Business Proposal

Presented by:

Ituriaga, Allyson Angel D.

Lariosa, Kyla May M.

Liggayu, Marjie Shirlyn F.

Malayan, Jade Rose M.

Nadua, Jhon Lorenz U.

 A. Product Introduction

In the system of our world today, the usage of plastic materials is uprising. Every systematic

product in every industrial process firmly uses plastic materials such as plastic straws. Each year,

more than 400 million tonnes of plastic is produced to which 40% of that is single-used plastic

and 8% million tonnes of plastic enters the world's ocean each year by which most of it escapes

from land. It can be blown into the sea from ships and beaches, or carried there by rivers and

streams. The major problem of plastics is that it isn't biodegradable. It does not rot like paper or

organic materials but instead, it can hang around and it will not decompose in the system of the

environment for hundreds of years and the ecosystem is gradually affected by it as it prevails

within our lands. Plastic pollution is what brought us to create and to formulate a natural product

that comes organic and biodegradable materials such as banana stem and cornstarch and it is

called an E-Straw. Our represented product is very beneficial due to the fact that it is

biodegradable, it is a naturally made product, and it does not contain toxic chemicals. It is an all-

natural product unlike the plastic straws. E-Straws can make an impact to the whole world

indeed, it can influence the system of using plastic straws and can be treated as an alternative

product that does not include any toxic materials that can harm our environment further. In this

way, we can do our part in helping our Mother Nature and manage to at least reduce plastic

consumption and production.

B. Background of the Entrepreneurial Business and its purpose

Plastic straws have been around the business industry for years, utilizing it for the

consumption of various liquids and have become a standard material in most business ventures.

However, for years that have passed that plastic straws have been used, it had its effects stacked

against the environment and havoc amongst Mother Nature is evident today. We, as colleagues,

have witnessed the effects of a mere plastic straw towards the environment by which it affects

wildlife, causes pollution, emits toxic gas that disperses throughout the atmosphere, etc. We have

decided that we want to cease these negative effects from existing any further therefore; we

devised a plan on how to aid this dilemma by taking advantage of our specialties as mere

students. Since we all hail from the STEM strand, we thought about experimenting on certain

materials that can be of possible use in order to create a certain material that will become our

product. We have decided that in order to aid the negative effects of plastic straws towards the

environment, we are to create a straw that consists of materials that are eco-friendly and not

harmful to Mother Nature which can become a substitute for plastic straws. Through a series of

tests, we have concluded that the two main components that can be used in creating a material

for the straw are: banana stem fibre and cornstarch which are both biodegradable substances.

Thus, E-Straw is created and its main purpose is to become a substitute for plastics straws which

offer the same function. The major difference amongst the two is that E-Straws are

biodegradable and are perfectly safe for nature whereas plastic straws are not.
C. Core Product

Product Description

E-Straw is a biodegradable bioplastic straw that is made from incorporating puréed

banana stem fibre and cornstarch. Banana stem (Musa acuminate) is abundant in nature,

especially in tropical regions around the world like the Philippines, Central America, and India

and is commonly mistaken as trees yet are just giant herbs. Banana stems have a rich source of
fibre in its contents thus making it a good base for materials that require tensile strength and stiff

composition. Cornstarch acts as the glue of material as the addition of it enables the formation of

the base material used to create the actual product. What makes E-Straw eco-friendly is due to its

two main components wherein banana stem fibre and cornstarch can easily decompose and will

not harm nature in its process. There are other manufactured products that offer the same goal, to

reduce plastic pollution, however, the ingredients used to manufacture this product is what

differentiates it from other products such as bamboo straws, rice straws, and hay straws.

E-Straw is hollow but firm in texture and ranges from two different sizes: standard straw

and boba straw. It has two packaging styles to which some are packed by batch which contains

12 straws per pack of the same size and is sold in wholesale. The other packaging style includes

a set piece of two standard sized straw and one boba straw contained in a pouch. Every batch

and/or set piece is then distributed to several restaurant, boba shop, fast food chain, and café

owners on specified locations within Panay.

D. Materials\ Ingredients to be used

Ingredients Quantity Description

Banana Stem Fibre 300 grams It is a cylindrical stem which what is to be

considered as the trunk of a banana tree. It is also
rich source of fibre.
Cornstarch 125 grams It is a white, odourless, and tasteless powder
which has starch as its main component and is
used commonly as a thickening agent.
Water 1,280 grams/ It is a colourless, odourless, and tasteless liquid.
10 cups
 Equipment Description

Blender Is an electrical kitchen appliance that crashes

and emulsify food or other substances, this

equipment is used for our product to blend the

chopped banana stem until puréed in texture.

