1

INTRODUCTION

BACKGROUND OF THE STUDY

People are always happy to receive flowers from family members, loved ones, and close

friends. What's surprising is that flowers don't require special occasions to be bought or shared

on their own. According to the data, more than half of the money people spend on Flowers is

simply to take home without any special circumstances (Corswant and Tunälv, 2002). This

proves the promising demand for Flowers recently in London. The proposed business idea is a

partnership model in which six partners contribute the same amount for initial capital. According

to Canadian Industry Statistics (2013), BC accounts for 13.1% of the total establishments of

florist shop businesses in Canada.

The Floral Industry has been around since the 1800s and according to the Asia Pacific

Journal of Academic Research in Business Administration Vol. 1, No.1, 20-31 April 2015 that

the industry has been rapidly growing since it started. In the industry, a particular business that

has developed since are Retail Flower Shops were in flowers and retailed, preserved to be kept

fresh, arranged to be readily made for the purchase or by a customer’s specifications. As it has

developed through the years, from being planted and grown in large lands to the markets to be

sold and or traded, it has paved its way into the online shop market, as another means for sellers

to do and show their products and services. Doing business with customers who especially do not

have the time to go to retail stores or shops. And doing business online offers new and on-trend

products and services to the market, to wherein most of today’s generation are attracted. (Tungul,

2018).
 2

The Philippine horticulture and floriculture sector has the potential to spur economic

activities, support small businesses, generate more jobs and increase export revenues. The

Philippine flower industry has grown over the past three decades because of high local and

foreign demand, combined with the expansion of the tourism sector. Data show that fresh-cut

flower exports posted export sales of more than $370,000 annually from 1991 to 2000.

Production, however, normally falls short of the rising domestic demand particularly during

Valentine’s Day, Christmas, All Saint’s Day, and school graduation, forcing the country to

import flowers like orchids and chrysanthemums. This is because local farmers and

horticulturists need to build more greenhouses which require big investments. Flower production

also requires technologies and agricultural chemicals that are usually imported from other

countries (Sibal, 2020).

Bacolod city has many shops that sell flowers. People of Bacolod believe that there is

nothing like a beautiful bouquet to put a smile on someone’s face. Flowers make a considerable

symbol of passion and affection for someone and also help you say things you might not be able

to express in words. However, if you have a busy schedule, are based outside the city, or want to

remain a secret admirer, giving the bouquet in person might not be an option. This business

proposal provides suppliers and consumers great opportunities. The business will offer to the

consumer self-service or do-it-yourself designs, delivery, flower arranging flower bouquets in

the shop, surprise delivery packages set up on a car, money bouquets, and event decoration

services. In line with this, the flower boutique will ensure clients give high-quality flower

arrangements at a satisfactory cost, build a good relationship with the customers, help the

customer to learn how to be creative when it comes to flower arrangements and designs, and
 3

lastly, the flower boutique will make the customer satisfied to what we offer in goods and in-

services.

The business will be located at Araneta Avenue, Bacolod City, Negros Occidental where

the business is accessible to all consumers in the City. Given that there are numerous small and

large flower shops in Bacolod, we took the time and resources required to conduct our feasibility

studies and market surveys to provide services and products that are much different from those

offered by our competitors. 

 4

STATEMENT OF THE PROBLEM

         The study intends to evaluate establishing a Flower Boutique business in Bacolod City,

Negros Occidental at Araneta Avenue. The researchers are aiming for answers to the following

questions:

a. Management Aspect 

1. What is the form of ownership planned by the business proponent? 

2. What does the organizational structure look like? 

3. What promotional strategy will be executed? 

b. Marketing Aspect 

1. What factors affect the supply of the product?

2. What advantage does the competition have?

3. What are the opportunities and threats of the business?

c. Technical Aspect 

1. What are the labor conditions for production? 

2. How can we enhance the efficiency of the delivery?

d. Financial Aspect 

1. How much will it cost to deliver in a business shop from a supplier? 

2. What are the sources of capital?

3. How much is the total projected capital investment requirement?

4. How do the financial statements appear after a 5-year operating period?

 5

e. Socio-economic 

1. How can Flower Boutique Support Floriculture?

2. How can consumers benefit from Flower Boutique?

Description of the Project:

In this section, it contains the basic details of the project and provides a purpose or goal

for the project. It basically contains Nature of the Business, Project Description, Vision, Mission,

Goals and Objectives.

 6

NATURE OF THE BUSINESS

It is proposed that GRREC Flower Boutique will be set at Araneta Avenue. This part of

the city is somewhat active, and there is continuous activity among people. People in the

downtown area may be attracted to the beautiful aroma of flower shops and may make impulse

purchases too. GRREC Flower Boutique is a flower shop that contains various purposes like

flower care and handling, floral design, flower arranging, merchandising display, and flower

delivery. Customers can visit the flower shop and select from a broad display of flowers

presented to meet their specific needs, or simply surf the Flower Boutique online which is

accessible at any time to order flowers.  Furthermore, Flower boutique goes beyond the sale of

flowers by designing and arranging flowers for various occasions. self-service or do-it-yourself

designs, delivery, flower arranging flower bouquets in the shop, surprise delivery packages set

up on a car, money bouquets, and event decoration services. Aware of the fact that customers

may also want to buy gifts when they purchase flowers, Flower boutique offers its customers a

range of chocolates, cookies, toys, cards, and other related accessories. All the florists of the

flower shop are excellently qualified and aim to provide the highest standard of service to their

customers. 
 7

PROJECT SITE DESCRIPTION

The location is one of the major factors to be considered in starting up a business. It must

be assured that it is accessible to the target market customer. GREEC Flower Boutique is located

at Araneta Avenue, Bacolod City, Negros Occidental nearby Jollibee Araneta, along with

Araneta Avenue where many people pass by based on the proposed location of our business.
 8

VISION 

To become the largest chain of florists in Negros Occidental.

MISSION 

Our Flower Boutique Shop’s purpose is to provide customers with quality flowers and

floral arrangements at a fair price, and we will strive to match and surpass the expectations that

our customers expect from us and our products.

GOALS AND OBJECTIVES

The goal of the flower business is to offer our clients high-quality flowers and floral

arrangements for reasonable prices. We will make an effort to meet and exceed the standards set

by our customers for us and our products. We will not compromise on quality and will never use

inferior products for the sake of price.

 To get a 25% increase in profit at the end of the year 2025. 

 To increase sales. 

 To be the number one florist attractions boutique in Bacolod City.  

 To fulfill the customer's needs and give them a better product for the customer to be

pleased.
 9

Chapter III

Management Consideration:

This section deals with the organization and in this aspect that the proponents identify the

key officers and key personnel, basic considerations are forming organization, form of

ownership, organizational chart, project scheduling and performing a job analysis.

FORM OF BUSINESS ORGANIZATION 

The GRREC Flower Boutique is a partnership type of organization that is owned by five

people specifically by Ms. Rona Mae Canoy, Ms. Elisa Mae Claridad, Ms. Chermaine De Leon,

Ms. Ronalyn Magdayao, and Ms. Giselle Saludares. It is specifically a general partnership

because the members will be accountable for the supervision and financial responsibilities of the

agreement. The partner owners will share in all the earnings of the business. The profit will be

equally divided among the group. We prefer a partnership because it is reasonable to start and

has fewer expenses for a business.

 10

ORGANIZATIONAL STRUCTURE

The figure above indicates the different positions in the organization. It also includes that

if something is inaccurate in the business they would know whom they are reaching out to

address.
 11

JOB ANALYSIS 

Job Description:

In this section, it contains the basic details of the project and provides a purpose or goal

for the project.

Manager 

Oversees team members in a certain department to ensure it performs effectively. Their

main duties include hiring and training employees, creating, and implementing business

strategies and delegating tasks to team members. 

Manager Requirements and Qualifications 

Applicants must be 27 years old and above. And must have Business, management, or a

related field bachelor's degree. It could be preferred or required to have more education or

experience. Strong knowledge of financial, leadership, and management skills. Excellent

communication, coaching, leadership, and conflict-resolution skills. Abilities to handle time and

assignments. The capability to analyze procedures and data, identify issues and patterns, and
 12

create workable plans of action. Committed to empowering employees while also providing

consumers outstanding service.

Florist

The Florist's responsibilities include processing flower shipments, cutting the flowers at

periodic lengths, and arranging sellable bouquets. Florists should also provide customers with

favorable flower-related knowledge.

Florists' Requirements and Qualifications 

Applicants must be 25 years old and above. Must have knowledge in practice gardening

cultivation and management and knowledge about flowers. They must be TESDA graduates and

NC II passers. They must be careful and pay more attention to detail, can work well with their

hands, can work well with others, and have customer service skills. Excellent verbal

communication skills. The ability to come up with new ways of doing things. The ability to work

on his own. 

Helper 

Helpers are skilled workers who help other workers by performing tasks that need less

skills, such as holding materials or tools and cleaning work areas and equipment. These helpers

are required to provide general labor support to all departments while performing a variety of job
 13

assignments. They must ensure that everyone in an organization is following safety rules and

inspect areas for safety hazards. General helpers must also perform constant quality checks on

the organization's establishments using its quality guidelines and operating procedures.

