Business Plan

Members:

Mary Faith Dalmino

Hechell Ann Duabe

Theresa Besedillas

Jhoana Rose Apid

Cynthia Oquendo

John Rey Tuazon

Kc Flejoles

Table of Contents
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TITLE PAGE
EXECUTIVE SUMMARY-------------------------------------------------------- 1-2
I. MARKETING PLAN

1.1 Description of the product ----------------------------------------------- 3

1.2 Comparison of the product with its competitors ---------------------- 3-4

1.3 Location -------------------------------------------------------------------- 4

1.4 Market Area ---------------------------------------------------------------- 4

1.5 Target Market --------------------------------------------------------------- 5

1.6 Selling Price per unit ------------------------------------------------------ 5

1.7 Sales Forecast ------------------------------------------------------------- 5-6

1.8 Marketing Strategy --------------------------------------- --------------- 6-7

1.9 Marketing Budget --------------------------------------------------------- 8

II. OPERATION PLAN

2.1 Production Process --------------------------------------------------------9

2.2 Fixed capital ------------------------------------------------------------- 9-10

2.3 Planned and Future Capacity ------------------------------------------- 10

2.4 Labor costs ----------------------------------------------------------------- 10

2.5 Supplies Costs -------------------------------------------------------------- 11

2.6 Cost of Raw Materials ----------------------------------------------------11

2.7 Production cost per unit ---------------------------------------------------12

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III. ORGANIZATIONAL PLAN

3.1 Form of Business --------------------------------------------------------- 13

3.2 Organizational chart ----------------------------------------------------- 13

3.3 Business Background of the Entrepreneur ------------------------- 13-14

3.4 Pre-Operating Activities ------------------------------------------------ 14

3.5 Pre-Operating Expenses -------------------------------------------------14

IV. FINANCIAL PLAN

Project Cost ----------------------------------------------------------------- 15-16

Projected Statement of Financial Position --------------------------------- 17

Liabilities and Owner’s Equity ---------------------------------------------- 18

Projected Statement of Profit and Loss ------------------------------------- 19

Projected Statement of Cash Flows ----------------------------------------- 20

V. SOCIO-ECONOMIC BENEFIT

APPENDICES

Executive Summary

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 The business will be known as Oquendo Enterprise which will be located at Brgy.

Banica Roxas City.The Enterprise will be offer Chili Garlic Paste with different types of

flavor amd will be distributed to various store in Roxas City and in some of the stores in

different municipalities in Capiz.

Oquendo’s Enterprise will be established as Sole proprietorship form of business

organization own by Ms.Oquendo.The proponent chose this kind of organization because it is

the simpliest and easiest business form to operate.

The product is a pantry staple in the kitchen.It is really fragrant and aromatic.It is

packed full of flavuor and can give that delicious kick of spice and extra depth of flavor to a

dish.

Based on the research and survey conducted by proponents, the demand analysis

show that 27% of the total target market is consist of stores, 50% online customers and 23%

are walk-in customers.

Nowadays, consumers gives inportance to affordable yet delightful taste.That are the

factor that Oquendo’s enterprise took advantage to develop a kind of product that could

satisfy the consumers.The primary ingredients of the Chili Garlic Paste is Chili pepper and

garlic that gives enormous health benefits.Garlic boost your immune system it also lowers

blood pressure so is good for person with hypertension. It is rich in minerals like phosphorus,

zinc, potassium, and magnesium. Vitamins C, K, Folate, niacin and thiamine.

(Pharmeasy.in.com).Chili peppers improves digestive health and metabolism, alleviates

migraines, may reduce risks of cancer, fights fungal infections, colds, and the flu, provides

joint pain relief, fights inflammation, supports cardiovascular health, may improve cognitive

functions, may improve longevity, promotes red blood cell growth, improve ocular health and

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keeps your hair and skin healthy and more.(www.conserve-energy-future.com/benefits-chili-

pepper.)

