Potato Twister

A Business Plan
Joem F. Nemenzo

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I. Executive Summary
Potato Twister offers an amazing potato snack known as “Tornado Potato” which is owned by
Joem Nemenzo, a Grade 12 Accountancy, Business and Management (ABM) Senior High School
student of the school beside the sea Fort San Pedro National High School.
Tornado potato is a snack which made of deep fried potato that is cut spirally and then serve
either with powdered cheese, sweet and spicy fishball sauce or ketchyonnaise (a mixture of ketchup
and mayonnaise). The said product is served in a bamboo skewer with price of ₱25.00 per serving.
Potato Twister is located at Fort San Pedro National High School Senior High School Building,
which is managed by the owner himself. The product is distributed through a first come first serve
basis.
Potato Twister can sell 40 servings of tornado potato daily which allows the owner to gain
₱1,000.00. Potato Twister serves 800 servings per month which allows the owner to gain
₱20,000.00. Potato Twister can serve 9,600 serving annually which allows the owner to gain
₱240,000.00.
Potato Twister offers a 10% off to every worth ₱500.00 of purchase of a single customer.
Potato Twister plans to increase its sales from the current ₱20,000.00 monthly to ₱ 30,000.00
monthly for the next 12 months. Thus, Potato Twister forecast increasing annual sales of
₱240,000.00 to ₱360,000.00 in the next 12 months.
Potato Twister has targeted to increase its production and sales to ₱30,000.00 monthly to
generate sales of ₱1,080,000.00 in 3 years. 2
II. Business Concept

The Filipino people is fond of eating, you can see them eating
everywhere like in the malls, parks, streets, and schools. This is the basis
why an ABM student of Fort San Pedro National High School decided to
sell a potato snack called tornado potato inside the school premise. The
students always eat the same foods they eat in the school canteen, thus
Potato Twister want them to taste a new product that will twist their taste
buds. Potato Twister will offer them a potato snack with a price ₱25.00
per serving the student can now enjoy the tasty and twisty tornado
potato.
The business is known as the Potato Twister, the name is derived
from the product itself which is twisted potato. Potato Twister was started
as a small business which continue to grow with the help of the
customers.

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III. Description of the Business

Tornado potatoes, also called twist potatoes or tornado fries is a

popular street food. It is a deep fried spiral-cut whole potato on a skewer,
brushed with various seasonings such as onion, cheese, or honey. Some
varieties have spliced sausages in between. Potato Twister put a Filipino
twist on the tornado potato, it is deep fried on bamboo skewer either with
powdered cheese, sweet and spicy fish ball sauce or ketchyonnaise (a
mixture of ketchup and mayonnaise). The said product is served in a
bamboo skewer with price of ₱25.00 per serving.
Potato Twister has its own stall that serves customer who comes to
the stall, the catering of its customer is first comes first serve basis that
allows them to be organized.

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IV. Target

Potato Twister plans to increase its sales from the current

₱20,000.00 monthly to ₱ 30,000.00 monthly for the next 12 months.
Thus, Potato Twister forecast increasing annual sales of ₱240,000.00 to
₱360,000.00 in the next 12 months.
Potato Twister has targeted to increase its production and sales to
₱30,000.00 monthly to generate sales of ₱1,080,000.00 in 3 years.

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V. Marketing Plan
A. Product
Tornado potato is a snack which made of deep fried potato that is cut spirally and then serve
either with powdered cheese, sweet and spicy fishball sauce or ketchyonnaise (a mixture of ketchup and
mayonnaise). The said product is served in a bamboo skewer with price of ₱25.00 per serving.
B. Price
The said product is served with price of ₱25.00 per serving.
The following are the prices of Potato Twister’s competitors:

Nene Chen’s Snack Bar - ₱30.00/stick

Jomar’s Food Cart - ₱35.00/stick
C. Place
Potato Twister is located at Fort San Pedro National High School Senior High School
Building.

D. Promotion
Potato Twister offers a 10% off to every worth ₱500.00 of purchase of a single customer.

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VI. Sales Plan
As of now Potato Twister has a sales of 800 servings per month. The production capacity can
produce a maximum of 1,200 tornado potatos monthly. With the price of ₱25.00 per stick, the
maximum potential sales of Potato Twister is ₱30,000.00 monthly or ₱360,000.00 annually.
ANNEX A shows the Sales and Cost Plan for Potato Twister’s current production and sales
volume. The total quantity of products that was sold out, expenses, taxes and profit per months will
going to be started in the ANNEX A.
ANNEX B shows the Maximum production and sales volume per month.
The total quantity of product that was sold out, expenses, taxes and profit per month will also
going to be started in the ANNEX B, yet in a maximum production. In the simpliest way the production
and sales will going to be more than the quota per day.
ANNEX C shows the target sales for the next three years. The table in ANNEX C is the target
production and sales volume for the next three years.

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VII. Production
To produce a great customer service, Potato Twister is aiming for customer’s satisfaction,
which caters the needs of each customer and serve according to what they wanted, also proper and
fair treatment will be observed.
ANNEX D shows the business process workflow of Potato Twister. The proper way of how to
avail the product will going to be started.

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VIII. Business Requirements
A. Staffing and Cost
The staffing compliment of the business and the salary schedule is shown in ANNEX E. The
salary of each staff and life benefit is stated.

B. Business Organization
The organizational structure of Potato Twister is very simple. This is shown below.

The staff are responsible for all the activities in the business.
C. Equipment
The business’s equipment and other asset are enumerated in ANNEX F.

D. Space Requirement
Potato Twister is located at Fort San Pedro National High School Senior High School
Building. The business layout is shown in ANNEX G.
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E. Other Costs
The projected other costs (operating cost) of the business for the next 12 months is shown in
ANNEX H. The major operating expenses are Butane (Gas) and Oil.

F. Business Inputs
The project raw material (business input) requirements for the next 12 months are
enumerated in ANNEX I. The raw material requirements are based on the increasing production during
the year. The major raw materials components are potato, powdered cheese, sweet and spicy fishball
sauce, ketchup, and mayonnaise.

G. Material Costs
The cost of the business inputs enumerated in the following above is shown in ANNEX J.

H. Depreciation
The depreciation computation of the business’s physical assets is shown in the
depreciation table in ANNEX K. The number of years of each equipments will last is stated.

I. Interest Costs
The business has a ₱3,000.00 loan from the owner’s family. This carries no interest and
payable over a 1-year period.

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IX. Sales and Costs Plan

The sales and costs plan (or Projected Income Statement) of

Potato Twister for the next 12 months is shown in ANNEX M.

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X. Sales and Costs Plan

The process of how the cash comes in and out inside the
business or specifically known as cash flow is shown in ANNEX
N.

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XI. Conclusion

Based on the evaluation of the market, the business has potential to

generate more profit. However, this is the premised up on scaling up
production and sales immediately.
It is the intention of Potato Twister to borrow ₱3,000 to fund the
expansion program. Given the funds the business can immediately scale
up production and serve the increasing market. Once the increased sales
are realized, Potato Twister will be very cash positive as shown in the
cash flow plan. The main reason it is experiencing cash flow problems it
is operating below capacity. Once production is optimized, then much
cash will flow in.
Annex O shows the amortization table for ₱3,000.00 loan at an interest of
0% per month and payable over one year period.

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