COMPANY DESCRIPTION:

Macky’s Liteblock Company is a start-up manufacturing company with patented products that will
revolutionize the building industry. The company boasts many features which will directly lead to it
being the premier manufacturer of hollow blocks around the country, you can see this qualities in
the product description. The company will be located at Brgy. 08 Poblacion, General MacArthur,
Eastern Samar, along the National Road providing high visibility and easy access.

The company owners has over 10 years experience in hollow block making industry. Initially worked
as hollow block makers/workers in a specific manufacturing company in the town. And they are
graduated of Bachelor of Science in Civil Engineering. Which led to them acquiring the needed skills
and knowledge needed to excel in this industry.

PATENT STATUS:

Macky’s Liteblock Company is the exclusive manufacturer of this innovative hollow blocks. The
owners has direct knowledge of the industry and has extensive research experience. They’ve been
associated with the hollow block making industries for 10 years and has seen many developments in
the contructio manufacturing industry. There has been a need for a new product innovation in the
construction for a long time. This is what prompted them to develop an innovated hollow block
which is lighter in weight and shock absorber (up to 500 psi). this product is called Liteblock. This
product is protected by a licensing agreement with the inventors of the Liteblock which was the
owners and was applied for patent.

MANAGEMENT:

The company’s management is highly experienced and qualified with seasoned inventors. They
strive to hire qualifies people who take pride in their work. The company’s management philosophy
is based on responsibility and mutual respect. They maintain an environment structure that
encourages productivity and respect for customers and employees.

Macky’s Liteblock Company key management are highly experienced and qualified:

EULECRIS BAGUAL- co-owner, Bachelor of Science in Civil Engineering graduate and has a decade of
experience in hollow block making. Conducted researches about innovative concrete Hollow Blocks.

JOMAR OMLANG- co-owner, Bachelor of Science in Civil Engineering graduate and has a decade of
experience in hollow block making. Conducted researches about innovative concrete Hollow Blocks.

DEAN ERNEST PAUL SUSMA- co-owner, Bachelor of Science in Civil Engineering graduate and has a
decade of experience in hollow block making. Conducted researches about innovative concrete
Hollow Blocks.

JOSEPH NAVIDAD- co-owner, Bachelor of Science in Civil Engineering graduate and has a decade of
experience in hollow block making. Conducted researches about innovative concrete Hollow Blocks.

The company is responsible to its employees, giving them security and pride in their jobs.

PERSONNEL PLAN
 MONTHLY SALARY
st nd
1 Month 2 Month 3rd Month
SALES PEOPLE 22,000 22,000 22,000
MACHINE OPERATORS 20,000 20,000 20,000
DELIVERY PERSONNELS 15,000 15,000 15,000
HELPERS 12,000 12,000 12,000
UTILITY 12,000 12,000 12,000
TOTAL 81,000 81,000 81,000

PRODUCT DESCRIPTION:

Liteblock may now replace traditional Concrete Hollow Blocks in the world of construction.
Liteblocks are lightweight and shock absorbent (up to 500 psi). it can be manufactured from 4 to 6
inches thick, 12 inches length and 6 inches width. It is priced at 40 pesos per block.

ADVANTAGES:

-Lightweight

-Heat Insulation

-Shock Absorbent up to 500 psi

-Easy Installation

-Cheaper in the overall cost because it doesn’t have vertical reinforcement. Horizontal bars would
do, unlike traditional Concrete Hollow Block

-Fire Resistant

MARKETING PLAN:

The company’s plan is to rapidly develop marketing alliances with industry leaders and pursue new
sales with residential and commercial builders. Also, sales program are:

-create contacts with residential and commercial contractors

- contact developers of residential and commercial properties

-special advertising in the internet or national programs, newspapers, radio and billboards

-contact major architectural firms

-create promotion through caps and t-shirts or through word of mouth

-produce brochures

-give incentives to customers through giving mugs, shirts and others with logo to make them
remember Macky’s Liteblock Company

COMPANY FACILITIES:
The location of the first operating plant is planned to be at Brgy. 08 Poblacion, General MacArthur,
Eastern Samar. This location was chosen because of it’s proximity to road transportation. It is along
the national road so it would be easy for customers to find and road for delivery. It has also been
designated as Enterprise Zone, and offering us benefits and incentives to put up operation.

Product Development

The company has a laboratory wherein the product is being developed to see if there are still room
for innovations and to constantly check if the products conforms to the standards set by the
inventors themselves. The products form originally came from the traditional CHB’s. It was
developed by the inventors/owners and became a new and better version of blocks for walling. The
product became twice tougher than a normal CHB, which can absorb up to 500 P.S.I. of compressive
and tensional force. Now, it can insulate heat, does not require vertical reinforcing bars in installing,
designed for easy installation, it floats in water, fire resistant, can be handled like timber and
cheaper in the overall cost since it’s much bigger and require less reinforcing bars installing.

Production

Concrete Block Manufacturing Options ( SEMI-AUTOMATIC BLOCK MANUFACTURING )

We need to decide about our concrete block manufacturing business plan very carefully. Because,
it is the most important factor in this business. Deciding about this issue needs consideration on a
lot of factors like the country you are living in and the availability of raw materials.

