VegeTea

Alkuino Emporium, Poblacion, Valencia City, Bukidnon.

Presented by:
Labrador, Julean C.
Natulla, Rigine Mae M.
Pananganan, Johnjay
Baliga, Rachell Ann
Bulasa, Jinie Rose

A Business Plan presented to the Organization of the Young Entrepreneurs Society

VALENCIA NATIONAL HIGH SCHOOL
Valencia City, Bukidnon

In partial fulfillment of the requirements in

ENTREPRENEURSHIP

June 2023
i
 Table of Contents
Executive Summary 1
Preface 2
Business Description 3
History 3
Vision Statement 3
Mission Statement 3
Objectives 3
Product Description 4
The Business SWOT Analysis 4
Short Term Goals 5
Long Term Goals 5
Legal Status and Ownership 5
Marketing Plan 6
Customer Analysis 6
Competition 6
Market Share 7
Pricing Strategy 7
Promotion 8
Organizational Chart 8
Job Description 8
Staffing Requirements 9
Recruitment, Training and Development 10
Renumeration of Staffs/ Incentives 10
Required Permits and Licenses 10
Operations and Development Plan 11
Risk Reduction Strategies 12
Financial Plan 13
Pre-operating Expenses 13
Administrative Expense 14
Projected Statement of Comprehensive Income (5 years) 18
Projected Statement of Financial Position (5 years) 19
ii
Projected Statement of Trial Balance (5 years) 20
Projected Statement of Owners Equity (5 years) 20

iii
EXECUTIVE SUMMARY

1
PREFACE

2
 BUSINESS DESCRIPTION

VegeTea is an innovative product of milk tea. The business will be located at Alkuino
Emporium, Valencia City, Bukidnon. The business is build to provide the customers a
unique twist to the traditional milk tea experience by infusing it with the goodness of fresh
vegetable extracts.

History

Founded in 2023, VegeTea is a sole proprietorship with the intention to market milk
tea that has been enhanced with the health of vegetables. The idea for VegeTea was
developed based on the founders' personal observations and experiences. Although milk
tea was quite popular, the founder saw that it frequently contained large amounts of sugar
and chemical additives, which were out of sync with the growing consumer focus on health
and wellness. The entrepreneur was motivated to close this gap and set out on a quest to
develop a milk tea product that was both scrumptious and wholesome.

Vision Statement
To revolutionize the beverage industry by providing a refreshing and nutritious
alternative with our innovative VegeTea, inspiring healthier choices and promoting a
balanced lifestyle.

Mission Statement
To craft and deliver exceptional milk tea infused with the goodness of vegetables,
using high-quality ingredients that satisfy taste buds while nourishing the body. The
business aim to create a positive impact on the well-being of our customers, promoting a
culture of health and vitality through VegeTea products.

Objectives:

 Provide customers with a refreshing and nutritious milk tea experience that
incorporates fresh vegetable extract.
 Cultivate a loyal customer base by consistently delivering high-quality products and
exceptional customer service.
 Establish VegeTea as a go-to destination for health conscious individuals seeking
tasty and wholesome milk tea options.
 Collaborate with local farmers to source organic and sustainable ingredients,
supporting the community and promoting environmentally-friendly practices.
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Product Description

VegeTea offers a unique and innovative line of milk tea products that combine the
traditional indulgence of milk tea with the added benefits of vegetables. The building
carefully crafted blends infuse with goodness of vegetables into every sip, providing a
refreshing and nutritious beverage option for health-conscious consumers. With a focus on
high-quality ingredients, the business ensure that VegeTea products deliver a harmonious
balance of flavors while promoting a balanced lifestyle. The company is dedicated to
offering a guilt-free treat that tickles the taste senses and nourishes the body, as well as
culinary inventiveness and wellbeing.

The Business SWOT Analysis

STRENGHTS
• The business is innovative.
• The business is timely and relevant.
• Health-conscious appeal.
• Market differentiation as
business competitive advantage.
• The business will offer a
variety of products in addition to
the business main product which is
the vegetable milk tea that will lead
more customers in the door.
THREATS
• Our competitors are
already established in the market
and already have loyal customers.
• Changing attitude of our
customers towards our product.
• Supply chain challenges
• High cost for maintenance of FDA
regulations can lead to unpredicted
expenses or liability to the business.
WEAKNESSES
• VegeTea is a start-up business.
• The business is not yet popular and
established in the industry.
the
OPPORTUNITIES
•Growing Health Trend
•Diversification
•Partnerships and Collaborations
• New flavors and the opening of
new markets and industries within
coffee can increase our market
share and demand for coffee in
general.