Weighing Scale Equipment used to measure the right amount

mass of an ingredient needed for the product.

Wax Paper A paper coated with wax that is resistant to

water, this is used

Cooking Pan Is a cooking utensil that has a flat bottom with

raised sides to hold the ingredients while

preparing. This is used to observe all the

remaining liquid from the banana stem after it

is blended.

Rolling Pin A food preparation utensil that has the shape of

a cylinder, used to flatten the banana stem after

formed into a dough.

Gas Stove A cooking appliance that is fuelled by

combustible gas, used to cook food.

Pot A round cooking container made out of metal;

this is used to boil the chopped banana stem.

Ladle It is a metal utensil that is used for stirring and

serving foods.
 Cleaver Knife Is a large and rectangular blade used to chop

the banana stem into cubes.

Oven It is an enclosed machine that emits heat and is

used for cooking, baking, and drying food.

Metal Straw Is a tube stainless steel used for drinking.

E. Method

Procedure

1. Chop the banana stem 2. Heat water in a pot and 3. Place chopped banana
into small cubes wait for it to boil. stem in the boiling water

5. Place the boiled 4.Remove the boiled

6. Place the pureed in a
banana stem in a blender banana stem from the
pan over low heat.
and blend until pureed heat and strain.

7. Add cornstarch
gradually to the puree 8. Take the dough out of 9. Flatten the kneaded
and mix until it forms a the heat and knead. dough mixture.
dough.

10. Make straws using a

12. Quality control 11. Bake
mold
 13. Pack quality control,
and store.

1. Chop the banana stem into small cubes

Using a weighing scale, measure exactly 300g of chopped banana stem. The sizes of the

cubes should not range below ½ inches; otherwise, it will affect the quality during the boiling

process.

2. Heat water in a pot and wait for it to boil

In a big pot, measure 1,280g or 10 cups of water. Place it over high heat and allow the

liquid to boil completely. Using lid would be advisable for this process.

3. Place chopped banana stem in the boiling water

When the water begins to boil, place in the 300g of chopped banana stem and submerge

them in the water. Set the timer to 15 minutes and wait for the banana stem to soften. After 15

minutes, check the texture of the banana stem using a fork. The indication if the banana stem is

ready is if the fork passes through easily. If the texture still feels hard, let it boil for 5 more

minutes.

4. Remove the boiled banana stem from the heat and strain
 After making sure that the boiled banana stem is of the right texture, remove the pot away

from the heat and strain out the excess water, leaving the boiled banana stem in the strainer.

Make sure to strain out as much liquid as possible.

5. Place the boiled banana stem in a blender and blend until puréed

The texture of the boiled banana stem should be completely mushy after blending and no chunks

should be visible. The blending process should not range further above 2 minutes for this

quantity.

6. Place the puréed banana stem in a pan over low heat

During the blending process, water may still exist in the puree therefore, it must be

simmered just enough for the excess water to evaporate. The pan should simmer over low heat

and the process must not take longer than 5 minutes.

7. Add cornstarch gradually to the puree and mix until it forms a dough

Over low heat, 100g of cornstarch must now be added gradually to the puree. The gradual

addition of cornstarch is crucial in this step since adding the cornstarch all at once will result to

cornstarch clumps forming in the dough.

8. Take the dough out of the heat and knead

Let the dough cool for 5 minutes before kneading. In the process of kneading the dough,

the remaining 25g of cornstarch is gradually added and incorporated into the banana stem and

cornstarch mixture. Knead the dough until no cornstarch is visible in the mixture.

9. Flatten the kneaded dough mixture

 Place a line of wax paper and situate the kneaded dough atop of it. Place another line of

wax paper on top of the dough and use a rolling pin to flatten and spread it evenly. The dough

must be rolled as thin as possible, almost paper thin.

10. Makes straws using a mold

Using a sharp knife, cut the dough in 2cm wide strips. Apply cornstarch on a metal straw

and roll it onto one strip. Form the dough around the metal straw and roll it in order to achieve a

smooth and even texture on the outside. Repeat this process for the rest of the strips.

