BUSINESS PLAN

Filling the Appetite and Hearts of People

Submitted By:

STEM 12 – 03

LEE, Wui Chak Austin V. MORALES, Reuben Ian M.

LUNA, Jhon Carlo C. NAYVE, Andrei R.

MAPILI, Fernan Gerald A. OCTAVIANO, Piann Cheska Marie N

MEPANIA, Charles Windsor D. PARALES, Marinel M.

MORALES, Elaiza Raye R. RICALDE, Josh Marc R.

stempanada@gmail.com

Submitted To:

Ms. Marieta V. Canencia

Submitted On:

October 20, 2018

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 TABLE OF CONTENTS

i. COVER PAGE…………………………..………………………………………..………….1

ii. TABLE OF CONTENTS………………………………………………………….…………2

I. INTRODUCTION………………………………………………………………………….3-4

II. THE EXECUTIVE SUMMARY…………………………………………………....………..5

III. THE BUSINESS PROPONENTS: ORGANIZERS

WITH THEIR CAPABILITIES AND CONTRIBUTIONS…………………......……….5-8

IV. THE TARGET CUSTOMERS AND THE MAIN VALUE

PROPOSITION TO THE CUSTOMERS………………………………………….........8

V. MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS,

MICRO AND MACRO ENVIRONMENTAL FACTORS……………………………..9-10

VI. THE PRODUCT AND SERVICE

OFFERINGS……………………………………………………………..…………….......10

VII. ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEM………...11-12

VIII. THE FINANCIAL FORECASTS AND EXPECTED RETURNS,

RISKS AND CONTINGENCIES……………………………………...………………12-14

IX. ENVIRONMENTAL AND REGULATORY COMPLIANCE…………………..…...14-16

X. THE CAPITAL STRUCTURE AND FINANCIAL OFFERING…………………….16-17

XI. APPENDICES…………………………………………………………………….........18-27

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I. INTRODUCTION

A. The Business Concept and the Business Model

Stempanada is a food stall that is selling different kinds of empanada that will be

located inside the RFC, Molino. The target customers of our business are the people

who visits RFC Molino. The people who work and visits RFC Molino for either recreation

or for shopping. This business aims to provide healthy, delicious and affordable snacks.

The menu that we will provide to the customers is the different varieties of empanadas

such as: Tuna empanada, Tuna-cheese empanada, Pork empanada, Chicken

empanada, Sisig empanada and more empanadas to offer; we also offer a variety of

snacks including sandwiches, chips, and tacos.

Stempanada offers high quality empanadas that will surely fit your taste. We

assure you that our food is freshly cooked and tasty. It has varieties of empanadas that

caters all the customers with a budget-friendly environment and satisfying foods. It offers

good services with an eco-friendly environment for the customers to be comfortable.

B. The Business Goals: Vision, Mission, Objectives, and Performance Targets

Mission

Stempanada is a food stall business that will fulfill everyone’s craving with the

various types of empanadas we offer. It aims to provide healthy, delicious and affordable

snacks for everyone.

We strive to fill not only the appetite but also the hearts of the people and

connect with them through a healthy and flavorful food.

Vision

Stempanada aims to be one of the best seller of empanadas and snacks inside

the RFC Molino. It shall provide the customers a healthy, delicious and affordable snack.

It shall emerge as the tastiest and affordable food stall that offers various snacks

prepared with best quality. Our providence in this industry is to revive the classic

empanada bread and make it intriguing and exciting by innovating new flavors and

ingredients in it.

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 Objectives

Stempanada aims to establish a presence as a successful food stall in Molino.

This business also aims to expand into a number of branches by year three, and sell the

franchise to neighboring cities, such as Imus, Damariñas, and more. We aim to fulfill the

customers craving for high quality but affordable food and aspire to keep our valuable

customers satisfied through our business standards and services as we promise to

maintain an honest, clean and harmless environment for everyone.