The proposed marketing plan includes the project strategy by supplying to distributors

in Roxas City and other municipalities.It is the primary strategy of Oquendo Enterprise.For

the advertising and promotion of business will promote the product through social media,

radio and words of mouth.

Php 212,300 will be the starting capital of the business which will come from the

personal savings of Ms.Oquendo.The business will only have 4 staff including the

owner/manager, 3 production workers and 1 driver.

The projected sales for its first year of operation is Php 1,715,000 from the total

production of 49,000 units that has expexted income of Php 1,131,083.33 for its first year of

operation.

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 I. MARKETING PLAN

1.1 Description of the Product

Oquendo’s Enterprise will sell hot, tangy, and aromatic chili garlic paste. Its main

ingredients are garlic, sugar, oil, crushed black pepper, and oyster sauce. The product will be

sold in 105g cans and have the company's logo.

Ms. Cynthia Oquendo is the owner of Oquendo's Enterprise. The company logo is derived

from her surname. The colors black and gold stand for

formality, power, abundance, and extravagance. The owner

desires to create a product that can be used in a variety of

recipes and cuisines and has a long shelf life. The

background color of the logo is gold, which symbolizes

attributes like success, wealth, passion, and accomplishment.

The owner's long-term goal is to create a profitable business and increase the amount of fresh

goods and services.

1.2 Comparison of the Product with its Competitors

Oquendo’s Enterprise competitors are other kinds of chili garlic paste such as chili

garlic oil, hot sauce and chili powder.These alternatives can provide similar heat and flavor to

chili garlic paste,but each has its own unique taste profile.The main competitors is Gakami

crab paste Capiz .This brand was popular now in Roxas City. These days, consumers place

equal value on products with delectable tastes. Oquendo's Enterprise built this type of product

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to meet their needs by utilizing these aspects..We have two variants and it is flavorful

combination,convenience, versatility, because the product can be used in a wide range of

recipes and cuisines, it also can have longer shelf life especially if stored properly and lastly

the health benefits of the primary ingredients which if the chili peppers contain

capsaicin,which may aid in metabolism and provide pain relief and Garlic is known for its

potential immune boosting properties and cardio-vascular benefits

1.3 Location

Oquendo’s Enterprise site will be situated at Brgy.Banica Roxas City, Capiz.The

owner chose the site for better and convenient delivery of the product to its reseller.

Also,providing job oppurtunities to the people within the area especially those housewife

who has no job.

1.4 Market Area

120 people participated in the survey that the proponent conducted; of these, 70 were

female and 50 were male; the majority of respondents were between the ages of 16 and 25,

with the remaining respondents being 25 or older. Half of the respondents were recruited

through social media platforms. Of the 120 respondents, 69 indicated that they would be

willing to purchase chili garlic paste due to its availability, flavor enhancement, adaptability,

ability to accommodate varying heat preferences, influence from different cultural cuisines,

and health benefits. Regarding cost, 79 people would be willing to spend between 30 and 100

pesos for the product, provided it was of high quality and most importantly, delicious taste.

Based on the results of the survey, the proponents decided to market the product.

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1.5 Target Market

Based on the research and surveys conducted by the prponents the demand analysis

shows that 50% of the total target market is consist of store, 27% online customers, and 23%

are walk-in customers.

Target Market
online customer Walk-in customers
27% 23%

store
50%

Walk-in customers store online customer

1.6 Selling Price per unit

Direct Materials 23.14

Direct Labor 1.69

Factory Overhead 0.07

Total 24.9

Mark-up on cost (29%) 10.1

Selling Price 35.00

1.7 Sales Forecast

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 Based on the demand and supply analysis, the following sales projections are made.

Assumptions includes 10 percent production per year.

