BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

1.0

EXECUTIVE SUMMARY
INTRODUCTION

BORDAGOL store is a start-up rice and corn grits

wholesale and retail store that will be established in
Public Market, Digos City, Davao del Sur. BURDAGOL
expects to catch the interest of a regular loyal customer
base with its broad variety of rice. It will provide a good
variety of rice at an affordable price.
BORDAGOL is the answer to the increasing demand of
rice in Digos City due to its increasing population. Rice is
part of the culture of the Filipinos and most Filipinos
cannot imagine sitting down to a meal doesnt include at
least a little rice. As such, rice becomes an important
part of the Filipino diet and an ingredient to different
Filipino recipes. From the main course to the desserts,
rice is used in a variety of ways and popular native
delicacies.

THE MARKET
Rice is the staple food for about 80% of Filipinos and is
therefore a major item in the consumption basket of
consumers. It is the single most important agricultural
crop in the Philippines and is therefore a major source of
income for millions of Filipino farmers. Digos City has a
population of over 200,000 residents as of 2012 and will
be expected to increase 8% every year. The increasing
number of population in Digos City would mean also an
increase of rice and corn consumption within such area.

BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

MANAGEMENT TEAM
BORDAGOL is equally owned and managed by its four
proprietors.
Jan Derrick Bajao, an accountancy student in Cor Jesu
College who have knowledge about marketing strategy.
Nio Jay Bandico, an accountancy student in Cor Jesu
College who have knowledge in the area of accounting
and finance. Joebert Carriaga, an accountancy student in
Cor Jesu College who is an expert in sales and budgeting.
Ivy Jane Soberano an accountancy student in Cor Jesu
College who brings an experience in the area of
business. She knows how to deal with people in the area
of business. She is presently a part time employee in
ESCALERA STORE, also a rice and corn grits retail and
wholesale store located at Bansalan, Davao del Sur.
BORDAGOL intends to hire two laborers and two sales
lady to handle customer and day to day operations.
PRODUCTS
BORDAGOL will offer different variety of rice in a very
affordable price. It also offers extras such as Tahop Mais,
Tiki- Tiki, Sataki, PPC, Benlod, Yellow Corn, Cracked Corn,
Mata- Mata, Sungo, Cellophane, Twine, Sacks(empty),
Sacko Bag.
1.1

OBJECTIVES

To provide for the basic need of every Digoseo at every

meal.
To establish a presence as a successful rice and corn
grits wholesale and retail store.
To establish our own Milling station and to buy delivery
trucks.
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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

To expand into a number of stores by year five and

establish outlet in Bansalan and Padada, Davao del Sur
in year 10.
To increase the number of customers by 20% over the
next two years.
To establish discount to a customer who will buy rice in
bulk that will build customer loyalty.
1.2

MISSION

BORDAGOL aims to offer different variety of rice in an

affordable price and to offer customer a high quality of
rice.
Our main goal is to be one of the successful rice seller in
Davao del Sur, starting with one retail outlet located at
Digos City Public Market.
Our main focus is providing our customers a quality rice
at all times.

1.3

KEYS TO SUCCESS

To succeed in this business we must:

Create a unique selling strategy, such as giving
discounts in order to maintain customer loyalty.
Control costs at all times, in all areas and implement a
conservative approach to growth policy. Although, we
provide more than enough fund to open more than one
outlet, we want to be on the safe side of the business.

BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

Provide 100% satisfaction to our customers and

maintaining the level of excellent services among other
competitors.
Promote good values and business philosophy.
Sell the products that are of the highest quality, as well
as keeping the customers happy and satisfied with all of
our products.

2.0 BUSINESS SUMMARY

BORDAGOL is a business enterprise primarily engage in
wholesale and retail of different variety of rice and corn
grits managed by four partners. These partners
represent marketing, accounting and finance, sales and
budgeting, and management respectively. The partners
will provide funding from their own personal asset to
cover start-up expenses and a ten year loan that will
cover the rest of the required financing. BURDAGOL will
be established in Digos City Public Market, offering
quality products with sufficient services at all times.

2.1 BUSINESS OWNERSHIP

BORDAGOL is a retailer of different variety of rice. It is
equally owned and managed by its four proprietors.
Jan Derrick Bajao who have knowledge about marketing
strategy.
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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

Nio Jay Bandico, who represent the area of accounting

and finance.
Joebert Carriaga, who is an expert in sales and budgeting.
Ivy Jane Soberano, who brings an experience in the area
of business.

2.2 START-UP SUMMARY

Burdagol is a start-up company. Financing will come from the
partners' capital and a five-year bank loan. The following chart
and table illustrate the company's projected initial start-up costs.

