Chapter I

DESCRIPTION OF THE PROJECT

Fruits play a vital role in everybody’s life. It is an excellent source of essential

vitamins and minerals, and they are high in fiber. Fruits also provide a wide range of

health-boosting antioxidants, including flavonoids. Eating diet high in fruits and

vegestable can reduce a person’s risk of developing heart desease, cancer,

inflammation, and diabetes. These help you manage your blood sugar levels,

promotes good digestion, and support gut and heart health.

The proposed business is a family business that will offer variety of fruit

depending on its season. It will sell and deliver fresh fruit produce to any destination

within the municipality to offer and provide the desired goods and services to the

customers. High demand for fresh fruits prompted the proponent to plan and enter

into the industry with the main objective of providing customers a healthy food to eat

while earning profit in return, leading to the success of his business venture.

GENERAL INFORMATION

Business Name: Arkiesha’s Fruit Stand

Type of Business: Sole Proprietorship Figure 1.1 Business Logo

Sector: Agribusiness The multi-colored logo

represents Arkiesha’s
Industry: Fruit Produce Retailing characteristics, while the
layered variants of fruit
Category: Fresh Fruits stripes show its strength.

1
1. Mission and Vision Statement

Mission

Create teamwork and dedication in the commitment to distribute highest-

quality fresh fruits to promote healthy food consumption, thus achieving

maximum customer satisfaction embodying progressive agricutural practices in a

safe, wholesome work environment.

Vision

To be percieved by customers as the benchmark of the local fresh fruit

industry as it strives to grow and diversify using strategic marketing plans and

practices while achieving financial success with utmst efficiency.

2. General and/or specific objectives

Objectives:

a. To offer and provide healthy fruit and quality service to the customers in the

target location with the right price and consideration of the safety procedures

to satisfy the customer;

b. Determine the technical and financial requirement of the business;

c. Survey the supply and demand of fruits in the local fruit retailing business;

and

d. Forecast the profitability of the fruit retailing business in terms of the rate of

return in inverstment.

2
3. Organization and administration of the proposal

The proposed organization is comprised of people who have enough

experience in a long-term care in the business industry. Its business philosophy

will focus on the customer’s needs and satisfaction as well. The proponent of

these feasibility study will be the one who will act as the proprietor in managing

the business and employing rules and regulations. He will ensure the efficient

performance of all the employees in the organization and act as a connecting link

between the management and the employees.

4. Project location

Arkiesha’s Fruit Stand business will initially be located at the Public

Market of Can-avid Eastern. The outlet will provide and offer products to any

destination where it can easily deliver its products and services in all sector in the

municipality.

Figure 1.2 Actual location of the proposed business

3
5. Time duration of the proposal

Business purpose or objectives are set to be accomplished. Realization of

these objectives can be obtained through proper planning and scheduling of

specific business activities to be undertaken. The proportion of a project schedule

is very important. And to concretized the various process/ sequences, the

proponent will be the owner who will control and monitor the process.

CHECKLIST/MILESTONE DAYS REMARKS

Complete the feasibility study 5 Completed

Begin and complete business plan 3 Completed

Pursue start-up capital 5 Completed

Identify shop location 1 Completed

Secure appropriate permits 3 Completed

Plan and order inventory 7 About to start

Receive inventory and set up store 12 About to start

Recruitment of employees 10 About to start

Soft Opening 3 About to start

Shop launching 1 About to start

Total Number of Days 50

Table 1.2 Time duration of the proposal

4
 The feasibility study will be completed within this period to which the

researcher conducted a comprehensive study like observation, interviews and

surveys. It also involves an analysis of market, technical and financial feasibility

of the business.

6. Major business activities

Business activities include any activity a business engages in for the

primary purpose of making a profit. This is a general term that encompasses all

the economic activities carried out a company during course of business. The

proposed business activities include the following:

a. Investing/Transaction/Purchasing – it is the activity that relate to the long-

term use of cash. It is all about purchasing its product through cash whether it

gains or losses from investing it because of operating subsidiaries.

b. Operating/Selling - it is related to directly selling the product providing its

good to the market. And also we always make sure that sales person

incharge is very approachable and accomodated.

c. Financing Activities - this includes sources of cash, from onhand cash,

investors or banks and the uses of cash paid to the person who lend their

money and to repayment loans at the bank.

d. Handling and Inventory – this is all about the proper handling of inventory.

The proponent will maintain daily monitoring of the inventory for him to be

able to recognize what fruit produce sells fast as its future reference for the

succeeding orders from suppliers. Shelf life of fruit produce must also be

5
considered to avoid spoilage, and proper storage facility will be provided to

extend the shelf life of the fruit products.

Pre-Operating Expenses (Annual) Amount (in Peso)

Insurance 5,000

Barangay Clearance 800

Business Permit 1,200

Licenses and Registration (DTI & BIR) 3,000

Professional Fees 4,000

Total 14,000

Table 1.1 Arkiesha’s Pre-Operating Expenses

6
 Chapter II

MARKET FEASIBILITY

In this chapter the proponent will present the analysis of the business, the

market, and its competitiveness through industry description, market potential,

industry competitiveness, demand and supply analysis, and marketing strategies.

INDUSTRY DESCRIPTION

1. Size, Scope, and nature of the proposed business

The size of the proposed business which is a sole proprietorship carried

out a small scale that is consist of the family member who supported the

proponent all the way. The business would try to reach all the customers in the

target location which is the municipality of Can-avid and the people of its nearby

barangays who need to purchase fresh fruits. It will look for possible regular

customers who wants quality service and satisfaction when it comes to the

product, marketing, and the business management itself.

2. Size, Scope, and nature of the product

Akiesha’s Fruit Stand business will engage in selling fresh fruits of

different variety depending on its season and of the demand in the market. It will

only offer fruits are excellent source of essential vitamins and minerals that the

consumers need in order to be healthy and to reduce the risk various diseases.

The proposed business will offer variety of fruits that will be displayed for

sale on the stand which includes: core, citrus, melons, and tropical fruits.

7
 Category of Fruit Produce to be Sold at Akiesha’s Fruit Stand

Core Citrus Tropical

Apple Lemon Banana

Pear Oranges Mangoes

Kiatkiat Pineapple

Water Melon

Table 2.1 Category of fruit produce to be sold at Akiesha’s Fruit Stand

3. Size, Scope and nature of the market or market segment

The municipality of Can-avid is composed of 21,667 populaces where the

proponent can his business operation and serve the customers who are looking

for a healthy and fresh fruit produce. The target market can be divided into

demographic, geographic and behavioral segments. The proponent will target the

customers who are diet conscious and those who are individuals maintaining

their status and a fruit loving-person.

The target market was divided into specific sub group through market

segmentation, those existing and potential consumers based on some type of

shared characteristics.

Market Segmentation

Demographic Psychographic Behavioral Geographic

Age Lifestyle Consumption Rate Poblacion

Gender Healthy Living Purchasing Habit Car Line

Marital Status Diet Motivations Benefits Sought Upstream

Family Size Loyalty

Level of Income

Table 2.2 Market Segmentation

8
4. Life cycle of the industry, market or market segments

An industry life cycle depicts the various stages where business operate,

progress and slump within an industry. These stages can last for different

amounts of time – some can be months, and some can be years.

The proposed business is within an industry in which its life cycle is

already at its maturity stage, at this stage many local fruit stand businesses are

already well-established within the area and slowly reaching its highest point. But

the proponent still engaged in this type of industry for the reason that he still sees

a lot of opportunities in fruit stand business especially in the target location where

the demand for fruits is extraordinarily high.