1 Years Sales Projections

PRODUCTION
Sweet and Spicy 31,000
Extra Hot 18,000
Total units produced per year 49,000
Price 35.00
Total Sales Php 1,715,000

1.7 Marketing Strategy

Sales and profitability of a business are largely dependent on marketing, which is why

Oquendo's Enterprise will use a variety of promotional media, such as flyers and social

media. Social media marketing, which the company will aggressively promote on Facebook,

will have a significant impact on product sales. Because it provides so many advantages,

social media marketing has become a key component of business marketing strategies. Due to

social media's ability to disseminate information more quickly, connect with a wider

audience, and increase brand visibility, customer engagement, and revenue generation. The

enterprise intends to utilize flyers and leaflets as a tangible and appealing means of promoting

its products. These will be distributed in adjacent areas, such as community centers and local

shops, where our target market is likely to congregate.

The table below will shows the stores and schedule of distribution to intermediaries partners

that have been identified by the proponets that the product can be supply.

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Distribution Schedule

STORE ADDRESS DELIEVERY QUANTITY TOTAL/MONTH

SCHEDULE

Hechell’s Store Roxas City Monday 120 480

Flejoles Family Roxas City Monday 100 400

Store

Besedillas Roxas City Tuesday 150 600

Market

Dalmino Retail Ivisan Wednesday 130 520

Store

Apid store Panit an Thursday 70 280

Tuazon store Pontevedra Thursdsy 110 440

Lorenzo’s store Panay Friday 80 320

1.8 Marketing Budget

Promotional such as flyers/leafleats and outdoors campaign will be incur the
proprietor a total cost of Php. 1,500.00

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 II. OPERATIONAL PLAN

2.1 Production Process

Buy Grind Cook it Add all

Heat Set Packag
primar Chili until it Ingredi
oil over aside ing and
y Pepper turns ents
mediu and let Labelin
commo and golden and
m heat it cool g
dities Garlic brown mix it

The initial stage of production involves acquiring raw materials. Once all the

materials are assembled, peel the garlic gloves and chili and blend them. Next, heat the

vegetable oil in the casserole over medium heat. Add the garlic and chili peppers and cook for

5 to 10 minutes, or until they become fragrant and slightly softened. Then, add all the

ingredients and mix it. After the casserole turns golden brown, remove it from the heat, set it

aside, and allow it to cool. Taste the chili garlic paste and adjust the seasoning if necessary.

Once you're satisfied with the flavor, move on to the final step of packaging and labeling.2.2.

Fixed capital

Machiniries and

Equipment Quantity Cost per Unit Total Cost Useful Life

Blender 2 5,000 10,000 10 Years

Gas Tank 2 1,700 3,400 5 Years

Gas Stove 2 1,300 2,600 5 Years

Plastic Chair 4 units 365 1,460 5 Years

Wooden Table 4 units 650 1,300 5 Years

Casserole 2 950 1,900 5 Years

Ladle 2 75 150 5 Years

Syainless steel 5 pcs 45 225 5 Years

basin circle bowl
Wall Fan 2 750 1,500 5 Years

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 Knife 2 100 200 5 Years

Chopping board 2 60 120 5 Years

Tricycle 1 45,000 45,000 10 Years

Total M/E 67,855

2.3 Planned and Future Capacity

Production

Schedule/day Qty/day Monthly Yearly

Monday 230 920 11,040

Tuesday 160 640 7,680

Wednesday 150 600 7200

Thursday 190 760 9,120

Friday 120 480 5,760

Saturday 150 600 7,200

Total 1,014 4,083/4084 49,000

2.4 labor Costs

Personnel Daily Monthly Yearly

Manager/Owner 500 12,000 144,000

Production Workers 450 10,800 129,600

Driver 430 10,320 123,840

Total 1,380 33,120 397,440

2.5 Supplies Cost

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 Particular Quantity Price Total
Apron 5 pcs 50.00 250.00
Facemask 5 boxes 30.00 150.00
Gloves 5 boxes 110.00 550.00
Hairnet 10 pcs 15.00 115.00
Steel wool 10 pcs 10.00 100.00
Garbage bag 1 roll 30.00 30.00
Broom 2 pcs 50.00 100.00
Dustpan 2 pcs 40.00 80.00
Ballpen 1 box 70.00 70.00
Calculator 2 pcs 100.00 200.00
Bond Paper 5 ream 180.00 900.00
Folder 20 pcs 6.00 120.00
Clip 3 box 12.00 36.00
Record Book 5 pcs 60.00 300.00
Stapler 2 pcs 100.00 200.00
Total Supplies 3,201.00