4
 VegeTea will offer diverse menu of milk tea options infused with fresh vegetables
extracts. The customers can enjoy a range of flavors, including classic tea-based milk teas,
as well as specialty blends that incorporate unique vegetable combinations. The business
will also provide customization options, allowing customers to tailor their beverages in
accordance to their taste preferences. The business aims to fill the gap by offering milk teas
that not only tantalize taste buds but also provides healthy benefits. This differentiates
VegeTea business from traditional milk tea shops and position itself as a unique and
desirable option in the market.

Short-Term Goals

 Gather customers’ feedback and identify areas for improvement.

 Increase revenue every month.
 Increase employee retention through the end of the fiscal year.
 Research various market opportunities.

Long-Term Goals

 Expand the business by opening additional branches in neighboring towns and cities.
 Continuously innovate and introduce new vegetable-infused milk tea flavors to keep
the customers engaged and excited.
 Implement eco-friendly practices by using biodegradable packaging materials and
promoting recycling initiatives.
 Establish partnerships with health and wellness organizations to further promote the
nutritional benefits of the VegeTea products.

The business is prepared to handle the risks and weaknesses it faces. It will take
advantage of the opportunities provided and rely on the capabilities of the Company and its
founder to assist the business in achieving long-term success.

Legal Status and Ownership

VegeTea has the legal status of a sole proprietorship, which is a company run and
controlled by a single person. This indicates that the owner is fully in charge of and
accountable for all facets of the company, including financial management, operations, and
decision-making. This legal framework makes things simple and manageable, but it also
implies that the business owner is personally liable for the debts and liabilities of the
business. Although VegeTea is run as a separate business from its owner, any legal or
financial problems could put the owner's personal assets at danger.
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 MARKETING PLAN

Customer Analysis

Understanding the customers who prefer VegeTea is crucial for the success of the
business. The customers who are interested in VegeTea are mostly female between the
ages of 15 to 60 years old. It is important to understand the customers' age range, gender,
and preferences to cater to their needs. The needs of customers who prefer VegeTea
should be satisfied based on their lifestyle, interests, activities, opinions, and buying habits.
For instance, younger customers may prefer more adventurous flavors, while older
customers may prefer more traditional flavors. The business consider offering different
varieties of milk tea to cater to a wide range of preferences.

Additionally, the business consider the lifestyle of the customers, such as whether they
are busy professionals or students, to determine the most convenient way to have their
products. The business also take into account the customers' interests and activities to
develop effective marketing campaigns that resonate with their preferences. By
understanding their opinions and buying habits, the business can tailor its offerings to meet
their needs and ensure customer loyalty.

Competition

Other milk tea vendors in Valencia City, such as Pet Perry Tea Café, Chang Tea,
TeaSpot, InfiniTea, and SweetLeaf that have a significant market presence would be a
vegetarian tea business's major rivals. The location specifically and the number of milk tea
merchants in the area would determine the market share that they possess. Depending on
the product's quality, price, promotion, and location, each of these competitors would have a
different competitive advantage. Some may charge more but provide higher-quality milk tea,
while others may charge less but provide lower-quality options. VegeTea is an innovative
product that competes by differentiating itself from other milk tea establishments with its
unique selling proposition of providing wholesome and delectable tea options. VegeTea
offers a healthier alternative that doesn't sacrifice taste, in contrast to standard milk tea
establishments that employ artificial flavors and additives. The company uses its dedication
to health and wellbeing to create a distinctive brand identity and build a loyal customer base.
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VegeTea is carving a special place in the market and distinguishing itself from rivals by
giving customers the choice of indulging in their love of milk tea without feeling guilty.

Market Share

Market Share

13%
VegeTea
33%
Sweet Leaf
26% Infinitea
Chang Tea

28%

Established competitors in the market including Sweet Leaf, Infinitea, and Chang Tea
pose a serious threat to VegeTea. However, the business's differentiating feature—the use
of milk substitutes made from vegetable sources—sets it apart from its rivals and enables it
to appeal to consumers who are health-conscious and carve out a niche for itself in the
market. VegeTea has the ability to take a sizable chunk of the market and establish
themselves as a major force in the sector with their creative approach to milk tea.

