BUSINESS PLAN

ENTREPRENEURSHIP
“OKURI”

Submitted to:
Rizalie Mibato Ph.D.

Submitted by:
Abuyon Genevieve G.
De Gracia Caila Chin N.
Roncales Edelyn G.
Samande Angelyn G.
Valencia Shirley Ann O.
 Introduction
In every event that happened in our life, to celebrate is one of the Filipino culture and

traditions. Birthdays, weddings, programs, christening and etc. with those occasions, it is usual

to give souvenirs and giveaways in remembrance of those events. As the market world grew

larger, a lot of competitors arise and as an entrepreneur, we will create this unique yet

affordable from other sellers. Parents who will buy wholesale giveaways for their children's

party's is one of the target market and students especially elementary who is fond of eating

sweets is the target market for direct selling.

 Name of Business:

OKURI

OKURI a DIY or Do It Yourself business where principals personally made the

products for you. It offers products like souvenirs, gifts and giveaways for birthday

parties, debut, weddings and other occasions. This business name OKURI is a Japanese

word which means gifts.

 Address:

Office: SM City North Wing Ground Floor, Bacolod City

 Names and Address of Principals

Genevieve G. Abuyon - Brgy. Lacaron, Valladolid

Caila Chin N. de Gracia – Brgy. Singcang Airport, Bacolod City

Edelyn G. Roncales – Brgy. Cabug, Bacolod City

 Angelyn E. Samande – Brgy. Caradio-an, Himamaylan City

Shirley Ann O. Valencia – Brgy. Pacol, Valladolid

 Nature of Business:

OKURI is a DIY or Do It Yourself business where principals personally made

the products for you. It is a business which offers products like souvenirs, gifts and

giveaways for birthday parties, debut, weddings and other occasions.

 Statement of Financing Needed:

The principals contributed 20,000 each for a total of 100,000. 50,000 borrowed from

their relatives. A total of 150,000 will be distributed to rent, raw materials, utilities, labor,

business permit and other exoenses.

 (ii) EXECUTIVE SUMMARY

Birthdays, weddings, programs, christening and etc. with those occasions, it is usual to give

souvenirs and giveaways in remembrance of those events. OKURI a DIY or Do-It-Yourself

business. This business name OKURI is a Japanese word which means gifts. The internal

business environment comprises of factors within the company which impact the success and

approach of operations. The Internal and External environment of the firm includes the owners,

the owner and staffs of the business, cash resources, company culture, the economy,

competitors, government, customers and suppliers

Students, as one of the target market will be the one to direct sell of the products. For

easy access to customers, business is located in a spacious area receiving one square of it. An

area which is mostly visited by students, employees and families. As an entrepreneur, we

should not stand there waiting for customers to visit and look for our products, rather we use

our marketing strategies such as giving a catchy brochures and person to person marketing. The

affordable, high quality and value of our product will bring us to the top from our competitors,

the availability and easy access to customers, and having our customers as the most valued

persons.

The owners/manager of this business offers delivery to customers since we accept

orders from customers for giveaways in such events.

 (iii) INDUSTRY ANALYSIS

The internal business environment comprises of factors within the company which impact

the success and approach of operations. The Internal environment of the firm includes the

following:

 Owners

We, as owners are the managers and capitalist of our business who

invested in the company and have property rights and claims on the

organization. With 5 members, we started the business sand bought a share of

the company in the share market. We have the right to change the company’s

policy at any time. We are also in charge with the financial statement and as

well as cash inflow and outflow.

 The owner and staffs of the business

Employees are a major part of your company's internal environment.

Where employees have to be good at their jobs, whether it's writing code or

selling products to strangers. Owners as the managers have to be good at

handling lower-level employees and overseeing other parts of the internal

environment.

 Cash resources
 Cash resources is also one because it affects the number of people can

hire, the quality of the equipment, the amount of advertising that can buy and

marketing and pricing strategies the business can create .Cash have a lot more

flexibility to grow and expand your business or endure an economic downturn.

