peaceful

ambiance other than library and offices.

IV. Market Strategies

“Bisan Asa” Quality Time will provide advertising and

marketing strategies and materials for the use and conduct of

promoting “Bisan Asa” study hub. Bisan Asa will use different

strategies to attract more customers.

First will be verbal communication which is the most

effective as well as the cheapest kind of advertising

strategy.

Second strategy is through posting of tarpaulins around

the city and near the schools, giving of fliers and radio ads

for promotion.

Lastly, will be the use of social media though posting of

pictures and videos.

To attract more customers there will be freebies to be

given to those customers who will get the packages that the

business offers.

Pricing
The proposed business should develop pricing strategies that

are pocket-friendly especially by the students but with a

reasonable amount that can run the business. Prices for the

study hub are set at P15.00 per hour per individual and for

the café the following products are priced:

Milkshakes: P50.00 per glass

Fries: Small – P35.00 Medium – P45.00 Large – P55.00

Coffee: P29.00 per cup

Cake: P25.00 per slice

Peanuts: P20.00 per plate

V. DEVELOPMENT PLAN

A. Proposed Project

YEAR PROPOSED PROJECTS AND NUMBER OF YEARS TO CONSTRUCT

Renovation of the Installation of CCTVs and

Building, Setting up the Computer Set

study area and small café.

And Building the 2nd floor

Year

Year

Year
5

B. No. of Years to Construct

NAME: Renovation of the building, setting up the study area

and the small café.

YEARS TO BUILD: (3) months

OPERATIONAL YEAR: Year 1

ESTIMATED COST:

• Renovation Cost: P250,000.00

• Overhead: P280,000.00

Description: For a unique kind of area for studying, meeting,

or group discussions.

Cubicle Area

The cubicle area is intended for the people who like to

study alone. The area covers 15 cubicles for 15 individuals.

Discussion Area

The discussion area is for the group who are having a

discussions or meeting. This area has 4 rooms and 3 open areas

for group who likes indian sits with pillows. The open area is

being surrounded with plants around every corner to limit the

noise in their discussions and to avoid disturbing the cubicle

area. The two discussion area can accommodate 10 people in

each area.

Café

This area is intended for those people who want to have

their snacks before or after studying. It also accommodate

people who are just by passers and does not use the inside

area.

The café offers milkshakes, coffee, peanuts, cakes, and fries.

NAME: Installation of CCTVs and Computer Set and Building of

Second Floor

Years to Build: 4 Months

OPERATIONAL YEAR: Year 6

ESTIMATED COST: 550,000.00

DESCRIPTION:

CCTV (Closed Circuit Television)

CCTV is a TV system in which signals are not publicly

distributed but are monitored, primarily for surveillance and

security purposes. This will be needed in order to ensure the

security inside the study hub.

Computer Set
Computer is an electronic device for storing and processing

data, typically in binary form, according to instructions

given to it in a variable program. This computer will be used

as a complimentary cooperation with the CCTVs in monitoring

the establishment.

Additional floor

For business expansion, this floor will be built to

extend the area of the business. It shall again compose of

discussion and cubicle area. The second floor will be

decorated with plants and paintings for a more relaxing

ambiance that will give comfort to the customers. The CCTV

will also be installed in the second floor for security

purposes.
VI. SURVEY ANALYSIS

Study Time
Less than 2 hrs 2-4 hours More than 4 hours

13%

45%

42%

Study alone or with the group

Alone With the group

7%

93%
 Kind of Ambience
Air-conditioned Non Air-conditioned

10%

90%

Kinds of Ambience
Quite Tolerable Noise Noisy

2%

8%

90%
 Other Places to Study

Coffee Shops
House
Study Hub/Café
Others

If there will be a study hub to be established

within the city, would you prefer to go
Yes No

18%

82%
 Amount that the expected customers are
willing to pay.
15 20 25 or more

18%

42%

40%

Analysis:

Base on the survey conducted, the following results are

obtained:

Majority of the students spend two to four hours studying and

preferred to study in a quiet and air-conditioned place.

Mostly students wants to study alone than with the group.

Other than the library or offices, Students and office workers

like to study or work in the house while the others preferred

to be in the coffee shops. According to the survey, if there

will be a study hub that will be operating in Butuan would

they want to go, most of them answered yes and are willing to

pay for at least 15 per hour. Based on this survey, we’ve come
up to pursue the study hub and think of a strategy that will

be possible and feasible to start the business.

VII. Service Revenue Projection

The Business ideal capacity is at 80 persons per day with

a full capacity of 100 persons per day for single siters and
group area, or a total of 3000 persons per month. Shown below
is the projection of annual output catered or satisfied by
Bisan Asa Study Hub for five-year period.

