SIMPLIFIED

BUSINESS PLAN
On

(Rice Retail and Wholesale)

By

MICHAEL BARTE

Date Prepared
January 16, 2023
 CWHFI RETAIL AND WHOLESALE

PROJECT PROPOSAL

PROJECT TITLE: RICE TRADING (RETAIL AND WHOLESALE)

PROPONENT: SAN MIGUEL NA MUNTI SMALL FARMERS AND FARM WORKERS
ASSOCIATION, INC.
ADDRESS: Barangay San Miguel na Munti, Talavera, Nueva Ecija
PROJECT LOCATION: Barangay San Miguel na Munti, Talavera, Nueva Ecija
PROJECT COST: Php 967,000.00
Funding Source: Department of Labor ang Employment (DOLE)

Executive Summary

Filipinos are widely known as rice consumers. Rice is a major component of the Filipino
diet. Breakfast, lunch, and dinner are not complete when rice is not served. This fact makes
rice-retailing & wholesaling a lucrative and promising business.
There is an abundant supply of rice in Nueva Ecija Province, therefore the constant
supply of stocks is not a problem. This is an assurance that the retailer will never run out of
supply.
Rice retailing will cater to the needs of the less fortunate in the community who cannot
afford to buy rice in bulk.

SECTION 1. MARKETING PLAN

1.1. Product

San Miguel na Munti Small Farmers and Farm Workers Association, Inc. is
planning to put up a small business of rice trading. The store name would be “San
Miguel na Munti Association Retailer and Wholesaler Enterprise” which will focus on
selling rice as it is its sole product.

1.2. Competition

There have been many rice retailers who have penetrated the market already,
yet their presence did not suffice the need of the market due to several factors.
One factor that the entrepreneur looked into is the price – the strongest factor
for competition. The entrepreneur will use the direct-buying method to cut the supply
chain and be able to offer lesser prices compared to other retailers. Considering that the
enterprise will offer a lesser price, hence it is most likely to compete in the market
despite its fresh entrance.

1.3. Market Area

The business will be located in Barangay San Miguel na Munti, Talavera, Nueva
Ecija closer to the of Public Market. This place is suitable, convenient, and accessible for
customers.

1.4. Customers

The target customers of the business are the market-goers in Barangay

SanMiguel na Munti Public Markets even in the next barangay. Everyone who markets is
a potential customer of the business because the establishment is within the exchange
center of the market and that rice is a necessity for all, therefore everyone is a target
customer.
 1.5. Price
Rice Variety Price per Kilo
Sinandomeng 45.00

1.5. Budgetary Requirements:

BUDGETARY REQUIREMENTS
Particular VARIETY Quantity Unit Cost (P) Total Cost
Sinandomen sacks of Palay
Capital Stocks 380 1,750.00 665,000.00
g (50kls)

TOTAL: 380
Rental Stall 12 moths 4,000.00 48,000.00
Labor 2 persons 8,500.00 204,000.00
Overhead Expenses 30,000.00
Transportation
20,000.00
Expenses
TOTAL: 967,000.00

1.6. Sales Forecast (Yearly)

COST AND RETURN ANALYSIS

Assumption of Cost of Return

Analysis:
Number of Stocks:
Senandomen 19,00 kl
g 380 Sacks of rice 0 s 45.00 per kilo 855,000.00

GROSS INCOME: (For 2 years of trading) 2 1,710,000.00

LESS
Depreciation Cost 5% 85,500.00
Capital 967,000.00
TOTAL 1,052,500.00
NET INCOME: 657,500.00
ROI (Return on Investment) Income/Capital x 100 68%

1.7. Promotional Strategies

Posters and flyers will be posted to promote the store. With the use of the most
effective form of promotion – word-of-mouth, the business will surely be known to the
market and be well promoted at its best.

1.8. Project Description:

Duration: 9-12 months

Project Implementation: 5 Years
 SECTION 2. PRODUCTION PLAN

The business is on retailing and wholesaling where the enterprise will purchase
directly from the rice producers. Therefore, production is not a scope of the business.

SECTION 3. ORGANIZATIONAL PLAN

MICHAEL BARTE
General Manager

Utility 1 Utility 2

The general manager will oversee the full operation of the business from supply
procurement to sales. She will control the cash flow of the business.
The utilities will perform the actual operation of the business. They will monitor the
necessary supplies to be procured and to facilitate sales.

SECTION 4. FINANCIAL PLAN

MIGHT-BE NECESSARY FACTS FOR FINANCIAL PLAN:

Rent Expense - Php 48,000.00 per 12 months
Salaries Expense - Php 204,000.00 for 2 persons/12 months
Start-Up Capital - Php 665,000.00
Overhead Expenses - Php 30,000.00
Transportation Expenses - Php 20,000.00

SUSTAINABLE PLAN OF THE PROJECT

The expected income will be used to purchase additional stock for the expansion
program of the project in other barangays who are interested, for income generation.

SOCIO-ECONOMIC IMPACT/EXPECTED BENEFITS:

The organization could be one of the suppliers of good and healthy food quality of rice
in the market and provide additional income-generating jobs.

Prepared by:

MICHAEL BARTE
Association Chairperson

Recommending Approval:

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