5. Future direction of the proposed business

The proponent plan to invest in more advance technology and strategy for

the growth and expansion of his business. He plans to expand the business by

being the fresh fruit distributor to the neighboring municipality of Can-avid where

he can reach and deliver due to his commitment to provide fresh and healthy

produce that meet both the strict requirement of the market and the demand of

the customer. He also intent to maintain strong relationship with his loyal

customer as well as the new customers by providing them with value-added

services.

9
INDUSTRY COMPETITIVENESS

1. Industry analysis

Fruit produce is one of the important business inputs in an industry. Can-

avid municipality is one of the emerging municipalities around Eastern Samar and

it create a positive market competition on the business sector. Can-avid is a good

business location for fair competition which can led to provision of quality

products and services for the benefit of the consumers.

SWOT Analysis

SWOT analysis is an incredibly simple, yet powerful tool to help you

develop your business strategy, whether you’re planning for startup or guiding an

existing business.

STRENGTHS WEAKNESSES

Supportive Family Lack of experience

Trained and skilled employees Lack of reputation

Strong management Lack of capital

Location

OPPORTUNITIES THREATS

Area growth Presence of Competitors

Working families with children Influx of substitute products

Large market

Table 2.4 Swot Analysis

10
2. Major Competitors

Competitors is one of the biggest threats of business. Competition is

always present anywhere in the industry. Before planning to put up a business it

should be put to mind to analyze and identify first the competitors, and then

conduct research about their business strategy and their strength and

weaknesses. Those vital details can be used as a point of comparison to identify

the entrants’ strength and weaknesses relative to each competitor.

In the municipality of Can-avid, competition is present. There are SME

(small and medium enterprises) on the business sector. Some competitors are

already well-established and well-known for their business. For the proponent

who is about to start the business, he needs to collect and gather information

about the strategies of his competitors on how they market their product.

Arkiesha’s De Costa Meriam

Linda Obie Fruit
Fruit Fruit Fruit &
Store stand
Business Stand Veggies
Product quality 9 5 8 9 7

Pricing 3 4 2 3 4

Place 4 5 4 4 7

Promotion 4 7 6 4 5

Positioning 5 5 4 3 4

Reputation 5 4 6 7 6

People 7 6 9 8 6

Partnership 5 7 6 5 4

Table 2.5 Competitor’s Analysis

11
  Number represents the hierarchal order of the different factors on the

business. 10 is the higher rate and 1 is the lowest rate.

3. Price Competitiveness Analysis

Competitive pricing is a strategy where product’s price is set in line with

competitor prices. It helps prevent losing market share and customer to the

competitors as it let’s the business control the competitors. Price is considered to

be the most important criteria for customer while making their purchases

decision. In planning the prices of the product, it should be based on the strict

requirement standards of industry and demand of customer.

Against Arkiesha
Competitors Pricing Strategy Proposed Pricing
Strategy
Linda Fruit Stand Penetration Pricing Lower

Obie Fruit stand Economy Pricing Same

De Costa Fruit Stand Value Pricing Higher

Miriam Fruits & Veggies Premium Pricing Higher

Table 2.6 Price Competitiveness Analysis

Table 2.6 shows the pricing strategies of Arkiesha’s competitors against its

own pricing strategy to be adopted. Linda Fruit Stand can be noted that it has a low

pricing for their fruit crops as a result of its being a new entrant in the industry.

4. Factors that affect the Market

Market factors are elements of consumer behavior and economic trends

that can affect a particular sales market. These can include any variables or

12
 phenomena that might impacts a business sale. It is important to understand the

factors that impact a market for it can help make informed business decisions.

Some of the factors that may affect the market:

 product supply and demand

 consumer income

 seasonal fluctuations

 competition

5. Acton Plan

Action plan are communication device that represents an extreme

simplification of complex projects and activities. This will help set on the right

track.

Objective: Survey the supply of Fruit and the demand for retailing business.

Time Responsible
Task Responsibility Measure of Success
Scale Person

Survey on the Customer Sept. 2022 Owner Data Collected

number of people

Analyze the data Owner Oct. 2022 Owner Get a clear information
and reason for selling

Take action to Customer Oct. 2022 Arkiesha’s Fruits If the fruit retailing
Retailing Store business increase the
plan is effective

Table 2.7 Action Plan

MARKET ANALYSIS

13
 In this part of the study the proponent will discuss the attractiveness and the

dynamics of a special market within a special industry, in this case, it is the special

market of retailing fresh fruits produced by in the Agrobusiness industry.

Target Market

Target market is a group of people that has been identified as the most likely

potential customers for a product or service because of their shared characteristics.

In this study, the target market will be the residents of Can-avid, Eastern Samar

including visitors and temporary residents in town such as the students in ESSU

Can-avid who are living in boarding houses and the employees or workers in Can-

avid who came from another municipality but temporarily live in Can-avid.

Target Market Size in 2020

Primary Target Market Secondary Target Market

Total
(From PSA official website) Students Workers

21,667 60 15 21,742

Table 2.3-a Primary and Secondary Target Market in 2020

Arkiehssa’s Target Market includes the Primary Target Market which are

composed of the total population (2020) in the municipality of Can-avid that was

14
sourced from the official website of the Philippine Statistics Authority and the other

one is the Secondary Target Market, the students and workers from other

municipalities but are temporarily living in Can-avid. There is no available data on the

number of secondary target market so the data was only based on assumptions by

the proponent.

Target Market Customers who are

willing to purchase from
Year Primary Total
Secondary the proponent’s Fruit
(at 0.66% growth
rate) Crops for sale

2019 21,524 210 21,734

2020 21,666 75 21,741

2021 21,809 96 21,905

2022 21,953 415 22,368

2023 22,098 460 22,558 85%

2024 22,244 493 22,737 85%

2025 22,391 510 22,901 85%

Table 2.3-b Primary and Secondary Target Market

Table 2.3-b shows the annual total of primary and secondary target market

from the historical data of 2019-2022 and the projected data from 2023-2025. Last

column shows the percentage of respondents answers when asked if they are willing

to purchase from the proponent’s fruit stand. The market study was conducted in

2022 before the business started to operate, so the data will start only in 2023

onwards.

15
MARKET POTENTIAL

1. How the product or service will be sold

Products are designed to meet the needs of the customer, but cannot

always be customized if there are certain requirements. Arkeisha’s products will

be sold directly to customers thru display on store and at the same time posting it

on social media for online customers within the location.

Average Selling Price of Fruit Crops in the Local Fresh Fruit Industry

Selling Price
Fruit Variant
Per Piece Per Kilograms Per Pack

Core

Apple 35

Citrus

Lemon 25

Oranges 20

Kiatkiat 100

Tropical

Water Melon 40

Banana 40

Mangoes 120

Pineapple 80

Figure 2.8 Average selling price of fruit crops in the local market

2. Demand and usage trends of the market or market segments

16
 The proposed business will have a back-up product in case of product

shortage due to the seasonal fluctuations. The proponent will communicate to

some of the local farmers here in Can-avid to supply their fruit produce that are

available and ready to deliver. These different fruits are: locally grown such as

Pineapple, Cucumber, Banana, Avocado, Santol, Lanzones, and Watermelon.

This is for the business to be ready in case of failure of delivery by the contact

distributors due to emergencies or other reason.

Market Study

The proponent conducted a proactive analysis of market demand for his

proposed products by looking at all of the factors involved in the market that

influence the demand. This includes the price, location, competition, substitutes

and the general economic activity. In order to gather the needed data, he

conducted a survey pre sending questionnaires to target customers and letting

then answer survey questions which will help him analyze the status of the

market he wants to penetrate and the possibility of thriving in the industry in the

long run.