11. Bake

Place the molded dough in the oven and bake them for 60 minutes at 248°F or 140°C.

After baking, let the product cool for 10 minutes. Then, take the product off of the molder/metal

straw gently.

12. Quality Control

Check each straw if there are any cracks or defects on its structure. Make sure that the

straws are free of holes or slits that may affect the passage of liquid in between them.

13. Pack, Quality Control, and Store

The straws are packed in a cotton drawstring pouch which must have 12 pieces of straws

per pouch. The straw sets have a similar packaging however; it must contain 2 standard-sized

straws and 1 boba straw per pouch. The quantity of straws in each pouch must be checked and

counted.
F. SWOT Analysis

STRENGHT

We created an organic product using one of the strongest natural fibres, these stems are usually

wasted after the banana harvest, so we found a way to avoid this waste activity which is very

eco-friendly, plastic free, chemical free, nontoxic and biodegradable, that it can help to reduce

the increase of pollution in our environment. It’s also very portable that buyers or users can bring

it with them anytime and anywhere. This organic straw is edible also, which lets people avoid

doing improper waste disposal.

WEAKNESSES

The weakness as observed in our E-straw product is, it can be only used 1 to 2 times only,

because it dumps after being exposed with liquid under a long period of time, especially if it used

on a hot beverage, lastly this organic straw can easily break when not used or stored properly

because of its hollow tube-like structure.

OPPORTUNITIES

Our logo is well constructed that it can attract our possible buyers. We can properly plant more

banana stem fibre during sunny season; it helps us create more organic straws that we need for

our loyal buyers and future buyers this lets our sales to increase. For more promotion we have

our own Facebook page to introduce people our product, since a lot of civilians today are active

on social media.
THREATS

We can’t properly grow enough banana stem fibre for our product during rainy season, which

can be the reason for our sales to decrease. There are a lot of competitors, especially that other

cafes or restaurants still prefers to use plastic straws. We’re also not the only option for people to

buy organic straws, since there are also a lot of competitors right now who also creates their own

product same like ours.

G. TARGET CUSTOMERS

Our target customers are all individuals specifically in the range from teens to adults; ages are

estimated around 12-50 years old of any gender. We aim to sell our straws to companies and

stores within Panay that are focused on selling foods and beverages specifically in urban places

where several stores and franchises of cafes, boba shops, restaurants, and fast food chains are

prominent such as in Kalibo, Aklan, San Jose Antique, Roxas City, and Iloilo City.

H. Value Proposition
E-Straw - Don't be plastic, Be Organic

E-Straw is created for the purpose of saving Mother Nature from the increasing rates if pollution

around the world. A simple biodegradable, eco-friendly, and nontoxic material might possibly

become the aid to pollution and global warming simply by serving as an alternative drinking

straw for plastic straws thus, the tagline “Don’t be Plastic, Be Organic”. Made from organic

materials, E-Straw serves its purpose as a drinking straw which showcases the absence of any

plastic material.

I. ESTIMATION OF PRODUCT

Materials Quantity Price

Oven 1 ₱ 3,936.00
Blender 1 ₱ 1,239.00
Weighing Scale 1 ₱ 300.00
Metal Straw 1 ₱ 100.00
Rolling Pin 1 ₱ 329.00
Gas Stove 1 ₱ 1,180.00
Pot 1 ₱ 720.00
Pan 1 ₱ 688.00
Ladle 1 ₱ 160.00
Cleaver Knife 1 ₱ 144.00
TOTAL ₱ 8,796.00
Materials Quantity Price
Wax Paper 1 roll ₱ 250.00
Cotton Drawstring Pouch 50 pcs. ₱ 370.00
Total ₱ 620.00

Ingredients Quantity Price

Banana Stem 300 g ₱ 90.00
Cornstarch 125 g ₱ 150.00
Water 1,280 g ₱ 25.00
TOTAL ₱ 265.00
 J. Estimation of Sales (Monthly)

12.17 x 1.20 (20%) = ₱15.00/pc.

