GROUP 3 BUSINESS BUDGET PLAN PROPOSAL

Prepared by: BSED SCIENCE 1.2

Brylle Ian Martin
Raelene Madriaga
Rachelle Saldivar
John Michael Aponte
Mika Daculan

Proposed business budget proposal 2024 Page 1

INTRODUCTION

Explore MMD Photo Studio's vibrant setting, where a blend of Korean-inspired

concepts and the latest trends cater to teenagers, couples, families, and Gen Z.
We offer a unique mix of self-photography and self-care services, ensuring an
immersive experience for our customers.

Guests at MMD Photo Studio can enjoy an exclusive self-photoshoot experience

and explore various affordable cosmetic options, transforming our space into
more than just a typical studio. We're dedicated to creating an exciting
atmosphere that resonates with modernity and embraces individuality.

Our proposal isn't just about business; it's about creating a welcoming space
where creativity and self-expression thrive.

Come be part of our journey as we redefine photography and foster a community

centered on innovative, personalized experiences.

Proposed business budget proposal 2024 Page 2

ABOUT OUR BUSINESS

 Type of Business: Personal Care and Services

 Business Category (MSME): Micro
 Business Location: Dos Castillas St. Manila, 1008
 Target Customers: Teenagers, Couples, Families and Gen Z
 Size of Workforce: 3 employees (1 Photo Editor / Cashier and 2 Studio
Assistants)

BUDGET PURPOSE

The primary purpose of this budget proposal for MMD Photo Studio, operating
within the Personal Care and Services sector and catering to teenagers, couples,
families, and Gen Z, is to optimize our services to meet the evolving demands of
our diverse customer base. This proposal aims to allocate funds strategically
towards enhancing the overall customer experience by upgrading our self-
photography and self-care services. The budget will specifically focus on
investing in innovative equipment, refining our facilities, and developing tailored
service packages that resonate with the preferences of our target demographics.
By allocating resources to these key areas, we aim to ensure that MMD Photo
Studio remains at the forefront of delivering exceptional, personalized
experiences that cater to the needs and desires of teenagers, couples, families,
and Gen Z.

Proposed business budget proposal 2024 Page 3

BUDGET – ONE TIME STARTUP COSTS

Business Space Renovation (Breakdown)

Type of Expense: Quantity Costs
Paint Gallon 4 5,000
Drywall Putty (to cover 2 360
holes)
Sandpaper 100 pcs (1 pack) 499
Brushes 8 pcs (different sizes 550
set)
Rollers 3 225
Paint trays 5 250
Microfiber roller 4 452
Paint kit (small can) 1 515
Flooring 60 x 60 / 36sqm = 100 28,710 (261 per tile)
pcs add 10 (110 pcs)
Cement 5 1,295
Grout 2 1,548

Renovations for Cosmetic Space

Type of Expense: Quantity Costs
Racks / Shelves 6 135,000

Materials and Equipment (Room Setup)

Type of Expense: Quantity Costs
Studio Softbox Umbrella 2 1,200
Light
Tripods 2 1,500
Camera for Photoshoot 1 40,000
TV-like Monitor 1 17,000
Remote Control 1 500
Full-body Mirror 1 2,200

Proposed business budget proposal 2024 Page 4

BUDGET – ONE TIME STARTUP COSTS
Cont.
Wooden Round Chair
White Cube Chairs
Backdrops with
background lifter
Mix Props for Photoshoot
(birthday themed,
Christmas themed, new
year themed, valentines
themed, Halloween
themed, graduation
themed etc.)- set
Editing Laptop
Printer
Type of Expense:
Mounted Ceiling Lights
Recessed Down Lights
Decorative Ceiling Lights
Installation fee (electrician) – 5,000
DTI (Business name registration Fee)
Proposed business budget proposal 2024
4 45 cm = 579 per chair
60 cm = 619 per chair
70 cm = 699 per chair
80 cm = 700 per chair
Total: 2,696 (4 chairs)
Set of 4 3,200
1 6,000
10 items per theme 5,000
(example: birthday
themed items include
birthday glasses,
hairbands, sashes and
crowns)
1 66,800
2 11,900
Lights (Built-in)
Quantity Costs
1 10,000
60 23,340
1 32,000
Business Permits
1,700
Page 5
BUDGET – BUSINESS INCORPORATION FEES
Business Registration Fees
Type of Expense: Costs
SEC Business Registration 6,750
Fee
Breakdown of SEC Business Registration Fee: Business Name Reservation for 90 days: ₱120 SEC Express Lane: ₱600 SEC
Registration Fee: ₱2,530 Stock Transfer Book: ₱500 BIR Documentary Stamps: ₱1,500 Notarial Fees: ₱1,500

Barangay Business Permit 200

Mayor’s Business Permit 2,000
BIR registration fee 530
Community Tax Ceritificate 50
Sanitary Permit to Operate 90
Fire Safety Inspection 50
Certificate

