I.

Executive Summary

Name of the business : VEGGCHIPS

Location : Purok 1 Brgy.

Camambugan Daet,

Camarines Norte

Proponents Name : Mark Joseph Sacriz

: Clarence Balmeo

: Denzel Anne Zaldivar

: John Paul Mhel Abogado

: Aira Caroline Vitalico

: Kimberly Umbao

: Carl Stephen John Garcia

: Vanessa Joy

Avecilla Form of Business Organization : Partnership

Total Project Cost : ₱ 242,352

Return of Investment : 63%

Source of Fund : Partner’s Contribution

II. Vision and Mission

Introduction

Chip is one of the most popular snacks around the world. The production of
chips is very simple and profitable. This is also a go-to snack that many people
all around had considered their favorite. These chips comes in different sizes,
shapes, colors, flavors, and ingredients. Compared to sweets like candies, chips
are much lower in sugar and carbs. Yet, like any other junk foods, most of the
chips that is sold at the market is harmful for the consumer's health.

Many individuals search for snack options that are healthier than the usual
starchy, fried snacks since adopting healthy eating habits is both trendy and
beneficial to people's present and future health. Fiber, protein, iron, vitamin A,
and vitamin C are all included in vegetable-based chips. They are lower in fat
and have less calories than the other chips. This makes them a popular snack for
those concerned with weight management.

This business produces chips that is made from the ordinary vegetable leaves
(Kangkong, Malunggay, and Talbos ng Kamote), coated with egg and seasoned
flour, and deep fried. Veggchips is richer in taste and healthier while using much
affordable and accessible ingredients. It is mainly for the people who loves to
enjoy a snack without worrying about the unhealthy effect of junk food.

Vision statement

To be known and mark Veggchips as one of the best snack product around the

province of Camarines Norte, by continuously making a budget friendly but still

good quality food. And aiming to endorse by food industry and nutritionist as

the most healthy snack for children.

Mission statement

Veggchips are a snack food product offered to the residents of Purok-2

Barangay Camambugan Daet Camarines Norte. Our mission is to provide

delicious, affordable snack yet highly nutritious for customer health, this aims

to increase customer satisfaction resulting to be a regular buyer of this

Crunchy Chips.

Goals

Goal Goal Goal

Increase the product Increase the product's Maintain the low price

benefits publicity of the product

Objectives Objectives Objectives

1. Adding vegetable 1. Creating a page 1. Planting of

leaves not just and posting vegetables in the

Kangkong, product business place

Malunggay and advertisements backyard for less

Talbos ng Kamote online cost in production

2. Maintaining the 2. Purchasing

organic ingredients 2. Making and giving ingredients to a

promotion or wholesaler for less

discount to cost

regular customer

3. Adapting food

service trends or

making service

unique
Part III Company Overview

A.Name Nature and Location of our Business

The name of the business is VEGGCHIPS, “VEGG” means Vegetables
and Egg and combine with the word “CHIPS” a snack food that is in the
form of crisp, flat, and bite-sized unit. We chose this name so that
customers could quickly recognize the product of our business, which
would also be beneficial for our firm. Very appealing name that also has
the power to persuade people to buy it because chips are among the
world's most delicious snacks, and it's fascinating to see a chip made of a
vegetable.
This business produce chips that is made out of ordinary vegetable leaves
(KangKong, Malunggay, and, Talbos ng Kamote) made yummier and
crispier for everyone’s enjoyment. Coated with egg and seasoned flour,
these chips will make you want to eat more. Chips that is budget friendly
and will surely make you healthy.
The location of the business will be at Purok-2, Brgy. Pasig,Vivencio
St. Daet, Camarines Norte near Abaño Campus, Camarines Norte State
College. This makes the students of CNSC the main target customers of
the VEGGCHIPS.

 
B.Legal Business Description

The form of business organization is partnership that isoperation where

two or more individuals shares ownership, risks, management, profits and
losses. Forming a partnership agreement is crucial for the growth of any
business venture, it designates the responsibilities and the rights of each
partner involved. Partnership manifests itself in different forms, ranging
from business owners cooperating to invest a project to share technical
knowledge and ideas between firms. Also, partnership will help the
business in terms of maintaining the competitive advantage, encourage
understanding, cooperative working relationship, as well as contractual
relationship. (https.://www/upcounsel.com/purpo……)
  
 
C.Licensing and other Requirements

To operate the business many legal documents and requirements are needed.
The following are the list of government requirements which every legal
business establishmentmust have.
DTI Permit
• Barangay Clearance
• Sanitary Permit
• Licensing from Bureau of Internal Revenue (BIR)