Performance Targets

Stempanada focuses a provision of a variety of empanadas and snacks that

caters to people of all background with its unique taste and affordable price. This is one

of our commitments as this will serve delectable quality food with delightful taste in

affordable price. The goal is to successfully build a business that will fill the appetite of

the stomach and the heart. One of the goals of Stempanada is to serve a unique and

new take on empanada in the Molino area. The whole team is expected to unite

together as one to attain and achieve all the aspirations and goals of the business.

C. The Business Offering and Justification

Stempanada will be advertised through posters and through any social media

sites. As our advertisements have spread to different social media such as Facebook,

Twitter, Instagram, and many more, people can be easily locate us. We will satisfy the

appetite of the stomach and the heart. We will provide customers a variety of

empanadas such as Tuna empanada, Tuna-cheese empanada, Pork empanada,

Chicken empanada, Sisig empanada and many more. We also offer a variety of snacks

including sandwiches, chips, and tacos. The food stall business only requires a small

capital since the products and the materials are not too costly. Stempanada food stall

can be built in a low cost way by providing and using cheap materials yet with quality.

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II. EXECUTIVE SUMMARY

The idea of Stempanada can be identified as a business that provides the

service of allowing customers who are living an exceptionally busy life-style a fresh and

convenient way to enjoy healthy, delicious and affordable snacks.

The location of our business will be located at RFC, Molino. A growing mall in

Bacoor. Our main target audience are the people who visits the mall. Since there has not

been a stall that sells empanada and because of our unique selling point which is the

different take of Filipino empanada we will be able to grow and be successful in our

endeavors

The initial capital of our business is ₱2.5 million. The business will be funded by

my own savings and part of my families savings. The funds will be used to pay for the

purchase of the stall and the equipment. The funds will also be used to purchase the

ingredients for our product and will be used to partner up with the local makets. With the

projected growth in sales, it will allow Stempanada to successfully open and expand

through year two. The initial capital investment will allow Stempanada to provide its

customers with a value-driven, tasty experience through the uniqueness and

innovativeness of the product.

Stempanada will entice youngsters to bring their friends and family with our

unique and delicious products, freshly made Empanada, and selection of snacks. Our

supply will be obtained through markets local and we will only buy organic ingredients.

Organic food will often cost less than the non-organic equivalent. That is why we are

going to buy the products from a local market where the freshly produced ingredients

from a local market are being delivered.

III. THE BUSINESS PROPONENTS: ORGANIZERS WITH THEIR CAPABILITIES AND

CONTRIBUTIONS

A. Resource mobilizers and financial backers

Resource mobilization involves securing new and additional resources. The

resource mobilizers of the organization are the general manager, Piann Cheska Marie

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 Octaviano and the production team led by Elaiza Raye R. Morales. The organization

ensures to mobilize the resources because it allows for improvement and scale-up of

products and services the organization currently provides. However, a financial backer

does not exist in this business because Stempanada is a small business and has one

branch only. Stempanada does not need to have a financial support in another person.

B. Technology providers and applicators

The second type of stakeholders is the Technology Providers and Applicators in

which our business, Stempanada do not need it at all since it is only a small scale

business. It is not necessary for us to have Technology providers and Applicators

because the production of our product can be handled by home appliances also our

team can advertise our own product to the market by Internet advertising and Print

Publications. We will use Internet advertising, since a lot of people were active on

social media such as Facebook, Twitter, and Instagram etc. We will use it to persuade

and have different promotional strategy to convince the people to buy our product.

While in Print publications, we will distribute some flyers to the people out there to have

an idea or knowledge about our product.

C. Governance & Top Management

The Top Management will be led by the managers of three sections of the team

and the general manager. The top managers will make decisions that affect everyone

in the organization and hold the responsibility for the success of the organization.

D. Operating and Support team

The team is consisting of five people to work together as one group. The team

is divided into three sections which is the Production team, Marketing Team and the

financial team.