2.6 Cost of Raw Materials

Direct Materials Costs per unit (105g)

Ingredients Composition Costs
Chili Pepper 33.33g 4
Garlic 16.7 g 2.67
Vegetables oil 50g 4.5
Sugar 3.5 3.33
Ground Black pepper 0.15g 0.33
Oyster Sauce 1.32 0.66
Packaging 1pc 5
Packaging Label 2.65
Total 105g 23.14

2.7 Production cost per unit

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 Direct Materials 23.14
Direct Labor 1.69
Factory Overhead 0.07
Total 24.9

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III. ORGANIZATIONAL PLAN

3.1 Form of Business

The business structure Oquendo's Enterprise will adopt is Sole Proprietorship. The

owner selected this structure because it is easy to set up and reasonably priced. It is also a

good option for first-time entrepreneurs because it gives the owner total control over all

business operations, flexibility in decision-making, flexibility in business direction, flexibility

in responding to changes in the market, and, most importantly, the right to keep all enterprise

profits.

3.2 Organizational Chart

Owner/Manager

Driver Production Worker

Three function are created as it showed at the chart.The enterprise will hire 3

production worker and 1 driver.The owner will take the managerial position and will be

accountable, responsible, and liable for the operations and performance of the business.

3.3 Business Background of the Entrepreneur

The proprietor of Oquendo's Enterprise, Ms. Cynthia Oquendo, was raised in Roxas

City, Capiz. Ever since she was in elementary school, she has dreamed of starting her own

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business and becoming a prosperous businesswoman. To that end, she studied business

administration at Hercor College, where she graduated a four year course and went on to

pursue her entrepreneurial dreams. Later, she planned and pursued the business she wanted to

build, naming it Oquendo's Enterprise. The chili garlic paste has a significant market

potential because it is a popular condiment in many different kinds of cuisine.

The proprietor will invest php 212,300 as the start up capital. The capital investment

of Oquendo’s Enterprise intended for the general operation and financial demands are all

from Ms.Oquendo personal savings.

3.4 Pre-Operating Activities

The owner will make a outdoor advertisement such as distributing flyers/leaflets, and

word of mouth.The owner will also going to have a radio and social media advertisement.

3.5 Pre-Operating Expense

Expense incurred in the pre-operating activites or adverstisement will be Php 1,500

for flyers and leaflets, Php 5,000 for the business registration and licenses, and Php 3,000 for

the receipts.

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IV. FINANCIAL PLAN

The total capital requirement to start the business is PHP which will be invested by

the owner

OQUENDO’S ENTERPRISE
Banica, Roxas City, Capiz
PROJECT COST
CHILI GARLIC PASTE
Pre-operating Expenses

Promotional Materials (Radio,Flyers,etc.) 1500

Official receipts 3000
Business Regestration and Licenses 5000
9500
Working Capital
Manufactoring Cost 106,328.25
Salaries and Wages 27,900

Light and Power 450

Supplies Expense 266.75

134,947

Fixed Capital

Blender 10,000
Gas tank 3,400
Gas Stove 2,600
Plastic chair 1,460
Wood Table 1,300
Casserole 1,900
Ladle 150
Stainless Prep Bowl 225
Wall Fan 1,500
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 Knife 200
Chopping Board 120
Tricycle 45,000

67,855
TOTAL PROJECT COST 212,300

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 OQUENDO’S ENTERPRISE
Banica Rocas,Capiz
STATEMENT OF FINANCIAL POSITION
For the period ended December 31, 20XX

Current Assets
Cash and Equivalents 52,711.17
TOTAL CURRENT ASSETS 52,711.17

Noncurrent Assets
Property Equipment net 67,855
TOTAL NONCURRENT ASSETS 67,855
TOTAL ASSETS 120,566.17