 Company Culture

This consists of the values, attitudes and priorities that the business and

employees live by. We ensure that the environment that our business

emphasizes collaboration and teamwork. Typically, company culture flows from

the top down. Staffs will infer the values based on the type of people hire, fire

and promote. Our business will promote a good value system and ethical

practices in dealing with staffs and employees of the business especially when it

grew larger. As the foundation of the organization’s internal environment, it

plays a major role in shaping managerial behavior.

The External environment of the firm includes the following:

 The Economy

To know the situation of the economy, because it is where the business

will know if the kind of product is profitable and efficient to the market. The

entrepreneur looks economy as demand on occasions and event that is why

selling giveaways and keychains is our product that we know will give us big

revenues from a small products. But if customers lose their jobs or take jobs that

can barely support them, they'll spend less on sports, recreation, gifts, luxury

goods and new cars. High interest rates on credit cards can discourage customers
 from spending. We can't control the economy, but try understanding it can help

spot threats and convert it opportunities.

 Competitors

Entrepreneurs tried to make products which are unique and different

from others to avoid dealing with a large number of competitors and

competitions. In starting up this business we tried to fight against established,

more experienced businesses in the same industry. And that by making our

product attractive, affordable and high valued by the customers. Then, we

develop making our marketing strategy more strong and catchy to the buyers

that won't enable other firms to slice away our customers.

 Government

Changes in government policy can have a huge effect on your business.

Considering the new TRAIN law imposed by the president last December which

equivalent to high prices of commodities. We will make our products would still

available to the market yet getting the desired profit. In regards with taxes, the

business is solemnly to pay taxes in a time giving period.

 Customers and Suppliers

Customers and suppliers are the most important people to deal with.

Suppliers have a huge impact on the product's costs because without them, we

can't make our products. They were the source and the reasons to make those

giveaways, keychains and souvenirs. And the one who would buy those were
 the customers who purchase and return the cost of goods to make revenues

higher than expenses to gain amount of profit.

A. Future outlook and trends:

In this kind of business, we need to be in touch with our customers taste and preferences

as the time goes by. Since evolving of this generation, we will outlook that the Okuri will

be the main supplier of souvenirs, giveaways and gifts. From a small one, we look forward

to make it bigger and popular to the eyes of everyone. We also manage to build a good

name and reputation in the market and to the whole economy. Satisfying and meeting our

customers needs and wants will be Okuri’s major outlook.

B. Analysis of Competitors:

Through benchmarking, we identified our competitors of their marketing strategy,

product's quality and pricing. In market strategy, most of them mixed their product to their

other kinds of products so that customer will see it even if they don't look for it.

Considering that some of our competitors were engage in a big business, they can easily

persuade customers for the availability of other kind of products. The quality and

availability of their products is quite low because some keychains and souvenirs are not

available and others have defect. We always ensure that our product is effective and its

availability is always seen. Some of our competitors also engage in wholesale, which also

use as their marketing strategy, so we make sure that customers find our product less costly

compare to them.

C. Market Segmentation:
 Okuri will be focusing on the customers who appreciate good quality of giveaways and

souvenirs product. The target market will be the customers who constitute a large portion of

the market, appreciative of good quality giveaways and souvenirs.

Our most important group of potential customers is those who will have to celebrate a

special event. These are potential customers who want to have giveaways to distribute to

their guests or visitors as a token of gratitude for being there at the special event. They do

not want to waste their time making their own giveaways, but appreciate a good quality of

giveaways with the design that they want at a reasonable price.

We also intend to appeal to the foreign and local tourists who would be looking at

products that will serve as their souvenirs before leaving the city.

D. Industry Forecast:

In our country there is a large present & potential market of do-it-yourself products. The

current firms in the industry are operating profitably. Main characteristics of this market can be

summarized as follows:

 We project after one year we can gain loyal customers especially event’s

organizer which can be a big help for the success of the business.

 Hopefully after one year, our capital is back and rolling our profit.

 After 2 years, we can be a well-known giveaways and souvenirs in the country.

 There were lots of customers booked for their personal/events.