Chart: Start-up

Table: Start-up
Start-up
Requirements
Start-up Expenses
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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

Business license and permits

Rent expense
Electricity expense
Initial store facilities
Expensed equipment
Insurance expense
Total Start-up Expenses

3,000
10,000
500
10,000
10,000
5,000
38,500

Start-up Assets
Cash Required
Inventory

40,000
800,000

Total Assets

840,000

Total Requirements

878,500

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund

38,500
840,000

Total Funding Required

878,500

Assets
Cash Requirements from Start-up
Inventory from requirements

40,000
800,000

Total Assets

840,000

Liabilities and Capital

Liabilities
Loan Payable

800,000

Total Liabilities

800,000

Capital
Investment

Total Liabilities

800,000
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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

Capital

78,500

Total Planned Investment

78,500

Loss from start-up (Start-up Expenses)

(38,500)

Total Capital
Total Capital and Liabilities

40,000
840,000

Total Funding

878,500

3.0 PRODUCTS OFFERED

MAIN PRODUCTS
RICE
VARIETY
Double
Diamond
F-one
Tonner- 160
V- 60
RC- 10
Ordinary rice
Masipag
Banay- banay
Tonner- 158
V-224 Tonner

PRICE PER
SACK
P
2,200.00
(49 kg)
2,200.00
(49 kg)
2,100.00
(49 kg)
1,850.00
(49 kg)
1,850.00
(49 kg)
1,800.00
(49 kg)
1,950.00
(49 kg)
2,100.00
(49 kg)
2,050.00
(49 kg)
1,950.00
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PRICE PER
KILOGRAM
P 45.00
45.00
44.00
38.00
38.00
37.00
41.00
44.00
43.00
41.00

BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

(49 kg)
C- 1- 130

1,900.00

39.00

1,950.00

41.00

1,850.00

38.00

1,300.00

26.00

1,300.00

26.00

2,500.00

50.00

2,750.00

55.00

3,500.00

70.00

(49 kg)
7- Tonner
(49 kg)
M- 3
(49 kg)
Corn Grits # 12
(50 kg)
Corn Grits # 14
(50 kg)
MalagkitBordagol
MalagkitSeorita
Malagkit- Tapul

(50 kg)
(50 kg)
(50 kg)

OTHER PRODUCTS
PRODUCT

PRICE PER
SACK

Tahop Mais

PRICE PER
KILOGRAM

460.00

10.00

565.00

12.00

400.00

8.50

(48 kg)
Tiki- Tiki
(48 kg)
Sataki
PPC ( Pig
Concentrate )
Benlod

(48 kg)
1,800.00
(50 kg)
760.00
(48 kg)
1,075.00
(50 kg)

Protein

Yellow Corn

37.00
16.00
22.00

BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

Cracked Corn

1,075.00
(50 kg)
660.00
(48 kg)
470.00
(48 kg)

Mata- mata
Sungo

22.00
14.00
10.00

Twine- sunshine

45.00

Twine- tamaraw

45.00

Twine (for gardening

e.g tomato)
1kg/ roll
Twine (for gardening
e.g bitter gourd)

180.00
100.00

sacko bag

10.00 per
piece

4.0 MARKET ANALYSIS SUMMARY

Rice is the staple food for about 80% of Filipinos and is
therefore a major item in the consumption basket of
consumers. It is the single most important agricultural
crop in the Philippines and is therefore a major source of
income for millions of Filipino farmers. Digos City has a
population of over 200,000 residents as of 2012 and will
be expected to increase 8% every year. The increasing
number of population in Digos City would mean also an
increase of rice and corn consumption within such area.
4.1 MARKET SEGMENTATION
We are targeting public market shoppers which includes
a family unit and urban working individuals as our
primary market segment. Digos Central Public Market is
the place where 85% of Digoseos bought their principal
needs such as food and clothing, especially their primary
consumption, rice and corn grits.
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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

TABLE: MARKET ANALYSIS (DIGOS CITY, URBAN

AREA)
Market Analysis

Potential Growth
Custome
rs
Family
3%
Unit (5
persons)
Working
2.5%
Individua
ls
Rice and
2%
Corn
Grits
Retailer
Total
7.5%

Year 1

Year 2

Year 3

600

618

636.54

8,500

2,712.50

8,930.31

100

102

104.04

9,200

9,432.50

9,670.89

CHART: MARKET ANALYSIS (pie)

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

4.2 TARGET MARKET SEGMENT STRATEGY

BORDAGOL rice and corn grits wholesaler and retailer
store will be established within the Digos Central Public
Market which is the principal area of buying and selling
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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

of rice and corn grits of family unit and working

individuals. Due to the declared shortage of rice by DOA
(Department Of Agriculture) and NFA (National Food and
Authority) in the Central Mindanao because of recent
calamity as of 2013, BORDAGOL rice and corn grits
wholesaler and retailer store will supply 35% of rice and
corn grits consumption of our primary market segment.
Our strategy is dual purposed. First, we are supplying the
Digoseos sufficient and stable price of rice and corn
grits for their consumption. And we are featuring Modern
Variety and Traditional Variety of rice and corn grits
which are appealing to the satisfaction and quality of
food of our valued consumers.
4.2.1 MARKET NEEDS
Our recent survey tells us that a family unit which is
compose of average of 5 persons, can have a 10
kilograms of rice consumption in a week and sack of
rice a month. And with an increase of population in Digos
City in each year, we can conclude that our business is
variable in the market, regardless of any kind of
competition.
4.3 SERVICE BUSINESS ANALYSIS
The Bordagol rice and corn wholesaler and retailer store
will cater most of rice and corn demand of customers in
Digos City. The establishment will position itself in the
central market where the primary consumers can easily
select high quality and delicious variety of rice and corn
grits.

