Little Einstein Study Hub

A Business Proposal

Presented to

Prof. Katrina Marie A. Baring

University of Mindanao, Davao City

In Partial Fulfillment

Of the Requirements for the Subject

Technical Writing

By:

Manlubatan, Welmarie

Benedicto, Sheila Mae

Peñol, Joanna Jean

Gonzales, Rica

Lato, Claudine

January 2020
 Executive Summary

The interest by consumers in the café industry that is also built also as a study hub is

sweeping everywhere. Hence, Little Einstein will be positioned to bring this to the city near

the university area. Little Einstein is a study hub that promotes the holistic development of

the students and professionals which will be their aid in their academic and career excellence

and eventually, their global competence. The study hub will offer comfortable environment

for every student and professional who needs a conducive and well-ventilated environment

for studying. It will be accessibly located at the Gravahan New Matina, Davao City.

In today’s setting, it is hard to pull an all-nighter just to get all your requirements done

in time. Moreover, it is also hard to pinpoint why most people find themselves more

productive when they are studying or working outside the comfort of their homes. Most

students or even professionals are present in most café typing away on their laptops or going

through stacks of reading as they power up through their deadlines. Furthermore, students

prefer to have their study group in a café. Nevertheless, not all cafes are made equal. There

are some with unstable internet, too few electrical outlets and loud crowds that might make it

a little too distracting – which is why the group proposed this kind of business to provide the

potential customer an environment well suited for their interest.

The study hub will ensure a comfortable environment and maximum productivity.

Hence, Little Einstein will provide learning ambiance, high-quality facility specifically

studies or work lounges, fast internet connection, and electronic gadgets for rent. Along with

these services, it will also offer variety of snacks and drinks. These snacks include: Oreo

cake, Spinach Pancakes, Dark Chocolate, Nuts and Berries, Black forest, Red Velvet, and

Donut. Also, Little Einstein will offer coffee mainly Americano, Mocha, Cappuccino, Matcha

Latte, and Caramel Macchiato and milktea like Original Milktea, Black Pearl Milktea and Uji

Matcha.
This business aims to help the potential customers take advantage of the hub to boost their

productivity in studying and working as well as to provide them delightful snacks and drinks.

It will be built so that customers will have a suitable place to finish their academic related

stuffs or any other paper works.

 Vision

Little Einstein Study Hub envisions to be one of the most prominent,

accessible, and innovative café businesses that will provide outstanding quality

products and services to the consumers.

 Mission

The Little Einstein Study Hub prides itself in being an innovative café

business which endeavors to provide the consumer a quality and comfortable

lounging place mainly focused for their studies or works combined with preparing

them delightful foods at an affordable and reasonable price.

 Purpose

The business clearly underlines the quality of food and its safety for the

costumer’s satisfaction and contentment. Its purpose is to gain the customer’s trust

and direct interaction to the students or professionals through the business’ service,

way of handling everything and by sustaining the potential customer’s needs and

wants.

The strategy of the group is the market penetrate. The study hub is committed

to improving the customer’s experience in ways they believe few in the industry has

done. The business plan to execute a broader marketing strategy, not simply to build

name recognition and awareness, but also to build deeper relationships with the target

customers whom they believe will help to promote the brand.

 Business Description

This section gives a snapshot on the details about our company. It describes the

products or services our business intends to offer, the equipment needed in operating the

business, the size of the business, and the qualifications of the personnel who will be going to

handle the operation.

Nature of the Organization

An organization is a group of people who are involved in pursuing particular goals.

People must work together and cooperate in order for them to be easily managed. The

organization involves division of work between employees and making sure that their tasks

are aligned towards the goal of the company. In order to achieve the goals of the company,

there must be competent management that will guide them in performing their job efficiently

and effectively.

There are two types of Organizations: Formal and Informal Organization

Principles of Organization

Division of Labor: Is breaking down of jobs into simple and repetitive tasks, in order to

focus in specializing their part.

Unity of Command: Member of organization should report to only one superior, to avoid

conflicting demands.

Authority and Responsibility: Is the right of the superior or manager to give orders and be

obeyed by the members.

Span of Control: The number of people the manager can control.

Products or Service that it plans to produce or serve

We will provide good service to our customer by providing them the tools that they

need to make their study effective, especially technologies. We will also offer healthy foods,

to help students boost their energy in studying, and school supplies so that they need not to go

outside.

Various Plant and Office Equipment

Some of the devices and equipment in our business are laptop, printer, photocopy

machine, projector and air condition room.