Proposed business budget proposal 2024 Page 6

BUDGET – MONTHLY RECURRING EXPENSES

Employee Compensation
Type of Expense: Quantity Costs
Employee Salary 13,213 pesos per 39,639
employee (total of 3
employees)

Employee Benefits
Type of Expense: Quantity Costs
Vacation Leave 15 days 19,819.50
Sick Leave 15 days 19,819.50
SSS, Pagibig and Philhealth (total deduction for all 4,133.34
employee per month)

Computation of monthly statutory salary deductions (for employees)

2% Pagibig, 585 SSS, 4%
Philhealth
13,213 (salary) x 0.02 (2
percent) value = 264.26
PAGIBIG
Pagibig - 264.26, 585 SSS,
528.52 Philhealth
13,213 (salary) x 0.04 (4
percent) value = 528.52
PHILHEALTH
1,377.78 per employee per month for total
deduction for monthly government
contribution
264.26 + 528.52 + 585 (SSS) = 1377.78 x 3
(employees) = 4,133.34 deduction per
employee

Proposed business budget proposal 2024 Page 7

BUDGET – MONTHLY RECURRING EXPENSES

Monthly Dues
Type of Expense: Costs
Space rent 20,000 per month
Electricity 10,000 per month
Water 3,000 per month
Internet PLDT Fiber Plan 2,699 per month
Application Fee for water - 9,563.00

Monthly Purchases
Type of Expense: Quantity Costs
High-end photopapers 50 packs (20 sheets 50 x 55 = 2,750
per pack)
Inks 2 sets (4 packs per set) 569 x 2 = 1,138
Local Cosmetic Products 1 (package) 20,000
(Lipsticks, blushes,
eyeshadows, mascaras,
contours, highlighters, etc.)

Proposed business budget proposal 2024 Page 8

TAX OBLIGATIONS

1. Income Tax Returns (ITR):

- Estimated annual income: ₱250,000
- Exemption status: Exempted from paying ITR in BIR

2. Value Added Tax (VAT):

- Estimated total sales per month: ₱20,000
- VAT rate: 12%
- Computed VAT: ₱2,400 (Calculation: ₱20,000 x (12/100))
- Total VAT to be paid in BIR: ₱2,400 per month

Note: The exemption from Income Tax Returns (ITR) is based on the estimated annual income of
₱250,000, and the computed VAT for total sales of ₱20,000 per month is ₱2,400 at a 12% VAT rate.

Proposed business budget proposal 2024 Page 9

BUDGET

One-time Startup costs: Php 414,003.00

Business Incorporation Fees: Php 9,670.00

Recurring Costs: Php 141,265.00

Proposed Budget Percentage

25%
One-time startup costs
Business Incorporation Fees
2% Recurring Costs

73%

TOTAL AMOUNT OF PROPOSED BUDGET: Php 564,938.00

Proposed business budget proposal 2024 Page 10

PERCENTAGE DISTRIBUTION

General Partnership Percentage (%) Distribution

Total Expenses: Php 564,938.00

% Allocation Contribution
Member 1 20% 112,987.60
Member 2 20% 112,978.60
Member 3 20% 112,978.60
Member 4 20% 112,978.60
Member 5 20% 112,978.60

Complete Solution
In getting the % Allocation of each member,
100 (total %) ÷ 5 (total members) = 20%

In getting the exact contribution of each member,

20 % of the total expenses = exact contribution of each members

20% of Php 564,938

20
20% = x 564,938
100
= 0.2 x 564,938
= 112,978.60

Therefore, based on the total expenses and general partnership percentage distribution, each member
must contribute at least Php 112,978.60 to establish our business.
Proposed business budget proposal 2024 Page 11

ABOUT BUSINESS CAPITAL

Liabilities:
- Utilities: ₱35,699 (1 month)
- Long-term liabilities: ₱414,003.00 (One-time start-up costs)
- Short-term Liabilities: ₱9,670 (Business Incorporation Fees)
- Taxes: ₱2,400 (1 month)
- Accounts payable: ₱23,888 (Estimated monthly purchases of products)

Assets:
- Contributed capital: ₱564,938
- Accounts Receivable: ₱20,000 (Estimated monthly sales)
Total Business Capital: ₱1,070,598

With the estimated total expenses, how much capital should the partnership have, to pay for its day-
to-day operations and/or grow and expand this business?

The business's liabilities encompass ₱35,699 for utilities (1 month), ₱414,003.00 for long-term liabilities
(one-time start-up costs), ₱9,670 for short-term liabilities (business incorporation fees), ₱2,400 for
taxes (1 month), and ₱23,888 for accounts payable (monthly purchases of products). On the assets
side, the business holds ₱564,938 as contributed capital and ₱20,000 in accounts receivable (estimated
monthly sales). Therefore, the total business capital that the partnership needs to pay for its day-to-
day operations and facilitate growth and expansion is ₱1,070,598.

Proposed business budget proposal 2024 Page 12