KOPINOY

In partial fulfillment

of the requirements for the subject

Entrepreneurial Management

for the Bachelor’s degree in Business Administration

Antonio, Jonah Mae S.

Cardano, Jomarie B.

Gramonte, Hay-ann O.

Merced, Vince Robin C.

Pulumbarit, Roy Benjamin B.

Semira, Ron Renzel A.

Villanueva, Carlos Joshua D.

March 2016
 APPROVAL SHEET

In partial fulfillment of the requirements for the Bachelor’s degree in

Business Administration of National College of Business and Arts (NCBA), Taytay

Campus, this Business Plan on the business, “Kopinoy” has been prepared and

submitted by Jonah Mae S. Antonio, Jomarie B. Cardano, Hay-ann O. Gramonte,

Vince Robin C. Merced, Roy Benjamin B. Pulumbarit, Ron Renzel A. Semira, and

Carlos Joshua D. Villanueva who are, hereby, recommended for an oral

examination.

Date Prof. Archie Impimo

Adviser

The committee on oral examination:

Mr. Kalven Perry Agustin Mr. Jose Ma. Tueres

Member of the panel Member of the panel

Accepted as a partial fulfillment of the requirements for the Bachelor’s

degree in Business Administration.

Dr. Avelino S. De Chavez

Dean
 ACKNOWLEDGMENT

Foremost, we would like to give thanks to the Lord God Almighty for guiding

us and for giving us knowledge, strength, and wisdom all throughout the semester

to finish this business plan. Without You, God, we may never be able to finish this.

We glorify, honor and praise His name alone.

We would also like to thank the members of our panel during our oral

examination, Mr. Kalven Perry Agustin and Mr. Jose Ma. Tueres, for their time and

effort to give us questions, suggestions and comments to make this business plan

better and more effective. We give special thanks to Mr. Agustin for spending time

and effort with us to finish the financial aspect of this business plan. Sir, at last, we

already finished it.

We deeply acknowledge the energy, patience, time, knowledge and support

of our adored professors and advisers of the Business Administration Department,

Mrs. Jasmin Mayo, Mrs. Kathelyn De Jesus-Samson, and Mr. Archie Impimo, have

shared before, during, and after the process of making, defending, and finishing

this business plan. We are sincerely grateful for pushing us to finish this work well,

in spite of all the difficulties and conflicts we had inside and outside the group. You

never gave up on us.

We would also like to express our gratitude to our families, most specifically

our parents, who have supported us physically, financially, and emotionally. Their

support has given us the strength to further finish this business plan. We love you.
 To all our friends, classmates, schoolmates, and other professors who have

cheered us up and supported us in the process, and to the special people of our

lives who have continually inspired us, thank you.

Team KOPINOY
 EXECUTIVE SUMMARY

During the first few stages of the research, unending ideas popped out of

the researchers’ minds in making this business, and “Kopinoy” was the best

business idea that came up. The business offers a variety of coffee drinks and

choices of flavored glutinous rice cakes (biko).

Project researchers

The proponents of Kopinoy are Carlos Joshua Villanueva, Jonah Mae

Antonio, Ron Renzel Semira, Jomarie Cardano, Roy Benjamin Pulumbarit, Hay-

ann Gramonte, and Vince Robin Merced. They are students taking Bachelor of

Science in Business Administration in National College of Business and Arts

(NCBA) in Taytay, Rizal.

Proposed Name of the Business

The name of the business, “Kopinoy”, is a combination of the word ‘coffee’,

the primary product of the business, and ‘Pinoy’, the mainstream term used in

referring to Filipinos, or a short term for “Kapeng Pinoy”, will be a newly established

coffee shop that will put up a new way of making coffee and will provide a different

and enjoyable customer service experience.

Proposed Location

The business will operate in a 28 square meter commercial space located

at Km. 21 Ortigas Avenue Extension corner Eagle Street, Barangay San Juan,

Cainta, Rizal, a walking distance from villages and subdivisions, residential

condominiums, educational institutions and commercial establishments. It can be

easily accessed through the Ortigas Avenue Extension, the Eagle Street in Don

Mariano Subdivision, and the Hunter ROTC Guerilla Street.

History of the business

In 2015, a group of students from an Entrepreneurial Management class of

National College of Business and Arts in Taytay, Rizal had a business plan that

lead in creating an innovative coffee shop business. These students got together

and envisioned of a coffee shop—a place that can satisfy their demanding taste

for great coffee drinks and flavored glutinous rice cakes.

The owners decided to start a coffee shop business named “Kopinoy”. This

idea is attractive since most Filipinos are busy workers and coffee-lovers as well.

They decided to establish the business in a commercial property in Cainta, Rizal.

Management

Kopinoy will be a small coffee shop business in Cainta, Rizal. They have a

general manager, a supervisor, and four (4) service crews. The general manager
of the business will be the General Manager of Coffee Filipino Partners, Limited,

wherein Kopinoy will be under the partnership’s management. It is registered in

the Philippines as Coffee Filipino Partners, Ltd., with ownership shared by the

seven (7) prospects of the business. The partnership has an initial investment of

Ph₱ 550,000.00.

Marketing

Kopinoy will be based in a place that has a huge traffic of passers-by and

riders. The place is located at a corner of a busy national main road which is easier

to see and perfect for promotion of the business. The products will be affordable

for everyone and worth its price. Kopinoy will also use Facebook fan page and

advertisements in promoting the products and services offered by the business,

considering that it is free and easy to access. The business will be offering free

Wi-Fi internet and mobile phone charging for its customers and patrons. The

business will also offer monthly promos.

Technical Feasibility

The business will open its shop from 7:30 A.M. to 8:00 P.M. from Monday

to Sunday. The crew will have beginning and closing inventory before and after

store hours respectively.

 Kopinoy will offer varieties of unique and delightful coffee drinks, having

vanilla ice cream as a dairy creamer. Glutinous rice cakes (biko) with different fruit

flavors are also included in the menu—original, mango, jackfruit (langka),

strawberry, durian, purple yam (ube), banana and seafood.

Financial Feasibility

The profitability and entities economic condition within five years of

projection was determined. Profits and losses are divided accordingly as stated in

the Articles of Partnership. Projected sales after the first year of operations will

have an increase of 2.5 percent, 4 percent, 5 percent, and 7 percent annually

respectively.

Socio-economic Feasibility

The employees must have a satisfying work environment that shows care

to them and their families. They will be given salary increase and can also avail of

other mandatory benefits and leaves. Advance training for both technical and

social aspects will be given to the employees which will be necessary for business

operations. This establishment will exhibit the pleasing lifestyle and culture of the

Filipinos. The business also wants to foster growth and empowerment of local

farmers, producers, and suppliers. With this business, it will provide employment

opportunities for unemployed people within the area. The government will also
benefit the business form the collection of income, business and corporate taxes,

licenses, and local fees. The business also aims to reduce the environmental

impact of the business at all aspects, to encourage other business and

establishments to be an eco-friendly business, and also to raise environmental

awareness to its customers and employees.

Conclusion

The researchers, therefore, conclude in this study that the business,

Kopinoy is viable to be established by the entrepreneurs. However, it will need a

great capital to start the operations. It is viable on aspects of market, product,

competitive advantage, management model, and technical and operational

viabilities.

The researchers concluded that it wasn’t easy venturing in food service

industry other than putting products at a low price. There has to be other tactics

and strategies to achieve the desired profit and business goals. Furthermore, the

business will surely be more competitors to be made near the chosen location. In

addition, Kopinoy will surely provide comfort and a relaxing light environment with

well-mannered customer assistance and offer delicious and unique taste of food.
 Part 1

BUSINESS SUMMARY

Business Profile

The essence of coffee as a satisfying drink that most people are looking for,

considering that Filipinos consume about 21,600,000 cups of coffee a day

according to Nestlé’s consumer marketing division, drove the owners to start a new

coffee shop business, “Kopinoy”.