Size of the Proposed Business

Small Business: It is considered small business because it composes of more than 10

employees and the size of its asset and equity capital is more than 3 million.

Future parties with whom contracts may be necessary

Partnership Agreement: It outlines the relationship and individual obligation between two

or more partners, as well as their contributions to the business that they mutually agreed

upon.

Joint Venture Agreement: Spell out the mutual benefit, goals, obligation and financial

contributions of both parties involved in joint venture.

Non-disclosure Agreement: Can be helpful in order to avoid the leakage of confidential

information about your business to anyone or any party outside the organization. Also, it

gives the business owners a legal protection in case such information is shared.

General Employment Contract: Explicitly defines the relationship between an employer

and an employee, including compensation, benefits, terms and conditions, job description,

duration, grounds for termination and any other issues that relate to the business.
Small-business: Because it composes of more than 10 employees but less than 100

employees and was equally well served by a single small cell in order not to cause negligible.

Also, the size of its asset and equity capital is more than 3 million but less than 15 million.

Personnel Requirement

Confident: Personnel’s should not be afraid to take risks or try new things and should be

willing to help their colleagues.

Good Communication Skills: Being able to communicate effectively to colleagues or

customer will help to improve the company’s performance.

Honest: If in case an employee made a mistake, he/ she should not cover it up, but instead

admit it.

Dependable: Employees should be reliable in keeping commitments and meeting deadlines

of their work.

Flexibility: Employers and employees need to adapt quickly to changing business conditions.

Detail Oriented: Personnel’s should be well organized and always informed in order to get

the job done right the first time.

Teamwork: Personnel’s should work efficiently with others on projects and towards

common goal.

Loyal: Employees should work professionally by not sharing the private information about

the business.

Determination and Persistence: to be able to work hard and keep moving forward even

there are many obstacles in the operation.

 Marketing Analysis

The Marketing plan discusses the preliminary account of the project’s marketing,

public awareness and promotional efforts for the time being. It outlines the significant

business activities that will bring about the progression and accomplishment of specific

marketing objectives laid out within a set of time frame. In addition, this includes a

discussion of the target market, a description about the business’ current marketing position

and the marketing mix that will be utilized to achieve the marketing goals.

A. Marketing Goals and Objectives

GOALS OBJECTIVES
To help students be more productive Provide customers with conducive study

place.
Provide customers with accessible web

resources and reliable study materials.

Serve a diverse and healthy menu.
To be the number one choice of the target Provide excellent customer service.
Offer affordable and wholesome prices on
customers.
food options.
To establish a name in the industry. Intensify public awareness and product and

service promotion through additional

advertisements (e.g. social media blogs).

Continue to create positive feedback from

customers and take into account their

suggestions.
Improve customer loyalty.
The table above illustrates the marketing goals and objectives of the Little Einstein’s

Study Hub. The goals are the possible outcome of the business’ objectives. Goals

communicate the long-term and broad direction of the business while objectives identify

specific actions that employees can perform. These objectives guide the business to attain the

standards set by the entrepreneurs.

B. TARGET MARKET

TARGET MARKET
Geographic Demographic Psychographic
Philippines Age Primary : 18-23 years old  Students who needs to

Davao City Age Secondary: Any age finish their school

Gravahan New Matina, Occupation: Students, Workers, works.

Schools/University etc.  Students who want to

Gender: Male and Female enjoy and relax with

peers.

A. MARKETING MIX

PRODUCT: Little Einstein’s Study Hub offers services wherein students can rent or avail

purchase items needed for finishing their school works. Moreover, it also serves foods

(breakfast, lunch, dinner and snacks) which would help students to enhance their mental

performance so as to concentrate on their work.

ITEMS FOODS BEVERAGES

RENT AN ITEM PURCHASE SNACKS COFFEE

ITEMS
Laptop with Charger School Supplies Oreo Cake Americano
Spinach Pancakes Mocha
Dark Chocolates Cappuccino

Hygienic Items Nuts and Berries Matcha Latte

Black Forest Caramel Macchiato
MILKTEA
Red Velvet Original Milktea
Black Pearl Milktea
Donut Uji Matcha

The food served helps students to retain memory and have an active brain function.

Little Einstein’s Study Hub considers healthy food habit for students to stimulate their brain
activity and enhance brain retention and concentration. Other additional services such as

printing and photocopying are offered to minimize hassle problems.

PRICE: Little Einstein’s Study Hub target markets are high school, college and

undergraduate students. Although the study hub isn’t the first school friendly business near

the university belt, it is rest assured that the costs will be based from the market price and is

affordable compared to the competitors. Price varies from table below.