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 Organizational Chart

GENERAL MANAGER
Piann Cheska Marie
Octaviano

FINANCE PRODUCTION MARKETING

"FOOD PRODUCTION" HEAD:

HEAD:
HEAD: Charles Windsor D.
Marinel M. Parales
Elaiza Raye R. Morales Mepania

"SERVERS" "MAINTENANCE"
HEAD: HEAD:
Reuben Ian M. Morales Fernan Gerald A. Mapili

Piann Cheska Marie Octaviano is the General Manager who oversees managing

the whole team into their own stations and assigning them to their own works. While in

the Production team, this team set to work to improve the efficiency of the production so

that it can meet the output targets set by the business and ensure finished products will

be offered to consumers by the best value and quality products. To set the work

efficiency of the production, The Production is divided into three parts which is the (a)

Cook, (b) Servers and the (c) Maintenance.

The Food Production or the cook is handled by Elaiza Raye R. Morales, who

are responsible for cooking the products and ensuring that the food that they’re providing

will have the best quality food products. The work of the cooks will not be complete with

the help of the Servers or what is most usually responsible for preparing and serving the

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 cooked products that is handled by Reuben Ian M. Morales. The Maintenance or what

is most usually in charge with carrying, bagging, cutting and heavy workloads consist of

a person fit to do their job which is Fernan Gerald A. Mapili.

Another section is the Marketing, which consist of Charles Windsor D. Mepania

that is responsible for promoting the products, ideas and mission of the enterprise. The

last section goes to the Financial which consist of Marinel M. Parales that is responsible

for monitoring and managing the finances of the business proficiently. The whole team is

designated to do their roles and task efficiently to work as a one group in order to

achieve the goals set by the mission and vision of Stempanada business.

IV. THE TARGET CUSTOMERS AND THE MAIN VALUE PROPOSITION TO THE

CUSTOMERS

According to a 2015 census, Bacoor City has a population of more than 600,609.

The snack market around RFC, Molino is still at its infancy. The snack market around

RFC, Molino is growing. The target audience of our business are the people who visits

RFC, Molino. The people who work and visit RFC, Molino usually buys food from the

stall located there and RFC, Molino is known for the different snacks stalls it has. There

is no specified target gender because as long as they have interest in eating street foods

they will be our target customers.

We will also have a secondary target market that can schedule the order online

with the use of social media like Facebook and Instagram. It can help our product to be

promoted and gain more customers.

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V. MARKET DEMAND AND SUPPLY, INDUSTRY DYNAMICS, MICRO AND MACRO

ENVIRONMENTAL FACTORS

A. Strengths

Stempanada's primary target market will be individuals wanting to buy on-the-go

quality food on budget. Price of the product depends on the raw materials used in

creating the product. With this, the enterprise seeks to utilize products that are low cost

but high in quality so in buying the products, the consumers are ensured to be paying

entirely on the food itself and would not add cost on the packaging, delivery and

industries that supplies the raw materials. Affordability and quality would be one of the

strengths of the enterprise.

Moreover, the entrepreneurs seek to pique the interest of the consumers in

increasing the sales since the food business would always revolve around the interest of

the consumers themselves to patronize the product. Bundled promos and discount

bundles are offered that will earn the interest and loyalty of the buyers to continue buying

the product. With this, service to customers would be one of its top priority and edge

over competitors.

B. Weaknesses

Stempanada has many concept ideas for future product development and

improvement. Two major initiatives, however, have been classified as urgent. First is to

enhance our distribution network, and the last one is to upgrade the business product so

consumers are always expecting for breakthrough flavors.

C. Opportunities

The business' opportunities includes assessing the consumer population, tastes,

and social structure through continuous research and innovation of products and

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 services that will keep up with the growing needs of the buyers and advancements in the

business environment.

Use of social media to appeal to the customers will also aim to generate potential

buyers and increase the popularity of Stempanada.

D. Threats

Competition within the empanada business is tight as more potential competitors

in the same type of business continually emerges.

