BUSINESS PLAN

SUNNY SIPS
CCDI Sorsogon
Rizal St, Sorsogon City
Sorsogon
+63 9317966863

Hilis Jessa D.

March 6, 2024
1.0 Executive Summary

Sorsogon City is known for the production of Coconut trees. Sorsogon

takes pride in the versatility of this "tree of life," providing sustenance,
materials, and inspiration for the local community.
Sunny Sips draws inspiration from the bountiful coconuts that grace the
landscapes of Sorsogon. Sunny Sips specifically focuses on the production and
distribution of coconut-based beverages. With a rising interest in tropical
flavours and wellness beverages, our coconut-based offerings are well-
positioned to capture market attention.
The business targets consumers seeking refreshing, all-natural
alternatives. Sunny Sips will constantly explore new flavour profiles and
packaging innovations in response to emerging trends. Market research and
consumer feedback guide our product development initiatives.
Jessa D. Hilis solely own the business and will be operated at the canteen
of CCDI Sorsogon. The owner will decide to sell the products to the students,
faculty, and staff of CCDI. With this, the expected profit of the business owner
will be achieved.
2. Description of the Business
Sunny Sips operates in the beverage industry, specifically within the natural and
refreshing coconut-based drinks segment. As people become more health-conscious and want
to beat the heat, there is a rising demand for beverages offering nutritional benefits.
Sunny Sips is all about delicious, healthy drinks made from coconuts. In a nutshell,
Sunny Sips is here to add a dash of health and happiness to your day. People love the idea of
sipping something healthy and versatile; this trend will allow this business to succeed.
Jessa D. Hilis will solely own sunny Sips and will be operated at CCDI Sorsogon,
ensuring accessibility for its target market. This structure allows for agility in decision-
making and close involvement in day-to-day operations. The business aims to create a
positive reputation for providing delicious natural beverages.
Sunny Sips's target customers are the students, faculty, and staff from CCDI
Sorsogon. The product is distributed through direct sales and is exploring online sales
channels to reach broader customers and adapt to changing consumer shopping habits.
2.1 Business Logo and Name
The name "Sunny Sips" is a fusion of two key elements that define the brand.
“Sunny” evokes feelings of brightness, warmth, and positivity. It is associated with the sunny
weather in Sorsogon, which inspired the business. “Sips” refers to taking small sips or
savouring a beverage. It adds a playful and enjoyable dimension to the name.
The business logo features a stylised coconut with its juice spilling, forming a
dynamic and cheerful visual. Inside the logo is the name of the business, and the tagline is
located at the bottom. The use of bright and lively colours reflects the tropical and energetic
feel associated with the brand.