Rate per Hours Room Laptop with Charger

1-5 hours Php 100 (20 x 5 = 100) Php 25
6-11 hours Php 160 (20 x 8 = 160) Php 50
12-17 hours Php 252 (18 x 14 = 252) Php 75
18-24 hours Php 357 (17 x 21 = 357) Php 100

Little Einstein’s Study Hub provides foods which improves brain activity and also,

diet and budgeted friendly. Study Hub helps students to be well-focused to attain their study

goals. Customers can request for different additional kind of food but will e charged with

additional price. The foods are shown in the table with their individual prices.

ITEMS FOODS BEVERAGES

RENT AN ITEM PURCHASE SNACKS COFFEE

ITEMS
Laptop with Charger School Supplies Oreo Cake Americano (Php

(Php 99 ) 100)
Spinach Pancakes Mocha (Php 120)

(Php 49 )
Dark Chocolates Cappuccino

(Php 89) (Php 110)

Hygienic Items Nuts and Berries Matcha Latte

(Php 79) (Php 120)

Black Forest Caramel Macchiato
 (Php 99) (Php 120)
MILKTEA
Red Velvet Original Milktea

(Php 89) (Php 100)

Black Pearl Milktea

(Php 110)
Donut Uji Matcha

(Php 59) (Php 110)

PLACE: Little Einstein’s Study Hub is a place where they can comfort and where students

can concentrate their attention in their school works. Little Einstein’s Study Hub will be

located at Gravahan New Matina, Davao City. The entrepreneurs had observed that putting

study hub near the university can attract students to come inside especially when deadlines

are approaching and homework are needed to be rushed. The location of the business is near

the university where students are often found which the Little Einstein’s Study Hub will be

located there for convenience.

PROMOTIONS: To strengthen public awareness and product/service promotion, the Little

Einstein’s Study Hub will apply 360 advertising and Loyalty Card Promotion. The 360

advertising is a combination of “above the line” and “below line” type of advertising and it s

a good way to promote business in the industry.

Above the Line Advertising: Includes the website of Little Einstein’s Study Hub

where they can search for information and check-out product and services’ prices. There will

be a social media for the customer to visit and post some comments and feedbacks. This type

of promotional activity will cover a wide range of existing and potential customer which can

help the business to earn shares in the market.

 Below the Line Advertising: Little Einstein’s Study Hub will be giving out flyers

with discounted coupons on selected food items. The discounted coupons will be used by the

customers to purchase food items.

Loyalty Cards: Loyalty Cards are given to “loyal customers”. Loyal customers are

those customers who purchase the business products and services over an extended period of

time. This will be presented to the registrar so the customer can avail the 10% discount in

renting the room or a laptop.

PHYSICAL ENVIRONMENT: The study rooms are equipped with shock and sound proof

glass walls and are well ventilated. Each room has soft cushions and is air conditioned. If

customers choose to stay overnight, well-maintained cubicle and hygienic kits are offered in

the place.

PEOPLE: The Little Einstein’s Study Hub does not only offer quality and affordable

services but the business also gives importance to the people who largely contributes for its

growth and betterment.

Marketing Management: The department who handles the development and

planning of the business growth and helps to identify potential customers in the market.

Staff: Are the asset of the business and are considered as a part of Little Einstein’s

Study Hub’s family.

Micro-Environment: It helps the Little Einstein’s Study Hub to be resilient and

keeps the business alive.

PROCESS: Students or customers who wanted to stay at the Little Einstein’s Study Hub can

complete the following steps:

1. Present a valid ID in the Registrar or Counter to accommodate room. If customers are

below 18 years old, they must present a waiver given by the Little Einstein’s Study Hub as a

confirmation that they were allowed to stay in the place.

2. Customers can bring their laptops or any school supplies to be used in making their school

projects. If they don’t have these tools, they can rent a laptop and purchase items in the

counter.

3. Customers are allowed to bring their hygienic kits if they planned to stay overnight.

4. Customers can order foods in the place so they will not worry going outside the vicinity to

buy food.

5. Separate comfort rooms for male and female are utilized for privacy.

6. The rate per hour will be computed based on the time they checked in and checked out

including the purchasing of food and items and laptop rentals (if there are any).
 Financial Plan

A financial plan is a comprehensive statement of a business' long-term objectives for

security and well-being and a detailed savings and investing strategy for achieving those

objectives. This includes the financial objectives, sources of financing and estimated financial

statements.