Helper Requirements and Qualifications 

Applicants must be 23 years old and above, and a high school graduate with a diploma.

They must have ideas about creating floral displays, headdresses, and bouquets using flowers,

plants, dried flowers, wire, tape, and foam based on their designs, from design books, or

customers' requirements selling cut flowers, flower arrangements, and perhaps pot plants or

related products to customers, arranging delivery to the customer and set up displays on site, for

example at conferences, churches, weddings or in funeral parlors and advising customers on

choosing flowers suitable for an occasion.

Delivery Staff

Inspects delivery vehicles and ensures the safety and security of the loading and

unloading process. Contact customers to confirm delivery details. Determines placement of

products follows safety and lifting protocols during deliveries and conducts safety reviews.

Delivery Staff Requirements and Qualifications 

Applicants must be 25 years old and above. High school graduate, Valid driver's license,

Clean driving record, Proven delivery experience preferred, Sound knowledge of road safety
 14

regulations, Working knowledge of local roads and routes, Excellent time management skills,

and Effective communication skills.

Bookkeeper 

By keeping up-to-date records on accounts payable and receivable, payroll, and daily

financial entries and reconciliations, bookkeepers monitor a company's financial data and

compliance. They perform regular accounting tasks such as documenting payments and

adjustments, accounting records entries, and monthly financial reporting.

Bookkeeper Requirements and Qualifications 

Applicants must be 27 years old and above. Accounting, finance, or a closely related field

as a bachelor's degree. Approximately 3 to 5 years of relevant experience in bookkeeping and

accounting. Knowledge and understanding of GAAP to the best. Strong communication abilities

both in writing and speaking. Knowledge and experience with Microsoft Excel and Software.

Knowledge of accounting records, payroll, accounts payable, and accounts receivable. High

attention to detail and attention to information.

 15

SALARY STRUCTURE 

Position Monthly Rate Annual Rate  13th Month  Total 

Manager  ₱ 14,300.00 ₱ 171,600.00 ₱ 14,300.00 ₱ 200,200.00

Florist  ₱ 10,920.00 ₱ 131,040.00 ₱ 10,920.00 ₱ 152,880.00

Helper ₱ 8,000.00 ₱ 96,000.00 ₱ 8,000.00 ₱ 112,000.00

Delivery Staff  ₱ 10,660.00 ₱ 127,920.00 ₱ 10,660.00 ₱ 149,240.00

Bookkeeper  ₱ 2,100.00 ₱ 25,200.00 ₱ 2,100.00 ₱ 29,400.00

Total  ₱ 45,980.00 ₱ 551,760.00 ₱ 45,980.00 ₱ 643,720.00

 16

Chapter IV

Marketing Considerations

This chapter is designed to make the community aware of the proposed business

establishment that makes it satisfactory to consumers.  It is the action of the proposed business

establishment of promoting its goods and services. This chapter will be discussing the target of

the chosen business, and service with the description, demand, supply, pricing, and lastly, the

marketing program which consists of terms of sales, channel distribution, promotion, advertising

activities, marketing staff, and estimated cost of marketing.

Target Market

       The major customer of the GRECC flower Boutique will be the people residing in Bacolod

City and most especially the people who love flowers. To enhance customer awareness just visit

the GRECC flower Boutique which will show the services and products offered by the business.

Also, included in it are the promos that the flower Boutique is willing to give their customers. If

possible, we will use direct marketing by creating a website that contains all of the information

about the business. Also, we will be using social media such as Facebook, Instagram, etc. as a
 17

platform for advertising. Part of their promo is to provide loyalty card for each regular customer

to earn points for them to receive a rewards, discount and incentives

Service/Products

Descriptions  

Grrec flower boutique is a flower shop that provides suppliers and consumers

great opportunities. One major factor that Grrec flower boutique offers customers that

they are offered of; are roses, chrysanthemums, sunflowers, tulips, orchids, and zinnias

flowers. 
 18

This pie chart shows the information about people’s favorable choice to the variety of

flower, according to the result of a survey, (83%) are in favor with roses, (69%) are in favor with

sunflower, (68%) are in favor with tulips, (50%) for orchids, (43%) for zinnias, (40%) for

chrysanthemums, and (10%) for daisy flower. 

Grrec flower boutique added the preferred flower for the customer to be satisfied; based

on the survey result, (82%) for fresh flowers, (11%) for artificial flowers, and (8%) are in favor

of dried flowers, 
 19

Grrec flower boutique offered a variety of any kind of bouquet of customers want; These are; 

1. Flower bouquet - a bouquet is a group of flowers selected and arranged into a

design or style with or without foliage. These flowers are normally shaped into

design and bound together and wrapped in decorative paper.

2. Money bouquet - a money bouquet comprises bank notes arranged in a way

similar to flower bouquet. Instead of the lovely scent of roses, the bouquet offers

the smell of freshly printed bills that a customer gives on their desired amount. 

3. Chocolate Bouquet - Chocolates make great gifts to surprise your friends and

family with. Sending chocolates alone won’t be a good present. However,

chocolate bouquets are exquisite and unique. Paired with a bouquet of flowers, the

classic taste of sweet confectionary delicacies is heightened. Chocolate bouquets

are perfect for happy occasions. They’re ideal for birthdays, graduations,

engagement parties, weddings, and anniversary chocolate bouquets. Their sweet

flavors become metaphors for our sweet moments cherished together. 

4. Surprise Delivery Package - surprise Delivery is a business that’s making

rounds on social media as a new way to surprise loved ones in the new normal

that currently restricts travel and bans large gatherings due to threat of Covid-19

pandemic. The car trunk surprise caters to different occasions -- birthdays,

anniversaries, proposals, bridal showers, or even a random day you decided you

want to win back your ex-lover. Surprising your loved one with a car trunk full

with an assortment of flowers, balloons, cakes, chocolates etc. 

 20

Demand

Demand, Supply and Gap Analysis 

Roses  Demand  Supply  Gap 

Year 1 5,283,350 602,250 4,681,100

Year 2  5,547,517 657,000 4,890,517

Year 3 5,824,892 711,750 5,113,142

Year 4 6,116,136 552,970 5,563,166

Year 5 6,421,942 821,250 5,600,692

Chrysanthemums  Demand  Supply  Gap 

Year 1 1,527,714 361,350 1,166,364

Year 2  1,604,099 416,100 1,187,999

Year 3 1,,684,303 470,850 1,213,453

Year 4 1,768,518 547,500 1,221,018

Year 5 1,856,943 602,250 1,254,693

 21

Sunflowers  Demand  Supply  Gap 

Year 1 3,952,962 273,750 3,679,212

Year 2  4,150,610 328,500 3,822,110

Year 3 4,358,140 383,250 3,974,890

Year 4 4,576,047 438,000 4,138,047

Year 5 4,804,849 492,750 4,312,099

Tulips  Demand  Supply  Gap 

Year 1 3,055,432 164,250 2,891,000

Year 2  3,208,203 273,750 2,934,453

Year 3 3,368,613 328,500 3,039,813

Year 4 3,537,043 383,250 3,153,793

Year 5 3,713,895 438,000 3,275,895

Orchids  Demand  Supply  Gap 

Year 1 2,272,473 273,750 1,998,723

Year 2  2,386,096 328,500 2,057,596

Year 3 2,505,400 383,000 2,122,400

Year 4 2,630,670 437,750 2,192,920

Year 5 2,762,203  492,750 2,269,453

Zinnias flower Demand  Supply  Gap 

Year 1 1,368,580 164,250 1,204,330

Year 2  1,437,009 219,000 1,218,009

 22

Year 3 1,508,859 273,750 1,235,109

Year 4 1,584,302 328,500 1,255,802

Year 5 1,663,517 383,250 1,280,267

Daisy  Demand  Supply  Gap 

Year 1 25,460 10,950 14,510

Year 2  26,733 16,425 10,308

Year 3 28,070 21,900 6,170

Year 4 29,474 27,375 2,099

Year 5 30,948 28,470 2,478

Pricing 

In this part of the study the pricing aspects of the business will be clarified.

The pricing in the proposed business will be confirmed and verified whether it is practical and

achievable. Pricing strategy focuses on what the product is worth to customers.

Presented below will be the price of each product offered by GRREC Flower Boutique.

