Business Plan Simplified version by Bryant C Acar

Business Plan Simplified version by: Bryant C. Acar

Business Plans… …Need to be employed by anyone who is in business …Set a strategy for future growth and can be used to attract investors and loans

They aren’t just used by start-ups… …Business Plans are also kept and developed over time by existing businesses, and even started over when new opportunities arise.

Types of Business Plan include: • • Summary Special Project Feasibility Mini • • Start-up Presentation Internal Growth

Business Plan Essentials:

I. EXECUTIVE SUMMARY 1. 2. 3. 4. Brief Description of the Project and its Goal Brief Selling Points (Strategy) Brief Project Values; Commitment and Contributions Brief Description of the Entrepreneurs and income projection

II. MARKETING PLAN 1. Description of the Product 2. Comparison of the Product with its Competitors 3. Location 4. Market Area 5. Main Customers 6. Total Demand 7. Market Share 8. Selling 9. Sales Forecast 10. Promotional Measures, Logo, Slogan and Packaging 11. Marketing Strategy 12. Marketing Budget

III. PRODUCTION PLAN 1. Production Process 2. Fixed Capital 3. Life of Fixed Capital 4. Maintenance and Repair 5. Sources of Equipment 6. Planned Capacity 7. Future Capacity 8. Terms and Conditions of Purchase of Equipment 9. Factory Location and Lay-out 10. Raw Materials 11. Cost of Raw Materials 12. Raw Materials Availability 13. Labour 14. Cost of Labour 15. Labour Availability 16. Labour Productivity 17. Factory Overhead Expenses 18. Production Cost

IV. ORGANIZATION AND MANAGEMENT 1. Form of Business 2. Organizational Structure 3. Business Expenses and Qualifications of Entrepreneur 4. Pre-Operating Activities 5. Pre-Operating Expenses 6. Equipment

V. FINANCIAL PLAN 1. Project Cost 2. Financing Plan and Loan Requirement 3. Total Sales (daily) 4. Cash Flow Statement (daily) 5. Return Of Investment (%) (daily) 6. Weekly and Entire Projection

VI. RESUME OF ENTREPRENEURS VII. DAILY FINANCIAL FLOW/WEEKLY FINANCIAL FLOW VIII. DOCUMENTATION (PHOTOS) IX. RECEIPTS OF SALES AND EXPENSES

BUSINESS PLAN WITH SAMPLE WRITE UP

I. EXECUTIVE SUMMARY 1. 2. 3. 4. Brief Description of the Project and its Goal Brief Selling Points (Strategy) Brief Project Values; Commitment and Contributions Brief Description of the Entrepreneurs and income projection NOTE: MAKE THE SUMMARY IN PARAGRAPH FORM

TAMBUG is an ice candy business that will be a springboard of an innovative project/product in STEC Senior High School. TAMBUG’s main product is an Ice Candy of varying flavors that suited for everyone’s descriminating palate. Tam. Bug means “Tam-is Nga Bugnaw, ” and its slogan is “Tikman Mo ang Sarap Ko. ” Our business goal as school campus ICE CANDY retailing business is to become the number one choice of the students in the whole campus. We envision that our product will become part of the daily habit of all students. A sweet dessert after that sumptuous lunch or a sweet partner for snacks. We are set to retail a wide range of flavors that will catch the taste of our customers. TAMBUG is set to redefine how school based ice candy store businesses should be run, not only in STEC but also in the whole community.

Our strongest selling point is the unique selling strategy of ensuring that we brand kiosk and strategically position them in different locations prone to high student traffic all around STEC. We make sure that customers would visit our kiosk, would love and would want to come back and make more purchase—we take delight in welcoming repeated customers over and over again. Loving our Customer is our main point of doing business and delighting them with our sweet brand of ice candy. TAMBUG ICE CANDY store will at all time demonstrate commitment to sustainability, both individually and as a start up business, by actively participating in our school campus and integrating sustainable business practices. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs. We will cultivate a working environment that provides a human, sustainable approach to earn a living in a most creative and friendly ways.

TAMBUG Ice Candy is a business partnership that is run by a collaborative duo (pair) who have great determination, passion and willing to take the risk in fulfilling and making the business more progressive. The main entrepreneurs are: Mr. Julius Elian Von Amores and Ms. Allyssa Trixie Faith Carpentero Venci. Both are from STEM strand who would like to venture in a small capital of Php 500 and projects income to Php 5, 000 in 2. 5 months time.

II. MARKETING PLAN 1. Description of the Product 2. Comparison of the Product with its Competitors 3. Location 4. Market Area 5. Main Customers 6. Total Demand 7. Market Share 8. Selling 9. Sales Forecast 10. Promotional Measures, Logo, Slogan and Packaging 11. Marketing Strategy 12. Marketing Budget

1. Description of Product Ice candy is one of the summer treats of the Filipino, especially the kids. It is a frozen juice or shaked fruits in little ice bags where one would have to nibble at the end of the plastic to sip or bite the ice candy. However, this is saleable not only during summer, but all throughout the year. Moreover, this does not only entice the kids but also adults. Ice candies come in different flavors. The most common flavors are mango, pineapple, avocado, and grapes. The proposed product is buko ice candy. The entrepreneurs chose ice candy to be the product not only because of the fact that the materials are readily available, but also because it is saleable and affordable especially for students. The product is sold at five pesos. The product is called “Tambug” which is a clipped form from a Visayan words “Tam-is nga Bugnaw” which literally speaks of our buko ice candy.