1. How often do you purchase fresh fruits from the existing local fruit stands?

No. of Respondents

a. Once a week 21

b. Twice a week 17

c. Thrice a week 9

d. Four times a week 3

Frequency of purchases
50
50 17
45
40
35
30
21
 20
15 9
10 3
5
0
Once a week Twice a week Thrice a week Four times a Total No. of
week Respondents

Figure 2.1 Frequency of purchases

2. In what quantity do you purchase fresh fruits?

No. of Respondents

a. By piece 18

b. By pair 14

c. By half dozen 12

d. By dozen 6

quantity of purchases
50
50
45
40
35
30
25 18
20 14
12
15
6
10
5
0
By piece By pair By half dozen By dozen Total No. of
Respondents

Figure 2.2 Quantity of purchases

18
3. What factors influences your decision in purchasing fresh fruits instead of

dried fruits or processed fruits?

No. of Respondents

a. Health Benefits 19

b. Taste 10

c. Product availability 12

d. Budget 9

Factors affecting decision in mak-

ing purchases
50
50
45
40
35
30
25 19
20 12
10 9
15
10
5
0
Health Ben- Taste Product Budger Total No. of
efits availability Respondents

Figure 2.3 Factors affecting decision in making purchases

4. What type of fruit do you usually purchase?

No. of Respondents

a. Core 11

b. Citrus 14

c. Berries 10

d. Tropical 15

type of fruits Most likely to be 19

purchased
50
50
 40
35
30
25 19
15
20 12
15
10 4
5
0
Core Citrus Berries Tropical Total No. of
Respondents

Figure 2.4 Types of fruits most likely to be purchased

5. Arkiesha Fruit Stand will open and start their business operations soon, are

you willing to purchase fresh fruit crops from them?

No. of Respondents

a. Very likely 39

b. Somewhat likely 8

c. Not likely 3

likelihood of purchasing fruits

from arkiesha
50
50 39
40
30
20 8
3
10
0
Very likely Somewhat likely Not likely Total No. of
Respondents

Figure 2.5 Likelihood of purchasing fruits from Arkiesha

20
 Totals Supplied Fruit Crops in 2022

Competitors Core Citrus Tropical

Linda Store 1,392 2,400 2,976

Obie Fruit stand 1,008 2,016 3,312

De Costa Fruit Stand 1,344 2,400 5,232

Miriam Fruits & Veggies 1,008 1,968 3,840

Total 4,752 8,784 15,360

Table 2.9 Total supplied fruit crops in the local market for 2022

Competitor Sales in 2022

6,000

5,000

4,000

3,000

2,000

1,000

0
Linda Store Obie Fruit stand De Costa Fruit Miriam Fruits &
Stand Veggies

Totals Sales of Fruit Crops in 2022 Core Totals Sales of Fruit Crops in 2022 Citrus
Totals Sales of Fruit Crops in 2022 Tropical

Figure 2.6 Competitor sales in 2022

Competitor's Market Sharing

21% De Costa Fruit Stand

32% Meriam Fruits & Vegetables
Obie Fruits & Vegetables 21
Linda Fruit Stand
22%
24%
 Figure 2.7 Competitor’s Market Sharing

Figure above shows the market sharing of Arkiesha’s competitors based on

their sales in 2022.De Costa Fruit stand dominate the market at 32%.

Historical Demand

Historical Demand for Fresh Fruits from 2019 - 2022

2019 2020 2021 2022
Linda Store
Core 1,183 905 835 1,392
Citrus 2,040 1,560 1,440 2,400
Tropical 2,530 1,934 1,786 2,976
Obie Fruit stand
Core 857 655 605 1,008
Citrus 1,714 1,310 1,210 2,016
Tropical 2,815 2,153 1,987 3,312
De Costa Fruit Stand
Core 1,142 874 806 1,344
Citrus 2,040 1,560 1,440 2,400
Tropical 4,447 3,401 3,139 5,232
Miriam Fruits & Veggies
Core 857 655 605 1,008
Citrus 1,673 1,279 1,181 1,968
Tropical 3,264 2,496 2,304 3,840
Total Sales in a Year
Core 4,039 3,089 9,984 4,852
Citrus 4,039 5,710 5,270 8,784

22
 Tropical 10,059 9,984 9,216 15,360

Table 2.10 Historical demand of fresh fruits in the target market

Year Historical Demand

Core Citrus Tropical
2019 4,039 4,039 13,056
2020 3,089 5,710 9,984
2021 9,984 5,270 9,216
2022 4,852 8,784 15,360

Projected Demand

Projected Demand for Fresh Fruits from 2019 - 2022

2023 2024 2025 2026
Linda Store
Core 1,079 1,862 3,497 6,786
Citrus 1,860 3,210 6,030 10,700
Tropical 2,306 3,980 7,477 14,508
Obie Fruit stand
Core 781 1,348 2,533 4,914
Citrus 1,562 2,696 5,065 9,828
Tropical 2,657 4,430 8,321 16,146
De Costa Fruit Stand
Core 1,042 1,798 3,377 6,552
Citrus 11,860 3,210 6,030 11,700
Tropical 4,055 6,998 13,145 25,506
Miriam Fruits & Veggies
Core 781 1,348 2,588 4,914
Citrus 1,525 2,632 4,945 9,594
Tropical 2,976 5,136 9,648 18720
Total Sales in a Year
Core 3,683 6,356 11,939 23,166

23
 Citrus 6,808 11,749 22,070 42,822
Tropical 11,904 20,544 38,592 74,880

Table 2.11 Projected Demand of fresh fruits in the target market

Year Projected Demand

Core Citrus Tropical
2023 3,683 6,808 11,904
2024 6,356 11,749 20,544
2025 11,939 22,070 38,592
2026 23,166 42,822 74,880

Historical Supply

Historical Supply for Fresh Fruits from 2019 - 2022

2019 2020 2021 2022
Linda Store
Core 887 679 626 1,044
Citrus 1,530 1,170 1,080 1,800
Tropical 1,897 1,451 1,339 2.232
Obie Fruit stand
Core 643 491 454 756
Citrus 1,285 983 907 1,512
Tropical 2,111 1,615 1,490 2,484
De Costa Fruit Stand
Core 857 655 605 1,008
Citrus 1,530 1,170 1,080 1,800
Tropical 3,336 2,551 2,354 3,924
Miriam Fruits & Veggies
Core 857 655 605 756
Citrus 1,255 959 886 1,476
Tropical 2,448 1,872 1,728 2,880
Total Sales in a Year
Core 3,244 2,480 2,290 3,564
Citrus 5,600 4,282 3,953 6,588
Tropical 9,792 7,489 6,911 9,290

24
 Table 2.12 Historical Supply

Year Historical Supply

Core Citrus Tropical
2019 3,244 5,600 9,792
2020 2,480 4,282 7,489
2021 2,290 3,953 6,911
2022 3,816 6,588 9,290

Projected Supply

Projected Demand for Fresh Fruits from 2019 - 2022

2023 2024 2025 2026
Linda Store
Core 809 1,396 2,623 5,089
Citrus 1,395 2.048 4,523 8,775
Tropical 1,730 2,985 5,608 10,881
Obie Fruit stand
Core 856 1,011 1,900 3,686
Citrus 1,172 2,022 3,799 7,371
Tropical 1,925 3,322 6,241 12,109
De Costa Fruit Stand
Core 781 1,348 2,533 4,914
Citrus 1,395 2,408 4,523 8,775
Tropical 3,041 5,249 9,859 19,130
Miriam Fruits & Veggies
Core 781 1,348 2,533 4,914
Citrus 1,144 1,974 3,709 7,196
Tropical 2,232 3,852 7,236 14,040

25
 Total Sales in a Year
Core 2,894 4,978 9,336 18,099
Citrus 5,106 8,812 16,553 32,117
Tropical 8,928 15,408 28,944 56,160

Table 2.13 Projected Demand

Year Projected Supply

Core Citrus Tropical
2023 2,894 5,106 8,928
2024 4,978 8,812 15,408
2025 9,336 16,553 28,944
2026 18,099 32,117 56,160

6. Potential for emerging niche or segmented market opportunities

Emerging markets can offer an investment opportunity for growth and

diversity in your retirement portfolio. But, there are big risks. The biggest

advantages of emerging market investment is the potential for high growth. But

emerging markets may have unstable, even volatile, governments. Political

unrest can cause serious consequesnces to the economy and investors. And it

have also many factors that can be present and challenge the investors.