Item Size  Category  Price 

Flower Bouquet  Small Small

Fresh  P800
Dried P600
Artificial P400
 
Medium Fresh Medium
Dried P1,000
Artificial P800
P600
Large  Fresh Large
Dried P2,500
Artificial  P1,800
P1,500
 23

Money bouquet  Small Customize Small

Luxury Money P1,000
Bouquet 
Budget Friendly  P800
Simple  P500

Medium Luxury Money P2,500

Bouquet 
Budget Friendly P1,500
Simple  P1,000

Large Luxury Money P4,000

Bouquet 
Budget Friendly P3,500
Simple P2,500

Chocolate Bouquet Small Customize

Luxury Chocolate P2,000
Bouquet
Budget Friendly P1,500
Simple P1,000

Medium
Luxury Chocolate P2,500
Bouquet
Budget Friendly P2,000
Simple  P1,800

Large
Luxury Chocolate P3,000
Bouquet
Budget Friendly P2,000
Simple  P1,000

Surprise Delivery Package Customize

Package  Delivery  Luxury Inclusion: P15,000
Flower Bouquet
Cake 
Balloons
Banner 
Gift
Printed Message
Lights and sounds
Teddy Bear
 24

Delivery 

Budget Friendly inclusion: P10,000

Balloons
Banner 
Cake
Lights
Printed message
Delivery 

Simple inclusion:  P5,000

Cake 
Banner 
Lights and Delivery

Marketing Program 

Terms of sale 

The GRREC Flower Boutique offers a wide range of payment methods like cash on delivery and

Online Banking. The GRREC Flower Boutique will use online payment since many people

prefer to pay online for its convenience and saves time. And most likely will less delay the

payment of bills.

Channel of Distribution 

Channels of distribution move products and services from businesses to consumers and to other

businesses. And this shows how the distribution of channels have a very efficient role in the

smooth functioning of businesses.

 25

Figure: Channel of Distribution

Promotion and Advertising Activities

        Posters and Social Media (Facebook, Instagram, TikTok and Twitter) will be used to

promote the business. Posters and Social Media will be disseminated on the actual day or before

the actual day of operation. The posters and social media contain information about the business.

Although personal selling is the most effective tool per consumer, it is often the most effective.

We will want to put some effort in this component. We will be walking around in Bacolod City

telling the people in the streets about the business. Along with this will integrate the sales

promotion by giving away discount cards as incentives to come into the business and try it out at

a reduced cost.
 26

Estimated Cost of Marketing 

The estimated cost of marketing for its opening is worth P22,595. Based on the table

below. 

Types of expenses  Quantity  Price Total 

(Advertisements)

Tarpaulin  15  ₱ 200 (size 3x4)  ₱ 3,000.00 

Flyers  200   ₱ 28  ₱ 5,600.00 

Agents  5  ₱ 100 (per day) 

Total expense  ₱8,600.00

Soft opening  Quantity  Price  Total 

Priest contribution  1 ₱ 2,500  ₱ 2,500.00

 27

Cater (25 estimated people) 1 ₱ 10,000  ₱ 10,000.00

Freebies  25  ₱ 50  ₱ 1,2500.00

Ribbon for Ribbon cutting 1 ₱ 245 ₱ 245.00

Total expense ₱ 13,995.00

Expenses  Price 

Advertisement  ₱ 8,600.00

Soft opening ₱ 13,995.00

Total estimated cost of marketing ₱ 22,595.00

Chapter V

TECHNICAL CONSIDERATION

         In this chapter, it will be discussing the technical considerations of GRREC Flower

Boutique; the following are to be discuss; machine and equipment, suppliers, operation/service

flow, design and layout and lastly, technological trends. 

Machine 

Item description  Quantity  Price  Total

amount 

Electronic Cash Register drawer 1 P8,999.00 P8,999.00

–
 28

An electronic cash register is a

countertop device that retailers use
to collect cash and credit card
payment. It’s a step up from a
traditional mechanical cash register
because it can calculate and add
sales tax to the purchase amount.

Air-con – is the process of 2 P20,998.00 P41,996.00

removing heat and moisture from
the interior of an occupied space to
improve the occupant’s comfort.

Total P50,995

Equipment 

Item description  Quantity  Price  Total

price

Floral Scissors – are designed for 5 P50.00  P250

prolonged use and precision work, while
also offering great durability and strong
cutting force.

2 P270 P540
Stapler – is a type of two-pronged
 29

fastener, usually metal, used for joining or

binding materials together. 

Total P790

Tools

Items Description Quantit Price Total

y Amount

5 P130 P6,502
Floral Knife – is an essential tool for
florists and gardeners. Fitted with a sharp,
strong 55mm blade with 100mm nylon
handle, it cuts cleanly, effortlessly handling
the toughest branches, stalks and foliage.
For perfect floral
 30

2 P688 P1,336
Bunch Cutters – is perfect for cutting the
stems of small bunches of flowers.

Total P7,838

Furniture and Fixture 

Item Description Quantit Price Total

y amount
 31

Table – is an item of furniture with a 2pcs ₱2,995 ₱5,990

raised flat top and is supported most
commonly by 4 legs (although some
can have more), used as a surface for
working at, eating from or on which to
place things.
 

Chair – is a type of seat, typically 1pc ₱2,995 ₱2,995

designed for one or more people and
consisting of one or more legs, a flat or
slightly angled seat and a back-rest.

Sofa-set – a long upholstered seat with 1pc ₱23,99 ₱23,995

5
a back and arms, for two or more
people.

Total P32,280

Florist Supplies

Item Description Quantity Price Total

Amount
 32

Floral Foam – it stabilizes 30 boxes ₱60  ₱1,800

flowers. It also holds water which (per
increases fresh flower longevity. box) 

Floral tape – is commonly used 50 pieces ₱50 ₱ 2,500

for stem wrapping, artificial (30 Yards
flowers, and floral bouquets. It 12mm)
can also be used for gift
  wrapping.

Floral containers – commonly Small  Small  Small 

used shapes include vases, bowls, 100 pcs ₱25 ₱2,500 
and baskets, pedestals and
Medium  Medium  Medium 
baskets (fig), the shape of a
container often determines the 100 pcs ₱30 ₱3,000

form of the design bowls for Large Large  Large 

example often used for horizontal 100 pcs ₱40 ₱4,000
design and low table
 
arrangements, while vases would
be used for more vertical designs.
 33

Preservatives – once flowers are 50pcs ₱400 ₱20,000

cut their natural ability to create
life-sustaining sugars starts to
fade. This means that the color,
fragrance, and strength of the
  flower drops-off. To fight these
effects, you add floral
preservatives to the vase of your
bouquet. The floral preservatives
are made up of several
ingredients, all of which can help
extend its life.

Floral wire – can be used for a 100 pcs  ₱60 ₱6,000

vast array  of purposes;
reinforcing weak stems, securing
wreaths or bows, or even
manipulating the wire to be an
  artwork of its own.

Cardettes – commonly used as 100pcs ₱15 ₱1,500

each
holders for gift cards, place cards,
photos, floral enclosure cards,

 
 34

Greeting Cards – Greetings card 500pcs ₱15 ₱7,500

each
is a piece of cardstock, usually
with an illustration or photo,
made of high quality paper
featuring an expression of

  friendship or others sentiment.  

Wrapping – a piece of paper, 20 ₱140 ₱2,800

bundles (20pcs) 
plastic or foil covering and
protecting something sold.

Floral Baskets – are commonly 100 ₱40 ₱4,000

used as attractive accents in the
home. They also make popular
gifts during the holidays and on
other special occasions.

Trash can – a container, usually 3 ₱95 ₱285

of metal or plastic, for the
disposal of waste matter.

Total P55,885

Office Supplies 
 35

Item 
Description Quantity Price Total
Amount

Ball Pen -  a pen that has a small metal 3 boxes P45.00 P135.00
ball as the point of transfer of ink to
paper. synonyms: Biro, ballpoint,
ballpoint pen. type of: pen.

Receipt Paper - a receipt is a piece of 10 P135.0 P1,350.00

bundle 0
paper that you get from someone as proof
that they have received money or goods
from you.

Pencil - a thin cylindrical instrument used 3 boxes P50.00 P150.00

for writing, drawing, etc, consisting of a
rod of graphite or other marking
substance, usually either encased in wood
and sharpened or held in a mechanical
metal device.

Ribbon - a narrow strip of fine material, 10 per P200.0 P2,000.00

role 0
especially silk, used for trimming, tying,
etc.

Marker - a marker is an ink-filled pen 1 box P430.0 P430.00

with a wide tip. Kids often use washable 0
markers, while adults are usually trusted
with the permanent type. Permanent
markers contain ink that can't be washed
away, and they're useful for labeling and
marking things like cardboard boxes and
 36

file folders.

Correction Tape -  a tape that can be 1 box P530.0 P530.00

0
placed over a written or typed mistake, on
which the correct form can be written or
typed, thereby covering the mistake
underneath.

Stapler - a stapler is a mechanical device 3 pcs P95.00 P285.00

used for joining papers together. The
fastener, called a staple, is a 2-pronged
shape that's usually made of metal. When
pressure is applied to the stapler, it drives
the staple through a stack of paper, which
folds the prongs down to create a firm
binding.

Stapler Pin - is made of highly durable 120 box P100.0 P120.00

0
wires that give it a long life. It is very
sturdy and does not break easily. It keeps
your papers and other documents safe and
does not damage them.