4.4

MAIN COMPETITORS
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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

Bordagol Store has many competitors found only

within the area of the Digos Public Market. These are
Jassens Store, Elvers Store, N & I Store, Sabios
Store, Liezels Store, Marasigan Store, Toregosa,
Bugasan ni Tata, Pustiliano Bugasan, and Santos
Bugasan.

5.0 STRATEGY AND IMPLEMENTATION SUMMARY

The Bordagol rice and corn wholesaler and retailer
store will succeed by offering consumers high quality
and delicious variety of rice and corn grits with a
stable price.
5.1 COMPETITIVE EDGE
The Bordagol rice and corn wholesaler and retailer
stores competitive edge is the relatively low level of
competition in the central market area.
5.2
MARKETING STRATEGY
Bordagol Store will market their products through
their word of mouth and through installing posters.
Here are the charts showing the monthly sales, sales
forecast and yearly sales of Bordagol Store.

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

INTERPRETATION:
Bordagol Rice and Corn Grits Retailer and Wholesaler is
expecting to experience changes in sales due to some
factors that are beyond the control of the owners. During
the introduction stage of the business, it is normal for
every business to experience a slow-growing sales due to
some consumers that are not yet familiar with the
business entity or the business is not yet well-known to
them. Just like others, Bordagol Rice and Corn Grits
Retailer and Wholesaler has also experienced the same.
For the sake of illustrating this scenario, we prepare
percentage of Total Sales, as shown above, the sales has
increased by 30% in the second year. This is due to
Bordagols efforts, promotion and providing high quality
products and sufficient services. Because of this,
Bordagol Rice and Corn Grits Retailer and Wholesaler has
accumulated a large customer equity that enable them
to reach 80% increase of the sales for the 3rd year.

6.0

MANAGEMENT SUMMARY

As stated earlier, BORDAGOL is a retailer of different

variety of rice. It is equally owned and managed by its
four proprietors.
Jan Derrick Bajao who have knowledge about marketing
strategy.
Nio Jay Bandico, who represent the area of accounting
and finance.
Joebert Carriaga, who is an expert in sales and
budgeting.
Ivy Jane Soberano, who brings an experience in the area
of business.
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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

6.1 PERSONNEL PLAN

The store will have a small staff including the owners and
a laborer. The owners are closely-held in the operation of
the business.

TABLE PERSONNEL

Personnel Plan
Bajao, Jan Derrick
Bandico, Nio Jay
Carriaga,Jobert
Soberano, Ivy Jane
Laborer
Total People

Year 1
21,600
21,600
21,600
21,600
43,200
5

Year 2
21,600
21,600
21,600
21,600
43,200
5

Year 3
21,600
21,600
21,600
21,600
43,200
5

Total Payroll

P 129,600

P 129,600

P 129,600

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

7.0 FINANCIAL PLAN

The following is our financial projects over the next three years.
Please note that we expect to be operating at a loss for the first
couple of months before advertising begins to take effect and
draw in customers

7.1

BREAK- EVEN ANALYSIS

The following table and chart show our Break-even

Analysis for the coming three years.
7.2 Chart: Break-even Analysis

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

7.3 BREAK-EVEN COMPUTATION

BEP(in kilos)=FC/UCM
=894, 800/3.5
=255, 658 kilos
BEP(in pesos)=FC/CMR
=894, 800/.07
=P12, 782, 857.14

7.4 STATEMENT OF FINANCIAL PERFORMANCE

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

7.5 STATEMENT OF CASH FLOW

YEAR 1
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YEAR 2

YEAR 3

BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

Cash Received:
Cash from Operations
Cash Sales
Subtotal Cash from
Operations
Additional Cash received
Current borrowing
Long-term liabilities
Subtotal cash received
Expenditures:
Expenditures from
operation
Cash spending
Loan payment
Subtotal cash spent

4,381,524
4,381,524

5,696,419
5,696,419

7,886,731
7,886,731

50,000
1,000,000
5,431,524

75,000
1,500,000
7,271,419

100,000
2,000,000
9,986,731

5,125,008
100,000
5,225,008

6,420,270
100,000
6,520,270

6,026,171
100,000
6,126,171

P 206,516

P 751,149

P 3,860,560

Net cash flow

7.6 STATEMENT OF FINANCIAL POSITION

8.0 BUSINESS RATIOS

8.1 PROJECTED PROFIT/LOSS RATIOS

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BORDAGOL RICE AND CORN GRITS RETAILER AND WHOLESALER

8.2 PROJECTED STATEMENT OF FINANCIAL

POSITION RATIOS

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