The beverage company VegeTea focuses on the creation and distribution of innovative
milk tea products. With 216,546 people living in Valencia City right now, there is a sizable
market for this kind of product. The majority of this population—roughly 62.06%, or 119,775
people—are in the 15- to 64-year-old age range. There is potential for growth in the
VegeTea business as it is an innovative product that offers a unique twist on traditional milk
tea. This could attract a new segment of consumers who are looking for healthier options or
who are interested in trying something new. Additionally, the trend towards plant-based
products and a focus on health and wellness could also drive demand for VegeTea.

Pricing Strategy

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 There is no standard price for the milk tea so the owner take into the account the
production cost, the labor and the overheads while setting up the price of the milk tea in
VegeTea business. The prices also vary on the cups sizes. 8onz’ size for ₱ 70.00, 12onz’
for ₱ 85.00 and ₱ 105.00 for the 16onz’ size.

Promotion

The owner will promote her business through the social platform, specifically
facebook since this social platform is the most cheapest way to market a newly built
business. Through facebook the business can engaged a lot of customers that can help
boost the business sales.

ORGANIZATION AND MANAGEMENT

Figure 1: VegeTea Business Organizational Chart

Job Description

VegeTea management team relies on its knowledge, skills, and experience to run the
business and carry out its specific tasks to ensure the current and future success of the
company. The following are the roles and key skills of the management team of VegeTea
business.

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Owner

Ms. Julean C. Labrador, the enterprising entrepreneur behind VegeTea, has a

captivating background rooted in a deep passion for culinary innovation and health-
conscious living. With an unwavering belief in the potential of plant-based ingredients, Ms.
Julean embarked on a transformative journey to revolutionize the beverage industry. Armed
with a diverse skill set acquired through culinary training and years of experience in the
health and wellness sector, her entrepreneurial spirit flourished when VegeTea was
established in 2023. With a visionary approach, she combined expertise in nutrition, flavor
profiles, and consumer trends to create VegeTea's unique line of milk teas infused with the
vibrant goodness of vegetables. Ms. Julean's relentless pursuit of excellence and
commitment to delivering exceptional taste, quality, and nutritional value has positioned
VegeTea as a trailblazing brand in the market.

Store Manager

Ms. Rigine Mae M. Natulla, the dedicated and accomplished store manager of
VegeTea, brings a wealth of experience and expertise to the role. With a strong background
in retail management and a genuine passion for health and wellness, Rigine has played a
pivotal role in VegeTea's success since joining the team. Having honed her skills through
various managerial positions in the food and beverage industry, Rigine possesses a keen
understanding of customer satisfaction and operational efficiency. Her exceptional
leadership qualities and ability to foster a positive work environment have led to a cohesive
team that consistently delivers outstanding service to VegeTea's valued customers. Rigine's
unwavering commitment to the brand's mission, coupled with her meticulous attention to
detail and excellent communication skills, ensures that each VegeTea store under her
guidance provides an inviting atmosphere where customers can indulge in the unique and
nutritious offerings with delight.

Barista

Mr. Jhonjay Pananganan, the talented and skilled barista of VegeTea, brings a rich
background in the art of coffee and beverage preparation to the team. With a passion for
crafting delightful and visually appealing beverages, his expertise elevates the experience
for VegeTea's valued customers. Having honed his skills through extensive training and
experience in renowned coffee establishments, he possesses a deep understanding of
flavor profiles, brewing techniques, and creative presentation. With his meticulous attention
to detail and a genuine desire to create the perfect cup of VegeTea's unique beverages, Mr.

9
Jhonjay ensures that every order is crafted with precision and care. His friendly demeanor
and passion for providing exceptional service contribute to the welcoming and enjoyable
atmosphere at VegeTea, making him an invaluable asset to the team and enhancing the
overall beverage experience for customers.