2. Comparison of the Product with its Competitors The product is unique from the ice candies of the competitors because of its ingredients and flavors. It is not an ordinary ice candy because aside from its unique taste, it is also apparently healthy because of the “buko” or the coconut. The customers will definitely enjoy the taste without feeling guilty of their diet because the main ingredient is organic.

3. Location The location is in Basak Lapu-Lapu City, Cebu, where the materials and ingredients are readily available. 4. Market Area The product will be sold to the Science and Technology Education Center (STEC) canteen, where students would visit for snacks and lunch time. It will also be sold in the residential areas of the entrepreneurs. The products will be sold on-line for bulk orders and special events. 5. Main Customers The main customers are the students and parents of the school. Aside from the students and parents, teachers, and staff may also be a market of the buko ice candy. 6. Total Demand The entrepreneurs will produce at about 100 pieces of ice candy a day to be sold in the canteen. And another 100 pcs to be sold at the residents of the entrepreneurs.

7. Market Share The school has more than 500 students including the teachers and the staff and visiting parents. Out of the population, only one hundred is expected to buy the product. This means that the market share is 20% of the total market. And for residential selling around 2% would be the target market share (i. e. 2000 population and 2% is 20 pax) a day. 8. Selling Price The buko ice candy is sold at 5 pesos but since it is sold through the canteen it will then be sold at six pesos. One peso per ice candy may be given to the canteen as share. 9. Sales Forecast One hundred percent of the product will be sold every day from Monday to Friday. And full blast in the residents of the entrepreneurs during weekends.

10. Promotional Measures, Logo, Slogan and Packaging The product is promoted in a form of advertisement through friends. A Flyer will be made of promotional purposes. FB account will also be made to advertise the product. (Attached here the brochure, flyer, logo, slogan, packaging and Fb account)

11. Marketing Strategy The entrepreneurs may utilize, free taste but limited to only 5 -10 ice candies on the first day of the launching, word of mouth, and may also utilize the internet where the partners may take pictures of the product and upload it. 12. Marketing Budget The entrepreneurs utilize the internet and word of mouth, which means that they do not need to spend money for marketing budget. Free taste of about five to ten ice candies may cost only about 20 pesos.

III. PRODUCTION PLAN 1. Production Process 2. Fixed Capital 3. Life of Fixed Capital 4. Maintenance and Repair 5. Sources of Equipment 6. Planned Capacity 7. Future Capacity 8. Terms and Conditions of Purchase of Equipment 9. Raw Materials; Cost of Raw Materials & Raw Materials Availability 10. Lay Out and Design of the set-up 11. Labour 12. Cost of Labour 13. Labour Availability 14. Labour Productivity 15. Factory Overhead Expenses 16. Production Cost

1. Production Process For daily production we are required to produce 100 pieces of ice candy. To produce 100 pieces of ice candy, it takes 1 hour 100/1 = 100 pieces of ice candy We estimate that one worker can produce 50 pieces of ice candy per hour. 100/50 = 2 workers Therefore we need 2 workers to produce 100 pieces of ice candy in one hour. Tambug Ice Candy will be sold at the canteen very Monday until Friday. Mon – Fri and Saturday and Sunday selling at the residents. Our business will start the operation on 8: 00 am until 4: OO pm because we want to take much reservation and attract more customers to come and buy our TAMBUG Ice Candy.

2. Fixed Capital Estimated fixed capital is 500. 3. Life of Fixed Capital Expected life of fixed capital is one year. 4. Maintenance and Repairs Maintenance of the equipment used (ice bucket) is done every end of the month. But the cleaning should be done every day. 5. Sources of Equipment used in the business may be bought in Mercado (LLC) wherein we can buy a lesser price of the bucket.

6. Planned Capacity Based on the production of the Total Product Cost of ₱ 190, day 1 this will produced 100 pcs “ Buko Ice Candy”. 7. Future Capacity The next production will be ₱ 250 pcs/day. Day 2 -Cost/Buko Ice Candy is ₱ 1. 90 -₱ 250 x 1. 90=₱ 475. 00 Money from sales of 100 pcs. day 3 - can produce 250 pcs/day Day 4 - produce 250 pcs/day Day 5 -can produce 250 pcs/day 8. Terms and Conditions of Purchase of Equipment No equipment to be purchased. 9. Raw materials availability Raw materials are always available all year round. It can be purchased at the public market or any supermarket.