The name, “Kopinoy”, is a combination of the word ‘coffee’, the primary

product of the business, and ‘Pinoy’, the mainstream term used in referring to

Filipinos, will be a newly established coffee shop that will put up a new way of

making coffee and will provide a different and enjoyable customer service

experience.

Kopinoy is a privately organized coffee shop. It is registered in the

Philippines as Coffee Filipino Partners, Ltd., with ownership shared by Carlos

Joshua Villanueva, Jonah Mae Antonio, Ron Renzel Semira, Jomarie Cardano,

Roy Benjamin Pulumbarit, Hay-ann Gramonte and Vince Robin Merced. The

customers and the prospect investors of the business can get in touch by sending

an e-mail to [email protected] or calling (02) 470 9651.

The business will offer residents, passers-by and visitors a totally new style

of coffee shop—offering a unique way of making coffee drinks and local rice cakes.
Product Description

The coffee shop will provide brewed coffee and Frappuccino drinks

prepared in coffee bags. The coffee drinks are mixed with vanilla ice cream giving

the customers creamier and tastier coffee blends they will surely love. Together

with the delectable coffee drinks, the coffee shop also offers distinctive glutinous

rice cakes with a selection of appetizing flavors such as chocolate, purple yam

(ube), jackfruit (langka), strawberry, mango, banana, pineapple, and seafood.

History of the business

In 2015, a group of students from an Entrepreneurial Management class of

National College of Business and Arts in Taytay, Rizal had a business plan that

lead in creating an innovative coffee shop business. These students got together

and envisioned of a coffee shop where people could hang out and entertain friends

and business associates—a place that can satisfy their demanding taste for great

coffee drinks and flavored glutinous rice cakes. This plan developed into a concept

and soon the concept became a reality.

The owners decided to start a coffee shop business called “Kopinoy”. This

idea is attractive since most Filipinos are busy workers and coffee-lovers as well.

They decided to establish the business in a commercial property in Cainta, Rizal

located in a commercial and residential area on the corner of a major road

connecting a subdivision and within a walking distance from an educational

institution and other commercial establishments. The business is intended to be

involved and connected towards its customers, its employees, the local producers,

the community, the environment, and its stakeholders.

Mission

Kopinoy is a coffee shop dedicated to bring the best in providing high-quality

coffee drinks in coffee bags, to empower local farmers and their goods, to

demonstrate the pleasing Filipino lifestyle and culture, to use environmentally safe

products, and to increase the employee satisfaction while providing stable return

to its shareholders.

Vision

Kopinoy as an established and trusted forerunner in the coffee shop

industry in the greater Manila area, leading in innovation, service and quality,

empowering local coffee farmers and producers, providing sustainable jobs,

showing Filipino hospitality, and being an environmentally friendly business.

Objectives

 To quickly ensure an increase in profit while achieving a sustainable

marketing expenses;

 To constantly provide excellent customer service experience;

 To develop high quality and unique coffee drinks and glutinous rice cakes

delighted by all customers and potential clients;

 To become a coffee shop exhibiting the pleasing lifestyle and culture of the

Filipinos;

 To foster growth and empowerment of local farmers, producers and

suppliers by bringing their products in the market;

 To reduce the environmental impact of the business at all aspects and to

encourage others to do the same; and

 To maintain a satisfying work environment for the employees.

Logo

FIGURE 1.1 The Kopinoy logo

The logo of Kopinoy gives identity to the business, symbolizes the nature of

the establishment, and shows the main product, coffee. Majority of the logo has

the color brown; the color describes the core values—a business that

demonstrates industriousness, reliability and stability, values quality, creates a

feeling of warmth, calmness and comfort, and encourages a need for security and

acceptance. The colors red, white and blue signifies the three major colors in the

Philippine flag, and the three yellow stars represents the country's three main

island groups—Luzon, Visayas, and Mindanao; the colors and symbols indicate

the business’ measures in supporting the coffee farming industry and the products

made in the Philippines.

 Part 2

TECHNICAL/OPERATIONAL PLAN

An operational plan is a detailed plan used in order to offer a clear picture if

it is possible to the business to achieve the organization’s strategic goals. The main

objective of this part is to determine the products to be offered, its price and its

profit, the costs arising from the raw materials used, the inflow and outflow

processes involved in product-making, and the business operating hours. This part

of the business plan also discusses the size of the store and its facilities, the

maintenance and waste management plans, and the tools and equipment needed.

Product Specification

Perfect for breakfast, as a midday pick-me-up, or capping the evening

alongside a sweet dessert, there’s never a bad time for a cup of brewed coffee.

The brewed coffee, after grinding the beans and brewing it, will be offered with the

selections of coffee creamers and sweeteners, either ice cream, coconut or

skimmed milk, and honey or brown sugar. The coffee drinks shall be served with

coffee bags in paper cups or mugs.

This delicious, decadent beverage should come to mind whether it’s hot or

cold. Frappuccino is sweet, creamy and cold – just the way a cold coffee drink
should be. And it serves rich, satisfying taste of sweet iced coffee blended with

vanilla ice cream.

Satisfy chocolate cravings with glutinous rice cake, now with chocolate

flavor. Chocolate biko is a snack that uses glutinous rice, coconut milk, brown

sugar and tablea chocolate, a local cocoa bar, which gives the chocolatey taste to

the biko.

New mouthwatering varieties of snacks, the fruit biko gives a new and

refreshing taste using glutinous rice, coconut milk, sugar and a choice of fruits—

mango, jackfruit (langka), banana or strawberry. Enjoy them warm with a cup of

hot coffee as a sweet end to a long day’s work.

Ube biko is a crossover between two traditional Filipino delicacies, glutinous

rice cake and Ube halaya. Glutinous rice, coconut milk, brown sugar and purple

yam (ube) turns out into Ube biko—a dreamy snack perfect with a hot brew of

coffee.

Be healthy and be fit. From an ordinary biko into a better and healthier snack

for people who wants to stay fit and to have a healthy heart. Seafood biko has

shrimp and tuna combined with glutinous rice, coconut milk and onions that gives

it a fresh seafood taste.

Raw Materials

TABLE 2.1 Schedule of Raw Materials

Daily Cost
Ingredients Price / Unit
Amount DAILY WEEKLY MONTHLY YEARLY

Banana 0.07 per g 12,000 g 896.55 6,275.86 26,896.55 327,241.38

Barako Coffee Beans 0.45 per g 2,200 g 990.00 6,930.00 29,700.00 361,350.00

Brown sugar 0.05 per g 52,389 g 2,457.00 17,199.00 73,710.00 896,805.00

Coconut milk 0.07 per mL 92,025 mL 6,135.00 42,945.00 184,050.00 2,239,275.00

Coffee Filter 4.95 per pc 300 pcs 1,485.00 10,395.00 44,550.00 542,025.00

Ice tubes 0.03 per g 14,000 g 420.00 2,940.00 12,600.00 153,300.00

Jack Fruit (Langka) 0.27 per g 6,000 g 1,633.33 11,433.33 49,000.00 596,166.67

Mango 0.16 per g 6,700 g 1,072.00 7,504.00 32,160.00 391,280.00

Margarine 0.05 per g 5,500 g 300.00 2,100.00 9,000.00 109,500.00

Pineapple 0.03 per g 6,000 g 200.00 1,400.00 6,000.00 73,000.00

Purified water 0.00 per mL 54,000 mL 85.59 599.14 2,567.76 31,241.08

 Daily Cost
Ingredients Price / Unit
Amount DAILY WEEKLY MONTHLY YEARLY

Raw honey 0.21 per g 550 g 117.33 821.33 3,520.00 42,826.67

Salt 0.18 per g 700 g 123.53 864.71 3,705.88 45,088.24

Shrimp 0.36 per g 3,300 g 1,188.00 8,316.00 35,640.00 433,620.00

Sticky rice 0.10 per g 60,300 g 5,909.40 41,365.80 177,282.00 2,156,931.00

Strawberry Jam 0.38 per g 1,700 g 652.80 4,569.60 19,584.00 238,272.00

Tablea chocolate 0.58 per g 3,900 g 2,278.65 15,950.56 68,359.55 831,707.87

Tuna 0.18 per g 2,800 g 500.00 3,500.00 15,000.00 182,500.00

Ube Jam 0.18 per g 6,000 g 1,053.33 7,373.33 31,600.00 384,466.67

Vanilla Ice Cream 0.09 per mL 16,250 mL 1,523.44 10,664.06 45,703.13 556,054.69

White Onion 0.18 per g 1,700 g 306.00 2,142.00 9,180.00 111,690.00

TOTAL COST 29,426.96 205,988.74 882,808.87 10,740,841.25

Allocation of Profit

TABLE 2.2 Schedule of profit allocation per product

Selling Mark-up Ave. Profit
Products Cost Profit
price (%) serving Daily Weekly Monthly Yearly