7. Estimated market usage and potential share of the market or market

segment

Understanding market usage and market potential is essential for a range

of different strategic decisions like partnership and distribution, organizational

design and critical employee skills. At this matter the customers were estimated

through the total number of the population of the municiality. And then profiling of

the prospective customer will also be created

26
DEMAND AND SALES ANALYSIS

1. Assumption of the demand and sales projection

There are reasons or assumptions underlying the law of demand and this

are income effect, the substitutional effect, and the diminishing marginal utility.

The first two describe how the consumers reacts when the price of a product

changes. The income effect relates it to real income. An increase in price causes

the quality demanded to fall. A decrease in price causes the quality demanded to

increase.

More than 10% of the residence buy fruits every day, near 20% people

buy twice a week and near 35% people buy once a week. So, in one week almost

65% of the people of Can-avid buy Fruits for their daily living and health.

2. Detailed estimate and/or computed demand for each product or service

The most basic concepts of business is to understand what the market

needs and supply that need, having bought it at a low cost and then selling it for a

profit. However, if demand surpasses or doesn’t meet what you’ve supplied, you’ll

miss an opportunity or take a loss.

Supply – Demand Gap Analysis

Projected Projected Arkiesha’s Share in

Unmet
Year Annual Annual the unmet demand
Demand
Demand Supply (85%)
2023      
Core 3,683 2,894 788 670
Citrus 6,808 5,106 1,702 1,447
Tropical 11,904 8,928 2,976 2,530

27
 2024      
Core 6,356 4,978 1,378 1,171
Citrus 11,749 8,812 2,937 1,497
Tropical 20,544 15,408 5,136 4,366
2025      
Core 11,939 9,336 2,604 2,213
Citrus 22,070 16,553 5,517 4,690
Tropical 38,592 28,944 9,648 8,201
2026      
Core 23,166 18,099 5,067 4,307
Citrus 42,822 32,117 10,705 9,099
Tropical 74,880 56,160 18,720 15,912
Table 2.14 Supply Demand Gap Analysis

3. Project sales under various assumptions

Every year is different, so you need to consider any changing

circumstances that could significantly affect your sales. Some of these are: the

market share will shrink due to the success of the competitors; you will double

your sales force from three people to six people, or your will spend on

advertising, which will reduce the number of enquiries from potential customers;

Arkiesha’s Share Average Price

Unmet Projected
Year in the unmet Per Type of
Demand Annual Sales
demand (85%) Fruit

2023        
Core 788 670 30 20,100.00
Citrus 1,702 1,447 25 36,175.00
Tropical 2,976 2,530 50 126,500.00
Total       182,775.00
2024        
Core 1,378 1,171 30 35,130.00
Citrus 2,937 1,497 25 37,425.00
Tropical 5,136 4,366 50 218,300.00

28
 Total       290,855.00
2025        
Core 2,604 2,213 30 66,390.00
Citrus 5,517 4,690 25 117,250.00
Tropical 9,648 8,201 50 410,050.00
Total       593,690.00
2026        
Core 5,067 4,307 30 129,210.00
Citrus 10,705 9,099 25 227,475.00
Tropical 18,720 15,912 50 795,600.00
Total       1,152,285.00

Table 2.15 Arkiesha Projected Annual Sales

MARKETING STRATEGIES

Marketing strategy is a plan of action designed to promote and sell the

product or service. This is very important in the business in developing goods and

services with best profits making potential. Marketing strategies to be practiced will

include: direct marketing, sales promotion, advertising and events and experiences.

This will help the proposed business to grow and gain loyal customers.

1. The potential buyers of the product or service

The potential buyers of the offered products will be the people of the

municipality of Can-avid and its neighboring municipality where said product can

be delivered. The proponent’s strategy would be selling, delivering, and

advertising on several social media sites. It will cost P3,000 for the proponent to

advertise his brand name before officially starting business operations.

2. Product or service distribution system and the cost involved

29
 Essentially, distribution is about making products and services

available to the end users when and where they need them. Arkiesha’s fruit

crops will always be available anytime for those who wants to obtain fresh

and budget friendly fruits. Distribution will be made through free delivery to

regular customers made bulk orders and cost for the distribution will be

allocated for P5,000 annually.

30
 Chapter lll

TECHNICAL FEASIBILITY

PRODUCTION PROCESS AND FLOWCHART

1. Merchandising Schedule

Akiesha’s target market would be the municipality of Can-avid which is

one of the developing municipalities of Eastern Samar. That’s why the trend of

buying fruits is high. The proposed business will operate starting from Monday –

Saturday (Wholeday and Sunday (halfday). Regular business hours will start from

6:00 AM to 7:00PM, no noon break. Stocks will be ordered from supplier days

ahead before the delivery schedule which is once every two weeks and done

during weekends.

2. Merchandising Process

Arkiesha’s merchandising process would follow some steps: (1) Contact

the wholesalers and suppliers to purchase fruits, (2) sorting standards sizes of

fruits for pricing, (3) packaging of customer’s orders, (4) taking orders for the next

day, and (5) monitoring and inventory.

3. Flowchart of Merchandising Process

Monitoring and inventory

Taking orders for the next day

Packaging as per customers ‘orders

Sorting standards size of fruits for pricing

Purchasing Fruit from wholesale market

31
 Figure 3.1 Flowchart of merchandising process

LOCATION AND FACILITY NEED

1. Proposed Location

The store should be located where most of the customers route are. It

will initially be located at the Public Market of Can-avid Eastern. The outlet will

provide and offer products to any destination where it can easily deliver its

products and services in all sector in the municipality.

a. Access to market, raw materials, and transportation

Akeisha’s Fruit Stand business is in a strategic location where

customers can have an easy access. It is located in the business district in

the municipality where most of the people go to buy goods and services. It is

also at perfect location where distributors have easy access and can deliver

fresh fruits promptly.

b. Environmental impact and regulatory requirements

Putting a business in the community give a big impact on the

environment. Business should secure that the business would set regulatory

requirements and environmental free.

As one of the business owner in the municipality the proponent will

make sure to secure the required permit for the environmental compliance to

be able to receive the certificate and start with the business operation. He will

abide by the law to not harm the environment through strictly abiding the

regulatory requirement set by the government.

32
 c. Views and opinions of the community

Views and opinions of the community give a big impact to the

business. As a businessman the proponent should always make sure that he

listen to the opinions of the community. They can give information/details

(positive and negative) that would help in the analysis of the business

situation thus, coming up with precise plans for improvement.