• Registration from Security and Exchange Commission(SEC)

• Certificate of Occupancy

• Community Tax Certificate or CEDULA

• Locational Clearance
 
D.List of the Proponents

The proponents of the business VEGGCHIPS are as follows:

Clarence A. Balmeo
Mark Joseph Sacriz
John Paul Mhel Abogado
Kimberly Umbao
Stephene Garcia
Aira Caroline Vitalicio
Denzel Anne Zaldivar
Vanessa Joy Avecilla

PART IV: ORGANIZATION AND MANAGEMENT

A. Organizational Structure

The proposed organizational structure is managed by the Manager who

plays the important role in the business organization. Marketing Officer, who is

in responsible for the various marketing activities. Finance Officer, who is in

charge of receiving and disbursing funds. Cook, who is in full control of

production of the product; and the Cashier, who is in responsible of payment

transactions.

Sacriz, Mark
Joseph
(Manager)
Finance Officer Marketing Production
Officer Officer

Balmeo, Avecilla, Garcia, Stephene

Clarence Vanessa John
(Financial (Business (Cook)
Advertiser)

Abogado, John Paul

Zaldivar, Vitalicio, Aira Mhel
Denzel Caroline (Cook)
(Financial Staff) (Business
Advertiser)
B. Job Description

The proponent will perform the following specific type of works, duties
Umbao,
and assigned tasks as it relates to the organization’s mission Kimberly
and goals and to
(Cook)
achieve a successful business industry.

Manager

1. Creating and implementing a strategic sales plan to increase the

company's customer base.

2. Improves communication among employees.

3. Oversee the creation of financial reports and benchmarking.

4. Examines the financial statements.

 5. Make suggestions for business and process improvements.

Marketing Officer

1. Participates in the execution of marketing strategies.

2. Assists the business manager in overseeing the operations of the

department.

3. Organizes and participates in marketing activities or events in order to

increase brand awareness.

4. Manage the entire marketing planning, budgeting, metrics, and reporting

process.

Finance Officer

1. Maintain a strategic financial plan.

2. Manage track of your daily cash balances.

3. Prepares and presents financial report for meetings and investors.

4. Ensure that cash flows are sufficient to allow business units to function

effectively.

5. Arrange financial audits and reviews as needed.

Production Officer

1. Prepares and maintains the product's good quality and appearance.

2. Customers should be served promptly, courteously, and professionally.

3. Understanding of the cooking process.

4. Maintain sanitary conditions and workplace safety.

 5. Ensures accurate inventory of raw materials, packaging materials, and

finished goods.

C. Compensation Allowance

The table shows the compensation allowance of the officers. Each given

the same amount because the business is a partnership which everyone has

equally divided tasks and responsibilities.

Table 1
Compensation Allowance

Position Per Production Monthly Annually

Manager 70.00 2,100.00 25,200.00
Marketing Officer 70.00 2,100.00 25,200.00
Finance Officer 70.00 2,100.00 25,200.00
 Production
70.00 2,100.00 25,200.00
Officer
TOTAL P280.00 P8,400.00 P100,800.00

Table 2
Employee Benefits
Position SSS Phil Health E.C Monthly Annually
Manager 350.00 100.00 10.00 470.00 5,640.00
Marketing 350.00 100.00 10.00 470.00 5,640.00
Officer
Finance 350.00 100.00 10.00 470.00 5,640.00
Officer
Production 350.00 100.00 10.00 470.00 5,640.00
Officer
TOTAL P1,400.00 P400.00 P40.00 P 1,880.00 P 67,680.00

D. Profit Sharing

Each proponent decided to divide the business profit on an annual basis. The

profit will be divided as follows: 60% will go to the proponents as their share

and 20% will go toward VEGGCHIPS' business expansion. The remaining

twenty percent (20%) will go to research and development, which will include

studies on new marketing and improvement strategies for the product.

Business Profit
 20%

Profit Sharing
Business Expansion
20% 60% Research and Development

PART V

PART V: MARKETING PLAN

A. Sales Strategy

The proponents will weigh various marketing strategies for the product

they are launching, in order to gauge how marketable, the suggested product

is.

By means of posting on social media platforms such as Facebook,

Instagram, and Twitter on the employees' accounts, the proponents will

advertise the product's description and inform a much wider population. Direct
 marketing can also be done in the school if the students are aimed to

acknowledge and buy the product. With direct marketing, the product’s

uniqueness and benefits will be explained further.