COFFEE DRINKS

a. Brewed coffee 15.24 35.00 19.76 56% 17 329.33 2,305.33 9,880.00 118,560.00

Add-ons:

 Ice cream 4.69 10.00 5.31 53% 2 12.39 86.73 371.70 4,460.40

 Coconut milk 4.33 10.00 5.67 57% 2 13.23 92.61 396.90 4,762.80

b. Frappuccino 36.78 60.00 23.22 39% 67 1,548.00 10,836.00 46,440.00 557,280.00

c. Chocolate 27.14 50.00 22.86 46% 33 762.00 5,334.00 22,860.00 274,320.00

BIKO

a. Original flavor 15.66 35.00 20.09 57% 100 2,009.00 14,063.00 60,270.00 723,240.00

b. Chocolate flavor 37.43 43.00 15.51 36% 17 258.50 1,809.50 7,755.00 93,060.00

c. Strawberry flavor 31.34 43.00 17.16 40% 23 400.40 2,802.80 12,012.00 144,144.00
 Selling Mark-up Ave. Profit
Products Cost Profit
price (%) serving Daily Weekly Monthly Yearly

d. Ube flavor 28.86 43.00 13.15 31% 57 745.17 5,216.17 22,355.00 268,260.00

e. Jackfruit (Langka) flavor 27.13 43.00 7.35 17% 23 171.50 1,200.50 5,145.00 61,740.00

f. Banana flavor 29.69 43.00 14.72 34% 20 294.40 2,060.80 8,832.00 105,984.00

g. Mango flavor 31.53 43.00 12.97 30% 17 216.17 1,513.17 6,485.00 77,820.00

h. Pineapple flavor 22.38 43.00 21.69 50% 7 144.60 1,012.20 4,338.00 52,056.00

i. Seafood flavor 34.72 43.00 9.93 23% 10 99.30 695.10 2,979.00 35,748.00

395 7,003.99 49,027.91 210,119.60 2,521,435.20

Store Size

The business will operate in a 28 square meter commercial space located

at Km. 21 Ortigas Avenue Extension corner Eagle Street, Barangay San Juan,

Cainta, Rizal. The location has a free parking space for employees and customers

at the rear side of the commercial building.

Inflow of Materials

The delectable and tasteful brewed coffee comes from the rich plantation of

barako coffee beans in the province of Batangas, one of the main coffee-producing

areas in the land. After harvesting, roasting and processing, the coffee beans are

carefully transported to the coffee shop in Cainta, Rizal.

Ralfe Gourmet is a homegrown company that produces tablea from 100%

cacao from Cebu. The chocolate tablea are distributed in a nearest supermarket

where they are procured. After the procurement, they are placed inside the

refrigerator for storage.

From the plains of Central Luzon to Cainta, the Bibingka capital of the

Philippines, the glutinous (malagkit) used for the rice cakes are transported to the

direct supplier “Aling Kika’s” located at Cainta, Rizal, which delivers the supplies

to the coffee shop. The rice is stored in a dry place inside the shop until cooked.

The different varieties of fruits that are serve in the rice cakes comes from

different places in the Philippines—mangoes from Guimaras province, jackfruit

(langka) from, banana from and strawberry from Benguet—where they are

commonly grown and abundant. After harvest, the fruits are stored at a proper

temperature in reefer vans to be shipped in Manila. From the port of Manila, they

are sent to a market in Quezon City. There, the business’ supplier will carefully

choose and buy fresh and quality fruits. In case of highly heat-sensitive products

such as mango and strawberry, the fruit should be precooled prior to storage in the

shop. When a fruit is about to have an out-of-season supply, the fruit will be

preserved.

The seafood in the seafood-flavored glutinous rice cakes came from the

Navotas Fish Port in Navotas City and is transported daily in Farmer’s Cubao in

Quezon City. They are meticulously selected by the supplier to maintain the safety

and freshness of the ingredients of the food being served. At the shop, they are

stored in a freezer, with a 35-degree Fahrenheit temperature, to preserve its

freshness for a longer time.

All these delicious delicacies with the tasty coffee beverages will always be

at its best quality and will give ultimate gratification and enjoyment to Filipino coffee

drinkers.

Outflow of Target Production

Kopinoy offers varieties of unique and delightful coffee drinks, having vanilla

ice cream as a dairy creamer. Glutinous rice cakes (biko) with different fruit flavors
are also included in the menu—original, mango, jackfruit (langka), strawberry,

durian, purple yam (ube), banana and seafood.

Welcome the Take the

Ask the order
customer payment

Thank the
customer for Serve the order Make the order
coming

FIGURE 2.1 The outflow schedule

In serving the customer, members of the crew will welcome the customer /

potential customer as he enters the store premises. When the customer is ready

to order, the service crew assigned at the counter will ask the order from the

customer and whether the order will be eaten inside or taken out. The payment will

be taken from the customer after all the items of his order have finished and have

punched in the POS machine. “Pay as you order” policy shall be implemented in

the store. The order will now be prepared by the assigned crew in the kitchen area.

After the request has been made, a service crew will serve the ordered items to

the customer and will make sure that the order is complete. As the customer leaves

the store, the crew members will thank him for coming in the store.
Store Operations

The business will open its shop from 7:00 A.M. to 8:00 P.M. from Monday

to Sunday. The crew will have a 30-minute preparation before the store opening

to prepare the products and to clean up the place. An hour will be used after store

hours to assist in closing the store; the dining area, the kitchen area, the tools and

equipment must be cleaned before the store gets secured.

Inventory will be held daily, before and after store hours, to ensure the

availability of the goods and supplies to support the demand of the customers.

Issues and problems incurred during the business operations will be discussed

thereafter.

Building and Facilities

The owners have secured location in a commercial building space located

at Km. 21 Ortigas Avenue Extension corner Eagle Street, Barangay San Juan,

Cainta, Rizal, a walking distance from villages and subdivisions, residential

condominiums, educational institutions and commercial establishments.

The location has a monthly rent amounting to ₱14,560, excluding all utility

expenses, through a one-year leasing contract with an option for extending. An

open parking space at the back of the commercial building is available for workers

and patrons. It can be easily accessed through the Ortigas Avenue Extension, the

Eagle Street in Don Mariano Subdivision, and the Hunter ROTC Guerilla Street.
The construction of the commercial building where the business will be placed is

still on-going and will finish roughly by June 2016.

Figure 2.2 The anticipated completion of the commercial

building where the business will be located

Figure 2.3 The map of the business location and other

establishments around the area
Repair and Maintenance

In order to ensure the maintenance of the tools and equipment of the shop

during the day, a 15-minute daily monitoring will be performed before the end of

an employee’s shift. The business will make sure that the employees will maintain

the cleanliness of the working place and the dining area by cleaning them every

time. After store hours, tools and equipment will also be cleaned and sanitized,

and will be placed in a clean and dry place. General cleaning will be accomplished

20 minutes after store hours.