Total P5,000.00

Supplier 

Item Description
 37

Machines: 

Citi Hardware

Equipment: 

 Shopee Online 

Furniture and
Fixtures: 

SM Department
Store

Florist Supplies: 

Shopee Online

Operational flow chart 

 38

Transaction of the Products

Design and Layout 

 39

Front View Side View

Overview  

Layout and Floor Plan

 40

Technological trends
 41

The advancements in technology have equipped

today’s consumers with a myriad of easy information –

accessing them with the knowledge they require to make

their own decisions about their purchases. It is now easy to

find someone in practically no time to drive you away, do

your laundry, give you an in-home makeover or deliver just

about anything. Last mile technology is a term that

describes a range of technologies that together streamlines

logistics operation, reduces costs, and improves the

customer experience during the final leg in the delivery

process bringing the product like flowers directly to the

consumer. 

Florabot designs advanced technologies which

enable our customers to automate the handling and

assembly of fresh flower arrangements. Through robotics

or the florabot technology can create a typical dozen-roses

arrangement in about four minutes. Compare this to a

human designer who may average 15-17 minutes to design

the same arrangement. Keep in mind that our robot can do

this 24/7 all day every day, with no breaks, no complaints,

and no vacation time.

Floral coolers are specifically designed with custom

delicate features keeping the flowers and plants in mind.

 42

They also contain shelving within that can be moved to

accommodate larger arrangements. For this purpose, floral

coolers make use of high humidity and low airflow to

protect the delicate petals, leaves, and through the floral

cooler it maintains the proper climate to keep flowers fresh

and attractive.

CHAPTER VI
 43

Financial Considerations

6.1 Capital Requirements 

The capital requirements in starting up a business is equal to Php.  1,000,000.00

 
Capital Requirements 
Amount 
Description
549,269
Cash 
60,000.00
Prepaid rental
20,000.00
Shop Improvement 
145500
inventory
32,980.00
Furniture and Fixture 
53,771.00
Machinery and Equipments
55,885.00
Florist Supplies 
5,000.00
Organizational Cost
10,000.00
Permits and Licenses
40,000.00
Installation Cost
22,595.00
Advertising 
5,000.00
Office Supplies 
 
 
 
 
1,000,000.00
Total Investment Cost
 44

6.2 Fund Procurement

The proponents have agreed to a Php 1,000,000.00 start-up capital, which will be

assessed fully in finance by the partners.

Partners  Contribution  Profit / Loss Ratio

Canoy P200,000 1/5

Claridad P200,000 1/5

De Leon P200,000 1/5

Magdayao P200,000 1/5

Saludares P200,000 1/5

6.3 Assumptions 

Presented below are the following assumptions of the partners in the business.

6.3.1 Revenue

As a result of the generated income from selling a variety of bouquets in GRREC Flower

Bouquet, revenues are assumed to increase 5% each year and will increase 10% for the fifth year.
 45

GRREC Flower Boutique 

SALES REVENUE
No. of pcs
Goods Measurements Prices sold/Month Year 1 Year 2 Year 3 Year 4 Year 5
Flower                
Bouquet
Small 800 10 96,000.00 100,800.00 105,840.00 111,132.00 116,688.60
 
Medium 1,000.00 15 180,000.00 189,000.00 198,450.00 208,372.50 218,791.13
 
Large 2,500.00 20 600,000.00 630,000.00 661,500.00 694,575.00 729,303.75
 
      876,000.00 919,800.00 965,790.00 1,014,079.50 1,064,783.48
TOTAL 

Money         0.00 0.00 0.00 0.00

Bouquet
Small 1,000.00 15 180,000.00 189,000.00 198,450.00 208,372.50 218,791.13
 
Medium 2,500.00 10 300,000.00 315,000.00 330,750.00 347,287.50 364,651.88
 
Large 4,000.00 5 240,000.00 252,000.00 264,600.00 277,830.00 291,721.50
 
      2,472,000.00 2,595,600.00 2,725,380.00 2,861,649.00 3,004,731.45
TOTAL
Chocolate         0.00 0.00 0.00 0.00
Bouquet
Small 2,000.00 20 480,000.00 504,000.00 529,200.00 555,660.00 583,443.00
 
Medium 2,500.00 15 450,000.00 472,500.00 496,125.00 520,931.25 546,977.81
 
  Large 3,000.00 5 180,000.00 189,000.00 198,450.00 208,372.50 218,791.13
 46

TOTAL  4,302,000.00 4,517,100.00 4,742,955.00 4,980,102.75 5,229,107.89

Surprise         0.00 0.00 0.00 0.00

Delivery
Luxury 15,000.00 2 360,000.00 378,000.00 396,900.00 416,745.00 437,582.25
 
Budget Friendly 10,000.00 3 360,000.00 378,000.00 396,900.00 416,745.00 437,582.25
 
Simple 5,000.00 5 300,000.00 315,000.00 330,750.00 347,287.50 364,651.88
 
TOTAL  6,432,000.00 6,753,600.00 7,091,280.00 7,445,844.00 7,818,136.20
16,301,675.2
TOTAL REVENUE 14,082,000.00 14,786,100.00 15,525,405.00 5 17,116,759.01
 47

6.3.1.1 Pricing

The method of pricing used is target costing. There will be no price increase for flower bouquet, money bouquet, chocolate bouquet

and surprise delivery unless there is an increase in price and demand after 5 years.

6.3.1.2 Discounts 

If the consumer satisfies the product’s minimum purchase, they will receive a 2% discount. 

DISCOUNTS

14,082,000 14,786,100 15,525,405 16301675.25 17116759.01

281640 295722 310508.1 326033.505 342335.1803
 48

6.3.1.3 Cost of sales / Cost of Services

The cost of sales is assumed to be 25% of the assumed revenue and will increase by 5% annually in accordance with the

increase of revenue.  

  Year 1 Year 2 Year 3 Year 4 Year 5

Flowers P54,600.00 P57,330.00 P60,196.5 P63,206.33 P66,366.65

Florist Supplies P55,885.00 P58,679.25 P61,613.21 P64,693.87 P67,928.56

Chocolates P31,200.00 P32,760.00 P34,398.00 P36,117.9 P37,923.80

Toys P26,000.00 P27,300.00 P28,665.00 P30,098.25 P31,603.16

Cakes P84,000 P88,200.00 P92,610.00 P97,240.5 P102,102.53

Total Cost of Good Solds P251,685.00 P264,269.25 P277,482.71 P291,356.85 P305,924.7

 49

6.3.2 Operating Expense 

These are the costs and expenses incurred in carrying out day-to-day operations or activities of the flower boutique. The

following are the assumptions used for the expenses shown in the summaries.

Cost of Production 

Direct Labor  Year 1  Year 2  Year 3  Year 4  Year 5

Construction Worker  P30,000.00 P30,000.00 P30,000.00 P30,000.00 P30,000.00

Painter (900) x2 P21,600.00 P21,600.00 P21,600.00 P21,600.00 P21,600.00

Electrician (600) x2 P14,400.00 P14,400.00 P14,400.00 P14,400.00 P14,400.00

Designer (500) x2 P12,000.00 P12,000.00 P12,000.00 P12,000.00 P12,000.00

Total Direct Labor  P78,000.00 P78,000.00 P78,000.00 P78,000.00 P78,000.00

Fixed Cost 

Electricity  P30,000.00 P31,500.00 P33,075.00 P34,728.75 P36,465.19

Depreciation: Cashier  P8,999.00 P8,999.00 P8,999.00 P8,999.00 P8,999.00

Depreciation: Aircon  P20,998.00 P20,998.00 P20,998.00 P20,998.00 P20,998.00

 50

Depreciation: Sofa Set P23,995.00 P23,995.00 P23,995.00 P23,995.00 P23,995.00

Repairs and Maintenance P8,000.00 P8,400.00 P8,820.00 P9,261.00 P9,724.05

Total Fixed Cost  P91,992.00 P93,892.00 P95,887.00 P97,981.75 P100,181.24

TOTAL COST OF P169,992.00 P171,892.00 P173,887.00 P175,981.75 P178,181.2

PRODUCTION
 51

6.3.2.1 Salaries and Benefits (Increase and Benefits)

Salaries and wages are determined by each employee’s daily rate. Below is a summary of salaries and wages.

Position  No. of Employees Daily Rate  Monthly Rate  Annual  13th Month 

Manager  1 P550.00 P14,300.00 P171,600.00 P14,300.00

Florist  2 P420.00 P10,920.00 P131,040.00 P10,920.00

Helper  1 P308.00 P8,000.00 P96,000.00 P8,000.00

Delivery Staff  2 P410.00 P10,660.00 P127,920.00 P10,660.00

Bookkeeper  1      --- P2,100.00 P25,200.00 P2,100.00

P1,688.00 P45,980.00 P551,760.00 P45,990.00

Position  SSS  PhilHealth Pag-ibig 

 

Employer  Employer Employer  Employer 

Manager  P13,920.00 P3,200.00 P3,200.00 P2,400.00

Florist  P10,080.00 P3,200.00 P3,200.00 P2,400.00

Helper  P7,680.00 P3,200.00 P3,200.00 P2,400.00

 52

Delivery Staff  P10,080.00 P3,200.00 P3,200.00 P2,400.00

Bookkeeper        ---      ---        ---              ---

P41,760 P12,800 P12,800 P9,600

6.3.2.2 Preventive

Repair and maintenance expense is assumed to be P50,995.00 /year and will increase by 2% annually for the next year of

operation. Summation of forecasted repair and maintenance expense increased gradually is presented below. 