Analysis on the competition within this market environment showed advantages

of the competitors to utilize new technologies that would enhance the quality and

delivery of food as well as the good managing skills inside the enterprise.

VI. THE PRODUCT AND SERVICE OFFERINGS

Stempanada is a business that falls in the food industry with empanada as the

main product. The business will be serving through a food stall that offers a wide variety

of flavored empanadas. The business has many to offer in to the customers not only

different types of empanadas but also different kinds of snacks.

The menu that we will provide to the customers is the different varieties of

empanadas such as: Tuna empanada, Tuna-cheese empanada, Pork empanada,

Chicken empanada, Sisig empanada and more empanadas to offer but we also offer a

variety of snacks including sandwiches, chips, and taco. We offer high quality

empanadas that will surely fit your taste. We assure you that our foods are freshly

cooked and new. The prices depend on the package that they choose or order.

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VII. ENTERPRISE STRATEGY AND ENTERPRISE DELIVERY SYSTEM

Enterprise Strategy

Stempanada’s strategy is based upon its location and serving. Located inside the

premises of RFC Mall where highly dense population of consumers can be found, can easily

spot the food stall that will satisfy their cravings on wide variety of empanada flavor.

Enterprise Delivery System

A. Input

In the Stempanada business, the money was spent on buying the ingredients that is

needed on making an empanada and its wide variety of flavors. Human equipment and tools

such as cooking equipments, and other accessories.

B. Throughput

Our team will spend 1,143,344.17 pesos a year for ingredients and materials which is

enough for to create 120,500 pieces of empanadas. The filling and the crust of the empanada

will first be created and then will be fried. We are going to sell each for 25 pesos.

C. Output

After the production of empanadas and its packaging, Stempanada will offer an

empanada that will satisfy the cravings and hunger of customers with its wide variety of flavors

i.e. (Tuna-Cheese empanada, Pork empanada and more empanada flavors).

D. Marketing

We will advertise our business through social media by posting a preview of our product

and by describing how delicious it is to gain customers’ attention for them to try our delicious

product.

E. Desired Outcomes

Our business Stempanada expects the customers to give a both positive and negative

feedbacks. The business will accept any negative feedbacks as it will help us develop

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furthermore. We also expect our business to grow and attract investors to further innovate and

regulate the business.

Input Throughput Output Marketing Desired

Outcomes
Money Processing Tuna empanada Packaging Customer
Manpower Management Tuna-cheese Place satisfaction
Materials empanada Price High financial
Ingredients Pork empanada Product returns
Chicken empanada Positioning High sales
Sisig empanada People volume
sandwiches, Promotion People
chips productivity
tacos.

VIII. THE FINANCIAL FORECASTS AND ECPECTED RETURNS, RISKS AND

CONTIGENCIES

A. Sales Forecast 2018-2019

Sales Forecast 2018-2019

25000

20000

15000

10000

5000

2018 2019

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B. Income Statement in Pesos (2018-2019)

2018 2019

Sales 3,012,500.00 5,125,000.00

Less Cost of Goods Sold:

Materials 1,143,344.17 1,945,108.33

Labor 606,000.00 606,000.00

Total Cost of Goods Sold (1,749,344.17) (2,551,108.33)

Gross Profit 1,263,155.83 2,573,891.67

Less Operating Expenses:

Rent 240,000.00 240,000.00

Water and Electricity 60,000.00 84,000.00

Supplies Expenses 24,000.00 36,000.00

Transportation Expenses 12,000.00 18,000.00

Utilities Expenses 6,000.00 12,000.00

Printing and Stationary 2,400.00 6,000.00

Total Operating Expenses (344,400.00) (396,000.00)

Profit (before tax) 918,755.83 2,177,891.67

25% Tax (229,688.96) (544,472.92)