The business will also ensure that any plumbing or electrical repairs will be

done as soon as possible. If any equipment should become out of order or broken

in the facility, an arrangement will be made to an on-call technician that has the

knowledge and skills in repairing the shop’s equipment, in order to ensure the

safety and efficiency of the equipment and the employees. Alternative tools will be

used for the malfunctioned equipment, like when the coffee grinder fails to work

the employees can manage to do it manually.

Waste Management Disposal

Disposing of waste in an environmentally-friendly manner is crucial to every

business. This includes amongst other things, collection, transport, treatment and

disposal of waste together with monitoring and regulation.

 There will be two (2) garbage bins placed inside the store, separately

labeled as residual and recyclable. Garbage will be properly stored at a closed

waste facility in the commercial establishment after store hours until it is collected.

Solid residual wastes will be collected by the garbage collector thrice a week,

which will be sent to a waste management facility in Rodriguez, Rizal; recyclable

wastes will be sent to junk shops or material processing facilities in Pasig City.

The business will ensure that all waste water is tightly stored in the

establishment’s septic tank. Twice a year, once the tank is three-fourths full, the

waste water will be collected by Manila Water for waste water processing and

treatment.

To prevent a large volume of solid wastes, the business will use mugs and

plates in serving coffee drinks and glutinous rice cakes. Banana leaves, paper

cups and paper take-out cup carriers, that are biodegradable wastes, will be used

for take-out customers.

Supplies, Equipment and Fixed Assets

I. Supplies

TABLE 2.3 Office, Maintenance, and Packaging supplies of the business

Ball pen Bond paper Clear tape Printer cartridge

Record book Scissors Staple wire Kraft roll

Compostable trash
Time card Broom and dustpan Dishwashing liquid
liners
 Food gloves Floor cleaner Glass cleaner Hand soap

Mop and bucket Cleaner Sponge Washing gloves

Window wiper Wiping cloth Table napkin Paper bag

Take-out cup
Paper cup and lid Coffee stirrer Coffee filter
carrier
 II. Tools, equipment, and furniture

TABLE 2.4 Tools, equipment and furniture of the business

Calculator Dessert plate Dish drainer Fire extinguisher

Fork and knife Ice tongs Measuring cups Measuring spoons

Coffee mug Serving tray Stapler Strainer

Tape dispenser Teaspoon Trash bin Air conditioner

350-Liter chest Credit card

Bundy clock Computer set
freezer machine

Electric coffee
Digital timer Dishwasher Exhaust fan
grinder

Exit and Heavy-duty

Gram scale Microwave oven
emergency light blender
Pastry case POS cash register Printer Refrigerator

Telephone Wireless router Table and chairs Filing cabinet

Kitchen sink Office chair Office table

 Part 3

MARKETING ASPECT

Kopinoy will offer its customer the best tasting coffee drinks and glutinous

rice cakes in the area. This will be achieved by using good quality ingredients and

strictly following preparation guidelines.

In this part, the description of the market, target customers and the location

of the business will be elaborated. This also includes the competitors, the supply

and demand of the business, the demand structure, and the activities and

strategies in marketing the business.

Market description

The number of restaurants and food service establishments are

continuously growing in the Philippines as its growth averaged to 7.06% in the past

five years. Based on the final results of the 2009 Survey of Tourism Establishments

in the Philippines (STEP) conducted nationwide, restaurants, cafes and fast food

centers comprised the biggest number with 78.4% of the total out of 13,120

establishments engaged in Food and Beverage Service Activities. Incidentally,

88,000 metric tons of coffee that is produced every year in the Philippines goes to

local coffee production and consumption.

 The coffee shop caters to people who want to enjoy their daily habit of

drinking coffee whenever they want. Such customers in this market will vary in age,

our location is close to a school campus means that most of our clientele will be

college students and employees. Commercial establishments, and residential

villages, subdivisions and condominiums are likewise near by the location of the

business. Kopinoy also belongs to coffee shop industry where Starbucks Coffee,

Seattle’s Best and Figarro Coffee are among its competitors.

Target market

Depending on the price, our target market are students and business

workers on their way to class or work who want to have a cheap cup of coffee for

the caffeine kick. On the other hand, this kind of coffee shop that belongs to an

upscale market mostly attracts middle- and upper-class coffee drinkers who have

the income to pay several hundreds of peso for a cup of coffee. Based on the

activities of the people in the area, one of the target customers are college

students, corporate employees, middle- and upper-class workers, condominium

and village residents who drinks coffee outside their homes, passers-by in the

vicinity, and people who are looking for a place to mingle and meet friends and

business associates. Among all ages, teenagers and young adults or coffee

drinkers aged 18 to 39 are whom the business also targets to serve.

Location of the proposed business

The owners chose to put up a business at Km. 21 Ortigas Avenue Extension

corner Eagle Street, in the growing municipality of Cainta, Rizal. The location is a

walking distance from villages and subdivisions, residential condominiums,

educational institutions and commercial establishments. It is at the corner of Eagle

Street inside Don Mariano Subdivision and Ortigas Avenue Extension, a busy road

where most employees going to business districts in Makati and Mandaluyong

pass by. This location is perfect area for students, workers, residents and passers-

by in the vicinity who can enjoy drinking coffee and eating flavored biko. Its location

is a perfect place where people can meet and mingle with their friends, classmates

and officemates. It is easy to locate since it is only in front of the school campus,

also no direct competitor is in the area. The commercial space is located beside

the main entrance of the building where people can easily locate.

Competitors

Coffee business industry is continuously growing because of the increasing

demand and changing taste preferences of coffee consumers, making it an easy

and reasonable way to be in this business. There are big and small coffee shops

arising anywhere, and a few are now adding coffee drinks to their menu, which

arises to the competitors of the business.

 A. Direct competitors

 McCafé (McDonald’s)

 Crêpeman Café

 D-Bars Café

B. Indirect competitors

 Ministop

 Jollibee

 Medding Eatery

 Tapsi Ni Vivian

 Taj Bar

Demand

Demand is the amount of goods that people are willing to buy at a

reasonable price in a given period time. Among the population in the area of the

business, more than half are drinking coffee, while a few drink coffee drinks

occasionally or just don’t. Men drink as much coffee as women. Most coffee drinks

are consumed during breakfast hours, and the number goes lesser as day pass.

Factors Affecting the Demand

 Expensive prices of equipment used in making coffee

 Inflation causing price changes in the products

  Filipinos’ changing preferences in taste and quality of coffee drinks

 Increasing number of direct and indirect competitors who offer similar or

alternative products to customers

 The competitor’s promotional and marketing strategies

 Increasing number of people who consumes coffee and glutinous rice cakes

 Changes in average income of customers

Supply

An essential economic concept that portrays the quantity of a specific good

or service that is available to consumers. This provides closely to the demand for

a good or service at a specific price; all else buying equal the supply offered by

producers will increase if the price rises because all firms look to maximize profit.

Some raw materials needed in the products offered are seasonal. Durian

trees only bear fruits from June to August, and jackfruits (langka) ripen either

March to June, April to September, or June to August, depending on the climatic

region, with some off-season crops from September to December. The regular

flowering season of Mangoes are from November to February and can be

harvested from March to June, while the harvest season for strawberries are

March.

Factors affecting supply

 Harvest season of fruits leading to shortage of supply in different times

  Gradually increasing prices of coffee beans and glutinous rice (malagkit) in

local and international markets.

 Calamities and fortuitous events that may cause the delay in the delivery of

supplies

Marketing Program

Kopinoy will be based in a place near to commercial establishments, school,

and public transport terminal, and has a huge traffic of passers-by and riders. The

place is located at a corner of a busy national main road which is easier to see and

perfect for promotion of the business.

The products will be affordable for everyone and worth its price.

The employees will be wearing shirts branded with the company logo. The

shirts shall be provided by the business to its employees free of charge to wear

during their shifts. Higher quality, similar shirts will be for sale within the coffee

shop.