Repair and Maintenance  Year 1 Year 2 Year 3 Year 4 Year 5

Machinery P50,995.00 P52,014.9 P53,055.20 P55,707.96 P56,822.11

Delivery Truck / Car P50,000.00 P51,000.00 P52,020.00 P53,060.4 P54,121.60

Total P100,995.00 P103,014.9 P582,075.2 P108,768.36 P110,943.71

6.3.2.3 Supplies 

All necessary and internal supplies will be included in office supplies and florist supplies which are predicted to increase by

2% each year as demand grows. Floral foam, floral container, and preservatives are anticipated to constitute an expense at the end

of each year, with annual increase of at least 4% for the next five years.
 53

FLORIST SUPPLIES Year 1 Year 2 Year 3 Year 4 Year 5

55,885.00 57,002.70 58,142.75 59,305.60 60,491.71

Florist Supplies Purchased
    --- 51,228.00 103,387.42 156,493.16 210,560.27
Beg. Inventory
55,885.00 108,230.70 161,530.17 2,157,988.76 271,051.98
Total Available Supplies
4,657.00 4,843.28 5,037.01 5,238.49 5,448.02
Less Florist Supplies Expenses

51,228.00 103,387.42 156,493.16 210,560.27 265,603.96

Ending Florist Supplies Inventory 

OFFICE SUPPLIES PURCHASED  Year 1 Year 2 Year 3 Year 4 Year 5

5,000.00 5,001.00 5,002.00 5,003.00 5,004.00

Office Supplies Purchased
    --- 1,100.00 2,045.00 2,828.76 3,444.79
Beg. Inventory
5,000.00 6,101.00 7,047.00 7,831.76 8,448.79
Total Available Supplies
3,900.00 4,056.00 4,218.24 4,386.97 4,562.45
Less: Office Supplies Expense

Ending Office Supplies Inventory 1,100.00 2,045.00 2,828.76 3,444.79 3,886.34

 54

6.3.2.4 Utilities 

Utilities expenses include office electricity, which accounts for 5% of total electricity costs, office supplies, florist supplies, rent

expense, gasoline, Internet and telephone fees, and renovation expenses, all of which are used and necessary for the flower boutique’s

daily operations. It is expected that utilities expenses would remain the same for the next five years unless there is a price increase in

the market.  

Monthly Year 1  Year 2  Year 3  Year 4  Year 5 

expense 

Electricity  P2,500.00 P30,000.00 P31,500.00 P33,075.00 P34,728.75 P38,201.63

Office Supplies P5,000.00 P60,000.00 P63,000.00 P66,150.00 P69,457.6 P76,403.25

Florist P4,657.08 P55,885.00 P58,679.25 P61,613.21 P64,693.87 P71,163.26

Supplies

Rent Expense P3,000.00 P36,000.00 P37,800.00 P39,690.00 P41,674.5 P45,841.95

Gasoline P15,000.00 P180,000.00 P189,000.00 P198,450.00 P208,372.5 P229,209.75

Internet & P2,800.00 P30,000.00 P31,000.00 P33,075.00 P34,728.75 P38,201.63

Telephone 

Renovation & P20,000.00 P20,000.00 P21,000.00 P22,050.00 P23,152.5 P25,467.75

Expense 

Total P48,300.00 P411,885.00 P432,479.25 P454,103.21 P476,808.37 P524,489.22

 55

6.3.2.5 Depreciation 

There is no residual value; Office equipment, office machinery and delivery truck/car will all be depreciated using the straight line

approach.

Estimate
d Use Annual Year Year
Quantity Amount Life Depreciation 1 2 Year 3 Year 4 Year 5
Item
Electronic Cash 8,999 1 8,999 5 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Register Drawer
20998 2 41,996 10 2,100 4,200 4,200 4,200 4,200 4,200 4,200
Air-Con
5,999
2,995 2 5,990 5 599 1,198 1198 1198 1198 1198 1198
Table
2,995 2 5,990 5 599 1,198 1198 1198 1198 1198 1198
Chair
23,995 1 23,995 5 4,799 4,799 4799 4799 4799 4799 4799
Sofa-Set
13,19
TOTAL 5 13,195 13,195 13,195 13,195
7,195
 56

6.3.2.6 Other Important Assumption 

A.  Rentals 

The rentals are assumed to increase at 2%.

6.4 Income Statement 

  Projected Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5
 
14,082,000 14,786,100 15,525,405 16,301,675 17,116,759
Sales Revenue
281640 295722 310508.1 326033.505 342335.1803
Discount
13,800,360 14,490,378 15,214,897 15,975,642 16,774,424
Net Sales
         
Cost Of Goods Sold 
1113600 1169280 1227744 1289131.2 1353587.76
Purchase
50000 50000 50000 50000 50000
Freight In
1163600 1219280 1277744 1339131.2 1403587.76
Total Cost Of Good
12,636,760 13,271,098 13,937,153 14,636,511 15,370,836
Gross Profit
 
Less: Expense
169,992.00 171,892.00 173,887.00 175,981.75 178,181.20
Cost Of Production
 57

551,760.00 562,795.20 574,051.10 585,532.13 597,242.77

Salaries Expense
45,990.00 45,990.00 45,990.00 45,990.00 45,990.00
Employee Benefits
3,200.00 3,200.00 3,200.00 3,200.00 3,200.00
Philhealth Contribution Expense
1,160.00 1,160.00 1,160.00 1,160.00 1,160.00
Sss Contribution Expense
2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
Pag-Ibig contribution Expense
Utility Expense 411,885.00 420,122.70 428,525.15 437,095.66 64,995.93
3,900.00 4,056.00 4,218.24 4,386.97 4,562.45
Office Supplies Expenses
4,657.00 4,843.28 5,037.01 5,238.49 5,448.02
Florist Supplies
13194.4 13194.6 13194.6 13194.6 13194.6
Depreciation Expense
104,229.45 106,087.52 107,971.43 109,881.12 111,816.53
Tax Expense
100,229.45 103,019.90 105,075.20 107,176.70 109,320.23
Repairs And Maintenance Expenses
Rental Expenses  60000 60000 60000 60000 60000

Permits And Licenses  10,000.00        

Advertising Cost 22,595.00 22,595.00 22,595.00 22,595.00 22,595.00

P10,000.00        
Installation Cost 

Total Operating Expenses 1505192.3 1521356.2 1547304.73 1573832.42 1220106.728

 58

Net Income 11,131,568 11,749,742 12,389,848 13,062,678 14,150,729

4,224,600.0
Less: Income Tax 30% 0 4,435,830.00 4,657,621.50 4,890,502.58 5,135,027.70
4,241,657.0
Net Income 0 4,443,073.28 4,665,058.51 4,898,141.07 5,142,875.72

6.4.1 Taxes and License expense 

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue on Sale P3,726,000.00 P3,912,300.00 P4,107,915.00 P4,313,310.75 P4,528,976.29

Sales on Merchandise  P251,685.00 P264,269.25 P277,482.713 P291,356.85 P305,924.693

Gross receipts  P3,474,315.00 P3,648,030.75 P3,830,432.29 P4,021,953.09 P4,223,051.6

Percentage tax rate 3% 3% 3% 3% 3%

Percentage tax payable  P104,229.45 P109,440.93 P114,912.97 P120,658.62 P126,691.55

Tax on rent P3,000.00 P3,150.00 P3,307.50 P3,472.88 P3,646.52

Total Taxes and License expense  P107,229.45 P112,590.92 P118,220.47 P124,131.50 P130,338.07
 59

6.5 Cash Flow Statement 

The table below shows the summary of projected cash inflows and outflows of GRREC Flower Boutique from year 0 to year 5.