1st Year 2nd Year 3rd Year 4th Year 5th Year
Ideal
Capacity 80 120 150 180 200
(Persons)
Practical
50 100 135 150 180
Capacity
Estimated
consumable 2 2 2 2 2
hour
Time: per Php Php Php Php
Php 15.00
Hour rate 15.00 15.00 15.00 15.00
Total Daily Php Php Php Php Php
Output 1500.00 2000.00 4050.00 4500.00 5400.00
Times:
Number of
30 30 30 30 30
days per
month
Monthly Php Php Php Php
Php
Output 60,000. 121,500. 135,000. 162,000.
45,000.00
00 00 00 00
Annual Php Php Php Php Php
540,000.0 720,000 1,458,00 1,620,00 1,944,00
 0 .00 0.00 0.00 0.00
Table 2. Annual service revenue Projection.

The above schedules of annual service revenue projection

are based on the assumptions that:

1. The increasing daily capacity of study area at:

a. First year, 50 persons;
b. Second year, 100 persons;
c. Third year, 135 persons;
d. Forth year, 150 persons;
e. Fifth year, 180 persons.

The increasing number of ideal capacity is conservatively

estimated to not to exceed the full capacity per day.

2. Any increase in the population will be considered in

the computation of the increase in revenues since the
accommodation increase depends upon the number of
chairs capacity.
3. The proponents do not assume price increase since it
would be difficult to predict price elasticity and
inflation.

The proponents assume the full, ideal or maximum capacity

of the Study Hub base on the available siting area. For this
feasibility study purposes, the proponents assume only
practical capacity per day because it will became too crowded
if it will reach at the maximum capacity.

It is also important to note that the increasing number

of capacity is because of improvements and renovation
projected for every other year of operation. The additional
capacity is presumed and therefore the maximum capacity will
change throughout the projected five-year projection.

The proponents assume to begin the relevant range of

five-year period with 50 persons as the first year costumer to
be accommodated per day. The 50 persons os based on the
calculations presented in the consideration discussed earlier.
As the operating year progresses to the next, one would notice
that the amount of persons increased from 50 to 100, until 200
persons will be accommodated from first year through fifth
year.

Over-all, the increase in revenues are based on the

assumption that capacity will increase. Therefore, any changes
in the population, demand, price, price elasticity and
inflation are held irrelevant since they are complicated and
cannot be reliably estimated.
 CHAPER III

TECHNICAL ASPECT

Technical feasibility presented the analysis of business

location where the operation will be conducted, description of

the building with regards to its technicalities, furniture and

fixtures that will embody the Study Hub, equipment that will

be utilize throughout its lifespan and safety and waste

management of the establishment of the proposed study. It will

show the factors that makes the technical aspect feasible.

• Building

The site will be accessible to most of the students

and working group. The type and cost of the building as

envisioned in the project presented. The renovation cost

of the building and facilities are presented adaptable to

the furniture, fixtures and equipment that will be used

in the project.

• Rent and Leasehold Improvement

The rent, per lease agreement, will be Php 30,000.00

per month, with a stipulation of two months advance and

one month deposit. Thus, to initiate the business, the

management needs Php 90,000.00 for the rent. Shown next

page is the computation for the leasehold improvement

 witch is agreed by the lessor and lessee – the

prospective Study Hub business.

Description Estimated Cost

Fabrication and installation of the ff:

Book Shelves Php 15,000.00

Tables Php 10,000.00

Couch Php 50,000.00

Window Cover php 4,000.00

Counter Table Php 4,000.00

Furniture Php 20,000.00

Total Cost for installation Php 103,000.00

Leasehold Improvements

Renovation Cost Php 378,000.00

Electrical works Php 10,000.00

Painting Php 5,000.00

Plumbing Works Php 10,000.00

Total Leasehold Improvements Cost Php 403,000.00

Total Cost of Improvements Php 506,000.00

 The fabrication and installation of book shelves, tables,

couch, window cover, counter table, furnature are not physical

assets, as commonly perceived as furniture and fixtures which

is subject to depreciation. They are part of the leasehold

improvement which shall be subject to amortization.

The business shall adopt a two-year amortization; the

leasehold improvement of Php 506,000.00 will be amortized for

two years.

Operating Procedures

A. BUSINESS SCHEDULES

The business will be operating twelve (12) hours per day,

including Sunday. The reason that the `Bisan Asa’ Quality

Time is open on Sundays is that Sunday is actually the

perfect day that people should focus on preparing for

stuffs for the incoming busy days of the following week.

Hence, `Bisan Asa’ Quality Time would like to cater them

on that day of the week. The table below shows the store

schedule that the business is open for operation.

Operating days Store opening time Store closing time

Mondays-Sundays 9:00 A.M. 9:00 P.M.