Awareness of Kopinoy to the common public is one of the best way to

advertise the business. Most Filipinos are already using Facebook and tend to use

it for hours every day which makes a good program to advertise the business. A

Facebook fan page of Kopinoy will be created where potential customers can see
the business’ newest products, current promos, and others, considering that it is

free and easy to access. Advertisements in Facebook will also be used in

promoting the products and services offered.

Nowadays, people like to hang out in shops where there is a free internet

connection leading them to buy in the shop. The business will be offering free Wi-

Fi internet and mobile phone charging for its customers and patrons. Password will

only be available upon purchase on the counter and will be changed every day to

prevent the abuse of internet usage in the shop.

The business will also offer a promo where the customers will have chances

to win prizes, like free biko or a cup of coffee, underneath the paper cups. Monthly

promos will likewise be offered. Every January of the year, the coffee drinks will be

offered on “Resolu-cups” where customers can write in the coffee cups their

resolutions for the year and will be placed on a designated spot in the shop. During

the Valentine’s weekend, a 50% discount will be given on the second coffee drink

for every one coffee drink bought in a single purchase. And on December, the

coffee shop will offer a 15% Christmas discount in every coffee and biko pair

bought. There will also be a group promo on the months of August to October and

January to March where you can have a free cup of coffee drink on every five (5)

cups of coffee bought in a single purchase. And during the anniversary week of

the coffee shop, 25% discount on all rice cake products will be offered to every
customer and an additional 30% discount, inclusive of the 20% SC discount, for

senior citizens.

Demand structure

The partners conducted a survey within the vicinity of the proposed location

particularly in the municipality of Cainta, Rizal, along Ortigas Avenue Extension, in

order to distinguish the people’s opinion with regards to the proposed business

that is to be established. The number of samples were identified using the Slovin’s

formula in determining the number of samples.

N
𝑛=
(1 + 𝑁𝑒 2 )

Slovin's formula was used to figure out the sample size needed to take,

where n = Number of samples, N = Total population and e = Error tolerance. The

total number of population is 356, from the 311,845 population of Cainta, Rizal and

26.81-square kilometer land area. The error tolerance used is 5 percent.

The partners started conducting their study by formally asking their selected

respondents permission to participate in the survey. Upon agreement, the partners

gave them the questionnaire for them to answer. the researchers collected the

survey form to be analyzed. The analysis and interpretation of the findings were

based on the computed percentage.

The data gathered were tabulated, and treated using the frequency

distribution method.
 1. Age

AGES 51-60 AGES 61-70

1.1% 0.5%

AGES 41-50
12.6%
AGES 11-20
42.9%
AGES 31-40
14.8%

AGES 21-30
28.0%

FIGURE 3.1 The age distribution of the respondents in years

In the figure 3.1, the ages 11-20 has the highest number of respondents

which consists of 43 percent. Respondents that belong to the age 21-30 group

consists of 28 percent; age groups 31-40 and 41-50 are 15 and 13 percentages

respectively. Senior age groups 51-60 and 61-70 are both 1 percent of the

respondents.
 2. Gender

FEMALE
47.7% MALE
52.3%

FIGURE 3.2 The gender distribution of the respondents

In the figure 3.2, most of the respondents are male with 52 percent, while

female respondents consist the remaining 48 percent.

3. Employment status

RETIRED
8.9%
UNEMPLOYED STUDENT
8.2% 29.5%

EMPLOYED
32.2%
SELF-
EMPLOYED
21.2%

FIGURE 3.3 The distribution of respondents according to their

employment status
 In the figure 3.3, 32 percent of the respondents are currently employed, and

30 percent are students, which have relatively the highest percentages among our

respondents. The respondents who said that they are self-employed have 21

percent; retired and unemployed respondents have 9 and 8 percent respectively.

4. The intentions for being in the area where the business will be located

PASS BY RESIDENCE
17.2% 20.6%

MARKETPLAC
E
6.1%
TRANSPORT
TERMINAL
11.7%

SCHOOL
25.0%
WORKPLACE
19.4%

FIGURE 3.4 The distribution of the respondents’ intention in the area

In the figure 3.4, most of the respondents said that they are going to school

having 25 percent. 21 percent of the respondents said that they live within the

vicinity, 19 percent are working nearby. 12 and 6 percent said that respectively the

transport terminal and the marketplace are their intentions for being in the area.

Respondents who are just passing by consist of 17 percent.

 5. Frequency of drinking coffee in a week

13 OR MORE
8.9% NONE
17.8%
9-12 TIMES
9.4%

5-8 TIMES
26.7%
1-4 TIMES
37.2%

FIGURE 3.5 The distribution of how frequent the respondents regularly

drink coffee beverage in a week

In the figure 3.5, most of the respondents said that they drink coffee 1 to 4

times in a week having a percentage of 37 percent. 27 percent of the respondents

said that they drink coffee 5 to 8 times in a week, 9 percent drink 9 to 12 times. 9

percent said that they drink more than 12 times in a week. Respondents who do

not drink coffee in a week or do not drink any coffee beverage consist of 18

percent.
 6. Places where coffee is obtained or procured

NOT COFFEE
DRINKERS SARI-SARI
13.4% STORE
27.4%
OTHERS
2.8%

COFFEE SHOP CONVENIENCE STORE

17.9% 8.4%

CANTEEN
7.3%
VENDING MACHINE
7.8% SUPERMARKET
15.1%

FIGURE 3.6 The distribution of the answers of respondents where

they usually obtain or procure coffee drinks

In the figure 3.6, most of the respondents said that they buy coffee at sari-

sari stores having a percentage of 27 percent. 18 percent of the respondents said

that they buy coffee in coffee shops, 15 percent buy in supermarkets. Both 8

percent of the respondents buy at convenience stores and vending machines, and

7 percent in canteens. 3 percent said that they have other sources of coffee.

Respondents who do not drink any coffee beverage consist of 13 percent.

There are sari-sari stores, a convenience store, and vending machines near

the proposed place of the business. Kopinoy is classified as a coffee shop.

 7. Price afford for a coffee drink

NOT COFFEE DRINKERS

11.7%

P30 AND BELOW

MORE THAN P150 34.6%
11.7%

P121 to P150
8.9%
P31 to P60
13.4%
P91 to P120
11.7% P61 to P90
7.8%

FIGURE 3.7 The distribution of the answer of respondents on the

range of prices, in Philippine peso, they afford to buy a coffee drink

In the figure 3.7, most of the respondents said that they can afford buying

coffee that are priced ₱30 and below, having a percentage of 35 percent; 13

percent for priced ₱31 to ₱60, 8 percent for priced ₱61 to ₱90, 12 percent for

priced ₱91 to ₱120, 9 percent for priced ₱121 to ₱150, 12 percent for priced more

than ₱150. Respondents who do not drink any coffee beverage consist of 12

percent.

58 percent can afford buying the coffee beverages the business will be

selling priced ₱31 and above.

 8. Commonly visited well-known coffee shops

NOT COFFEE DRINKER OTHERS

8.8% 2.2%

NOT COFFEE STARBUCKS

SHOP VISITOR 33.1%
13.8%

SEATTLE'S
CAFÉ MARY GRACE
BEST
5.0%
2.2%

GLORIA JEAN'S
2.8% FIGARO
5.0%
COFFEE BEAN MCCAFE
7.2% 19.9%

FIGURE 3.8 The distribution of the answer of respondents on their

most visited well-known coffee shops in the Philippines

In the figure 3.8, most of the respondents said that they commonly visit

Starbucks Coffee among other well-known coffee shops, having a percentage of

33 percent; 20 percent for McCafé of the fast-food chain McDonald’s. Among the

least visited are Coffee Bean and Tea Leaf with 7 percent, Café Mary Grace and

Figaro both with 5 percent, Gloria Jean’s with 3 percent, and Seattle’s Best Coffee

with 2 percent. Respondents who visit other coffee shops consist of 2 percent.