Cleaning maintenance staff

Ms. Jinie Rose M. Bulasa, the dedicated and meticulous cleaning maintenance
personnel of VegeTea, brings a wealth of experience and a strong work ethic to her role.
With a background in facility maintenance and a keen eye for cleanliness, Ms. Jinie plays a
vital role in upholding VegeTea's high standards of hygiene and sanitation. With previous
experience in the hospitality industry, Jinie has developed excellent organizational skills and
attention to detail, ensuring that every corner of VegeTea is spotless and welcoming for both
staff and customers. Her commitment to maintaining a clean and safe environment creates
a positive impression and contributes to the overall customer experience at VegeTea. Ms.
Jinie's hard work and dedication ensure that the store is always in pristine condition,
allowing customers to enjoy their VegeTea beverages in a comfortable and hygienic setting.

Cashier

Ms. Raichell Ann V. Baliga, the diligent and customer-oriented cashier at VegeTea,
brings a wealth of experience and a warm personality to her role. With a strong background
in customer service and a genuine passion for healthy living, she plays a vital role in
ensuring a seamless and enjoyable experience for every customer. With previous
experience in the food and beverage industry, she has developed excellent interpersonal
skills and a keen eye for detail. Her friendly demeanor and ability to handle transactions
efficiently create a welcoming atmosphere at VegeTea, where customers feel valued and
well taken care of. Ms. Raichell's dedication to providing exceptional service, combined with
her proficiency in handling cash operations, makes her an integral part of the VegeTea
team, contributing to the overall success and customer satisfaction of the business.

Staffing Requirements

As a growing business, VegeTea, requires a dedicated and efficient team to meet its
operational needs and provide exceptional customer service. With four employees working
directly under the owner, the staffing needs cover a wide range of responsibilities, and
everyone must be at least 18 years old and have the necessary abilities to carry out their
assigned duties. Ms. Julean C. Labrador, the proprietor, is in charge of the company's
overall operations, product development, and strategic planning. Rigine M. Natulla, the shop
10
manager, oversees the staff, guarantees efficient daily operations, and upholds a
commitment to providing excellent customer service. Raichell V. Baliga, the cashier,
manages transactions, helps customers, and makes sure the checkout process runs well.
Jhonjay Pananganan, a barista, is in charge of crafting the distinctive drinks at VegeTea
with exactitude, originality, and an emphasis on quality. Additionally, the cleaning
maintenance staff, Jinie M. Bulasa, ensures a clean and hygienic environment for both
customers and staff. Together, this team brings diverse skills, expertise, and a shared
commitment to VegeTea's success, providing a solid foundation for delivering an
outstanding beverage experience to customers.

Recruitment, Training, and Development

To build a strong and skilled team, the business implement a comprehensive

recruitment process. This will involve posting job openings on relevant platforms, conducting
interviews, and assessing candidates' qualifications and fit for the roles. The business owner
prioritize individuals who align with the business values and demonstrate a passion for
health-conscious living and customer service. Once hired, the business is committed to
provide a thorough training to the staff members. This will involve operating procedures,
customer service abilities, and product expertise. In order to keep the personnel informed of
new advancements and market trends and to ensure their continued growth and
development, the business will undertake ongoing training programs.

Remuneration/Incentives

The business believe in fair and competitive remuneration to attract and retain
talented staff members. The employees will receive salaries and wages commensurate with
their roles and responsibilities, in line with industry standards. In addition to salaries and
wages, the business provide fringe benefits such as health insurance, retirement plans, paid
time off, and employee discounts to enhance job satisfaction and overall well-being.

Required Licenses/Permits

To operate VegeTea in compliance with local regulations, certain licenses and

permits will be required. Including a business license, sanitary permits, BIR, and DTR. The
business will work closely with the appropriate government agencies and authorities to
obtain these licenses and permits. The costs associated with obtaining these licenses and
permits are estimated to total of ₱ 1,830.00.

11
 OPERATIONS AND DEVELOPMENT PLAN

Materials requirements and materials cost:

Knives are used to chop vegetables, fruits, and other ingredients that need to be
sliced or diced for the production of vegetable milk tea. It is available in the local malls here
in Valencia City with the price of ₱ 250.00 for two pcs.

Peelers are used to remove the skin of vegetables and fruits. They are helpful in
preparing ingredients that require skin removal before adding them to the vegetable milk tea
mixture. It is available in the local malls here in Valencia City with the price of ₱ 70.00 for
two pcs.