B. Ordinary Operational Procedures in the Reception Area

The business of `Bisan Asa’ Quality Time will not only create

revenue from the entrance fees received from customers, but

also from the sale of food and drinks, namely peanuts, cakes,

fries, black coffee, and flavored shakes, that are being sold

at the counter section right after the entrance area. Hence,

there are two processes of operation procedures involved in

the revenue-earning transactions.

INQUIRING EXTEND OR
END

SELECTION FOLLOW UP

PAYMENT GUIDANCE FOOD & DRINKS

ORDERS

The chart above shows the operating process of customer

service. Each process is explained as below:

1. INQUIRING. As the customer enters the reception area at

the entrance section of `Bisan Asa’ Quality Time, the

 receptionist will ask the customer what type of study

area he/she wants to avail.

2. SELECTION. The customer will then pick either the

individual study area or the `Squad’ study area.

3. PAYMENT. The customer will pick a type of study area of

his choice. After that, the receptionist will ask the

full payment or a partial payment from the customer

before going to the study area. In the case of a

partial payment, the customer must leave in the

reception area any valid ID as an assurance that the

customer will pay his remaining balance of the payment

before going out of the ‘Bisan Asa’ Quality Time

premises.

4. GUIDANCE. The customer will be guided by one of the

receptionists to his respective study area.

5. FOOD & DRINKS ORDERS. Customers may order food and

drinks straight from the reception area anytime, dine

in or take out. The customer may pay his order/s in

full or in partial.

6. FOLLOW UP. The receptionist advices the customer to

wait for his order/s at his study area just in case the

receptionist could not able to give the orders to the

customer immediately upon ordering, because of the time

gap in preparing the food and/or drinks. This is to

avoid the customers from getting stressed out of

waiting for their respective orders at the reception

 area. Note that ordering food and/or drinks is

optional. Customers may still use the study areas even

without ordering any food and drinks as long as they

have paid the entrance fee.

7. EXTEND OR END. If the customer wants to extend his

time, he goes to the reception area and inform the

receptionist of his extension. If his time is up, he

should pay his remaining balance at the reception area,

if there is any, before leaving.

C. STORE CARE OPERATING PROCEDURES

To be able to attain the desired effectiveness and efficiency

of the business operations, the following operating procedures

must be applied on a day-to-day basis of the business

operations according to the time of the day.

Inclusive time of the day Operating procedures

Setting up. This is the time

when the employee sets up

necessary appliances, such as

the air conditioner, the

blender, etc., before opening

8:30 A.M. – 9:00 A.M. the store. The employee is

also expected to make partial

cleaning of the obvious areas

inside, since the store has

 been cleaned on the previous

night.

Opening. The store will be

9:00 A.M. opened at exactly 9:00 o’clock

in the morning.

Routinary procedures. Once the

store is open, it is expected

that customers will come

inside the store anytime. By

9:00 A.M. – 9:00 P.M. then, employee/s assigned at

the reception area is expected

to perform the ordinary

operating procedures in the

reception area that is been

discussed previously.

Lunch break. Since the store

does not close for a lunch

break, the employees should

12:00 NN – 1:00 P.M. take their lunch meals

unsimultaneously to avoid the

important posts being left

alone.

Last cleaning. Employees must

allot a maximum of one (1)

hour for cleaning the mostly

 used areas before finally

closing the establishment.

8:00 P.M. – 9:00 P.M. However, it is the initiative

of the employees to maintain

cleanliness inside the

establishment whenever

possible, so they must perform

cleaning procedures anytime of

the operating day, if

necessary.

Closing. The store must close

at exactly 9:00 o’clock in the

evening. Extensions are valid

for emergency purposes only.

9:00 P.M. It is also during closing time

that the employee assigned at

the reception area accounts

the cash on hand and the

receipts within the day,

journalize them properly and

summarize the financial

transactions for the day.

D. FOOD AND DRINKS ORDERS

 Food and drinks unsold must be kept safely in a freezer

or in a warm area where it cannot be spoiled easily. Food

and drinks are prepared only upon order. However, in the

morning, receptionist must prepare few sets of orders of

food and drinks for an estimated number of buyers to

avoid unnecessary waiting time.

Chapter IV

MANAGEMENT ASPECT

This section implies a clear and precise identification

of duties and responsibilities, manpower level requirements,

flow of authority and concerns in the organizational set-up of

the business. This includes organizational chart and the

qualifications of people involved and objectives. Management

must be set up in an optimum level of effectiveness. To

achieve these, proponents have planned the activities within

the study, management style of hiring employees, the policy

implementation, and its internal control.

Form of Ownership

The business is a sole proprietorship, where establishing

and operating the business is least expensive. Only one person

owns a sole proprietor business, the owner will supervise

three employees of the business. In order that the entity can

meet its goal, management must set up a vivid delegation of

employees’ responsibility, establish requirement to its

supplier and management must comply the legalities in

connection with the business.