Potential customers are favorable with the idea of starting up a new

fruit stand business in the area for it is of great advantage for them to have

additional sources of fresh fruit supplies for their daily needs.

2. Vicinity map

Public Market

THIS SITE

Evacuation Center

Great Park

Figure 3.2 Vicinity map where Arkiesha will be located

33
3. Size and type of production facilities

Arkiesha’s Fruit Stand would depend on the acquired lot area. It is a

corner lot of 6 x 8 and the proponent will implement strategic layout to fully

utilized and maximize the lot area. He will make sure to provide handwashing

facility and make sure the place is free from risks to employees and

customers.

4. List of the needed facilities

a. Size, ownership and price of the land

The cost of a land in the Philippines in 2021 ranges from Php

15,000 tp Php 20,000 per square meter of the total floor area of the land.

But in the rural places it ranges from Php 1,000 to Php 10,000 per square

meter depending on the location. The store will consist of 48 square meter

in total. The lot in the proposed location will be purchased for P50,000.

b. Cost of the building

The proposed building will cost Php 100,000 to construct. The

proponent will see to it that the construction of the fruit stand will adhere

to the construction regulations set by the Municipal Engineers’ Office to

ensure resiliency of the building during calamities and safety of the

customers.

34
 c. List of the equipment, furniture and fixtures with the prices

Unit Price
Equipment/Furniture Quantity Total Amount
(in ₱)

Table 2 2,500.00 5,000

Monoblock Chairs 2 400.00 000.00

Display Cabinet 4 5,000.00 20,000.00

Stand/wall fan 1 2,500.00 2,500.00

Weighing Scale 1 2,000.00 2,000.00

Plastic Tray 6 250.00 1,500.00

Total 31,000.00

Table 3.1 Arkiesha’s list of equipment, furniture and fixture

Suitability of production technology

Production technology refers to all measures and facilities for the industrial

production of goods. Technology is used to maximize product quality and reduce

production costs. Technology identified as the most important area of manufacturing,

process decision making, followed by quality assurance and control.

Production technology is vital in businesses to have the good flow in

production scheduling: planning – about what product to acquire from the distributors;

routing-access – tracking the delivery time of the product; scheduling – when to

purchase the lacking product; and execution – what to sell or display in store.

It is helpful in reducing the production process and useful in identifying flaws

in the business operation. Using production technology would be a big help and a

weapon to be successful in the proposed business.

35
RAW MATERIALS

1. Inventory of the estimated raw materials

Inventory is one of the most important tool in the operation of the

business. It is the total cost of the product/supplies that is currently in stock

that hasn’t been purchase by the customer.

Arkiesha will conduct inventory every after working hours to monitor

sales and quality check of the product in order to separate fruits that are

starting to rot. And also, to monitor the best-selling types of fruits. Ensuring

the good quality of the product in the business is very important in order to

secure the good future of Arkiesha.

2. Current trend and the future availability and access to raw materials

Arkiesha will always maintain the availability of the products to ensure

the business operation flow smoothly with good quality, proper time and cost-

effective. Access to supplies will be enhanced through online

communications.

3. Utilities

Utilities Monthly Annually

Electricity 1,000 15,000

Water 500 9,000

Phone & Internet 1,200 14,400

36
 Garbage Collection 50 600

Total 2,750 33,000

Table 3.2 Utilities expenses for a year

LIST OF FRUITS, COST AND INVENTORY

Inventory
PRODUCT
Unit Quantity Unit Price Count Number
Apple Box 2 ₱1,550.00 100 pcs

Banana Box 2 ₱1,200.00 20 kls.

Mango Box 2 ₱2,600.00 20 kls.
Lemon Box 2 ₱1,050.00 30 pcs.
Pineapple Box 2 ₱720.00 12 kls.
Avocado Box 2 ₱2,700.00 15 kls.
Watermelon Box 2 ₱450.00 10 kls.
Orange Box 2 ₱1,150.00 56 pcs.

Grapes Box 2 ₱2,000.00 10 kls.

Cucumber Box 2 ₱600.00 15 kls.
Peach Box 2 ₱4,200.00 15 kls.
Melon Box 2 ₱2,500.00 10 kls.
Total ₱41,440.00

Table 3.3 List of fruits, cost and inventory

4. Alternatives for raw materials and inventory their prices, and quality

LIST OF POSSIBLE ALTERNATIVE FRUITS, COST AND INVENTORY

Inventory
PRODUCT
Count Unit Unit Price Quality

Lansones ½ Sack ₱1,200.00 High

Strawberry

Dragon Fuit 15 pcs. ₱525.00 High

37
Mangosteen

Santol ½ Sack ₱600.00 Good

Table 3.4 List of possible alternative fruits

38
 Chapter lV

ORGANIZATIONAL FEASIBILITY

In this chapter the proponent will discuss the and assess the management’s

internal and external practices and the sufficiency of resources to bring the idea of

innovative services to the target market with the support from hired competent

workers as a key element to the guaranteed success of the proposed business.

BUSINESS STRUCTURE

1. Form of the proposed business

The proposed business is a small-scale business enterprise under

sole proprietorship type of business. It will be managed by the proponent

assisted by the hired workers to create a strong team help him operate the

business in order to achieve the business objectives.

2. Availability of the man power

Manpower helps in growth and diversification of business. Through

manpower planning, human resources can readily available and they can

utilized the best manner. It helps my business to realized the importance of

manpower management which ultimately help in the stability of the concern.

It helps to accomplish the set goals of my business. They are very important

in the market and particularly in their assignment they are in.

39
 3. Governance, line of authority and decisions making structure

It is the system by which an organization is conducted, operates and

the mechanism by which it people are help to an account. Ethics, risk

management, compliance and administration are all elements of governance.

This is the practice of the manager and the owner to come together to make

desicion about the direction of the business.

Arkiesha will set company polices that must be properly observed by

its employees. The proponent will be overall in charge in running the business

which include planning, organizing, and directing its employees but in order

for them to be more productive, the proponent will involve its workers in the

planning and implantation.

ORGANIZATION STRUCTURE

1. Organization chart

This diagram shows the structure of the organization.

Arkiesha’s Fruit Retailing Business Organizational Chart

Business Owner

Store Clerk Assistant

Figure 4.1 Organizational Chart

40
 2. Job description and job specification

 Business owner – responsible for the growth, stability, direction and daily

operation of the business. It includes the addtional duties of the owner to

meet with the service vendors or product suppliers to facilitate delivery.

 Store Clerk – incharge in collecting payment from customers and make

change for the cash of the customer. He/she is assigned to accept

payment and record all every day transactions. Balance cash drawer by

accounting cash at beginning and end of work shift.

 Assistant – serve customer by selling, promoting, and meeting customer

needs. Services existing accounts, obtains orders, and establish new

accounts by planning and organizing daily work schedule to call on

existing or potential sales outlets and other trade factors.

3. Number of employees and their corresponding salary

Schedule of Required Employees and their Corresponding Salaries

  Salary Contributions  
Total
Personnel (Per month) SSS Phil health Pag- Contribution Net Pay

ibig s
    8% 4%  

Produce Clerk 5,000.00 400 200 200 800.00 4,200.00

Assistant 4,500.00 360 180 200 740.00 3,760.00

Total 760.0 400.0

9,500.00 380.00 1,540.00 7,960.00
(Monthly) 0 0

Total Employees’ Benefits Contribution 18,480.00  

103,480.0
Total Employees’ Salaries (plus 13th month pay)
0

41
 Total Annual Expenses for Salaries and Benefits 121,960.00

Table 4.1 Arkiesha’s employees and their corresponding salary

BUSINESS POLICIES

A Business policy shows you’re serious about people’s safety; about

preventing work-related injury and illness. This policy should be estated and put-it

down on paper and should be display it on wall and noticeboards.