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 Measuring cups and spoons are used to measure precise amounts of ingredients
for the production of vegetable milk tea. They are essential to maintaining accurate
measurements of ingredients like sugar, powdered milk, and tea leaves. It is available in the
local malls here in Valencia City with the price of ₱ 450.00 for five pcs. of spoon and five
pcs. for cups.

A blender is used to blend and mix the ingredients of the vegetable milk tea to create
a smooth and consistent texture. It helps to blend ingredients like vegetables, and milk into
a finely processed mixture. It is available in the local malls here in Valencia City with the
price of ₱ 3,780.00 for two pcs.

A pearl cooker is used to cook the tapioca pearls that are included in the vegetable
milk tea. It has the capacity to cook tapioca pearls to the perfect consistency, which is
essential for making a delicious cup of vegetable milk tea. It is available in the local malls
here in Valencia City with the price of ₱ 2,000.00.

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 Containers are used to store the various ingredients that are used in the production
of vegetable milk tea. They help to keep the ingredients fresh and well-organized for easy
access during the production process. It is available in the local malls here in Valencia City
with the price of ₱ 500.00 for five pcs.

Ice crasher is used to crash the ice into smaller particles. It is available in the local
malls here in Valencia City with the price of ₱ 1,500.00.

Production process:

Step 1. Gather all the required ingredients, including carrots, cucumber, moringa leaves,
ginger, tea leaves, sugar, fresh milk or powdered milk, and tapioca pearls.

Step 2. Wash and peel the carrots, beetroots, and ginger. Then, chop them into small
pieces using a knife.

Step 3. Add the chopped vegetables to a blender, followed by the tea leaves, powdered
milk, and small amount of sugar. Blend until the mixture is smooth and fine.

Step 4. Cook the tapioca pearls in a pearl cooker, according to the instructions provided.

Step 5. Brew the tea from the blended mixture using hot water, and let it cool to room
temperature.

Step 6. Add the cooked tapioca pearls to a serving glass, followed by the blended mixture.

Step 7. Stir well and serve the vegetable milk tea with ice cubes fresh from ice crasher..

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 RISK REDUCTION STRATEGIES

A key component of running a successful food business is preparing for the worst. That’s
why it’s important for every business owners to conduct a risk analysis before even opening
for business. In this milk tea risk management, the owner identified seven strategies for
reducing the chances of an incident occurring, including effective risk management and
providing training to keep employees safe. The following are contingencies to prevent the
risk of our business.

Employee Training and Safety

The business prioritizes employee training and safety measures to mitigate the risk of
workplace accidents or injuries. It provides proper training on equipment operation, handling
of ingredients, and adherence to safety protocols. By creating a safe and healthy work
environment, VegeTea can minimize the risk of accidents, workers' compensation claims,
and potential disruptions to operations.

Quality Control and Hygiene

The business owner implements strict quality control measures at every stage of
production, from sourcing ingredients to packaging. Regularly conduct quality checks to
ensure the taste, texture, and quality of the vegetable milk tea are consistent. The business
personally trains its employees on proper food handling and safety practices, including
personal hygiene, equipment sanitation, and storage protocols. Regularly inspect and
maintain the production facilities to ensure they meet health and safety standards.

Supplier Diversification

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 VegeTea reduces its reliance on a single supplier by diversifying its network of ingredient
suppliers. Maintain relationships with multiple suppliers to ensure a consistent and
uninterrupted supply of ingredients.

Regular Equipment Maintenance

Implement a proactive equipment maintenance schedule to minimize the risk of

breakdowns or production interruptions. Regularly inspect and maintain machinery and
equipment to ensure optimal performance and prevent unexpected downtime. By investing
in preventive maintenance, VegeTea can avoid costly repairs and maintain smooth
operations.

Financial Monitoring and Planning

Regularly monitor financial performance, including cash flow, expenses, and revenue.
Implement sound financial planning and budgeting practices to ensure adequate funds are
available to cover operational costs and unexpected expenses. By maintaining financial
stability and visibility, VegeTea can better navigate economic uncertainties and minimize
financial risks.

Obtain Appropriate Licenses

Business Permit is a legal document that offers proof of compliance with certain city
or state laws regulating structural appearances and safety as well as the sale of products.
The business will cost ₱ 700.00 to obtain this permit.