Staff Structure
No. of Employees

Management/ Administrative
Manager/ Cashier 1
Total Management 1

Waiter/ Waitress 2
Total Management 3 3
Organizational Structure

Owner

Manager/

Cashier

Crew 1 Crew 2

The organization shall be composed of the owner

(proprietor), the manager/cashier, and two crews. Since it is

a small business, the study hub doesn’t need to employ many of

the labor to achieve its objectives. Under the close

supervision of the owner, the manager shall act as an advisor

to the owner since he is largely involved in the business

operation. The manager shall also serve as the cashier,

however, he is not allowed to do the accounting. Bookkeeping

and accounting tasks are given to the owner to avoid instances

of fraud. The crews shall be managed directly by the manager,

although they too are supervised by the owner.

Management Style
 Managers have to perform many roles in an organization

and how they handle various situations will depend on their

style of management. A management styles is an overall method

of leadership used by a manager.

I. Hiring Process

The hiring process is the process of reviewing

applications, selecting the right candidates to

interview, testing candidates, choosing between

candidates to make the hiring decision and performing

various pre- employment tests and checks.

Staff selection and training is crucial; the team must be

efficient and motivated as possible in order to ensure

high quality products and services.

During the hiring process, the manager will use the

following steps to determine the best possible fit for

the job:

1. Review job applications

2. Conduct examination to candidates

3. Interview selected candidates

4. Choose candidates based on a pre- determined

selection criteria

5. Perform background and reference checks

 6. Send selected candidates for a health check and

require to pass NBI clearance, Police and Barangay

Clearance.

II. Internal Control

1. Supplier Control

Study Hub will have a system that ensures that

the products used in providing a good quality that

should meet their own standards. By achieving this,

the hub should have an agreed product with the

supplier.

2. Operating Schedule

Total
Employ Worke
ee d
Hours
9:0 10:0 11:0 12:0 1:0 2:0 3:0 4:0 5:0 6:0 7:0 8:0 9:
0 0 0 0 0 0 0 0 0 0 0 0 00
Manage Ti 9
r/ Time me hours
Time

Time

Work Work
In

In

Cashie Out Ou
r t
Ti 9
Time me hours
Time

Time

Crew 1 Work Work

In

In

Out Ou
t
 Ti 9

Time in
Time me hours
Time

Crew 2 Work Work

In

Out Ou
t

Explanation:

➢ The manager and the crews shall time in, at exactly

9:00 in the morning. There work shall commence as soon

as they get in to the hub.

➢ The manager and the crews will also take their break

at 12:00 noon for lunch and some nap but one at a

time.

➢ If there will be customers during lunch time, one of

the crew will whom did not take his lunch shall inform

the manager/cashier for the issuance of receipt.

➢ After the day, the manager/ cashier and the crew will

take their time out at 9:00 in the afternoon.

➢ At this point, the owner is expected to arrive before

the manager/ cashier has taken his time out for cash

count and reconciliation of receipts with the actual

cash on hand. The owner must be in the shop at 8:00 I

the afternoon, also for bookkeeping.

➢ The owner will also help in the cleaning of the hub’s

vicinity.

➢ After 9:00, the hub is expected to be closed, unless a

situation should arise in contrary.

Business Culture

A. Operating hours from 9:00 am to 9:00 pm - Mondays to

Sundays

Break time: 12:00 to 1:00 pm

B. Day to Day monitoring

⎯ The manager will monitor the employees’

attitude and performances, the study hub

process, the consistency and ongoing gives

instruction to them.

• Monitoring of Sales

• Inventory

⎯ The manager will open the store at exactly 8:45

am and the employees are expected to arrive 15

minutes before the start of the operation to

clean the place and check the books in its

proper places, the employees must observed

cleanliness every time as it is the primary

objective of the hub. Before closing the hub,

the employees must clean the place and check

every electric outlet to prevent fire.

Manpower Requirement

A. Physical Requirement :

• Age must be 18-40 years old

 • Can Stand up to 9 hours during the shift

and able to lift up to 40 pounds.

B. Skills, interest and Qualities

• Good attention to details

• Willingness to do repetitive work

• Good at following instructions

• Good timekeeping skills

• Can count and measure accurately

• Flexible in doing jobs in case the other

employee is absent

Job Description and Duties

I. Crew

Prepare orders of the customers.

II. Cashier

Receives payment of rent from customers. Does manual

recording of time to be rendered by customers.

Take orders and serves it to the counter.

III. Bookkeeper

Analyzes and records the transaction and presents the

report on time.