 (iv) DESCRIPTION OF VENTURE

A. Product(s):

In the customer's point of view, these products were is a store primarily selling

souvenirs relating to a particular topic or theme, but with us these products were not

only available on given theme but we also welcome customization that satisfies the

buyers needs. Giveaways are merchandise which refers to giving in remembrance or

memory. Souvenirs or giveaways are also referred to as keepsakes or mementos and can

be any item that somebody keeps for the memories it brings back. It is designed by cute

materials and mainly made with bottles in different sizes, design and style depending on

events and customers preferences. Many people like to take a little something home

with them as a reminder of their travels, something to show for where they have been,

something they can use to look back and reminisce about the fantastic experience they

had during their holidays. After all, buying souvenirs is part and parcel of the fun

holiday experience.

DIY bottles giveaways

Sweet DIY bottle candies

DIY Keychain

Any customized product

B. Service(s):

The owners/manager of this business offers delivery to customers since we

accept orders from customers for giveaways in such events. Delivery fee will is given to

the delivery man as a tip for service. For product deficiency and ineffectivity, warranty
 for 3 days given for change of product and 1 week for remaking. We also accept service

contracts for big events, support follow up, or refund policy for discovering inefficient

to our products in span of 24 hours.

C. Size of Business:

Okuri is a microenterprise wherein we have a fewer than 10 people including the

principals of the business. Because of the small size, managers are often very closely

involved in day-to-day running of the business.

D. Office Equipment and Personnel:

 Office Equipment  Personnel

 Manager
 Computer/Laptop
 Purchaser
 Printer
 Operation Head
 Wi-Fi  Financial Analyst
 Marketing Personnel
 Scanner
 Graphic Artist
 Photocopier
 Production and delivery personnel
 Laminating machine

E. Background of Entrepreneurs:

Okuri’s Entrepreneurs are Angelyn Samande, Edelyn Roncales, Caila Chin de

Gracia, Genevieve Abuyon and Shirley Ann Valencia. Since they enter the school
 University of Negros Occidental- Recoletos, as a senior high school student, they

became classmates and later on became a circle of friends. Their families have its own

businesses and they are inspired to be like their parents. All of them are under in

Accountancy, Business and Management strand and they have planned to build their

own business and named it Okuri. Okuri wouldn’t be complete and establish without its

entrepreneurs. Angelyn Samande and Genevieve Abuyon graduated as a valedictorian

in junior high school. They have joined many competitions about “do-it-yourself”

products which inspired them to have their business in line with “do-it-yourself”

products. While Shirley Ann Valencia, Caila Chin de Gracia and Edelyn Roncales has a

lot of experience about managing their own business. They have grown up in a family

with its own business and they are there always helping their parents run the business.

They have gained a lot of knowledge which they can use when starting up a business of

their own. Combining them all will create perfect entrepreneurs of a certain business.

Name Age Strand Institution

Genevieve G. Abuyon 18 Accountacy, Business and UNO-R

Management

(ABM)
Caila Chin N. de Gracia 17 Accountacy, Business and UNO-R

Management

(ABM)
Angelyn E. Samande 18 Accountacy, Business and UNO-R

Management

(ABM)
 Edelyn G. Roncales 18 Accountacy, Business and UNO-R

Management

(ABM)
Shirley Ann O. Valencia 18 Accountacy, Business and UNO-R

Management

(ABM)

(v) PRODUCTION PLAN

A. Manufacturing Process

 Prepare materials (bottle, keychain holder, designs, chocolates and other

equipment).

 Make sure that the bottles were clean, and ready to use, then put the chocolates,

candies and variety of sweet products.

 Then outside the bottle is the printed inspirational quotes .

 We attached the holder to the bottles.

 Cover the bottles and it is ready to sell.

B. Physical Plant

We use ready-made materials to make it easy to make our products. We don’t

use big plants and such for the production; but things/raw materials that can easily seen

in surrounds.

C. Machinery and Equipment

We’ve done hand-on-hand process for making the product and we use

equipment such as pliers, scissors, glue, and printer.