Financial Objectives

• Profitability. To maximize gains and exceed daily target sales.

• Liquidity. To easily convert assets into cash.

• Efficiency. To achieve revenue growth of at least 10% per year.

• Stability. To continue having a positive growth rate and positive cash flows.

• Cost minimization. To lower cost of operations and to be able to find loyal suppliers

providing lowest prices.

Sources of Financing
 The business is a partnership of 5 individuals in which each part will invest 1.5

million. It will yield a capital money of 7.5 million. The estimated total cost of the business is

6.5 million. The total amount of expenses is break into the expenses for permits, purchase of

equipment and supplies, operations, salaries, and construction. The partners added an extra

amount of money for the unforeseen expenses worth 100000.00.

The following is the breakdown of the 6.5 million estimated expenses:

• Government application and permits - Php 15,500

• Purchase of Equipment - Php 1.4 million

• Purchase of supplies - Php 570,000

• Operations expenses - Php 584,500

• Cost of labor - Php 680,000

• Construction - Php 3,250,000

 Little Einstein Study Hub
Income Statement for the 1st quarter of (year) 2020 2021 2022
Sales      
Services 4668000 5023200 5776680
Products 505800 558900 642735
Total Sales 5173800 5582100 6419415
       
Cost of Sales      
Cost of Service 112600 1512806 1736696
Gross Profit 5061200 4069294 4682719
Operating Expenses      
  Direct Costs      
Accrued Expenses 126500 135400 158000
Permits and License Expense 15500 16000 16500
Advertising Expense 10000 15000 17000
Wages 680000 750000 800000
Maintenance Expense 5500 6000 7500
 Light and Water Expense 25000 26000 28000
TOTAL EXPENSES 862500 948400 1027000
       
NET INCOME BEFORE INCOME TAXES 1940306 3120894 3655719
INCOME TAX (15%) 291045.9 468134.1 548357.85
NET INCOME 1649260.1 2652759.9 3107361.15

The income statement shows the firm’s revenues, expenses and profits during a

reporting period, generally every quarter or year. As observed in the financial performance

above, the projected amounts were done through thorough analysis. The key metrics are the

cost of sales, operating expenses, earnings before tax, income tax, and the net income. We

look across the income statement at the year-over-year (YoY) change in each line item. The

financial objectives such as the profitability and efficiency were clearly achieved.

Little Einstein Study Hub

Balance Sheet Statement as of 2020 2021 2022
ASSETS
Current Assets
Cash 145800 295800 445800
Petty Cash Fund 32500 475000 625000
Supplies Unused 35600 506000 656000

Inventory 10500 255000 405000

Prepaid Insurance 50000 200000 350000
Total Current Assets 274400 424400 574400
Non-Current Assets  
Property, plant and equipment  305000 455000 605000
Intangible Assets  12000 162000 312000
Furniture’s and Fixture 730106 853106 1003106
Gross Fixed Assets 1491000 1641000 1791000
Less Depreciation 46200 196200 346200
Net Fixed Assets 1444800 1594800 1744800
Total Non-Current Assets 2491906 2641906 2791906
TOTAL ASSETS 2766306 2916306 3066306
LIABILITIES  
Current Liabilities  
Accounts Payable 155600 305600 455600
Income Tax Payable 291045.9 441045.9 591045.9
 Customs Fees 5400 155400 305400
Medical Payable 10000 160000 310000
State/Provincial Tax Payable 5000 155000 305000
Total Current Liabilities 467045.9 617045.9 767045.9
Long-term Loans 150000 300000 450000
Total Non-current Liabilities 150000 300000 450000
EQUITY  
Partners’ Capital(Total) 1649260.1 1799260.1 1949260.1
Partners Drawing 500000 650000 800000
Total Equity 2149260.1 2299260.1 2449260.1
TOTAL LIABILITIES AND

EQUITY 2766306 2916306 3066306

The balance sheet shows the financial position of the business at a specific point in time. The

largest asset of the business is its fixed assets comprising of the land and building. The

business also has a significant amount of cash in three consecutive years as estimated. This

signifies that the business will be in a good state in the years to come. The business will

achieve the stability objective for its projected net worth (total assets-total liabilities) increase

annually.

Reference

Albert, R.A., Gaspar, R. & Raymundo, MJ. (2015, July 8). Who are Middle Class? Retrieved

from: https://amp.rappler.com

Lyster,D.(2018, September 3). Business Plan Output. Retrieved

from:https://www.scribd.com/document/387665684/BUSINESS-PLAN-FINAL