3. Description of the product

 The products offered are beverages made from fresh coconuts. Sunny sips uses a
special recipe to create a delightful taste that sets this business apart, making each sip a
tropical escape. Packed with electrolytes and vitamins, our beverages provide a healthy
alternative to sugary drinks.
3.1 Detailed Usage Description:
a. Grab-and-Go Convenience: Packaged in convenient bottles, the beverages can
be enjoyed anywhere, anytime. With natural electrolytes
b. Workout Buddy: With natural electrolytes, Sunny Sips is a perfect post-workout
drink to rehydrate and replenish.
c. Daily Hydration: Sunny sips can swap out sugary sodas for a healthier option,
keeping the consumer refreshed throughout the day.
3.2 Profitability Factors:
The business owner will invest in state-of-the-art equipment to ensure the
highest quality and production efficiency, staying ahead of industry standards.
Beverages offered are affordable, making them accessible to a broad market while
maintaining healthy profit margins.
4. Market Strategies
Sunny Sips will operate in the natural beverage market, catering to health-conscious
consumers in CCDI seeking refreshing alternatives to sugary drinks. The business's target
market is the students, staff, and faculty of CCDI Sorsogon looking for tasty and nutritious
beverage options.
Through targeted marketing efforts and a commitment to customer satisfaction, the
business anticipates steady growth in market share, becoming a recognised name in the
natural beverage segment.
Sunny Sips positions itself as the go-to brand for authentic, tropical refreshments.
Sunny Sips positioning strategies include:
a. Authenticity: Emphasizing the genuine tropical flavour of beverages,
highlighting their natural and pure qualities.
b. Health and Wellness: Promoting the health benefits of coconut water,
positioning Sunny Sips as a healthier choice in the beverage market.
c. Sustainability: Sunny Sips' commitment to eco-friendly practices, appealing to
environmentally conscious consumers.
4.1 Pricing Strategy
At Sunny Sips, the owner will carefully craft the pricing strategy to align with the
target customers' preferences and maximize the target presence. The business will use the
Market Penetration approach since it is new in the industry, and it is essential to recognize
enticing customers with affordable prices. This approach creates an initial buzz and
encourages trial purchases.
4.2 Distribution Strategy
Sunny Sip's distribution strategy focuses on maximising accessibility to the
customers. It is available at the CCDI college campus at Rizal Street, Sorsogon City, ensuring
a direct connection with the customers. Customers can also avail of the product through
different online platforms like Facebook, Messenger, Instagram, and Telegram. Only
reservations will be made online, and the product will be given through pick-ups and meet-
ups.
4.3 Promotion Strategy
Effective promotion generates interest and curiosity among potential customers.
Sunny Sips will be using the following promotion strategies:
Social Media Advertising:
Social media platforms like Instagram, Facebook, and TikTok will be used to
showcase the brand personality, share customer feedback, and highlight the health
benefits of Sunny Sips.
Distribution of flyers
Provide a tangible and visually appealing way to convey information about the
prices, benefits, promos, and other information about the Sunny Sips.
5. Operations Plan
Sunny Sips will operate as a manufacturing business specializing in producing and
distributing natural coconut-based beverages. T
5.1. Business Model
Sunny Sip's business model emphasises a business-to-consumer approach through
direct purchase from the owner.
5.2. Production Process
Sunny Sips is committed to delivering a top-notch product that meets and exceeds
customer satisfaction. To achieve this, meticulous planning of the production process is
needed.

 Sourcing Quality Coconuts – look for local suppliers who offer affordable and
quality coconuts to ensure a steady and reliable source of fresh coconuts.
 Processing and Extraction – Coconuts will be processed using a blender to extract
the pure, natural juice. The production process prioritizes hygiene and quality control.
 Recipe Crafting – incorporate the unique recipe, balancing flavours to create a
refreshing and distinctive taste.
 Packaging – The finished product will be packed in eco-friendly containers,
considering sustainability in every aspect of the operations.
5.3 Supply Chain Management
To ensure the efficient flow of materials, production processes, and distribution
channels, the following Supply Chain Management should be made:

 Local Sourcing – Sunny Sips will prioritize sourcing fresh coconuts locally to
support the local community and to ensure a reliable supply of high-quality raw
materials.
 Supplier Relationships – Maintain a strong relationship with suppliers to ensure a
consistent flow of quality coconuts.
 Inventory Management – implement efficient inventory management to monitor
stock levels and minimize waste.
6. Management and Organization
6.1 Organizational Structure
Sunny Sips will hire two staff members to manage the production. The owner will be
positioned in the cashier for the meantime. Background checks will be considered when
hiring applicants.
6.2 Personnel

Year 1 Year 2 Year 3

Staff 1 ₱ 69,000 ₱ 75, 900 ₱87, 285
Staff 2 ₱ 69,000 ₱ 75, 900 ₱87, 285

6.3 Job Description and Function

Sunny Sips is a solely owned business, but the owner will hire staff to ensure the
business grows.
The owner will be the supervisor in charge of sourcing the supplies needed for the
business. S/he will monitor the profit and loss of the company for the whole year.
 The two staff that are hired will manage the production of the products. As Sunny
Sips grows, it aims to hire more staff to meet the market's demands.
7. Financial Plan:

7.1 Start-Up Capital / Project Cost

SUNNY SIPS

Project Cost/ Start-Up Capital

March XX, 2024

Fixed Assets

Store Equipment ₱2,000

Total Fixed Assets: ₱2, 000

Working Capital Supplies

Production ₱5,000

Total Supplies: ₱5,000

Overhead

Utilities ₱500

Salary ₱33,000

Contingency Fund ₱5,000

Total: ₱41,000

Pre- Operating Cost

Advt. Expense ₱700

Permit and License ₱8000

Total Pre-Operating Cost ₱8700

Total Project Cost ₱54,200

Breakdown of the Fixed Assets and Working Capital Supplies
Quantity Prices

Fixed Assets

Equipment:

Blender 2 pcs ₱1,000

Cooler One pc ₱1,000

Working Capital Supplies

Coconut 20 pcs ₱200

Condensed Milk 40 pcs ₱1, 840

Evaporated Milk 40 pcs ₱1, 800

Ice 100 pcs ₱500

Straw 100 pcs ₱75

Bottles 100 pcs ₱275

Stickers 100pcs ₱200

7.2 Product Cost Legend:

Cost and Pricing Analysis (Monthly) Daily Quota: 50 units

Monthly Quota : 1,500 units

Fixed Cost
Salary ₱9,000 Average Cost:
Depreciation ₱255.54
Total Fixed Cost: ₱11,955.5 Fixed Cost = 11,955.5 ÷ 1500
= 7.97
Variable Cost
Raw Materials ₱4, 890 Variable Cost = 23, 890 ÷ 1500
Electricity ₱1,000 = 15.92
Water ₱500

Total Average Cost:

7.97 + 15.93= 23.9

 Communication ₱600
Wages (250 x ₱11,500
2workers x 23 days)
Total Variable Cost: ₱23,890

Pricing without VAT and with a 100 % Mark Up

35.00 + 35.00 = ₱ 70.00

Pricing with 12% VAT

70 × .12 = 8.4

70 + 8.4 = 78.4 ₱ 79.00

7.3 Demand Sales Projection (daily)

Legend:

Demand: 50 person/ units a day

Price: ₱35 .00

Daily Sales = Demand × Price

= 50 units × ₱35.00
Daily Sales = ₱1750 daily

Monthly Sales = Demand × operation day × Price

= 50 units × 23 days × ₱35.00

Monthly Sales = ₱40,250 monthly

Yearly Sales = Demand × operation day × Price × 12 mos.

= 50 units × 23 days × ₱35.00 × 12 mos.

Monthly Sales = ₱483, 000 yearly
 Sunny Sips

Monthly Income Statement

March XX, 20XX

Sales: ₱40, 250

Less: Operating Expenses

Salaries and Wages ₱ 11, 500

Supplies Expense ₱ 4,890

Utility Expense ₱ 500

Depreciation Expense ₱ 255.54

Total Operating Expense: (₱ 17, 145.54)

Net Income ₱ 23, 104.46

If there’s a 30% Tax

Net Income ₱ 22,763.74

Return On Investment: ₱40,250 ÷ ₱54,200

Return On Investment = 0.74 / for every 1 peso, there is a 0 centavos returned.

8. Risk Management
8.1 Market Risks

 Fluctuations in demand
 Changing consumer preferences
 Increased competition

8.2 Operational Risks

 Supply chain disruptions

 Equipment Failures

8.3 Financial Risks

 Cash Flow issues

 Unexpected expenses

8.4 External Factor

 Natural Disasters

8.5 Mitigation Strategy

 Regularly reviewing and updating risk management plans.

 Conduct regular market research to stay updated on trends and consumer preferences.
 Establish strong relationships with reliable suppliers.
 Develop a comprehensive business continuity plan.