D. Names of Suppliers of Raw Materials

The sources of the raw materials will derive from the designated stores. To

maintain the quality of the raw material, the suppliers will be chosen significantly. Our

desire is to get the materials directly from there.

The raw materials are:

1. Bottle

2. Sweets

3. Color Sand

4. Keychain

5. Keychain Holder

6. Laces

7. Special Paper

We will purchase these raw materials from the following stores:

 Portia Store (Wholesaler)

 Bake n’ Bakers

 China Mart

 Lace Center

 Diamond Marketing

(vi) MARKETING PLAN

A. Pricing

Okuri's pricing strategy involves psychological pricing. It refers to techniques

use in pricing to encourage customers to respond on emotional levels rather than logical

ones. This will help a lot in the business by making sudden response from the customers

because they tend to put more attention in first number than the last. For example,

instead of setting price of item at 40 pesos per piece, set it at 39.99 pesos or 39.50

pesos. Another one is bundle pricing. With bundle pricing, small businesses sell

multiple products for a lower rate than consumers would face if they purchased each

item individually. Bundle pricing is effective in the business, Okuri, since giveaways

usually sold in multiple quantity. It can increase the value perception in the eyes of the

customers. Customers will be encourage to buy more because they can get discount if

they reach the minimum quantity of discounted. For example, with the starting price at

39.99, if the customer will buy 50 pcs it will be 37 per piece or lesser.

B. Distribution

Okuri store are the most prominent places where the company’s products are

distributed. This element of the marketing mix indicates the venues or locations where

the firm’s products are offered. Okuri’s main places for distributing its products are as

follows:

 Restaurants

 Okuri’s Website

 Okuri’s Facebook Page

 Okuri’s store is where the company generates most of its sales revenues.

Customers can place their orders through the website and Facebook page. This element

of the marketing mix supports Okuri’s growth strategies, especially market penetration.

C. Promotion

Okuri promotes its products to attract more customers. This element of the

marketing plan defines the approaches used to communicate with the customers. Okuri

uses the following tactics in its promotional mix:

 Advertising

 Sales Promotion

 Personal Selling

Okuri advertisements are the most notable and significant among its promotion

tactics. It aims to introduce the different products to a wider scope of potential

customers. It is to increase profit and capture the attention of the public. The store uses

Print Media which includes flyers and brochures and Online Media as well specifically,

a Facebook page. Okuri uses Sales Promotions as a bi marketing tool more extensively

compared to the majority of its competitors. Sales promotion offers customers an

incentive to buy, either by lowering the price or adding value, through discounts or

product bundles. It uses sales promotion to increase the effectiveness of its promotional

efforts. Furthermore, Okuri's employees uses personal selling to persuade target

customers or market to purchase the store's product.

D. Product of Forecast

The first method of forecasting our product in the market is historical review. If

Okuri’s similar like business has introduced similar new products into similar markets

in the past, these histories can often be good predictors of future outcomes. We

therefore determine first the history of this kind of product to help derive a new product

sales forecast. A second method of forecasting Okuri products is the test market. We

introduced our new product into one or more test markets. Entrepreneurs consider

actual store sales and market shares, and data from retailers in some instances. The test

market gives us the opportunity to show the product's packaging, its shipping, its

display on store shelves, etc., so that a national rollout later is likely to be relatively

trouble-free. A third method of forecasting is before-after retail simulation. We test

target-audience consumers with simulations showing the in-store retail environment and

a realistic display of all the major brands in the category. The consumer is asked to

choose or “purchase” brands as they normally would, or as they might on their next 10

purchases. Out from their products purchased, the new product is missing from the

simulation during this “before” measurement. Then the consumer is exposed to the new

product concept and/or advertising that conveys the new product concept. Later, the

consumer sees that Okuri's product is quite purposive and market-good quality of

product they missed but they need.