Respondents who do not drink any coffee beverage consist of 9 percent, while

who do not visit any coffee shops is 14 percent.

Only McCafé of McDonald’s is among the said coffee shops that are near

the vicinity of the business.

 9. Time of coffee consumption

NOT COFFEE
EARLY
DRINKER
MORNING (4-
13.6%
7AM)
LATE NIGHT 28.2%
(10PM-3AM)
7.3%

EVENING (6-
9PM) LATE MORNING
10.2% (8-11AM)
18.1%

AFTERNOON NOONTIME
(3-5PM) (12-2PM)
11.3% 11.3%

FIGURE 3.9 The distribution of the answer of respondents on the time

they consume their coffee beverage

In the figure 3.9, most of the respondents said that they drink coffee at early

morning, 4 to 7 A.M., having a percentage of 28 percent; 18 percent at late

morning, 8 to 11 A.M. During both the noontime, 12 to 2 P.M., and afternoon, 3 to

5 P.M., only 11 percent drink coffee at that time. 10 and 7 percent drink coffee at

evening, 6 to 9 P.M., and late evening, 10 P.M. to 3 A.M, respectively.

Respondents who do not drink any coffee beverage consist of 14 percent.

50 percent can avail the coffee beverages the business will be selling during

the opening hours of the store.

 10. Commonly liked coffee drinks

OTHERS
MACCHIATO
6.1%
1.7%
INSTANT COFFEE
CAPPUCCINO 17.1%
5.0%

CHOCOLATE
14.9%
FRAPPUCCIN
O
MOCHA 23.2%
7.7%
ESPRESSO LATTE
5.5% 6.1%
BREWED COFFEE AMERICANO
8.3% 4.4%

FIGURE 3.10 The distribution of the answer of respondents on their

most liked coffee drinks

In the figure 3.10, most of the respondents said that they want to drink

Frappuccino, having a percentage of 23 percent; 17 percent of the respondents

said that they drink instant coffee and 15 percent drink chocolate drink. Among the

least liked coffee beverages are brewed coffee and Mocha both with 8 percent,

Latte and espresso with 6 percent, Cappuccino with 5 percent, Americano with 4

percent, and Macchiato with 2 percent. Respondents who like drink other coffee

beverages consist of 6 percent.

Brewed coffee, Frappuccino and Mocha are among the coffee drinks the

business will offer.

 11. Commonly liked flavor glutinous rice cake

SEAFOOD OTHERS
2.2% 0.6% DON'T EAT BIKO
DURIAN 5.0%
1.7%

MANGO ORIGINAL
5.0% 39.4%

BANANA
5.6%

STRAWBERRY
6.7%

CHOCOLATE JACKFRUIT
UBE
22.8% 3.9%
7.2%

FIGURE 3.11 The distribution of the answer of respondents on their

most liked flavor of glutinous rice cake

In the figure 3.10, most of the respondents said that they want to taste the

original flavor of the glutinous rice cake, having a percentage of 39 percent; 23

percent of the respondents said that they want the chocolate flavor. Among the

least liked flavors are ube and strawberry flavors both with 7 percent, banana flavor

with 6 percent, mango flavor with 5 percent, jackfruit flavor with 4 percent, and

durian and seafood flavors both with 2 percent. Respondents who like drink other

coffee beverages consist of less than 1 percent.

All the flavor, other than the durian flavor, are among the flavors of the

glutinous rice cakes the business will offer.

 12. Service of food

DELIVERY
13.3%

TAKE-OUT
DINE-IN
28.9%
57.8%

FIGURE 3.12 The distribution of the answer of respondents on how

they like their food to be served

In the figure 3.12, most of the respondents said that they want their food to

be dined inside the shop, having a percentage of 58 percent; 29 percent of the

respondents said that they want their food to be taken out, and 13 percent want it

delivered.

The business will offer dine-in and take-out services

 SURVEY QUESTIONNAIRE

NAME (Optional):

Age: Gender: ⃝ Male ⃝ Female

This survey questionnaire will be used in collecting data for a business plan, which

will be a partial fulfillment of the requirements to the researchers under the

Entrepreneurial Management subject of National College of Business and Arts in

Taytay, Rizal. It will help them gather information for the business plan. Answers

given in this survey questionnaire will be strictly confidential. Thank you for taking

your time in answering.

INSTRUCTIONS: Please answer this questionnaire honestly, clearly and

confidently. Put a checkmark () on the circle of your chosen answer(s). Only

select from the given choices.

1. Which of the following categories best describe your employment status?

⃝ Student ⃝ Unemployed

⃝ Self-employed ⃝ Retired

⃝ Employed, please specify occupation: _____________________

2. What is the reason for being in this place?

⃝ I live in this place. ⃝ I study here.

⃝ I ride public transport here. ⃝ This is where I buy stuff.

⃝ I work here/nearby. ⃝ I’m just passing by.

⃝ Other reasons: _______________________________________

3. How often do you drink coffee in a week?

⃝0 ⃝ 5 to 8 times ⃝ 13 times or more

⃝ 1 to 4 times ⃝ 9 to 12 times

4. Where do you always avail/ get your coffee? Choose one (1).

⃝ Sari-sari store ⃝ Supermarket

⃝ Convenience store ⃝ Vending machine

⃝ Canteen / Cafeteria ⃝ Coffee shop

⃝ I don’t drink coffee ⃝ Others: __________________

5. How much can you pay for a coffee drink?

⃝ ₱30 and below ⃝ ₱61 to 90 ⃝ ₱121 to 150

⃝ ₱31 to 60 ⃝ ₱91 to 120 ⃝ More than ₱150

⃝ I don’t drink coffee.

6. What coffee shops do you usually visit? Choose one (1).

⃝ Starbucks Coffee ⃝ Coffee Bean & Tea Leaf

⃝ Café Mary Grace ⃝ Gloria Jean’s

⃝ Figaro ⃝ Seattle’s Best Coffee

⃝ McCafé (McDonald’s) ⃝ Others: __________________

⃝ I don’t drink coffee. ⃝ I don’t go to coffee shops.

7. What time of the day do you usually drink coffee?

⃝ Early Morning (4-7AM) ⃝ Afternoon (3-5PM)

⃝ Late Morning (8-11AM) ⃝ Evening (6-9PM)

⃝ Noontime (12-2PM) ⃝ Late night (10PM-3AM)

⃝ I don’t drink coffee.

8. What hot or cold coffee drink do you drink or prefer to drink? Choose one (1).

⃝ Instant coffee ⃝ Brewed coffee ⃝ Chocolate

⃝ Frappuccino ⃝ Espresso ⃝ Cappuccino

⃝ Latte ⃝ Mocha ⃝ Macchiato

⃝ Americano ⃝ Others: __________________________

9. What flavor of Filipino glutinous rice cake (biko) would you prefer to pair up

with coffee? Choose one (1).

⃝ Original flavor ⃝ Chocolate ⃝ Mango

⃝ Jackfruit (Langka) ⃝ Strawberry ⃝ Durian

⃝ Ube ⃝ Banana ⃝ Seafood flavor

⃝ I don’t eat biko. ⃝ Others: __________________________

10. Would like your food or drink delivered, dined in, or taken out?

⃝ Dine-in ⃝ Take-out ⃝ Delivery

 Part 4

MANAGEMENT AND PERSONNEL ASPECT

The organization and its members must be set up for optimum

effectiveness. To achieve this, management must be able to plan all the activities

for the company to become productive and competitive through human resources,

financial capability and innovation.

This part discusses the business’ perspective on the management and the

work force that implies a clear and precise identification of the management

structure of the business, the personnel duties and responsibilities, and the job

qualifications for each position. The policies and guidelines, the proposed

compensation and benefits, and the schedules that will govern the employees are

discussed in this part. The Articles of Partnership and the partners’ profile are also

shown in the management and personnel aspect.