LIABILITIES AND OWNER’S EQUITY

Current liabilities
Income Tax Payable 25,247.5
TOTAL CURRENT LIABILITIES 25,247.5

Owner’s Equity
Oquendo,Beginning Capital -
Initial investment 212,300
Withdrawals (50,000)
Net Equity 162,300
Net Income 66,981.33
OQUENDO,ENDING CAPITAL 95,318.67
TOTAL LIABILITIES AND OWNER’S EQUITY 120,566.17

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 OQUENDO’S ENTERPRISE
Banica,Roxas, City, Capiz
STATEMENT OF INCOME AND EXPENSES
For the period ended December 31, 20XX

SALES 1,715,000

LESS cost of good sold 583,916.

GROSS INCOME 591,583.33

LESS

Pre-operating Expense 9,500

Salaries and Wages 397,440

Light and power 5,400

Taxes and licenses -

Supplies Expense 3,201

Depreciation 8,071
TOTAL 423,612

OPERATING INCOME 167,971.33

LESS Income Tax Expense 100,990

NET INCOME 66,981.33

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 OQUENDO’S ENTERPRISE
Banica,Roxas City,Capiz
STATEMENT OF CASHFLOWS
For the period ended December 31,20XX
Cash flows from operating activities
Net income 66,981.33
ADD:Depreciation 8,071
Total Cash Inflows 75,052.33
Changes in Working Capital
Increase (decrease)in income tax payable 25,247.5
NET CASH FLOWS-OPERATION 100,299.83

Cash flows from investing activities

Acquisition of property and equipment (67,855)
NET CASHFLOWS-INVESTMENT (67,855)

Cashflows from financing activities

Initial investment of the owner 212,300
Owners withdrawal (50,000)
NET CASH FLOW-FINANCE 162,300
TOTAL CASH FLOWS 194,744.83
Cash and equivalenrts,Beginning
CASH AND CASH EQUIVALENTS,ENDING 194,744.83

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 V. SOCIO ECONOMIC IMPACT

Contribution to the Economy

Roxas City,Capiz is one of the arising provinces in Region VI due to the fact that it

has a lot of citizens who starting their new businesses.As a new small manufacturing business

we aim tp increase the job opportunity to the community.The proposed business is not that as

big like others manufacturing business.We also looking forward to expand and build up more

branches to the other municipalities in Capiz to increase the job opportunity and lessen the

problem of unemployment.

Contributions to the Employees

.Employees plays a important role to the business as they contribute to an

organization’s success. This job opputunity are one of the benefits of business could offer to

people especially to their financial problems allowing them to to earn a living and support

themselves and family.Businesses also invest in the professional training programs, or

educational opportunities to enhance their skills and knowledge which benefits employees by

improving their career prospects.They do not just earn but they also take new challenges,

assume leadership roles, and develop valuable sli;;s which can lead to increased their jod

satisfaction and sense of fulfillment.All around, benefits of business play a crucial role in

furnishing to the personal development, financial stability, and well-being of their employees.

Contribtions to the Government

All successful businessman and large corporation also started as a small business.As a

new business man, in order to start up a business the proposed business are required to

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comply all the registration papers and documents.The compliance to the bureau of Internal

Revenue (BIR). By complying in BIR our business can generate tax revenues for local

governments which can nurture public infrastructure, services and fund education.In addition,

taxes also go to funding health services such as social healthcare, and social security.Tax is a

lifeblood of the governments without taxes, the government would be paralyzed for lack of

the motive power to activate and operate.

Contribution to the Beneficiaries

As a reasonable risk-taker business owner can be quite rewarding.It can provide

opportunities to generate profits and financial return to their investment if they are wise

enough to run the business.It allows to exercise control and make decisions regarding the

direction and strategy of the enterprise.It can enhance benefeciaries reputation and

status.Operating a business requires continious learning, problem solving, and decision-

making which can contribute to the development of valuable expertise and skills as well as

providing the benefeciaries professional growth.

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