E. CONTROLS

The local brewing market has been growing steadily over the last few years due

to increases in people's disposable income and opening of the economy. With this in
 mind we intend our marketing programs to expand accordingly. The introduction of

advertisements, brochures and flyers will enable OKURI to market to potential

customers. We project sales to increase accordingly, though slightly slower as we

establish a reputation for ourselves. With time, a presence on the Internet like having a

Facebook page for online selling and participation in regional trade shows will be key

milestones to expanding sales and marketing potentials through the utilization of new

channels and identification of potential customers. Throughout the year we intend to

undertake regular evaluations of our marketing programs so as to ensure that we are in-

line with our intended objectives.

 Customer Feedback

Marketing is designed to persuade consumers to purchase a product or invest in

a service. One control put into place in any marketing plan is the monitoring of

customer feedback through polls and surveys. We can reach our customers indirectly by

hosting online polls on the internet that ask specific questions about our latest marketing

plan. Conversely, surveys can be done with marketing groups or via individual

interviews by phone or in person. We will adjust our marketing plan according to the

results of our research. For example, if our marketing campaign includes a new

company advertisement and customer feedback indicates that the advertisement is not

effective, then the advertisement should be removed from our marketing plan.

 Target Market Sales

Sales can be measured in units sold, revenue generated or profit amount. This

marketing plan sets out to determine the effect of the plan on the target market. Once
 again, this will be done through market surveys or at the point of sale with the

assistance of retail partners. We will compared the actual sales in the target market to

the marketing plan projections to see if any changes is need to be made. For example, if

the target market of our marketing plan are event organizers, parents and students, then

the target market sales reports would monitor sales made to that group. If sales are

down, then we need further market research to be done to see why the target audience is

not responding to the marketing. In some cases, analyzing a demographic breakdown of

sales may indicate that the initial target market was inaccurate and a new target market

may emerge based on sales data.

 Budgeting

A marketing budget is a balance between the cost of generating the advertising

materials and the revenue created by the marketing plan. The several controls in place

that can be used to monitor a marketing budget are print advertising expenses, travel

expenses for trade shows, the cost of market research studies and internal personnel

costs for the company's marketing department. All of these costs is closely monitored to

minimize spending and maximize profitability. By examining expenses, we’re able to

maintain our budget and see exactly where spending increases come from.

In summary we intend to undertake the following:

*Tracking and follow-up: We intend to have the discipline, as an organization, to track

results of the business plan and make sure that we implement.

*Market segment focus: We intend to have the discipline to maintain the market

segment focus.
*Saying no: Though difficult initially, we intend to be able to say no to special deals

that take us away from the target focus and are unprofitable.
 (vii) Organizational Plan

A. Form of Ownership

 SINGLE PROPRIETORSHIP

The Okuri, is a single proprietorship kind of business. The ease of

starting and operating this kind of business is one of the reason why this

business structure is popular. It unencumbered by government regulations and

can run business autonomously without the need to report to partners,

shareholders, and board members. In controlling the decision making, only the

sole proprietor is encharge.

B. Identification of Partners or Principal Shareholders

As Okuri is a sole proprietorship business and the proprietor is the owner of it. The

net profit will be given to her directly as for the assets and liabilities

 Manager- Angelyn Samande

 Purchasing Head- Caila Chin de Gracia

 Operation Head- Shirley Ann Valencia

 Financing Head - Genevieve Abuyon

 Marketing Head- Edelyn Roncales

C. Authority of Principals

Angelyn Samande
 Manager

Shirley Ann Valencia Edelyn Roncales Genevieve Abuyon Cai

Operating Head Marketing Head Accounting Head

Personnels

The principals agreed to have a position in managing the business. Each principals will

have the authority for each department that have been assign to them. The main head is the

CEO, the one who is responsible in managing the whole business. When it comes in making

decisions principals agreed to discuss it first and then finally decide. The principals agreed to

have an equal distribution of profit and loss ratio. Each principal has the authority to sign a

contract, to hire and fire an employee provided that it was discuss and decided by the group.
D. Management- Team Background

Genevieve Gaban Abuyon is an ABM student of UNO-R. During her high school years,

she was engaged in selling in some of their subjects. They had a sari-sari store and frozen

store in their barangay which is also in line in managing and accounting the money in the

business.