IV. Monitor

Monitors the rent of time rendered and paid by the

customers.
Segregation of Duties

I. Single Duty

✓ Owner/Bookkeeper: Shall be allowed a monthly

withdrawal Php 15,000.00

II. Duties may be desagregated

✓ Cashier and Manager (same person): Wage: Php

333.00

✓ Crews and Monitors ( same person): Wage: Php

333.00

The minimum wage rate in Butuan City is currently at Php

300.00 plus cost of living allowances of Php 33.00 with a

total of Php 333.00

Government Agencies for Registration

- Department of Trade and Industry

- Local Government Units where your business is located:

a. Barangay

b. Mayor’s Office

- Bureau of Internal Revenue

- Legally Required Registration of Employee Benefits

Employers are legally required to provide certain

benefits for employees. Employee benefits play an

important role in the lives of employees as well as their

families. For that reason, the benefits you offer can be

 a deciding factor for a potential employee’s decision to

work at your business.

Employee’s registration to the following:

a. SSS

b. Philhealth

c. Pag-ibig (HDMF)

Requirements for Registration

These are the required steps to be performed:

1. Bureau of Internal Revenue (BIR) District Office where

the business is to be located for authority to print

Invoice and Book of Journal

2. Register the business with the following offices for

compliance to good employer-employee relationships.

Incentives and benefits and social and environmental

responsibilities

a. Social Security System (SSS) Registration

Requirements:

- SSS Form R-1 (Employee Data Record)

- SSS Form R-1A (Initial or Subsequent List of Employee)

- DTI Business Permit

 - Mayor’s Permit

b. DOLE Registration

Requirements:

- Accomplished Rule 1020 Form

- Layout of Business Location

- Vicinity Map

c. Philhealth Registration

Requirements:

- Employer Data Record ER1 Form (Duplicate)

- Business Permit / License to operate and or any of the

following as applicable

d. Pag-ibig (HDMF) Registration

Requirements:

- SEC Registration

3. Seek approval/ clearance from the Barangay where the

business is located.

4. Registering with the city complying the following:

a. Mayor’s Permit
 b. DTI or SEC Registration Certificate

c. Community Tax Certificate

d. Barangay Clearance

e. Location Clearance

f. Certificate of Occupancy

g. Building Permit

h. Fire Safety/ Inspection Permit

i. Electrical Inspection Certificate

j. Contract of Lease

k. Picture/ Sketch of the Site

City Registration Requirements:

1. The fee charged by the Barangay depends on the business

paid-up capital and the land area. It occupies a PHP 500

minimum plus PHP 300 for the Barangay clearance plate.

This amount does not include the amount paid to secure

the community tax certificate. Usually, this process will

take 2 business days.

2. To obtain a Barangay clearance, a business must obtain a

community tax certificate. The business is assessed a

basic and an additional community tax. The basic

community tax rate depends on whether the business legal

form is a corporation, partnership, or association (PHP

 500 or lower). The additional community tax (not exceed

PHP 10,000.00) depends on the assessed value of the real

property the business owns in the Philippines at the rate

of Php 2.00 for every Php 5,000.00 and on its gross

receipts, including dividends or earnings, derived from

business activities in the Philippines during the

preceding year, at the rate of Php 2.00 for every Php

5,000.00. This process will usually take 1 working day.

3. In case of a newly started business, the tax shall be at

the rate of three-fortieth [3/4] of one percent [1%] of

the capital investment but not less than P 92.40.

4. The Mayor’s Office conducts an inspection to verify that

the business will conduct the activity stated in the

application for business permit. There is no need to set

an appointment for this inspection. The inspection

generally occurs within the first 5 days of filing the

application for the operating permit. This process will

usually take 5 business days.

5. To register with the Bureau of Internal Revenue,

promoters must purchase special books of accounts,

available at bookstores nationwide. One set (of four

 books, the cash receipts accounts, the disbursements

account, the ledger and the general journal) may cost

about PHP 400. This process will usually take 1 business

day.

6. After the taxpayer obtains the TIN, the company must pay

the annual registration fee of PHP 500 at any duly

accredited bank, using payment form the BIR Form 0605).

To register the BIR taxpayer must first accomplish BIR

Form 1903 and submit the same together with the required

attachments to the Revenue District Office having

jurisdiction over the registered address of the business

establishments. In the Philippines, companies may be

assessed various taxes: VAT, community tax, a local tax,

and income tax. When a company registers as a taxpayer,

it must indicate in the application the types of taxes it

expects to be liable for, including VAT. The costs

involved are PHP 500 (registration fee) + PHP 15

(certificate fee) and PHP 100 (documentary stamp tax, in

loose form to be attached to Form 2303). This process

will usually take 2 working days.

7. The authority to print receipts or invoices must be

secured by the printer before the sales invoices or

receipts may be printed. Philippine law does not require

 a company to print its official invoice forms at

designated print shops. If a company has secured the

authority to print receipts and invoices, it can ask any

authorized printing company to print its official

invoices forms. However, if a company wants to print its

own invoice forms (as detailed in Procedure 8), the

company must obtain a special permit from the Bureau of

Internal Revenue.