Net Profit ₱689,066.87 ₱1,633,418

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 C. Cash Flow 2018-2019

2018 2019

CASH INFLOWS

Initial Capital 2,500,000.00 3,195,066.87

Cash Sales 3,012,500.00 5,125,000.00

Other Income 6,000.00 12.000.00

Sub total 5,518,500.00 8,322,066.87

CASH OUTFLOWS

Materials 1,143,344.17 1,945,108.33

Labor 606,000.00 606,000.00

Operating Expenses 344,400.00 396,000.00

Tax 229,688.96 544,472.92

Sub total 2,323,433.13 3,491,581.25

NET CASH FLOW ₱3,195,066.87 ₱4,840,485.62

IX. ENVIRONMENTAL AND REGULATORY COMPLIANCE

Requirements for New Business

1. DTI or SEC Registration 2. Barangay Business Clearance

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 3. Occupancy Permit per Building 4. Real Property Tax Payment

Code requirement

5. Contract

of Lease

The Environmental Protection Agency (EPA) has put the following acts in place to

oversee and regulate the impact that businesses have on the environment:

 the Clean Air Act

 the Clean Water Act

 the Safe Drinking Water Act

 the Resource Conservation and Recovery Act

 the Emergency Planning and Community Right-to-Know Act

 the Pollution Prevention Act

 The Toxic Substance Control Act.

Every one of the above demonstrations has particular controls and prerequisites that

organizations must take after, and a survey of each is imperative for all entrepreneurs. In any

case, the EPA's controls are regularly hard to comprehend if not separated into easier terms

and useful applications.

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 Therefore, numerous private company backing bunches have campaigned to make laws

and confinements to ensure independent companies while proceeding to control their effect on

the earth. In summary, a small business is offered the means by which to easily understand the

regulations, waivers and court help when appropriate, as well as the opportunity to participate in

the creation and approval of regulations. In addition, the government has set up helpful

Compliance Assistance Centers to aid small business owners in understanding and complying

with the regulations that pertain to their particular industry.

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 X. THE CAPITAL STRUCTURE AND FINANCIAL OFFERING

Corporate Goals
Vision: Produce variety of delicious, healthy, and cheap product
Mission: Ensure the satisfaction of the customers
Objectives: Return and growth of sales, return of customers appreciation and repeat of
customers
Key Result Areas: Customer satisfaction, product quality, people building and
innovation
Performance Indicators Day sales outstanding, cost of goods sold, number of
customer and the percentage of product defect.

Corporate Strategy
Growth strategy, this strategy is applied to our business by expanding the number of
markets served or products offered, either through the current business or new
channel for the business

Operating Plans and Action Programs

Strategic plan, this plan involves our whole company and is obliged to pursue the
missions of the company, future goals and ambitions of the business

Investments Financing

Fixed Assets: land, building, Equity: the ownership of the

equipments and furnitures business such as the fixed assets
No long term debt is yet to be loaned
Current Assets: cash, raw
materials or ingredients and No current liabilities for all the money
inventory is from our allowances and relatives

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 We want to finance growth mainly through cash flow. We recognize that this means we

will have to grow more slowly than we might like.

The most important indicator in our case is inventory turnover. We have to make sure

that food inventory turnover stays at approximately four turns per month, or we risk loss through

spoilage. We do not want to let our average collection days get above 45 under any

circumstances. This could cause a serious problem with cash flow, because our working capital

situation is tight.

We must target a net profit of 28% at the least, and hold marketing costs to no more

than one to three percent of gross sales.

The financial plan depends on important assumptions, most of which are shown in the following
table. The key underlying assumptions are:

 We assume a slow-growth economy, without major recession.

 We assume of course that there are no unforeseen changes in technology to make
equipment immediately obsolete.
 We assume access to equity capital and financing sufficient to maintain our financial
plan as shown in the tables.

GENERAL ASSUMPTIONS

YEAR 1 YEAR 2 YEAR 3

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00%

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Tax Rate 25.00% 25.00% 25.00%

Other 0 0 0

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