Organizational structure

FIGURE 3.1 Kopinoy’s organizational chart

The organizational structure shows the flow of chain of command. In

essence, it fosters teamwork, where everyone in the department works toward a

common goal.

The figure on the earlier page also shows the number of employees per

position. The subjects have set the exact number of people required in every shift

of operations, to make sure that the business maintains its standard quality

service.

Kopinoy is a small coffee shop business in Cainta, Rizal. They have a

general manager, a supervisor, and four (4) service crew members. The general

manager of the business will be the General Manager of Coffee Filipino Partners,

Limited, wherein Kopinoy will be under the partnership’s management.

 Articles of Partnership

Of

COFFEE FILIPINO PARTNERS LTD.

KNOW ALL MEN BY THESE PRESENTS:

That we, the undersigned partners, all of legal age, residents and citizens

of the Philippines, have on this day voluntarily associated ourselves together for

the purpose of forming a limited partnership under the following terms and

conditions and subject to existing and applicable laws of the Republic of the

Philippines:

AND WE HEREBY TESTIFY:

ARTICLE I. That the name of this partnership shall be

COFFEE FILIPINO PARTNERS, LIMITED and shall transact business under the

said company name.

ARTICLE II. That the purposes for which this partnership is formed is to

hold, manage, and operate a coffee shop named “Kopinoy” in Cainta, Rizal that

will undertake food and beverage services by serving coffee drinks and glutinous

rice cakes in different flavors.

 ARTICLE III. That the principal place of business of this partnership shall

be located at Km. 21 Ortigas Avenue Extension, Cainta, Rizal.

ARTICLE IV. That this partnership shall have a term of ten (10) years from

and after the original recording of its Articles of Partnership by the Securities and

Exchange Commission.

ARTICLE V. That the names, nationalities and complete residence

addresses of the partners are as follows:

Kind of
Name Citizenship Residence
Partner

Carlos Joshua D.
Filipino Brgy. Sta. Ana, Taytay, Rizal Limited
Villanueva

Hay-ann O.
Filipino Brgy. San Juan, Taytay, Rizal Industrial
Gramonte

Brgy. San Vicente, Angono,

Jomarie B. Cardano Filipino General
Rizal

Jonah Mae S. Brgy. Pila-pila, Binangonan,

Filipino Limited
Antonio Rizal

Ron Renzel A. Brgy. San Isidro, Angono,

Filipino General
Semira Rizal

Roy Benjamin B.
Filipino Brgy. Dolores, Taytay, Rizal General
Pulumbarit
 Kind of
Name Citizenship Residence
Partner

Vince Robin C. Brgy. Sto. Domingo, Cainta,

Filipino General
Merced Rizal

ARTICLE VI. That the capital of this Partnership shall be the amount of

Five hundred fifty thousand (₱550,000.00), Philippine Currency, contributed in

cash by the partners, as follows:

AMOUNT
NAME
CONTRIBUTED

Carlos Joshua D. Villanueva ₱ 35,000.00

Jomarie B. Cardano 100,000.00

Jonah Mae S. Antonio 25,000.00

Ron Renzel A. Semira 120,000.00

Roy Benjamin B. Pulumbarit 210,000.00

Vince Robin C. Merced 60,000.00

TOTAL ₱ 550,000.00

That no transfer of interest which will reduce the ownership of Filipino

citizens to less than the required percentage of capital as provided by existing laws

shall be allowed or permitted to be recorded in the proper books of the partnership.

That Hay-ann O. Gramonte, an industrial partner, shall contribute her

industry or personal service to the partnership.

 ARTICLE VII. That the profits and losses of this partnership shall be divided

and distributed among the partners as follows: (Limited partner shall be liable for

losses only to the extent of his/her contribution.)

SHARE RATIO
NAME
PROFIT LOSS

Carlos Joshua D. Villanueva 6% -

Hay-ann O. Gramonte 3% -

Jomarie B. Cardano 18% 20%

Jonah Mae S. Antonio 4% -

Ron Renzel A. Semira 21% 24%

Roy Benjamin B. Pulumbarit 37% 43%

Vince Robin C. Merced 11% 12%

ARTICLE VIII. That should there be any additional contribution made by a

limited partner, such must be agreed upon by all the partners in writing and duly

recorded at least two (2) days after signing of same agreement. Such contribution

shall amend Article VI of the Articles of Partnership and in no case shall such

amendment be done less than one (1) year after the original recording of said

partnership by the Securities and Exchange Commission.

 ARTICLE IX. That the contribution of each limited partner may be returned

to him/her five (5) years after the original recording of said partnership by the

Securities and Exchange Commission.

ARTICLE X. That a partner is entitled to have a monthly drawing not

exceeding ₱1,500.00 per month. Provided, further, that there would be no drawing

for the first year of operation and no loss shall be incurred in the equity upon

drawing.

ARTICLE XI. That the limited partner may be given the right to substitute

an assignee as contributor in his place, provided that he has duly notified his

partners in writing, stating the reasons therefor, five (5) days before effectivity of

said substitution. Provided, further, that such limited partner has already settled

his obligations to the partnership prior to the notification of substitution.

ARTICLE XII. That a partner may admit an additional limited partner,

provided that the other partners have been duly notified in writing five (5) days

before effectivity of admission and duly concurred by all the partners in writing.

ARTICLE XIII. That the remaining general partner or partners shall have

the right to continue the business in cases of death, retirement, civil interdiction,

insanity or insolvency of a general partner.

 ARTICLE XIV. That this partnership shall be under Roy Benjamin B.

Pulumbarit, as General Manager, who shall be in charge of the management of

the affairs of the company. He shall have the power to use the partnership name

and in otherwise performing such acts as are necessary and expedient in the

management of the firm and to carry out its lawful purposes. (Only the General

Partner can be the General Manager.)

ARTICLE XV. That the General Manager of the partnership shall receive a

monthly allowance of FIVE THOUSAND PESOS (P 5,000.00).

ARTICLE XVI. That the partners undertake to change the name of this

partnership, as herein provided or as amended thereafter, immediately upon

receipt of notice or directive from the Securities and Exchange Commission that

another corporation, partnership or person has acquired a prior right to the use of

that name or that the name has been declared as misleading, deceptive,

confusingly similar to a registered name, or contrary to public morals, good

customs or public policy.

Policies and guidelines

Policies are rules and regulation that provides the responsibility of

developing the behavior of the employees to prevent the possible problems that

might possibly occur in every aspect. Its implementation will help the employees
to mold in to the most effective and efficient way of performance that will also help

the business well to bring out its maximum potential.

The proponents provide the sets of guidelines that will help the organization

to promote peace, integrity, well-organized and smooth operation in the business

establishment.

This part is designed to inform and provide information about working

conditions, benefits, and policies affecting the employees of the business. One of

the business’ objective is to provide the employees with a satisfying work

environment and a constructive personal and professional growth.

Employee Uniforms

New employees will be provided:

 Uniform shirt

 Nametag

Employees must provide their own pants. Acceptable uniform pants are

black fitted or skinny jeans. Unacceptable pants include, but are not limited to:

 Wide-legged jeans

 Jeans with wide stitching on the seams

 Ragged jeans

 Leggings

 Dress pants

 Warm-up pants

 Running suit pants

 It is the responsibility of the employees in cleaning and maintaining their

uniform. The employee will not be allowed to come in to work if not completely

dressed in uniform (shirt, pants, and nametag).

Employee Appearance

An employee must follow these guidelines regarding employee

appearance:

 Limited size and amount of jewelry is allowed.

 Hair styles should not draw any attention (e.g. hair color, height, length, and

objects worn in hair). All employees must wear a hair net when on duty.

 Long or artificial nails are not permitted. Clear nail polish only is allowed for

female.

 A clean-shaven appearance is preferred on all males. The only facial hair

allowed is a mustache that does not exceed the corners of the mouth.

Goatees are not allowed.