The following are the business policies:

 Health and safety – employees are advised to abide by the safety

rules provided and report unsafe practices to the owner immediately.

Arkiesha is committed in offering a healthy and safe working

environment.

 Employment – ensuring employees that they understand the business

and their position, compensation and condition on work.

 The internet and email – internet is essential part of business daily

activities, today, product advertise are mostly done on the internet

though social media and other digital platforms. But during peak

working hours employees will be prohibited from using their gadgets.

 Equal opportunities – Arkiesha offer equal opportunities to its

employees. When hiring employees no discrimination is allowed, all

qualified applicants will be given equal opportunities.

42
  Customer service – good customer service help business prosper and

loyal customer often return time and time again, hence increasing

sales. One of Arkiesha’s strengths is its high-performance and quality

customer service.

a. Quality standards

Quality standards are the documents that provide requirements,

specifications, guidelines or characteristics that can be used consistently to

ensure that the materials, products, processes and services are fit for their

purpose.

The propose business passed the quality standards as condition of doing

business. Guideline and procedure will be strictly observed in order to achieve its

main objectives while doing the busines. This quality standards are very

important for the business to succed.

b. Safety Measure

One of Arkiesha’s main objective is to provide a safety and productive

environment for its employees and its customers. By implementing its formulated

safety policies and measures listed below, everyone is ensured of a happy and

worry-free business environment.

1. Provide/maintaining a work environment free from risks to health and

safety.

2. Consult with workers on all matters relating to work health and safety.

3. Make sure that the health of employees and the condition of the

workplace should be monitored regularly.

43
 4. Providing adequate faclities for the welfare of workers (like toilets and

mini kitchen area).

5. Ensuring the safe use, handling and storage of equipment, structure

and substances.

c. Operating Policies (sanction on disciplinary action)

Operating policies are the policy or operational strategy that

associated with a work asset. This operational policy are very important tool

to my business to ensure that business operate at maximum efficiency. It

govern the daily business operation and to protect the business and my

employees.

The following are the business policies and procedure:

1. Employment - employees should be trated equally and ensuring

that they understand the position they are within the business.

2. Code of Conduct – it will guide the employeesn on how to deal

with a wide variety of ethical siuation.

3. Environment – my business invest in project that aimed to improve

the working environment into safety and productive for my

employees.

4. Quality – my business strive to offer quality products and service

to the customer. We always make sure that the product we offered

should meet the customer expectations and even surpass their

expectations. This is to establish a good reputation and to build

successful business.

44
 Disciplinary action in the workplace is any response to misbehavior or

rule-breaking at work. This is very important in one business for the

employees to be safe and traited equally. This disciplinary policy identifies the

procedure to respond to incidents that violet business policy. Arkiesha’s

dsciplinary action policy includes:

1. Overview of the policy – stated in this section the steps that will be

taken to address employees misconduct or failure reform.

2. Statement of at will employment – at this matter it state that the

employees can be terminatted at any time, for a valid reason.

3. Forms of discipline and steps to be taken – in this section we will

explain the steps that will be taken to address an issues and the

discipline to be administered

4. Statement regarding on th right of the employees to appeal a

descision – in this steps it will state on how an employees can

appeal a decision.

d. Waste Management

Waste must take reasonable care for the environment. Store waste

should be safety and securely and prevent harming anyone. Arkiesha will

abide by the rules and regulations on the waste disposal implemented by the

government. It will always consider first the sake and health of the people

than the profit. The proposed business will strictly observe segregation and

proper disposal of waste in order to be environmental compliant. Trash bins

will be provided in the store in preparation for waste material storage like

spoiled fruits, the plastic packaging and other wastes materials during

operation.

45
e. Reward System on Employees

This is the platform or recognition program for helping employees

master their work habits and set themselves up for success. Arkiesha’s

reward system for our employees is very important for them to do and

function well to their roles. They will be rewarded based on their

performance and merit, this is to recognize their contribution for the success

of the business.

f. Legal Requirement

This legal requirement is a guideline to help employees dealing with

employers accountability, health, safety and interactions with customers.

Policies are also guidelines for legal issues, regulatory requirements at any

situations that could lead to serious consequences. This is very important to

secure these essential legal requirement. The consequences of operating a

business without legal requirement would lead the business to danger, it

would range from closure of business, to the imposition of monetary fines,

and finally to imprisonment.

Our business start from collecting the legal requirement before putting

it on operation. We had surpass all the legal requirement to operate in legal.

The following are the legal requirement we accomplished before operating of

business:

1. Business structure

2. Register business name (“Arkiesha’s Fruit Retail)

3. Get an Employer Identification Number (EIN) from IRS

4. Obtained required business permits and liscence

46
5. Prepare to pay the taxes

6. Get a business insurance

47
 Chapter V

FINANCIAL FEASIBILITY

This chapter scrutinize the capital requirement, operating, and maintaining the

proposed business, determine the return on investment, and the expected liabilities.

CAPITAL REQUIREMENTS

1. Estimated of total project cost needed to start the proposed business

ESTIMATED COSTS NEEDED TO START THE BUSINESS

Founding Expenses
Insurance 5,000
Clearances, Permits & Licenses 6,000
Professional Fees (Bookkeeper/Attorney) 4,000
Total 15,000
Investment
Land (owned) 50,000
Building, Lighting Installations & Fixtures 100,000
Equipment & Furniture 31,000
Supplies & Inventory 14,440
Total 195,440
Startup Costs
Utilities (Electricity, Water, Phone & Garbage Fee) 39,000
Advertising and Distribution Cost 5,000
Employees’ Salaries 121,960
Total 165,960
Total Capital Requirement 376,400

Table 5.1 Arkiesha’s Capital Requirement

48
2. How the capital needs could be meet

When planning for a businsee it is very important to plan ahead of

time. The proponent planned thouroughly and seek for support from family

members who will be helping him to finance for the startup capital needed to

start Arkiesha’s fruit stand. With his own money from his savings account and

borrowing money from family members without interest.

3. Estimate the capital needs

The estimated capital needed to start-up the proposed business is

nearly ₱400,000.00. Included in the total capital requirement is the estimated

cost of the building and the land. Details are shown below.

Particulars Percentage Amount

Land 12.5% 50,000

Cash 62.5% 250,000

Borrowings 25% 100,000

Total 100% 400,000

Capital Requirement 376,400

Contingency Fund and Petty Cash 23,600

Table 5.2 Arkiesha’s capital needs to start up the business

49
EQUITY AND CREDIT NEEDS

Alternative equity sources, capital availability, and credit sources

At thses matter i already plan for an alternative capital resources in

the name of the private lending bank to borrow some money for my start-up

business where i can use the title of my land to be a colateral or i will look for

an angel or private investors who could help me with this issue.

Income and Cost Analysis

Major assumption of the proposed business

Assumption are ideas that we presume to be true before taking

decisions. Assumptions are also made in businesses for developing a

strategy, planning and making decisions. These conjectures are generally

standardized as disclosure of uncertainty and risk. Often, we come up with

fresh ideas after brainstorming probable assumptions that will help us

improving our business strategy.