1,150 straws/month x ₱15.00 = ₱17,250.00

K. Notes to FS (Annually)

a. Projected Sales

2021 Sales Quantity Sold (pcs) Sales Price Gross Sale Cost Per Unit (₱) Total Cost of Sales in (₱)

Report (₱) (₱)

E-Straw 13,800 ₱ 15.00 ₱ 207,000 ₱11.00 ₱151,800.00

Break-Even Analysis
E-Straw
For The period of: Jan 1, 2021 – December 31, 2021
Selling Price: ₱ 15.00
Break- Even Units: 3,900.00
Break- Even Sales: ₱ 58,500.00

Fixed Cost
Advertising ₱ 1,300.00

TOTAL FIXED COST (TFC) ₱ 1,300.00

Variable Cost
Cost of Goods Per Unit ₱ 11.00
Ingredients ₱ 265.00
Supplies ₱ 1,310.00
Water ₱ 425.00
Electricity ₱ 1,200.00
LPG ₱ 1,100.00
Labor ₱ 8,395.00
₱ 12, 695.00/ 1150 pcs. = ₱11.03
Total Variable Cost per Unit
Contribution Margin per unit (CM)= ₱15.00 - ₱11.00 = ₱4.00
Contribution Margin Ration (CMR)= ₱4.00/ ₱15.00 = 27%

Break-Even Point

1,300
Break-Even Units (X) = 325 pcs. x 12months = 3,900 pcs.
15− 4

Break-Even Sales (S) 3,900 x 15 = ₱ 58,500.00

b. List of Operation and Production Expenses (Annually)

Particular Amount (₱)

Advertising 15, 600.00

Labor 100,740.00

Utilities 32,700

Ingredients 3, 180.00

Supplies 15, 720.00

TOTAL 167,940.00

c. Pricing

₱12.17 x 1.20 (20%) = 14.604 = ₱15.00 per piece

d. Comprehension Scheme

Labor Rate Per Day No. of days work Cost Per Month Cost Per Year
1 worker ₱365.00 23 ₱8,395 ₱100,740

Income Statement
For the Year Ended Year 1 Year 2 Year 3
December 31, 2021
Sales ₱ 207,000.00 ₱ 414,000 ₱

Less: ₱ 167,940.00 ₱ 335,880 ₱

Cost of
Sales
Advertising ₱ 15, 600.00 ₱ 31,200.00 ₱ 46,800
Labor ₱ 100,740.00 ₱ 201,480.00 ₱ 302,220
Manufacturing ₱ 3,180.00 ₱ 6,360.00 ₱ 9,540
Supplies ₱ 15, 720.00 ₱ 31,440.00 ₱ 47,160
Utilities ₱ 32,700.00

Gross ₱ 39,060.00 ₱ 78,120 ₱

Profit

B. Income Statement

C.
 C. Cash Flow
For the Year Ended December 31, 2021

Start-up Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Month (₱)
Staring Cash Blance
50,000.00 26,000.0 28,747.00 31,494.00 34,241.00 36,988.00 39,735.00
0
Add: Positive Cash
Flows - 13,500.0 13,500.00 13,500.00 13,500.00 13,500.00 13,500.00
0
Less: Negative Cash
Flows 24,000.00 10,953.0 10,953.00 10,953.00 10,953.00 10,953.00 10,953.00
0
Add: Depreciation
- 200.00 200.00 200.00 200.00 200.00 200.00
Ending Cash
Balance 26,000.00 28,747.0 31,494.00 34,241.00 36,988.00 39,735.00 42,482.00
0
Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Staring Cash Blance

42,482.0 45,229.00 47,976.00 50,723.00 53,470.00 56,217.00

0
Add: Positive Cash
Flows 13,500.0 13,500.00 13,500.00 13,500.00 13,500.00 13,500.00
0
Less: Negative Cash
Flows 10,953.0 10,953.00 10,953.00 10,953.00 10,953.00 10,953.00
0
Add: Depreciation
200.00 200.00 200.00 200.00 200.00 200.00
Ending Cash 47,976.00 50,723.00 53,470.00 56,217.00
Balance 45,229.0 58,964.00
0
D. Balance Sheet

E-STRAW
Balance Sheet
For the Year Ended December 31, 2021

Assets
Cash ₱ 58,964.00
Account Receivable ₱ 20,000.00
Inventory ₱ 15,000.00

Total Current Assets ₱ 93,964.00

Noncurrent Assets
Equipment ₱ 8,796.00

Total Noncurrent Assets ₱ 8,796.00

TOTAL ₱ 102, 760

Liabilities
Accounts Payable to Supplier ₱ 15,295.00

Total Liabilities ₱ 15,295.00

Owner’s Equity ₱ 87,465.00

Total Liabilities and ₱ 102,760.00

Owner’s equity