DTI permit is required for any business entity operating in the country. It registers the
business name and provides legal recognition to the business entity for only ₱ 530.00. It
helps establish the legitimacy of the business and allows it to engage in commercial
activities.

The Sanitary Permit is obtained from the local health department or municipal office
for the amount of ₱ 100.00. It ensures that the VegeTea business meets specific health and
safety standards regarding food handling, preparation, and storage. Health officials inspect
the business premises to assess its compliance with sanitation and hygiene regulations.
The Sanitary Permit indicates that the VegeTea business has met the necessary health and
safety requirements to operate and serve food and beverages to customers.

The BIR permit is the registration with the Bureau of Internal Revenue, which is
responsible for the taxation system in the Philippines. It is necessary for businesses to
obtain a BIR permit to ensure compliance with tax regulations and obligations. The BIR
16
permit involves registering the business as a taxpayer, obtaining a Tax Identification
Number (TIN), and complying with tax filing and payment requirements. The BIR permit
allows the VegeTea business to operate legally and fulfill its tax responsibilities for only ₱
500.00.

FINANCIAL PLAN

Total Projected Pre-Operating Expenses

Business Permit and Licenses
Business Permit ₱ 700.00
Sanitary Permit ₱ 100.00
DTI Permit ₱ 530.00
BIR Permit ₱ 500.00
Total ₱ 1,830.00
Store Supplies
1 pcs. of Trashcan ₱ 89.00
Cleaning Materials ₱ 3,500.00
Record Book ₱ 199.04
1 dozen of Ballpen ₱ 120.00
Other Supplies ₱ 32,092.00
Total ₱ 36,000.04
Kitchen Tools
2 pcs. of Kitchen Knives (₱ 125.00 each) ₱ 250.00
2 pcs. of Peelers (₱ 35.00 each) ₱ 70.00
5 pcs. of Containers (₱ 100.00 each) ₱ 500.00

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2 pcs. of Plates (₱ 145.00 each) ₱ 290.00
5 pcs. of Measuring Cups (₱ 50.00 each) ₱ 250.00
5 pcs. of Measuring Spoon (₱ 40.00 each) ₱ 200.00
2 pcs. of Pitcher (₱ 40.00 each) ₱ 80.00
Total ₱ 1,640.00
Store Property, Plant and Equipment
1 Small Refrigerator ₱ 50,000.00
1 Ice Crasher ₱ 15,000.00
2 Blender (₱ 5,500.00 each) ₱ 11,000.00
1 Pearl Cooker ₱ 16,000.00
6 pcs. of Tables (₱ 3,500.00 each) ₱ 21,000.00
12 pcs. of Chairs (₱ 850.00 each) ₱ 10,200.00
1 Cash Register ₱ 60,000.00
1 Storage hardware ₱ 25,000.00
3 pcs. of small Cabinets (₱ 800.00 each) ₱ 28,800.00
Other Equipments ₱ 83,000.00
Total ₱ 320,000.00
Total Pre-Operating Expenses ₱ 359,470.04

Administrative Expenses
Monthly Salary Expense
Employees Name Salary
1. Rigine Mae M. Natulla (Store Manager) ₱ 15,000.00
2. Johnjay Pananganan (Barista) ₱ 9,230.00
3. Raichell Ann V. Baliga (Cashier) ₱ 9,230.00
4. Jinie Rose M. Bulasa (Cleaning Maintenance) ₱ 9,230.00
Total Monthly Salary Expenses ₱ 40,690.00

Annual Salary Expense for Year 2023

Month Monthly Salary
January 2023 ₱ 40,690.00
February 2023 ₱ 40,690.00
March 2023 ₱ 40,690.00

18
April 2023 ₱ 40,690.00
May 2023 ₱ 40,690.00
June 2023 ₱ 40,690.00
July 2023 ₱ 40,690.00
August 2023 ₱ 40,690.00
September 2023 ₱ 40,690.00
October 2023 ₱ 40,690.00
November 2023 ₱ 40,690.00
December 2023 ₱ 40,690.00
Annual Total ₱ 488,000.00

Annual Rent Expense for Year 2023

Month Monthly Rent Expense
January 2023 ₱ 15,000.00
February 2023 ₱ 15,000.00
March 2023 ₱ 15,000.00
April 2023 ₱ 15,000.00
May 2023 ₱ 15,000.00
June 2023 ₱ 15,000.00
July 2023 ₱ 15,000.00
August 2023 ₱ 15,000.00
September 2023 ₱ 15,000.00
October 2023 ₱ 15,000.00
November 2023 ₱ 15,000.00
December 2023 ₱ 15,000.00
Annual Total ₱ 180,000.00