Edelyn Giganto Roncales, an ABM student of UNO-R. She was appointed as a model

in a company and engaged in giving information and flyers to the customers. They had a

sari-sari store which is in line with managing and accounting the money. She had also

experienced marketing their own product during entrepreneur fair.

Caila Chin Nopal de Gracia is an Accountancy Business and Management (ABM)

student of University of Negros Occidental-Recolletos (UNO-R). Has a year of experience

as a buyer during her high school days as elected business manager. Her family has a retail

business and she gained knowledge from their business about purchasing product at low

cost but in a high quality.

Angelyn Esmores Samande, an ABM student of UNO-R. She was able to join thrice in

Technolympics Bazaar Contest during her elementary and junior high school. Her

grandfather owned a big hacienda in which she was trained to account the money goes in

and out during the planting and harvesting time. She was trained as an entrepreneur in the

sari-sari store of her aunt and in their subject entrepreneurship which they were able to

have their own business.

Shirley Ann Ostras Valencia is also an ABM student from UNO-R. At an early age she

was exposed to business since her family had a small sari-sari store before. She and her

sisters were fund of cooking so every summer, they have a part-time business like halo-
 halo, barbecue, and fishballs beside their house. She also experienced producing products

and selling during their entrepreneurship exhibit.

C. Roles and Responsibilities of Members of Organization

Genevieve Abuyon, the accounting analyst of Okuri Store will be responsible for

maintaining accounting and inventory record and supervising day-to-day records.

Caila Chin de Gracia will be the one who’s liable for ordering inventory, merchandising

and to find for affordable and appropriate raw materials.

Edelyn Roncales will be responsible in answering or accepting orders in phone calls.

She is also responsible in advertising or in persuading our products to our customers.

Angelyn Samande, the owner of Okuri Store will be responsible in controlling and

maintaining the stability of the business.

Shirley Ann Valencia, the operation head of the business is in charge of the operation

and hiring, training, and scheduling employees other than part-time help in the busiest part

of the business.
 (viii) Assessment of Risk

A. Evaluate Weakness of Business

One of the weaknesses of the business is lack of resources. A specifically

financial resource since it is the most important requirement in the business. The

entrepreneurs don’t have enough personal money to put up and fund the business. In

order to reach the required capital in putting up the business, the entrepreneurs will

provide the 50% of the capital and the rest will be borrowed from a friend or family. It

is better to borrow money from someone you know than in the banks because of the

absence of interest. As the business is starting, it has no assurance that it will gain much

profit in a short period, so it is preferably not to borrow fund in the bank so that there is

no pressure and most importantly no interest. Another weakness found in the business is

the unrecognized brand image to the public. Since the business is still starting, it is

difficult to generate sales activity because it haven't established a customer yet. The

biggest area for improvement to strengthen the image is product or service quality. With

a stronger offering, it can then work on efficient investments in marketing to understand

market expectations and promote brand messages centering on quality, service or

affordability.

B. New Technologies

It’s hard to imagine how businesses operated before modern computing

technology. Because of this, the technology risks in business are constantly growing

and evolving, especially the risks associated with cloud computing and data storage.
 While the cloud offers a world of benefits such as increased performance and lower

costs, it also includes increased security risks.

*The best way to protect against this type of technology risk is to develop a

comprehensive risk management plan. This is a set of policies and practices that are

applied across an organization's networks, data and devices. Technology risk

management policies may include, among others: Do not share login information or

passwords with anyone, including co-workers Do not open emails or files from

unknown senders, which could include malware that gives hackers access to business

data Install security updates as soon as they are available

* The issue for businesses then becomes how to manage these devices. To fight

against these issues, companies can create a set of mobile technology risk management

policies that employees must follow. These help employees remain cognizant of the

risks of using their mobile technology on a company’s network.