Here are the following major assumptions in our business:

a. financial – it often takes months or even years to pay off our initial

investment. So, in this case we imagining thing that our sales volume

would increase sooner or our profit will be helping us to meet our debt

service obligation.

b. customer base – we believe that our customer would be loyal to our

product or service, generating sufficient sales to make profit for the long

run. We’re planning to extend more our service that would be beneficial to

our customer and to our business.

50
c. profitability – these is the ambition of all entrepreneur. However, the

assumptiom must be validated by market research, financial planning and

sales projections as sales is not only factors that determining profitability.

In our case we calculate the development and overhead costs, reassess

the price to pay off start-up cost and then start thinking of profit. We are

deciding either to sale it at a high price or sale it with a high volumes of

product at a low price.

d. management expertise – i make sure that i plan these business many

time because business would not run by it self. It would be properly

handle by someone who has a heart at business.

51
 ARKIESHA FRUIT STAND

Comparative Statement of Financial Performance

For the Years Ended December 31, 2022 - 2025

Account Title 2023 2024 2025 2026

REVENUES:        
Sales Revenue 182,741.50 315,830.25 593,678.25 962,569.75
Other Revenue 0 0 0 0
(Less: Sales Return & Allowances) -1,000.00 -2,000.00 -8,000.00 -10,000.00
TOTAL REVENUE 181,741.50 313,830.25 585,678.25 952,569.75
         
Cost of Goods Sold 40,000.00 50,000.00 80,000.00 100,000.00
GROSS PROFIT 141,741.50 263,830.25 505,678.25 852,569.75
EXPENSES:    
Marketing/Advertising 5,000.00 5,500.00 6,000.00 7,000.00
Depreciation 15,542.00 15,542.00 15,542.00 15,542.00
Employee Wages 121,960.00 121,960.00 121,960.00 121,960.00
Insurance 5,000.00 5,000.00 5,000.00 5,000.00
Clearance, Permits & Licenses 5,000.00 5,000.00 5,000.00 5,000.00
Professional Fees 4,000.00 4,000.00 4,000.00 4,000.00
Utilities 33,000.00 35,000.00 38,000.00 50,000.00
TOTAL EXPENSES 189,502.00 192,002.00 195,502.00 208,502.00

NET INCOME BEFORE TAXES -47,760.50 71,828.25 310,176.25 644,067.75

Less:        
Income Tax Expense (12%) 0.00 8,619.39 37,221.15 77,288.13
NET INCOME/LOSS -47,760.50 63,208.86 272,955.10 566,779.62
Net Profit Margin -26% 20% 47% 60%

Table 5.3 Arkiesha Statement of Financial Performance

52
 ARKIESHA FRUIT STAND

Comparative Statement of Changes in Owner’s Equity

For the Years Ended December 31, 2022 - 2025

Account Title 2023 2024 2025 2025

Owner’s Equity at the

23,600.00 -24,160.50 39,048.36 112,003.46
Beginning of the Year

         

Add: Owner’s Investment        

Net Income/Net Loss -47,760.50 63,208.86 272,955.10 566,779.62

         

Subtotal -24,160.50 39,048.36 312,003.46 678,783.08

         

         

Less: Owner’s Draw 0.00 0.00 200,000.00 200,000.00

Owner’s Equity at End of

-24,160.50 39,048.36 112,003.46 478,783.08
the Year

Table 5.4 Arkeisha Fruit Stand Changes in Owner’s Equity

53
 ARKIESHA FRUIT STAND

Comparative Statement of Financial Position

For the Years Ended December 31, 2023 - 2025

ASSETS
Initial
Current Assets 2023 2024 2025
Balance
Cash on Hand 195,910.00 -47,727.00 63,208.86 272,955.10
40,000.0 50,000.0
Inventory & Supplies 60,000.00 55,000.00
0 0
Other current Assets        
Total Current Assets 235,910.00 2,273.00 123,208.86 327,955.10
Property and Equipment        
Land 50,000.00 50,000.00 50,000.00 50,000.00
Building 100,000.00 100,000.00 100,000.00 100,000.00
Equipment 12,650.00 12,650.00 12,650.00 12,650.00
Materials 1,440.00 1,440.00 2,500.00 3,000.00
Less: Accumulated Depreciation   -15,542.00 -31,084.00 -46,626.00
Total Property and Equipment 164,090.00 148,548.00 134,066.00 119,024.00
TOTAL ASSETS 400,000.00 150,821.00 257,274.86 446,979.10
         
LIABILITIES
Initial
Current liabilities Year 1 Year 2 Year 3
Balance
Short-term Loan Payable 0 0 0 0
Accounts payable 0 0.00 100,000.00 0
Income tax payable 0 0 8,619.39 37,221.15
Current Portion of a Long-term Debt 0 0 0 0
Total Current Liabilities 0 0.00 108,619.39 37,221.15
Initial
Long-term Liabilities Year 1 Year 2 Year 3
Balance
Long-term Debt/loan 0 0 0 0
Other Long-term Debt 0 0 0 0
Total Long-term Liabilities 0 0 0 0
TOTAL LIABILITIES 0 0.00 108,619.39 37,221.15
       

54
OWNER’S EQUITY
Initial
  Year 1 Year 2 Year 3
Balance
Retained Earnings 400,000.00 150,821.00 148,655.47 409,757.95
Accumulated Other Comprehensive
0 0 0 0
Income
  0 0 0 0
Total Owner’s Equity 400,000.00 150,821.00 148,655.47 409,757.95
TOTAL LIABILITIES AND OWNER’S
400,000.00 150,821.00 257,274.86 446,979.10
EQUITY

Table 5.5 Arkiesha Fruit Stand Balance Sheet

55
 ARKIESHA FRUIT STAND

Comparative Statement of Cash Flows

For the Years Ended December 31, 2022 - 2025

Account Title 2023 2024 2025 2026

Cash Flows from Operating Activities
Cash Inflows        
Owner's Equity 210,498.00      
Receipts from business
315,830.25 593,678.25 962,569.75
income 182,741.50
Interest Income        
Other Receipts        
Total Cash Inflows 393,239.50 315,830.25 593,678.25 962,569.75
 
Cash Outflows        
Payment of expenses 67,542.00 30,000.00 73,542.00 186,452.00
Payments to creditors     100,000.00  
Payments to employees 121,960.00 121,960.00 121,960.00 121,960.00
Sales Return & Allowances 1,000.00 2,000.00 8,000.00 10,000.00
Cost of Goods Sold 40,000.00 50,000.00 80,000.00 100,000.00
Owner's Draw     200,000.00 200,000.00
Interest Expense        
Other Expenses   900.75 430.25 50,333.13
Total Cash Outflows 230,502.00 204,860.75 583,932.25 668,745.13
Net Cash Flows from
162,737.50 110,969.50 9,746.00 293,824.62
Operating Activities
 
Cash Flows from Investing Activities
Cash Inflows        
Proceeds from Sale of
 
Investment Property      
Proceeds from
Sale/Disposal of PPE        
Total Cash Inflows 0 0 0 0
 
Cash Outflows        
Construction of Property,
112,650.00 0 0 0
Plant and Equipment
Investment 121,448.00 0 0 0
Total Cash Outflows 234,098.00 0 0 0
Net Cash Flows from
-234,098.00 0 0 0
Investing Activities
 

56
Cash Flows from Financing Activities
Cash Inflows        
Proceeds from Issuance of
0 0 0 0
Bonds
Proceeds from Loans 0 0 0 0
Total Cash Inflows 0 0 0 0
         
Cash Outflows        
Payment of Long-Term
0 0 0 0
Liabilities
Payment of loan
0 0 0 0
amortization
Total Cash Outflows 0 0 0 0
Net Cash Flows from
0 0 0 0
Financing Activities
 