GRREC Flower Boutique  

Projected Cash  Flows 
             

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Beginning Cash Balance    549,269.00 1,727,432.40 9,694,988.96 15,031,245.87 19,833,200.02

Operating Activities:            

Net Profit   4,241,657.00 4,443,073.28 4,665,058.51 4,898,141.07 5,142,875.72

Rental  -60,000.00 60,000.00        

-
(Increase)/Decrease Inventory -145,500.00 1,000,000.00 -500,000.00 -4,000,000.00 -5,000,000.00 10,000,000.00

(Increase)/Decrease in Florist
Supplies Inventory -55,885.00 4,657.00 -1,074.71 -1,127.70 -1,184.09 -1,243.29

(Increase)/Decrease In Office
Supplies -5,000.00 3,900.00 -5,000.00 -5,250.00 -5,460.00 -5,733.00

Prepaid Advertising  -22,595.00 22,595.00        

Payment in Permits and

Licenses -10,000.00 10,000.00        
 60

Payment in Installation Cost    -40,000.00 40,000.00        

Payment in Organization Cost -5000 5000        

Increase in Pag-ibig   2,400.00 2,400.00 2,400.00 2,400.00 2,400.00

Increase in SSS Payable   1,160.00 1,160.00 1,160.00 1,160.00 1,160.00

Increase in PhilHealth Payable   3,200.00 3,200.00 3,200.00 3,200.00 3,200.00

Income Tax Payable   4,224,600.00 4,435,830.00 4,657,621.50 4,890,502.58 5,135,027.70

Add Back Depreciation    13194.4 13194.6 13194.6 13194.6 13194.6

Cash Provided by Operating
Activities -343980 1,178,163 8392783.17 5336256.91 4801954.15 290881.7375

Investing on Activities          

Sales on Asset             

Capital Expenditure             

Shop Improvement  20,000.00          

Furniture and Fixtures 32,980.00          

Equipment Cash used for

Investing (Total)   53,771.00          

  106,751.00          

Financing Activities            
 61

Partners Investment  1,000,000          

Cash Provided by Financing

Activities  1,000,000          

Net Cash Inflow/outflow  549,269.00 1,178,163.40 8,392,783.17 5,336,256.91 4,801,954.15 290,881.74

Ending Cash Balance  549,269.00 1,727,432.40 10,120,215.57 15,031,245.87 19,833,200.02 20,124,081.76

             
 62

6.6 Balance Sheet

The projected balance sheet below exhibits GRREC Flower Boutique’s projected balance sheet from year 0 to 5.

GRREC Flower Boutique 

Projected Balance Sheet 
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Assets 
1,727,432.4 10,120,215.5 15,031,245.8 19,833,200.0 20,124,081.7
549,269.00 0 7 7 2 6
cash
60,000.00          
Prepaid rent
22,595.00          
Prepaid Advertising
20,000.00          
shop improvement
4,512,899.6
145,500.00 0 365,891.31 341,090.01 447,800.80 498,855.44
inventory
55,885.00 51,228.00 303,387.42 156,493.16 210,560.27 265,603.96
florist supplies
5,000.00 1,100.00 2,045.00 2,828.76 3,444.79 3,886.34
office supplies
10,000.00          
permit and license
5,000.00          
organizational cost
40,000.00          
installation cost
32,980.00 32,980.00 32,980.00 32,980.00 32,980.00 32,980.00
furniture and fixture
  7,195.00        
accumulated depreciation
 63

53,771.00 53,771.00 53,771.00 53,771.00 53,771.00 53,771.00

machinery and equipment
5,999.00
accumulated depreciation
1,000,000.0 6,366,217.0 10,878,290.3 15,618,408.8 20,581,756.8 20,979,178.5
0 0 0 0 8 0
Total asset
           
Liabilities 
1,117,800.0
  0 1,186,800.00 1,261,860.00 1,327,067.03 1,459,774.06
income tax payable
  3,200.00 3,200.00 3,200.00 3,200.00 3,200.00
Philhealth
  1,160.00 1,160.00 1,160.00 1,160.00 1,160.00
SSS Contribution expense
Pag-ibig Contribution   2,400.00 2,400.00 2,400.00 2,400.00 2,400.00
expense
1,124,560.0
0 1,193,560.00 1,268,620.00 1,333,827.03 1,466,534.06
Total Liabilities
           
Partner’s Equity 
1,048,331.4
200,000.00 0 1,936,946.06 2,869,957.76 3,849,585.97 4,878,161.11
Canoy,Capital 
1,048,331.4
200,000.00 0 1,936,946.06 2,869,957.76 3,849,585.97 4,878,161.11
Claridad,Capital
1,048,331.4
200,000.00 0 1,936,946.06 2,869,957.76 3,849,585.97 4,878,161.11
De Leon,Capital
1,048,331.4
200,000.00 0 1,936,946.06 2,869,957.76 3,849,585.97 4,878,161.11
Magdayao,Capital
Saludares,Capital  200,000.00 1,048,331.4 1,936,946.06 2,869,957.76 3,849,585.97 4,878,161.11
 64

0
1,000,000.0 5,241,657.0 14,349,788.8 19,247,929.8 19,512,644.4
0 0 9,684,730.30 0 5 4
Total Owner’s Equity
Total Liabilities and 6,366,217.0 10,878,290.3 15,618,408.8 20,581,756.8 20,979,178.5
Equity  0 0 0 8 0
 65

Financial Analysis

Liquidity Ratios

1. Current Ratio = Current Assets/Current Liabilities

Current Ratio
18

16

14

12

10

0
Year 2 Year 3 Year 4 Year 5

Year 1 Year 2 Year 3 Year 4 Year 5

The ratio between the current assets and the current liabilities for five years result to a

positive amount which is favorable to the company. The means that there is enough cash to settle

all current liabilities.

 66

2. Quick Ratio = Quick Assets/Current Liabilities

Quick Ratio
20

18

16

14

12

10

0
Year 1 Year 2 Year 3 Year 4 Year 5

Year 1 year 2 year3 year4 year5 Series6

 67

Profitability Ratios
1. Profit Margin = Net Income/Sales

-
Profit Margin
30.14

30.12

30.1

30.08

30.06

30.04

30.02

30
year 1 year2 year3 year4 year5

year 1 year2 year3 year4 year5 Series6

 68

2. Return on Total Assets = Net Income/Total Assets

Return on Total Assets

80

70

60

50

40

30

20

10

0
Year1 year2 year3 year4 year5

year1 year2 year3 year4 year5

 69

3. Return on Equity = Net Income/Total Partner's Equity

Return on Equity
12000

10000

8000

6000

4000

2000

0
year1 year2 year3 year4 year5

year1 year2 year3 year4 year5

 70

Solvency Ratios

1. Debt Ratio = Total Liabilities/Total Assets

Debt Ratio
12

10

0
year1 year2 year3 year4 year5

year2 year3 year4 year5

 71

2. Quick Ratio = Quick Assets/Current Liabilities

Debt to equity ratio

12

10

0
year1 year2 year3 year4 year5

year1 year2 year3 year4 year5

Based on two graphs below, it shows that the business has a 0% debt ratio and debt

equity ratio, indicating that it does not borrow to finance increased operations, limiting the total

returns that may be realized and passed on to the partners. Moreover, it means that the assets are

funded by equity.
 72

6.7.1  Payback Period 

The table shows that after 4.37 years, the business will recover the cost of an investment .

Payback Period 

Net Cash Flow  Investment  Payback in Years 

Year 0 549,269 1,000,000 0.79

Year 1 1727432.4 1,542,424.39 0.89

Year 2 10120215.57 8,067,835.85 0.79

Year 3 15031245.87 10,699,240.81 0.71

Year 4 19833200.02 12,603,998.61 0.63

Year 5 20124081.76 11,418,403.99 0.56

4.37

6.7.2 ROI and IRR

 73

Return on Investment 

Year 1 Year 2 Year 3 Year 4 Year 5

Net Income 1,542,424.3 8,067,835.85 10,699,240.81 12,603,998.61 11,418,403.99

(Loss) 9

Total 172,7432.4 10120215.5 5031243.87 20124081.76 20124081.76

7

Assets Total 0.89 0.80 1058 0.63 0.57

Internal Rate of Return 

Net CF 0 1,000,000

Net CF 1 (1,000,000)

Net CF 2 952,380.89

Net CF 3 933,7138.13

Net CF 4 889,251.505

Net CF 5 871,815.201

Internal Rate of Return (IRR) 854,720.79

 74

6.7.3 Break-even Computation  

Flower Bouquet  Chocolate Bouquet  Surprise Delivery Package 

Small  Medium  Large  Small Medium Large  Luxury Budget Simple

Inclusion Friendly
Inclusion

Selling Price  P800.00 P1,000.00 P2,500.00 P2,000.00 P2,500.00 P3,000.00 P15,000.00 P10,000.00 P5,000.00

Variable Cost  P300.00 P300.00 P300.00 P300.00 P600.00 P600.00 P5,000.00 P5,000.00 P1,500.00
per Unit

Contribution P500.00 P700.0 P2,200.00 P1,9000.0 P1,900.00 P2,400.00 P10,000.00 P5,000.00 P3,500.00
margin per 0
unit 

Contribution 0.625 0.7 0.88 0.7 0.76 0.8 0.9 0.85 0.7
margin ratio
 75

Year 1 and 2

Description CM/unit  Sales Mix  Weighted Average

Flower Bouquet

Small 0.625 1.5 8.96

Medium 0.7 1.33 8.96
Large  0.88 1.5 8.96

Chocolate Bouquet

Small 0.7 1.25 16.63

Medium 0.76 1.33 16.63
Large  0.8 2 16.63

Surprise Delivery Package

Luxury Inclusion  0.9 0.25 251

Budget Friendly 0.85 1.66 251
Inclusion  0.7 0.6 251
Simple Inclusion 

Total
 76

Year 3 and 4

Description

Flower Bouquet

Small 0.625 1.58 9.41

Medium 0.7 1.40 9.41
Large  0.88 1.58 9.41

Chocolate Bouquet

Small 0.7 1.31 17.46

Medium 0.76 1.40 17.46
Large  0.8 2.1 17.46

Suprise Delivery
Package
0.9 0.26 263.55
Luxury Inclusion 
0.85 1.74 263.55
Budget Friendly
Inclusion  0.7 0.75 263.55
Simple Inclusion 

Total
 77

Year 5

Description

Flower Bouquet

Small 0.625 1.66 9.88

Medium 0.7 1.47 9.88
Large  0.88 1.66 9.88

Chocolate Bouquet

Small 0.7 1.36 18.33

Medium 0.76 1.47 18.33
Large  0.8 2.21 18.33

Surprise Delivery Package

Luxury Inclusion  0.9 0.27 276.73

Budget Friendly 0.85 1.83 276.73
Inclusion  0.7 0.79 276.73
Simple Inclusion 

Total
 78

1 2 3 4 5

Total Fixed Cost  91,992.00 93,892.00 95,887.00 97,981.75 100,181.24

Weighted Average  276.59 276.59 290.42 290.42 377.21

Break even 332.59 339.46 330.17 337.38 265.58

 79

CHAPTER VII

SOCIO ECONOMIC ASPECT 

The business GRREC Flower Boutique will bring satisfaction to customers, who are

looking  for inexpensive gifts for their loved ones. The business is committed to promote good

quality and affordable bouquets that are available to all. 