Annual Utilities Expense for Year 2023

Month Monthly Utilities Expense
January 2023 ₱ 3,500.00
February 2023 ₱ 3,500.00
March 2023 ₱ 3,500.00
April 2023 ₱ 3,500.00

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May 2023 ₱ 3,500.00
June 2023 ₱ 3,500.00
July 2023 ₱ 3,500.00
August 2023 ₱ 3,500.00
September 2023 ₱ 3,500.00
October 2023 ₱ 3,500.00
November 2023 ₱ 3,500.00
December 2023 ₱ 3,500.00
Annual Total ₱ 42,000.00

Production Schedule
Annual Production for Year 2023
Month No. of Selling days per No. of units to be Total units to be
month produced per month produced per month
January 2023 26 45 1,170
February 2023 26 45 1,170
March 2023 26 45 1,170
April 2023 26 45 1,170
May 2023 26 45 1,170
June 2023 26 45 1,170
July 2023 26 45 1,170
August 2023 26 45 1,170
September 2023 26 45 1,170
October 2023 26 45 1,170
November 2023 26 45 1,170
December 2023 26 45 1,170
Total Annual Production in Units 14,040

Total Annual Production in Units for 5 Years

Annual
2023 14,040
2024 15,444
2025 16,988
2026 18,687

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 2027 20,546
Total 85,705
Note: Increase by 10% per year (assumption for sales increase)

Annual Sales Projection for Year 2023

Month No. of Price per unit Unit sold Total sales per
working per day month
days
January 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
February 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
March 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
April 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
May 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
June 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
July 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
August 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
September 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00

21
October 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
November 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
December 2023 26 ₱ 65.00 (8onz’) 20 ₱ 33,800.00
₱ 75.00 (12onz’) 15 ₱ 29,250.00
₱ 95.00 (16onz’) 10 ₱ 24,700.00
Total Annual Sales Projection for Year 2023 ₱ 1,053,000.00

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 Capitalization
Ms. Labrador’s capitalization is amounting to ₱ 500,000 she had a loan of ₱
350,000 to be paid fully after 5 years with a 10% interest every month. She also
added
₱ 150,000 of her own money as her additional investment.
Cost of Goods Sold ₱ 9,500.00
Projected Pre-Operational Expenses ₱ 359,470.04
Salary Expense (January 2023) ₱ 40,690.00
Rent Expense (January 2023) ₱ 15,000.00
Utilities Expense (January 2023) ₱ 3,500.00
Other Expenses ₱ 71,839.96
Total ₱ 500,000

Projected Statement of Comprehensive Income

VegeTea
Statement of Comprehensive Income
For the Year Ended December 31, 2023-2027
2023 2024 2025 2026 2027
Revenue
Sales ₱ 1,053,000 ₱ 1,158,300 ₱ 1,274,130 ₱ 1,401,543 ₱ 1,541,697.3

Less: Cost of ₱ 114,000 ₱ 121,980 ₱ 130,518.6 ₱ 139,654.90 ₱ 149,430.75

goods sold
Gross Profit ₱ 939,000 ₱ 1,036,320 ₱ 1,143,611.4 ₱ 1,261,888.1 ₱ 1,392,266.55

Expenses
Rent Expense ₱ 180,000 ₱ 183,600 ₱ 187,272 ₱ 191,017.44 ₱ 194,837.79

Interest Expense ₱ 6,999.96 ₱ 6,999.96 ₱ 6,999.96 ₱ 6,999.96 ₱ 6,999.96

Salaries Expense ₱ 488,000 ₱ 488,000 ₱ 488,000 ₱ 512,400 ₱ 538,020

Utilities Expense ₱ 42,000 ₱ 42,840 ₱ 43,696.8 ₱ 44,570.74 ₱ 45,462.15

Taxes and ₱ 1,830 ₱ 1,830 ₱ 1,830 ₱ 1,830 ₱ 1,830

Licenses
Insurance Expense ₱ 50,000 ₱ 50,000 ₱ 50,000 ₱ 50,000 ₱ 50,000

Other Expenses ₱ 10,000 ₱ 10,200 ₱ 10,404 ₱ 10,612.08 ₱ 10,824.32

Total Expenses ₱ 728,829.96 ₱ 733,469.96 ₱ 738,202.76 ₱ 767,430.22 ₱ 797,974.22

Net Profit ₱ 160,170.04 ₱ 252,850.04 ₱ 355,408.64 ₱ 444,457.88 ₱ 544,292,33

23
Projected Statement of Financial Position
VegeTea
Statement of Financial Position
For the Year Ended December 31, 2023-2027
2023 2024 2025 2026 2027