C. Contingency Plan

The need for drawing contingency plans emerges from a thorough analysis of

the risks that the Okuri will about to face. Entrepreneurs might expect the following to

happen in the near future:

 Unavailability of Raw Materials

This scenario can’t be avoided and we need to be prepared for this. If our raw

materials are unavailable we need to find an alternative or substitute product that really

fit in our style of product. We will also find alternative stores that also sell our raw

materials. We will contact them from time to time to avoid this kind of scenario.
 Disaster

In case of any disaster, the store will have its safety equipment’s to ensure first

the safety of the employees. The action would include a detailed evacuation route,

procedures, roles and responsibilities. The store will also send the employees in a

seminar and to train them about proper ways to do in case a disaster would come.

 Partners

A firm plans what to do if they lose a major partner. This include finding

another person who have the same capability and ability with the partner we lose.

Adjusting the business would also happen in case we can’t find a substitute.

 Revenues exceed projections

A serious increase in revenues over projections will give us an opportunity to

increase our marketing budget. We'll be able to hire the marketing manager earlier, and

we'll be able to provide more equipment and possibly add an additional location.

 Revenues miss projections

We have to be prepared for this possibility. If we miss our projections, we

simply have to re-double our marketing efforts. The danger in this scenario is that the

first reaction to missed projections is to decrease spending, particularly marketing

expenses. We have to get our message out to the target market, and we can't do that if

we stop spending on marketing. Additional capital infusions may become necessary and

that possibility is detailed in the business plan.

 (ix) Financial Plan

A. Pro Forma Income Statement

B. Year 1 Year 2 Year 3

Sales 215,000 223,000 240,000
Less: Cost of Sales 78,000 50,000 50,000
Total 137,000 173,000 190,000

Expenses
Marketing/Promotio 25,000 18,000 18,000
n
Depreciation 0 0 0
Rent 60,000 60,000 60,000
Utilities 35,000 35,000 35,000
Others 10,000 10,000 10,000
Total Operating 130,000 123,000 123,000
Expenses
Profit before tax 7,000 50,000 67,000

Interest Expense
Taxes Incurred 0 0 0
Net Profit 7,000 50,000 67,000

C. Cash Flow Projections

D. Year 1 Year 2 Year 3

Cash Received
Cash Received from 0 0 0
operations
Cash Sales 215,000 223,000 240,000
Subtotal cash total 215,000 223,000 240,000
from operations
Additional cash
received
Sales Tax 0 0 0
Liabilities 0 0 0
Sales of Current 0 0 0
assets
Investment received 0 0 0
Subtotal cash 150,000 160,000 175,000
Received

Expenditures
Cash Spending 150,000 160,000 175,000
Bill payments 36,000 36,000 36,000
Tax and VAT
Long term liabilities
Purchase of asset
Subtotal Cash Spent 186,000 196,000 211,000

Net cash flow 29,000 27,000 29,000

Cash balance 29,000 56,000 85,000

E. Pro Forma Balance Sheet

Year 1 Year 2 Year 3

Assets
Current Assets 0 0 0
Cash 29,000 56,000 85,000
Inventory 8,000 7,500 6,000
Other Current 0 0 0
Assets
Total Assets 37,000 63,500 172,300

Liabilities and Capital

Accounts Payable 15,000 18,000 20,000
Total Liabilities 15,000 18,000 20,000
Paid-In Capital 150,000 150,000 150,000
Earnings 7,000 50,000 67,000
Total Capital 157,000 200,000 217,000
Net Worth 157,000 200,000 217,000

F. Breakeven Analysis

90,000

80,000

70,000

60,000

50,000
Pesos

40,000

30,000

20,000

10,000

0
500 1000 1500 2000 2500 3000 3500 4000
Number of Units

G. Sources and Applications of Funds

 Sources of Fund

 50% of the capital is from personal cash investment

 50% of the capital is borrowed from friends, family, or from acquaintances

 Application of Fund

Start-up cost
 Facilities-

 Prepaid rent/ Building

 Office equipment

 Materials

 Marketing-

 Brochures

 Grand opening

 Ad Campaign

 Tarpaulins

 Administrative-

 Insurance

 Fees and Permit

 Working Capital

 Labor

 Salary

 Contingency