8. According to the requirements stipulated by the Large

taxpayer Services, new taxpayers must submit the

following documents to the Revenue District Office or in

the office with the jurisdiction over the taxpayer’s head

office:

a. Duly completed application for the authority to print

receipts and invoices (BIR Form 1906)

b. Job order.

c. Final and clear sample of receipts and invoices (machine-

printed)

d. Application for registration (BIR Forms 1901 or 1903)

e. TRU Form or photocopy of TIN card

f. Proof of payment of annual registration fee (BIR Form

0605)

Inventories
 Product: Monks Blend

4 pack
P 840 .00

Product: Peanut
2kg/day x 7 x 4
P 3, 360.00

Product: Mango
2kg/day x 7 x 4
P 6, 720.00

Product: Fries
3kg/day x 7 x 4
P 10, 080.00

Product: Chocolate Powder

1 pack/day x 7 x4
P 2, 100.00
Product: Condensed Milk
4 cans/day x 7 x 4
P 4, 480.00

Product: Evaporated Milk

4 cans/day x 7 x 4
P 3, 360.00

Product: Chocolate Cake

1 week x4
P 1, 600.00

Product: Cooking Oil

2kg/day x 7 x 4
P 3, 360.00
Product: Mayonnaise

1 pack/week x 4
P 440.00

Product: Salt

1kg/1week x 4
P 60.00

Product: Sugar

.25kg/1 week x 4
P 420.00

Product: Garlic

10g/week x 4
P 120.00

Product: Ketchup

1 pack/week x 4
P 196.00
 Product: Gas

1 tank/mo.
P 800.00

Product: Ice

2 bags/day x 7 x 4 .00
P 2, 800.00

Straw

3 pack/week x 4
P 300.00

Small-sized paper bag (peanut)

1 pack/week x 4
P 80.00

Coffee Stick

1 pack/2 week
P 40.00
Disposable Cup (mini)

1 pack/day x 7 x 4
P 840.00

Paper plate (mini)

1 bag/2 week
P 90.00

Styro Pack

1 pack/2 weeks
P 40.00

Paper Cup (Coffee)

10 cup/day x 7 x 4
P 700.00
 Personalized Package (Fries)