Total Cash Provided by
Operating, Investing and -71,360.50 110,969.50 9,746.00 293,824.62
Financing Activities
Add: Cash at the
23,600 -47,760.50 63,209.00 72,955.00
Beginning of the year
Cash Balance at the End
-47,760.50 63,209.00 72,955.00 366,779.62
of the Year
Table 5.6 Arkiesha Fruit Stand Statement of Cash Flows

57
Sales/income projection for the next 3 years

Estimated
Arkiesha’s Share in
Price Per Projected
Year Unmet Demand the unmet demand
Type of Annual Sales
(85%)
Fruit
2023        
Core 788 670 30 20,094.00
Citrus 1,702 1,447 25 36,167.50
Tropical 2,976 2,530 50 126,480.00
        182,741.50
2024        
Core 1,378 1,171 30 35,139.00
Citrus 2,937 2,496 25 62,411.25
Tropical 5,136 4,366 50 218,280.00
        315,830.25
2025        
Core 2,604 2,213 30 66,402.00
Citrus 5,517 4,689 25 117,236.25
Tropical 9,648 8,201 50 410,040.00
        593,678.25
2026        
Core 5,067 4,307 30 129,208.50
Citrus 10,705 9,099 25 227,481.25
Tropical 14,256 12,118 50 605,880.00
        962,569.75

Table 5.7 Sales projection for the next three (3) years based on penetrated market

Sales projection for the next three (3) years was based on conservative

estimate from the supposedly share from the penetrated market. Increase in

percentage per year was based on the percentage increase of the population of the

target market on latest Philippine Statistics Authority census conducted this year.

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Recurring expenses for the next 3 years

Recurring Expenses for the next three (3) years

Expense 2023 2024 2025 2026

Depreciation 15,542.00 15,542.00 15,542.00 15,542.00

Insurance Costs 5,000.00 5,000.00 5,000.00 5,000.00

Salaries and Wages 121,960.00 121,960.00 121,960.00 121,960.00

Utilities 33,000.00 35,000.00 38,000.00 50,000.00

Tax Costs 8,619.39 37,221.15 77,288.13

Marketing/
5,000.00 5,500.00 6,000.00 7,000.00
Advertising

Permits & Licenses 5,000.00 5,000.00 5,000.00 5,000.00

Professional Fees 4,000.00 4,000.00 4,000.00 4,000.00

Table 5.8 Recurring Expenses for the next three (3) years

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FINANCIAL ANALYSIS
1. Estimate the sales needed to break even
Break even analysis entails calculating and examining the margin of

safety for an entity based on the revenues collected and associated costs. In

ither words, the analysis shows how many sales it takes to pay for the cost of

doing business. Analyzing different price levels relating to various levels of

demand, the break-even analysis determines what level of sales are

necessary to cover the company’s total fixed costs. A demand-side analysis

would give a seller significant insight into selling capabilities.

Break-Even Analysis

Break-Even Point = Fixed Costs

_________

(Sales Price per Unit – Variable Cost per unit)

Fixed Costs = P 67,542.00

Variable Costs = P161,960.00

Variable Cost per unit = (Variable Cost / Sales)

= (161.960.00 / 4,646)

= 34.86

Sales Price per unit = P50.00

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 Break-Even Point = FC / (SPpu – VCpu)

= 67,542.00 / (50 –34.86)

= 67,542.00 / 15.14

Break-Even Point = 4,461

Arkiesha Fruit Stand need to sell 4,461 different types of fruits at an

average price of P50.00 within a year in order to break-even.

a. Return on Investment (how many years to get back the investment)

Is a performance that measure used to evaluate the efficiency or

profitability of an investment or business or compare the efficiency of a

number of different investments. It tries to directly measure the amount of

return on a particular investment, relative to the investment cost.

Return On Investment

ROI = (Gains – Cost) / Cost X 100

Year Gain - Cost = / Cost = X 100 ROI

2023 -47,761 189,502 -237,263 /189,502 -1.25 X 100 -125%

2024 63,209 192,002 -128,793 /192,002 -0.67 X 100 -67%

2025 272,955 195,502 77,453 /195,502 0.39 X 100 39.62%

2026 566,780 208,502 358,278 /208,502 1.72 X 100 171.83%

Table 5.9 Arkiesha Fruit Stand Return on Investment

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b. Liquidity Ratio

Quick Ratio = Current Assets – Inventory / Current Liabilities

Current / Current
Year - Inventory = =
Assets Liabilities

2023 2,273.00 50,000.00 -47,727.00 /0 =.0

2024 123,208.86 60,000.00 =63,208.86 / 108,619.39 =. 58

2025 327,955.10 55,000.00 = 272,955.10 / 37,221.15 =.7 33

Table 5.10 Arkiesha Fruit Stand Liquidity Ratio

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 c. Solvency Ratio

It indicates whether a company’s flow is sufficient to meet its long-term

liabilities and thus is a measure of its financial health. An unfavorable ratio

can indicate some likelihood that a company will default on its debt

obligations. It measures a firm’s actual cash flow, rather than net income,

by adding back depreciation and other non-cash expenses to assess a

company’s capacity to stay float.

Solvency Ratio = (Net Income + Depreciation)

_______________________

(Short-term + Long-term Liabilities)

+ / Total Solvency
Year Net Income = = X 100
Depreciation Liabilities Ratio

2023 -47,760.50 15,542.00 -32,218.50 0.00 0 X 100 0

2024 63,208.86 15,542.00 78,750.86 108,619.39 0.725 X 100 72.50

2025 272,955.10 15,542.00 288,497.10 37,221.15 7.75 X 100 775.09

Table 5.11 Arkiesha Fruit Stand Solvency Ratio

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 Chapter VI

STUDY CONCLUSIONS

This study contains the information needed for deciding whether to proceed

with creating the business. Based on the results of the projected income statement

and other supporting documents from the financial statements the proposed business

is profitable with a projected realization of the return on investment for not longer

than five-year period. With a high market sustainability and potential for expansion,

the project is regarded as having a relatively low risk.

After thorough research of the significant factors in this study that the

proponent conducted, it is therefore concluded that ARKIESHA FRUIT STAND

project is feasible and it can be recommended to pursue the proposed business.

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 APPENDICES

FEASIBILITY SURVEY QUESTIONNAIRE

This survey pertains to a project conducted by BSBA student at Eastern

Samar State University. The purpose of this study is to better understand the
expectations of consumers for purchasing fresh fruits. This questionnaire will only
take 5-10 minutes and all the responses will remain strictly confidential. Thank you
for your time.

Name: (Optional) _____________________________________________________

Age: ______________________________________________________________
Occupation/Source of Income: _________________________________________

Direction: From the questions below, encircle the letter or number that corresponds
to your answer.

1. How often do you purchase fresh fruits from the existing local fruit stands?

a. Once a week
b. Twice a week
c. Thrice a week
d. Four times a week

2. In what quantity do you purchase fresh fruits?

a. By piece
b. By pair
c. By half dozen
d. By dozen

3. What factors influences your decision in purchasing fresh fruits instead of

dried fruits or processed fruits?

a. Health Benefits
b. Taste
c. Product availability

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 d. Budget

4. What type of fruit do you usually purchase?

a. Core

b. Citrus

c. Berries

d. Tropical

5. Arkiesha Fruit Stand will open and start their business operations soon, are

you willing to purchase fresh fruit crops from them?

a. Very likely

b. Somewhat likely

c. Not likely

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