10. Location and Lay-out Design

11. Labour Direct labor needed on the 1 st production are 2 persons. Indirect labor needed is one person only (from a mentor who knows how to do it). Skills needed for both direct & indirect labor is only hard work and sales ability. 12. Cost of Labour Labor cost allocated for mentor is free. Entrepreneurs will have hands-on in making the ice buko. 13. Labour Availability Workers are always available all year round. 2. 16 Labour Productivity The workers will be motivated to do better if products will be sold based on projection; orders and reservations. Production will increase due to advertising and effort of the entrepreneurs. 17. Factory Overhead Expenses This includes the electric bill of ₱ 20. 00 for the production of 100 pcs Buko Ice Candy.

2. 18. Production Cost Production cost per unit of Buko Ice candy is ₱ 0. 47 Computed as follows: Labor Cost 0 Electric Bill 20 Total 20 Divide by 100 pcs. 0. 20/unit

IV. ORGANIZATION AND MANAGEMENT 1. Form of Business 2. Organizational Structure 3. Business Expenses and Qualifications of Entrepreneur 4. Pre-Operating Activities 5. Pre-Operating Expenses 6. Equipment

1. Form of Business The business will be organized in a form of business partnership that consists of 2 entrepreneurs (paired by the teacher) 2. Organizational Structure The business will be managed by two owners of the business. And the rest will be network of clients and retailers. Owner 1 Owner 2 Retailer 1 CUSTOMER 1 Retailer 4 CUSTOMER 1

3. Business Experienced and Qualification of the Entrepreneurs The TAMBUG Ice candy is first of its kind and will be launched as a new product with new concept. The project is an application of the Entrepreneurship class. The entrepreneurs are aspiring STEM students with no formal background in selling other than informal trading in occasional manner. 4. Pre-operating Activities The pre-operating activities include the product testing where the sample of the products were tested by actual 20 respondents of STEC. The result of the product testing is a weighted mean of 93. 20 which means outstanding. The formal launching of the product will be on January 19, 2017.

5. Pre-operating Expenses The expenses that will be/were incurred before the business can operate will be/were as follows: (list here the materials and cost) 6. Equipment Ice bucket will be the main equipment that cost 120 pesos. Refrigerator, cooking materials will be borrowed from the owner’s existing equipment. (attached picture of equipment and tools)

V. FINANCIAL PLAN 1. Project Cost 2. Financing Plan and Loan Requirement 3. Total Sales (daily) 4. Cash Flow Statement (daily) 5. Return Of Investment (%) (daily) 6. Weekly and Entire Projection

1. Project Cost Total project cost is 190 pesos. Break down of the total cost are as follows A. Ingredients 1 can milk (condense 370 ml) 31. 00 I kilo white sugar 48. 00 3 pieces young coconut (grated) 3@ 15 45. 00 TOTAL COST OF INGREDIENTS 124. 00 A. Cost of Production Labor cost (1 person for 30 minutes) 27. 00 Transportation (2 way) 14. 00 A. Plastic cellophane 5. 00 B. Electric Cost (refrigerator) 20. 00 TOTAL PRODUCTION COST 66. 00 TOTAL PROJECT COST 190. 00

2. Financing Plan and Loan Requirement Sources of Funds : Owners’ Savings Each owner will contribute 80 pesos to raise 190 pesos equivalent to the total projected cost 3. Total Sales 500. 00 (100 pieces @ 5 pesos) Less: Cost of goods sold 190. 00 NET PROFIT 310. 00

4. Flow Statement TAMBUG ICE CANDY Cash Flow Statement (Daily) CASH IN FLOW Cash sales 500. 00 Collection of receivables 0. 00 TOTAL CASH INFLOW 500. 00 CASH OUTFLOW Purchase of raw materials 124. 00 Payment for labor costs 27. 00 Payment for electrical charges 20. 00 Supplies (cellophane) 5. 00 Transportation 14. 00 TOTAL CASH OUTFLOW 190. 00 Net Cash Inflow 310. 00 Add: Cash Balance, beginning 0. 00 Cash Balance, Ending 310. 00

5. ROI = Net Profit/Total Investment x 100 310. 00/ 190. 00 x 100% ROI = 163. 16

6. Weekly Projection Php 310 (less 50% conservative projection) Php 155 X 5 days (weekends not included) = Php 775 per week net sales Week January 19 – March 9, 2018 Projection of Weekly Net Income Projected Project Income Week 1 775 Week 2 775 Week 3 775 Week 4 775 Week 5 775 Week 6 775 Week 7 775 Total 5, 425 Php 5, 425 + Full Sales Php 5, 425 + week ends Php 2, 170 Php 13, 020

VI. RESUME OF ENTREPRENEURS VII. DAILY FINANCIAL FLOW/WEEKLY FINANCIAL FLOW VIII. DOCUMENTATION (PHOTOS) IX. RECEIPTS OF SALES AND EXPENSES

Reminders: - short size bond paper - Verdana 12 font size - 1. 5 space - Clear book (one page per sheet back-to-back) - Presentation in PPT January ONLY PART 2 & 4 - Launching on January 19 ( number of products to be sold based on projected daily sales); brochures/flyers, table with tarp (tarp should be complete with contact numbers, prices and products)

Immersion Exhibit (January 19, 2018) - By batch (regardless of assignment) - To prepare, Tarpaulin with all the photos and captions - Portfolio - Program (to be finalized by January)