S, M, L size/mo.
P 2, 000.00

Supplies

Mop

2 pc. @
P 300.00

Broom

2 pc.
P 140.00

Rug

5pc.
P 125.00

Dust Pan

2pc.
P 60.00
 Glade

10pcs.
P 900.00

Lysol

5pc.
P 400.00

Glass Cleaner

3pc.
P 210.00

Tissue

4 pack
P 320.00
 Magazines

4 items
P 200.00

Newspaper

1/day x 7 x 4
P 336.00

Furniture and Fixtures

Couch

5 item
P 50, 000.00

Small Table

3 item
P 9, 000.00

Window Cover

5 item
P 4,000.00
 Landscape Paintings

3 item
P 15, 000.00

Glass

30 items
P 900.00

Knife

2 items
P 200.00

Spoon

24 items
P 120.00

Kitchen Wares

P 5, 000.00

Property, Plant and Equipment

Machineries
Air Conditioning Unit

1 unit
P 13, 000.00

Generator

1 unit
P 15, 000.00

Cashier Machine

1 unit
P 4, 500.00

Fire Extinguisher

1 unit
P 1, 500.00

Refrigerator

1 unit
P 16, 500.00
 Blender

2 unit
P 2, 000.00

Frying Pan

1 unit
P 600.00

Coffee Maker

1 unit
P 1, 000.00

Ice Crasher

1 unit
P 1, 000.00

Gas Stove

1 unit
P 1, 000.00
 IV. START UP COSTS

Inventories P 53, 826.00

Licenses, Fees & Permits P 31, 375.00

Supplies P 3, 991.00

Utilities Expense (month) P 13,500.00

Employees’ Salaries P 30, 000.00

Furniture & Fixtures P 114, 220.00

Rent/Lease (month) P 20,000.00

Property, Plants and Equipment P 106, 100.00

Renovation costs P 358, 000.00

Contingency Fund P 50,000.00

P 781, 012.00
INVENTORY

Monks Blend 4 pack P 210.00 P 840 .00

Mango 2kg/day x 7 x 4 P 120.00 P 6, 720.00

Peanut 2kg/day x 7 x 4 P 60.00 P 3, 360.00

Fries 3kg/day x 7 x 4 P 120.00 P 10, 080.00

Chocolate Powder 1 pack/day x 7 x4 P 75.00 P 2, 100.00

Condensed Milk 4 cans/day x 7 x 4 P 40.00 P 4, 480.00

Evap 4 cans/day x 7 x 4 P 30.00 P 3, 360.00

Chocolate Cake 1 week x 4 P 400.00 P 1, 600.00

Oil 2kg/day x 7 x 4 P 60.00 P 3, 360.00

Mayonnaise 1 pack/week x 4 P 110.00 P 440.00

Salt 1kg/week x 4 P 15.00 P 60.00

Sugar .25kg/day x 7 x 4 P 15.00 P 420.00

Ketchup 1 pack/week x 4 P 49.00 P 196.00

Garlic 10g/week x 4 P 30.00 P 120.00

Gas 1 tank/mo. P 800.00 P 800.00

Ice 2 bags/day x 7 x 4 P 50.00 P 2, 800.00

Straw 3 pack/week x 4 P 25.00 P 300.00

Coffee Stick 1 pack/2 week P 20.00 P 40.00

Disposable Cup (mini) 1 pack/day x 7 x 4 P 30.00 P 840.00

Paper plate (mini) 1 bag/2 week P 45.00 P 90.00

Small-sized paper bag (peanut) 1 pack/week x 4 P 20.00 P 80.00

Styro Pack 1 pack/2 weeks P 20.00 P 40.00

Paper Cup (Coffee) 10 cup/day x 7 x 4 P 25.00 P 700.00

Personalized Package (Fries) S, M, L size/mo. P 2, 000.00 P 2, 000.00

Allowance 1 week x 4 P 2, 000.00 P 8, 000.00

P 52, 826.00

LICENCES & PERMIT FEES

DTI Registration P 10, 000.00

Mayors Permit P 6,000.00

Garbage Fee P 5,500.00

Sanitary Permit P 600.00

BIR Reg.