Contribution to Income

The partners and staff at Flower Boutique will receive just compensation for their

labor and services. The partners' contribution will be used to enhance Flower Boutique's

operations.

Contribution to Government

The government anticipates receiving a sizable tax payment from this business. The

government would be able to raise money for public services and project upgrades with the

help of the Flower Boutique's tax responsibility

Contribution to Community

The Flower Boutique can give work to the unemployed, and The Flower Boutique will

have a community program so that they can build a good relationship with each other.

Contribution to Environment

In preserving the environment, Flowers are contributing to the world's ecosystem.

They are growing and their existence keeps the global environment healthy.
 80

Contribution to Customers 

The Flower Boutique will provide our clients with very friendly customer service and

the Flower Boutique will also provide good quality flowers and floral arrangements at a

reasonable price. The Flower Boutique will ensure that customers' concerns are addressed

on time.

Contribution to Suppliers

Fair dealing should be used to protect the interests of its suppliers or suppliers.

Maintain a good credit relationship and repay debts on schedule. A long term commitment

will be made given the high quality goods they offer.

Contribution to Competitors

The Flower Boutique will ensure that we will not be involved in any false

advertisement that will lead to arguments and false accusations.

 81

CHAPTER VIII
PROJECT SCHEDULE

5.4.3 Gantt Chart

Pre Januar Febuar Marc Apri May  Jun Jul Augus Septembe Octobe Novembe Dembe
Operating y y h l e y t r r r r
Activities

Conducted
Feasibility
Study

Site
Selection

Market
Survey

File legal &

Business
Requirement
s 

Drawing of 
Articles of
partnership 

Investment
by Partners

Development
 82

and
renovation of
site

Search for a
supplier 

Purchase of
tools and
materials for
a flower
shop.  

Purchase of
Machines
and
equipment 

Set up
furniture,
fixture, and
equipment 

Hiring and
training of
staff

Primininary
campaign

Formal
Business
start-up
83
 84

CHAPTER IX

Conclusion and Recommendation

Our business is called "GRREC Flower Boutique." We have made an effort to include all

the key elements of the company plan, including the marketing, financial, and managerial plans,

taking the time to develop the business, and considering the possible risks that might hinder the

business's operations. Planning is the first and most important function of management. It is

needed at every level of management. In the absence of planning all the business activities of the

organization will become meaningless and the purpose of planning is to make decisions about

the future of your business. The importance of marketing for your business is that it makes the

customers aware of your products or services, engages them, and helps them make the buying

decision. Furthermore, a marketing plan, a part of your business plan helps in creating and

maintaining demand, relevance, reputation, and competition. Finance is the field of dealing with

money matters. It is an important aspect for any individual or for an organization. In a business,

it is a critical function because any business needs to make money to continue functioning. That

is why it is considered to be a specialized field which requires trained people.

A florist business goes beyond selling flowers. Rather, what you are selling is a service of

providing skillfully-arranged flowers. To succeed in this business, we need to have all the

elements in the process of providing a service, knowledge, materials and labor. GRREC Flower

boutique has all the essential qualities of a floral boutique Special occasions traditionally drive

the florist industry. The special occasions, along with birthdays and anniversaries, are ideal dates

for men to select as part of a Frequent Flower Gift Program. The income of a florist business

depends on local need, competition, skills, and oftentimes, the location of GRREC flower
 85

boutique is highly visible and easily accessible because the more interaction you have with

clients, the more comfortable they will be that they know who you are and that they can trust

you. Every business must consider the importance of location because through location plays a

huge role in attracting and retaining the best employees, many of whom keep a close eye on

where they're based in order to optimize work-life balance. Good location decisions can

significantly boost a company's long-term performance. GRREC Flower Boutique should be

consistent in operating a business so that our business GRREC Flower Boutique will be one of

the leading floral shops in Bacolod City.

The main objective of GRREC Flower Boutique is to earn a profit. Earning a profit is

important to a business because profitability impacts whether a company can secure financing

from a bank, attract investors to fund its operations and grow its business. Companies cannot

remain in business without turning a profit.

.
 86

APPENDIX A

General Partnership

ARTICLES OF PARTNERSHIP

OF

GRREC FLOWER BOUTIQUE

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned partners, all of legal age, residents and citizens of the

Philippines, have on this day voluntarily associated ourselves together for the purpose of forming

a general partnership under the following terms and conditions and subject to existing and

applicable laws of the Republic of the Philippines:

AND WE HEREBY CERTIFY:

ARTICLE I. Partnership Name: That the name of this partnership shall

be GRREC Flower Boutique and shall transact business under the said company name.

ARTICLE II. Business Purpose: That the purpose/s for which this partnership is

formed is/are:

1. To provide customers with quality flowers and floral arrangements at a fair price.
 87

2. To match and surpass the expectations that our customers expect from us and our

product.

ARTICLE III. Principal Place of Business: That the principal place of business of this

partnership shall be located at: Araneta Avenue, Bacolod City, Negros Occidental Philippines.

ARTICLE IV. Term of Existence: That this partnership shall have a term of 30

years from and after the original recording of its Articles of Partnership by the Securities and

Exchange Commission.

ARTICLE V. Partners’ Circumstances: That the names, nationalities and complete

residence addresses of the partners are as follows:

Name Nationality Complete Residence Address

Canoy, Rona Mae Filipino Brgy. Felisa, Bacolod City

Claridad, Elisa Mae S. Filipino Brgy Singcang Bacolod City

De Leon, Chermaine T. Filipino Brgy. 14. Bacolod City

Magdayao, Ronalyn S. Filipino Brgy. Mabigo Canlaon City

Saludares, Giselle A. Filipino Brgy. Tangub, Bacolod City

ARTICLE VI. Capital Contributions: That the capital of this Partnership shall be the

amount of One Million pesos (P1,000,000.00), Philippine Currency, contributed in cash by the

partners, as follows:
 88

Name Amount Contributed

Canoy P200,000.00

Claridad P200,000.00

De Leon P200,000.00

Magdayao P200,000.00

Saludares P200,000.00

That no transfer of interest which will reduce the ownership of Filipino citizens to less

than the required percentage of capital as provided by existing laws shall be allowed or permitted

to be recorded in the proper books of the partnership.

ARTICLE VII. Sharing Ratios: That the profits and losses of this partnership shall be

divided and distributed proportionately on the ratio of the capital contribution of each partner.

ARTICLE IX. Management: That this partnership shall be under all partners, as

General Manager, who shall be in charge of the management of the affairs of the company. He

shall have the power to use the partnership name and in otherwise performing such acts as are

necessary and expedient in the management of the firm and to carry out its lawful purposes.

ARTICLE X. Undertaking to Change Name: That the partners undertake to change

the name of this partnership, as herein provided or as amended thereafter, immediately upon

receipt of notice or directive from the Securities and Exchange Commission that another

corporation, partnership or person has acquired a prior right to the use of that name or that the
 89

name has been declared as misleading, deceptive, confusingly similar to a registered name, or

contrary to public morals, good customs or public policy.

IN WITNESS WHEREOF, we have hereunto affixed our signatures this 19th day of

December, 2022, at Bacolod City, Negros Occidental, 6100.

CANOY, RONA MAE CLARIDAD, ELISA MAE S.

11-025843662-8 11-2033688898-1

DE LEON, CHERMAINE T. MAGDAYAO, RONALYN S.

11-050736896-4 12-25 224143-4

SALUDARES, GISELLE

11-203688908-2
 90

ACKNOWLEDGEMENT

(REPUBLIC OF THE PHILIPPINES)

(City of Bacolod) S.S.