The semi-automatic method covers some of the disadvantages that the manual method has. In the
semi-automatic method, a mixer and an interlocking brick machine are provided for the plant. The
mixer makes the mortar preparation faster and the machine provides more than 2 blocks (at least 3
blocks) in each press. This will increase total production capacity and overall quality because of the
vibration table that is mounted on the machine.

The disadvantages of this system are that the mixer and the machine are operated by an
operator. Loading raw material to the mixer is also done by workers. As you can guess the number of
workers won't drop considerably in this system. The other disadvantage is that you need a bigger
curing area to dry your products. It is because of the manual pallet transfer system to the curing
area. The pallets are delivered to the curing area one by one by handcarts.

Production Process Of Liteblock

Production technology for Liteblocks totally consists of 3 stages:

The first stage is mixture preparation, different kinds of raw materials can be added to each other
and mortar will be produced by the mixer .Our secret process also made in this stage.
The second stage is the production of blocks; with the help of hollow block machine, these blocks
can be produced by the semi-automatic and automatic machines.
The last stage is the drying and storage of blocks. The ready concrete hollow blocks can be
curried at the area. The mixture is prepared according to a pre-selected recipe. The components are
laid in a concrete mixer, water is poured into the same place. The mixture should mix well and
become homogeneous.

After mixing the mixture, it must be laid in the form of a vibrating machine and turning on the
vibration. The mixture should fill the molds evenly, as it shrinks, add new portions of the mixture
until the molds are completely filled. After shrinkage of concrete, you can remove the mold, leaving
the finished blocks on the floor (or bedding for them). Now you can lay a new portion of the mixture
in the mold.

Drying the blocks needs to be given a separate time: the first 24 hours the blocks dry as they were
left after the machine. During drying, they sometimes need to be moistened with water, like any
concrete product. After a day, the blocks are turned on their side and dried for another 24 hours.
After 2 days, they can be stacked on pallets.

Product Selling Prices and Cost

FOR 35 PIECES LITE BLOCKS

PRODUCTION REQUIREMENT COST

1 bag Cement 250 pesos
10 bags Fine sand 460 pesos
Laborer 586 pesos
Add.Mix 100 pesos
Total Cost = 1,396 pesos

Selling Price = 1396/35 = 40 pesos per block

Financial Statement and Projections

Macky’s Liteblock Company Cash Flow Anaysis (Part 1)

January February March April May June
Cash at Start 150,000 69,000 69,000 219,000 69,000 44,00
of Month
Cash Coming In
Sales Paid 200,000 200,000 300,000 200,000 2000,000 150,000
(75%)
Collections 100,000 100,000 150,000 100,000 75,000 90,000
and Credit
Sales
Total Cash In 300,000 300,000 450,000 300,000 275,000 240,000
Cash Going Out
Inventory 50,000 50,000 50,000 50,000 50,000 50,000
Wages 81,000 81,000 81,000 81,000 81,000 81,000
Maintenance 10,000 10,000 10,000 10,000 10,000 10,000
Electrical and 10,000 10,000 10,000 10,000 10,000 10,000
Water Bills
Insurance 10,000 10,000 10,000 10,000 10,000 10,000
Ads 20,000 20,000 20,000 20,000 20,000 20,000
Miscellaneous 20,000 20,000 20,000 20,000 20,000 20,000
Accounting 30,000 30,000 30,000 30,000 30,000 30,000
Loan 0 0 0 0 0 0
Payments
Total Cash 231,000 231,000 231,000 231,000 231,000 231,000
Out
Cash At End 69,000 69,000 219,000 69,000 44,000 9,000
of Month
Part2

July August September October November December

Cash at Start 9,000 69,000 119,000 69,000 69,000 119,000
of Month
Cash Coming In
Sales 150,000 200,000 200,000 150,000 200,000 200,000
Paid(75%)
Collections of 150,000 150,000 100,000 150,000 150,000 150,000
Credit Sales
Total Cash In 300,000 350,000 300,000 300,000 350,000 350,000
Cash Going Out
Inventory 50,000 50,000 50,000 50,000 50,000 50,000
Wages 81,000 81,000 81,000 81,000 81,000 81,000
Maintenance 10,000 10,000 10,000 10,000 10,000 10,000
Electrical and 10,000 10,000 10,000 10,000 10,000 10,000
Water Bills
Insurance 10,000 10,000 10,000 10,000 10,000 10,000
Ads 20,000 20,000 20,000 20,000 20,000 20,000
Miscellaneou 20,000 20,000 20,000 20,000 20,000 20,000
s
Accounting 30,000 30,000 30,000 30,000 30,000 30,000
Loan 0 0 0 0 0 0
Payments
Total Cash 231,000 231,000 231,000 231,000 231,000 231,000
Out
Cash At End 69,000 119,000 69,000 69,000 119,000 119,000
of Month

CASH FLOW PROJECTION:

The nature of our business requires hat our company collect payment after the product is complete.
So we have included the accompanying cash flow statement, which projects our monthly flow of
cash. While we expect to reach break-even by our 12 th month, it will take nearly two years to
become cash flow positive