Fee P 500.00

Documentary Stamp P 75.00

Books of Account P 200.00

Cost of printing O.R P3, 500.00 P 4, 275.00

Other Fees P 5, 000.00

P 31, 375.00

SUPPLIES

Mop 2 pc. @ P 150.00 P 300.00

Broom 2 pc. @ P 70.00 P 140.00

Rug 5pc. @ P 25.00 P 125.00

Dust Pan 2pc. @ P 30.00 P 60.00

Glass Cleaner 3pc. @ P 70.00 P 210.00

Lysol 5pc. @ P 90.00 P 400.00

Glade 10pc. @ P 90.00 P 900.00

Tissue 4 pack @ P 80.00 P 320.00

Magazines 4 items @ P 50.00 P 200.00

Newspaper 1/day x 7 x 4 @ P 12.00 P 336.00

Allowance P 1, 000.00

P 3, 991.00

UTILITIES EXPENSE

Electricity P 8, 000.00/mo. P 8, 000.00

Water P 2, 000.00/mo. P 2, 000.00

PLDT P 3, 500.00/mo. P 3, 500.00

P 13, 500.00

OTHERS

Employee Salaries 3 persons @ P 10, 000/mo. P 30, 000.00

Rent/Lease per mo. P 20, 000.00

Contingency Fund P 50, 000.00

P 100, 000.00

FURNITURE & FIXTURES

Couch 5 item @ P 10, 000.00 P 50, 000.00

Small Table 3 item @ P 3, 000.00 P 9, 000.00

Window Cover 5 item @ P 800.00 P 4,000.00

Landscape Paintings 3 item @ P 5, 000.00 P 15, 000.00

Glass 30 items @ P 30.00 P 900.00

Knife 2 items @ P 100.00 P 200.00

Spoon 24 items @ P 5.00 P 120.00

Kitchen Wares P 5, 000.00

Allowance P 30, 000.00

P 114, 220.00

PROPERTY, PLANT & EQUIPMENT

Machineries

Air Conditioning Unit 1 unit @ P 13, 000.00 P 13, 000.00

Generator 1 unit @ P 15, 000.00 P 15, 000.00

Fire Extinguisher 1 unit @ P 1, 500.00 P 1, 500.00

Cashier Machine 1 unit @ P 4, 500.00 P 4, 500.00 P 34, 000.00

Equipment

Refrigerator 1 unit @ P 16, 500.00 P 16, 500.00

Blender 2 unit @ P 1, 000.00 P 2, 000.00

Coffee Maker 1 unit @ P 1, 000.00 P 1, 000.00

Frying Pan 1 unit @ P 600.00 P 600.00

Gas Stove 1 unit @ P 1, 000.00 P 1, 000.00

Ice Crasher 1 unit @ P 1, 000.00 P 1, 000.00 P 22, 100.00

Allowance P 50, 000.00

P 106, 100.00

RENOVATION COSTS

Bill Of Materials

Item Description QUAN UNITS UNIT AMOUNT

No. TITY PRIC

1 PORTLANT CEMENT / 40kg 47 BAGS 230 10810

2 WASHED SAND 3 CUBIC 360 1080

METERS

3 GRAVEL 1 CUBIC 490 490

METERS

4 REFORM GROUND BAR 16mm dia. x 6m 10 LENGTH 350 3500

long S

5 REFORM GROUND BAR 10mm dia. X 6m 15 LENGTH 150 2250

long S

6 TIEWIRE. GA.#16 13 Kg 70 910

7 HOLLOW BLOCK 150 Pcs. 9 1350

8 WATER CLOSETS 1 UNITSS 550 550

9 SINK 1 UNITS 1500 1500

10 PVC PIPE 4” dia. X 3m long 3 Pcs. 600 1800

 11 PVC PIPE 2” dia. X 3m long 3 Pcs. 255 765

12 FAUCET 1 Pcs. 95 95

13 PRIMER PAINT 15 Gals. 797 11955

14 ORDINARYPLYWOOD 10 Pcs. 300 3000

15 2”X4”X10ft. LUMBER 20 Pcs. 360 7200

16 COMMON NAILS 3 Kg. 55 165

17 FINISHING NAILS 2 Kg. 70 140

18 WINDOW GLASS 4 Pcs. 1500 6000

19 SCAFOLDINGS 1 WT 1000 10000

20 ELECTRICAL MATERIALS (estimate) 20000

21 PLUMBERING MATERIALS (estimate) 10000

22 ALLOWANCE 6440

Total Material Cost: P 100,

000.00

1ST FLOOR

DIRECT COST:

TOTAL MATERIAL COST P 100, 000.00

LABOR COST 150, 000.00

TOTAL DIRECT COST P 350, 000.00

 INDIRECT COST

OVERHEAD CONTINGECES

(5% OF DIRECT COST) P 5, 000.00

ENGINEERING MANAGEMENT

(3% OF DIRECT COST) 3, 000.00

TOTAL INDIRECT COST P 8, 000.00

TOTAL COST P 358, 000.00

LABOR COST BREAKDOWN

Electrical P 10, 000.00

Plumber P 10, 000.00

Mason P 500/day x 27 x 2mo. P 27, 000.00

Laborer P 250/day x 27 x 2mo. X 7 person P 94, 500.00

Allowance P 8, 500.00

P 150, 000.00
 V. PAYBACK PERIOD

Study hub

Entrance: P15.00 x 100 person x 365 days = P547,500.00

Pricing:

Shake: P50.00 (25 orders/ day* P50 *365 days)

P456,250.00

Fries:

Small: P35.00 (10 orders/day*P35*365 days) P127,750.00

Medium: P45.00 (10 orders/day*P45*365 days) P164,250.00

Large: P55.00 (5 orders/day*P55*365 days) P100,375.00

Coffee: P29.00 (10 orders/day*P29*365 days) P105,850.00

Slice Cake: P25.00 (5 orders/day*P25* 365 days) P45,625.00

Peanuts: P20 per plate (20 orders/day*P20*365 days)P146,000.00

P1,146,100.00

Total P1, 693,600.00

Less: Expense
Water: (P2,000 per mos *12 mos ) P24,000.00

Electricity: (P5,000 per mos *12 mos) P60,000.00

Wifi (P3,500 per mos*12 mos) P42,000.00

P126,000.00

Less: Labor 3 Employees ( P10,000/mos *12)

P360,000.00

Less: Ingredients

Shake:

Straw: 3 packs *P25/pack*4weeks P300.00

Condense Milk: 4 cans /day*P40*365days P58,500.00

Evap: 4 cans/day *P30 * 365days P43,800.00

Ice: 2 bags/day*P50*365days P36,500.00

Flavors:

Mango : 120/kilo*2*365days P87,600.00

Chocolate Powder: P130.00*182.5days P23,725.00

P250,425.00

Coffee: 210* 182.5 days P38,325.00

Paper cup: P50.00*3.5 days*24 weeks P4,200.00

Refined Sugar: P15.00* 365days P5,475.00

Coffee stick: P20.00*6weeks P120.00

P48,120.00
Peanuts: P60.00/kl*2*48 weeks P5,760.00

Oil : P60.00* 365days P21,900.00

Salt : P15.00/kl* 12 weeks P180.00

Garlic: P30.00/ 10 g*12 weeks P360.00

Gas: P800/tank for 2 mos.*6mos P4,800.00

Small-size paper bag : P20.00/bag*24weeks P480.00 P33,480.00

Fries: P120.00/kl *3 *365days P131,400.00

Oil: P60.00/kl *2 *365days P43,800.00

Personalized packaging: P2,000.00*12mos P24,000.00

Disposable mini cup: P30.00*24weeks P720.00

Flavors:

Mayonnaise: P110.00*48weeks P5,280.00

Ketchup: P49.00*48weeks P2,352.00

P207,552.00

Chocolate cake: P400.00*24weeks P9,600.00

Styropack: P20.00*8weeks P160.00

Paper Plate: 1 pack* P45.00/pack*16weeks P720.00

P10,480.00

Total Profit P 657,543.00