BEFORE ME, a Notary Public, for and in Bacolod City, this 19th day of December,

2022, personally appeared the following persons:

Name TIN/ID/Passport No. Date & Place Issued

Canoy, Rona Mae 11-025843662-8 December 19, 2022

Claridad, Elisa Mae S. 11-2033688898-1 December 19, 2022

De Leon, ChermaineT. 11-050736896-4 December 19, 2022

Magdayao, Ronalyn S. 12-25224143-4 December 19, 2022

Saludares, Giselle A. 11-203688908-2 December 19,2022

Known to me and to me known to be the same persons who executed the foregoing Articles of

Partnership constituting of _____pages, including this page where the acknowledgement is

written, and they acknowledged to me that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL on the date and place above written.
 91

NOTARY PUBLIC

Doc. No. ______;

Page No. ______;

Book No. ______;

series of 20 ______.
 92

Appendix B

I. Personal Profile

Name: (Optional)                                          Email Address:

______________________                                        

Civil Status:

o   Single 

o   Married      

o   Widowed

Age:     

o   20 Below    

o   21-30          

o   31-40  

o   41-50          

o   51 and above

Sex:     

o   Male           

o   Female

Location:    

o   Bacolod

Employment Status:           

o   Student                  

o   Employed               

o   Unemployed

II. Questions
 93

Have you ever received flowers?

o   Yes             

o   No

How often do you receive a flower?

o   Once a month         

o   Once a week          

o   Once a year            

o   Occasionally           

o   Never

Do you buy flowers?

o   Yes      

o   No

How often do you buy flowers?

o   Once a day

o   Once a week  

o   Twice a week or more 

o   Once a month   

o   Once a year   

o   Never

On what occasion do you usually buy flowers? check all that apply.

o   Valentine’s day      

o   All saint’s day        

o   Birthday     

o   Anniversary           

o   Death Anniversary
 94

Method of purchasing: what would you prefer?

o   In-store                   

o   Online

What kind of flower do you prefer? check all that apply

o   Roses          

o   Chrysanthemums   

o   Sunflowers      

o   Tulips        

o   Orchids      

o   Zinnias

What do you prefer?

o   Dried flower           

o   Fresh flower           

o   Artificial flower

When you purchase flowers for whom are you usually buying? check all that apply.

o   Self             

o   Parents/guardians        

o   Child/Children       

o   Dating partner        

o   Family/Relatives                

o   Deceased loved ones

What kind of bouquet do you want? check all that apply.

o   Flower Bouquet     

o   Money Bouquet     
 95

o   Chocolate Bouquet            

o   Surprise Delivery package

What would you prefer for a Money Bouquet?

o   Luxury money bouquet (excellent design and inclusion of bouquet)

o   Budget friendly bouquet (average design and inclusion)

o   Simple bouquet (simple design and inclusion)

What would you prefer for a Chocolate Bouquet?

o   Luxury chocolate bouquet (excellent design and inclusion of bouquet)

o   Budget friendly chocolate bouquet (average design and inclusion)

o   Simple chocolate bouquet (simple design and inclusion)

What would you prefer for a Surprise Delivery Package?

o   Luxury surprise delivery package (excellent design and inclusion of bouquet)

o   Budget surprise delivery package (average design and inclusion)

o   Simple surprise delivery package (simple design and inclusion)

How much are you willing to spend on a flower?

o   500 and below        

o   1000-2000  

o   3000-4000       

o   5,000 and above

Mode of payment:

o   Cash           

o   Cash on delivery    

o   Online Banking

In general, do you like flowers?

o   Yes             
 96

o   Sometimes             

o   No

What do you expect from our customer service?

o   Excellent                

o   Good                      

o   Poor

Would you recommend us to your family, friends, neighbors or workmates?

o   Yes             

o   No
 97

Curriculum Vitae

Rona Mae Canoy

Bachelor of Science Business Administration
Major in Marketing Management
Bangga Totong III Brgy Felisa Bacolod City 
Negros Occidental, 6100
09913759479
ronamaecanoy5@gmail.com 

Personal Information 
Status: Single 
Age: 23 years old
Birthday: July 30, 1999
Birthplace: Bacoor, Cavite
Nationality: Filipino 
Religion: Catholic 

Educational Background
Elementary: Catabla Baybay Elementary School
Brgy.  Zone 5, Talisay City 
2011-2012
Junior High School: Handumanan National High School
Zone 5 Brgy. Handumanan, Bacolod City 
2016-2017
Senior High School: Handumanan National High School - Senior High 
Zone 5 Brgy. Handumanan, Bacolod City 
2018-2019

Skills

 Effective Communication Skills 

 Time Management 
 Team Work Skills 

Extra-Curricular Activities 
 98

Work Immersion (JnC) Senior High School

2019

Achievements

With honors and Perfect Attendance Senior High School 

Character References 
Jhanmark Cahilig 
Adviser 
09123456789
 99

Elisa Mae S. Claridad

Bachelor of Science Business Administration    
Major in Marketing Management
Prk. 1 Sisi Magsungay, Singcang Airport 
Bacolod City Negros Occidental, 6100 
09465092113
elisacladirad67@gmail.com 

Personal Information 
Status: Single 
Age: 23 years old
Birthday: December 3, 1999
Birthplace: Ilo-ilo City
Nationality: Filipino 
Religion: Roman Catholic 

Educational Background
Elementary: Education Training Center School II
Brgy. 36, Bacolod City 
2011-2012
Junior High School: Negros Occidental High School
Hernaez St. Bacolod City
  2015-2016
Senior High School: Negros Occidental High School - Senior High 
Hernaez St. Bacolod City 
2017-2018

Skills
 Highly organized and efficient 
 Ability to work independently or as part of a team. 
 Microsoft Office (Ms Word, Excel, PowerPoint, Internet)

Extra-Curricular Activities 
Citizen Army Training (C.A.T) Junior High School 
Cadet Member of NOHS 2016-2017 
Work Immersion (DPWH) Senior High School
2019
 100

Achievements

With honors - Senior High School 

Character References 
Jhanmark Cahilig 
Adviser 
09123456789
 101

Chermaine T. De Leon 
Bachelor of Science Business Administration
Major in Marketing Management
Yulos, Park, Brgy. 14. Bacolod City
Negros Occidental, 6100
09452171197
deleon060795@icloud.com 
 

Personal Information 
Status: Single 
Age: 27 years old
Birthday: June 7,1995
Birthplace: Ilog, Negros
Occidental                           
Nationality: Filipino 
Religion: Roman Catholic 
Educational Background
Elementary: Tabu National High School 
                                                                        Tabu,Ilog Negros Occidental    
                                                                        2007-2008                                                                   
  
Secondary:              Tabu National High School
            Tabu ,Ilog ,Negros Occidental 
  2011-2012

                     
 102

   Skills

 Productive worker who exerts optimal effort in successfully completing tasks.

 Ability to work independently or as part of a team. 

 Microsoft Office (Ms Word, Excel, PowerPoint, Internet)

Achievements

With honors - High School     

Character References 

Jhanmark Cahilig 

Adviser 

09123456789
 103

Ronalyn S. Magdayao                                                                
Bachelor of Science Business Administration
Major in Marketing Management 
Prk. Mahirup, Brgy. Mabigo
Canlaon City Negros Oriental, 6223                                                             
09754956879
ronalynmagdayao@gmail.com 

Personal Information 
Status: Single 
Age: 22 Years old
Birthday: October 31,2000
Birthplace: Mabigo; Canlaon City Negros Oriental                     
Nationality: Filipino 
Religion: Roman Catholic 

Educational Background
Elementary: Macario Espanola Memorial School 
                                                                        Mabigo, Canlaon City Negros Oriental 
                                                                        2007-2008                                                                   
  
Secondary:              Jose B.Cardenas Memorial High School
Panubigan, Canlaon City Negros Oriental
            
  2012-2013
 104

Senior High School: Jose B.Cardenas Memorial High School 

Panubigan,Canlaon City Negros Oriental

2017-2018                      

   Skills

 Can work with less supervision.

 Able to perform the given task or job well. 

 Can speak English ,Tagalog, Cebuano and Ilonggo

 Hardworking

Achievements

With honors and Service Awardee  - High School                  

Character References 

Jhanmark Cahilig 

Adviser 

09123456789
 105

Giselle A. Saludares 
Bachelor of Science Business Administration        
Major in Marketing Management  
Prk. Villa Esperanza Brgy. Tangub 
Bacolod City Negros Occidental, 6100
09076852492
saludaresgiselle@gmail.com 

Personal Information
Status: Single 
Age: 22 years old
Birthday: June 26, 2000
Birthplace: Bacolod City
Nationality: Filipino
Religion:                                                 Baptist

Educational Background
Elementary: Education Training Center School II
Brgy. 36, Bacolod City 
2011-2012
Junior High School: Negros Occidental High School

Hernaez St. Bacolod City

  2015-2016

Senior High School: Negros Occidental High School - Senior High 

Hernaez St. Bacolod City 
 106

2017-2018

Skills

 Culinary skills

Achievements

NC II Passer in Food and Beverages Services      

Character References 

Jhanmark Cahilig 

Adviser 

09123456789
107