ASSETS
Current Assets
Cash on Hand ₱ 300,000 ₱ 345,000 ₱ 396,750 ₱ 456,262.5 ₱ 524,701.86

Accounts Receivable ₱ 30,000 ₱ 34,500 ₱ 39,675 ₱ 45,626.25 ₱ 52,470.19

Store Supplies ₱ 36,000.04 ₱ 41,400.05 ₱ 47,610.05 ₱ 54,751.56 ₱ 62,964.29

Total Current Assets ₱ 366,000.04 ₱ 420,900.05 ₱ 484,035.05 ₱ 556,640.31 ₱ 640,136.34

Non-Current Assets
Store Property& ₱ 320,000 ₱ 384,000 ₱ 460,800 ₱ 552,960 ₱ 663,552

Equip..
Accumulated Dep-Eqp (₱ 25,830) (₱ 30,996) (₱ 37,195.2) (₱ 44,634.24) (₱ 53,561.08)

Total Non-Current ₱ 294,170 ₱ 353,004 ₱ 423,604.8 ₱ 508,325.76 ₱ 609,990.92

Asset
Total Assets ₱ 660,170.04 ₱ 773,904.05 ₱ 907,639.85 ₱ 1,064,966.07 ₱
1,250,127.26

LIABILITIES
Current Liabilities
Accounts Payable ₱ 70,000 ₱ 70,000 ₱ 70,000 ₱ 70,000 ₱ 70,000

Total Current Liabilities ₱ 70,000 ₱ 70,000 ₱ 70,000 ₱ 70,000 ₱ 70,000

Total Liabilities ₱ 70,000 ₱ 70,000 ₱ 70,000 ₱ 70,000 ₱ 70,000

Owners’ Equity
J. Labrador’s Beg. Inv. ₱ 350,000 ₱ 540,170.04 ₱ 703,904.05 ₱ 837,639.85 ₱ 994,966.07

Add: Additional ₱ 150,000 - - - -

Invest…
Less: J. Labra..Drawing (₱ 70,000) (₱ 89,116.03) (₱ 221,672.84) (₱ 287,131.66) (₱ 359,131.14)

Add: Net Profit ₱ 160,170.04 ₱ 252,850.04 ₱ 355,408.64 ₱ 444,457.88 ₱ 544,292.33

Total Owners Equity ₱ 540,170.04 ₱ 703,904.05 ₱ 837,639.85 ₱ 994,966.07 ₱
1,180,126.93

Total Liabilities/O.E ₱ 660,170.04 ₱ 773,904.05 ₱ 907,639.85 ₱ 1,064,966.07 ₱

1,250,127.26

24
Projected Statement of Changes in Equity
VegeTea
Statement of Changes in Equity
For the Year Ended, December 31, 2023-2027
2023 2024 2025 2026 2027

J. Labrador, Jan 2023 ₱ 350,000 ₱ 350,000 ₱ 540,170.04 ₱ 703,904.05 ₱ 837,639.85

Add: Additional Invest… ₱ 150,000 - - - -

Net Income ₱ 160,170.04 ₱ 252,850.04 ₱ 355,408.64 ₱ 444,457.88 ₱ 544,292.33

Total Equity ₱ 660,170.04 ₱ 602,850.04 ₱ 895,578.68 ₱ 1,148,361.93 ₱

1,381,932.18
Less: Withdrawal (₱ 70,000) (₱ 89,116.03) (₱ 221,672.84) (₱ 287,131.66) (₱ 359,131.14)

J. Labrador, Dec ₱ 590,170.04 ₱ 513,734.01 ₱ 873,410.84 ₱ 861,230.27 ₱

1,022,801.04
31,2023

25