B. Distribution Channel

The final product will be created using raw materials, distributed by the

producer to the seller, and sold directly to the customer.

RAW PRODUCER SELLER CUSTOMER

MATERIALS

C. Positioning

“Veggier, Crispier, Healthier!”

D. Pricing and Pricing Policy

Raw materials ₱130.00

Packaging and Labeling ₱90.00

Total ₱220.00

Servings: 15 cups

Profit: 25%

Cost Price: Total cost ÷ Servings

220.00 php ÷ 15 = 14.66 php

Selling Price: Cost Price + Profit

14.66 php + 25%= 18.33 php or 19.00 php

Therefore, the return is

Selling Price × Servings

19.00 php × 15 = ₱285.00

E. Production Plan (Methods)

1. Gather and prepare all the needed ingredients.

2. Remove the vegetable leaves from it stem and wash it with running

water.

3. Put ½ kg of flour, 4 tablespoon of baking powder, 2 eggs, pepper, and 1

cup water in a bowl and mix it well.

4. In a separate bowl, put 2 packs of breading mix and ¼ kg of flour and mix.

5. Coat the vegetable leaves with the mixture of flour, baking powder,

egg, pepper, and water.

6. Then, dredge it with the mixture of breading mix and flour.

7. Heat the frying pan and put 1 bottle of oil. Wait for the oil to boil.

8. Once the oil is starts to boil, put the coated vegetable leaves. Make

sure it won’t stick to each other.

9. If it’s already golden brown, remove the vegetable leaves from the oil

then put it in a strainer to remove the excess oil.

10. Once the excess oil is removed, put the vegetable oil in the cup for

packaging.
F. Materials and Machines

A. Raw Materials B. Equipment/ C. Kitchen Tools D. Packaging

Machines Materials
 Kangkong  Single Gas  Frying Pan  Paper Cups
 Malunggay Stove
 Tongs  Sticker
 Talbos ng
 2 bowls Papers
Kamote
 ¾ kilogram of  2 plates
Flour  Strainer
 4 tablespoon
of Baking  Measuring
Powder Spoons
 2 Packs of  Measuring cups
Breading Mix
 1 Bottle of
Cooking Oiil
 Pepper
 2 Eggs
 1 Cup of
Water

G. Packaging, Labelling, and Branding

G. Plant Location and Plant Lay-out

Legends:

= Eating Tables

= Veggchips Stall

= Working and Cooking Area

= Cleaning/Washing Area
Part VI. Financial Statement

A. Financial Assumption

1.) Sales price will increase annually by 6%

2.) Sales Volume will increase annually by 4%
3.) Price and Raw materials will increase by 3%
4.) Volume of Raw materials will increase by 3%
5.) Freight in transportation will remain constant
6.) Kitchen supplies, packaging and labelling will increase by 2%
7.) Rent expenses will remain constant
8.) Business License and Permit will remain constant
9.) Straight line method of depreciation is used in computation of
depreciation

B. Total Project Cost 

 
A. 
Machineries and Equipment                                          P    250 
Furniture and Fixtures                                              230.       
            
 
B. 
Raw Materials        220 
Direct Labor.        300 
Compensation Allowances.       280 
Employee Benefits.          1840 
Transportation Expense.         200 
 
C. 
Advertising Expenses.      120  
Business License and Permits.         80 
 
D. 
Property Plant and Equipment.     30 
Working Capital.               1230 
Pre-operation Expenses          240 
 
 
 
 
 
Total Cash Requirements.               5020

B. Ptojected Income Statement

For the year ending 2021-2023

2021 2022 2023

Net Sales 31,212 38,556 45,900
Cost of Goods Sold
Raw Materials 46,800 51,480 56,160
Direct Labor 1,650 1,650 1,650
Cost of Goods Sold 48,450 53,130 57,810
Gross Profit 45,150 49,830 54,510
Operating Expense
Compensation 25,200 25,200 25,200
Allowance
Employee Benefits 5,640 5,640 5,640
Transportation 1,400 1,400 1,400
Expense
Advertising Expense 1,200 1,200 1,200
Business License and 800 800 800
Permits
Total Operating 34,240 34,240 34,240
Expenses
Income Tax 1,500 1,890 2,381
Net Income 73,440 80,784 88,128

D. RETURN OF INVESTMENT

Year Net Income

Year 1 73,440
Year 2 80,784
Year 3 88,128

Formula: Average Net Income / Investment

Average Net Income:

80,784 Investment:
126,684

So, 80,785/126,684 = 63%

In the propose project of VEGGCHIPS there will be a return

on investment of about 63% during the first three years.