 All employees must wear complete uniforms.

 Earrings on males are not allowed.

 Tongue rings, tongue studs, nose rings, or any other facial rings or piercings

are not allowed while on duty.

 Visible tattoos are discouraged and where present should not be offensive

to others; if deemed to be offensive, they should be appropriately covered.

 Headscarves and long sleeves worn for religious purposes are permitted

for Muslim employees.

  Chewing gum and drinking beverages of any kind are not allowed while on

duty.

Conditions of employment

An employee must agree to the following conditions:

A. The service crews and the supervisor will follow a six (6) day work week

with a given schedule.

B. An employee is provided a one (1) day rest period after six (6) consecutive

normal work days. Notwithstanding the 6-day workweek, employees may

be required to report for work on his scheduled rest day depending on the

demands of work; he shall be entitled to an additional 30% of his regular

wage for a work done on his rest day.

C. Each employee is required to render the maximum ordinary hours of work

to a maximum of 48 ordinary hours of work per week and eight (8) ordinary

hours of work per day.

D. Each employee is entitled to a regular one (1) hour meal time and two (2),

fifteen (15) minute in-between breaks, following a pre-determined schedule.

E. Employees shall be paid his regular daily wage on a regular holiday. If the

employee is required to any regular holiday, he shall be paid a

compensation equivalent to twice his regular rate. Work performed on any

special holiday shall be paid an additional compensation of at least thirty

percent (30%) of the regular wage of the employee.

F. Unauthorized absences or absence without official leave (AWOL) are

absences from work without prior approval or notification, is shall be

considered as without pay. Unauthorized extension of an approved leave

shall also be charged as AWOL.

G. Employees are required to log-in in the Bundy clock using the timecard. An

employee who fails to file attendance should ask the supervisor’s approval

to confirm, otherwise it shall be considered as AWOL. Failure to file

attendance properly shall merit the employee a disciplinary action.

H. Tardiness means failure to arrive on the designated start of the employee’s

work schedule:

 All instances of tardiness regardless of number of minutes shall be

monitored and shall be made the basis for possible salary deductions

and/or imposition of disciplinary action.

 A 10-minute grace period will be given to each employee.

 An employee who accumulates more than 60 minutes of tardiness

within a month or a year, whichever comes first, shall immediately be

issued a written warning.

 Corresponding per minute deductions will be made against the

employee’s salary for tardiness.

I. Under time means leaving early or leaving before the end of the employee’s

work schedule.
  All instances of under time regardless of number of minutes shall be

monitored and shall be made the basis for possible salary deductions

and/or imposition of disciplinary action.

 Corresponding per minute deductions are made against the

employee’s salary for under time.

J. Overtime work is work performed beyond eight (8) hours a day. The

employee who worked overtime is paid for a compensation equivalent to his

regular wage plus 25%; overtime work on a regular holiday or rest day shall

be paid an additional compensation equivalent to the rate of the first eight

(8) hours plus 30%.

o Overtime work shall have prior written authorization. The Overtime

Request form must be accomplished and signed by the Supervisor,

not later than one (1) day before the intended date.

o Overtime work rendered without prior authorization will not be

considered for payment.

o Only overtime work performed within the approved authorized period

will be eligible for payment of overtime premium.

o Under time work on any particular day shall not be offset by overtime

work on any other day.

K. Paydays are on the 15th and 30th of the month. All salaries are given

personally by the supervisor to the employees through direct deposit

accounts.
Leaves

As a reward for continuous and satisfactory service and as mandated by

the law, the employee is given privileges upon fulfillment of certain eligibility

requirements.

A. Incentive leave: Three (3) days of incentive leave shall be given to every

regular employee after the time of probationary employment. The incentive

leave credits shall be given annually, not cumulative, and not convertible to

cash.

B. Maternity leave: Two (2) weeks prior to the expected date of delivery and

another four (4) weeks after normal delivery or abortion with full pay based

on her regular weekly wage shall be given to any pregnant woman

employee who has rendered a collective service of at least six (6) months

in the business for a year. The maternity leave application of the employee

shall be filed to the manager three (3) weeks before the expected date of

delivery, supported by a medical certificate signed by a physician or midwife

showing that delivery will probably take place within two (2) weeks.

C. Paternity leave: Seven (7) days with full pay based on his regular daily wage

shall be granted to a married male employee thereof, on the condition that

his wife has delivered a child or suffered a miscarriage. The paternity leave

application of the employee shall be filed to the manager three (3) weeks

before the expected date of delivery, supported by a marriage contract and

a medical certificate signed by a physician or midwife showing the

pregnancy of his legitimate wife and the expected date of such delivery.
 D. Parental leave: Seven (7) working days of parental leave every year will be

granted to any solo parent employee who has rendered service of at least

a year for the purpose of enabling him/her to perform parental duties and

responsibilities where physical presence is required.

E. Special leave for women: Two (2) months with full pay based on her gross

monthly compensation will be given to any female employee who have

undergone a surgery caused by gynecological disorder, provided that she

has rendered continuous aggregate employment service of at least six (6)

months for the last 12 months.

Employment Status

A. Regular or Permanent Employment: This is given to an employee who has

satisfactorily passed the probationary period after six (6) months.

Supervisors and managers, by virtue of the positions they occupy, may be

hired as regular or permanent employees.

B. Probationary Employment: This is given to a newly hired employee. The

standard probationary period is six (6) months. A new employee whose

performance is being evaluated before the end of the probationary period

to determine whether further employment in a specific position or with the

business is appropriate. A probationary employee may be terminated

anytime for valid reasons as stipulated in the Code of Conduct and in

accordance with the Labor Code.

C. Temporary Employment: This is given to whose performance is being

evaluated to determine whether further employment in a specific position or

with the business is appropriate, or individuals who are hired as interim

replacements to assist in the completion of a specific project or for vacation

relief through designated employment agencies. Employment beyond any

initially stated period does not in any way imply a change in employment

status. Temporary employees retain that status until they are notified of a

change. If there is change in the employment status of a temporary

employee, the employee must undergo the probationary employment.

Temporary employees are not eligible for any of the Company’s benefit

programs.
Duties and responsibilities

Title/ position: Supervisor

Reports to: General Manager

Supervises: 4 service crews

Job description and specification:

TABLE 3.1 Job description and specification of the supervisor

JOB DESCRIPTION

 Monitors the team’s performance and reports to the general manager

when required

 Must be able to demonstrate skills in business, managerial knowledge

and smooth interpersonal relationship with his team.

 Attracts patrons by developing and implementing marketing, advertising,

public and community relations programs; evaluating program results;

identifying and tracking changing demands.

 Maintains patron satisfaction by monitoring, evaluating, and auditing food,

beverage, and service offerings; initiating improvements; building

relationships with preferred patrons.

JOB SPECIFICATION

 Male or female

 A graduate of a Bachelor's Degree in Culinary, Hotel and Restaurant or

equivalent.
 At least 2 years Food and Beverage Management Experience as a

manager or supervisor

 Leadership and Management skills

 Good at Oral & Written Communication

 Has a pleasing personality

 Computer Literate

 Knowledgeable in food and beverage business and financial analysis

 Should be knowledgeable in operating / handling commissary

Title/ position: Accountant

Reports to: General Manager

Supervises: None

Job description and specification:

TABLE 3.2 Job description and specification of the accountant

JOB DESCRIPTION

 Analyzes and investigates quarterly financial accounts

 Establishes the partnership

 Undertakes financial administration

 Prepares reports, budgets, and financial statements

 Financial forecasting

 Controls income and expenditure;

 Ensures compliance with taxation legislation

JOB SPECIFICATION

 Male or Female

 A graduate of a Bachelor's Degree in Accountancy, Banking and Finance,

or other related courses

 Licensed certified public accountant (CPA)

 Has at least 6 months to 1-year experience, and has the knowledge in

GL, AP, revenue, financial statement preparation, bookkeeping and bank

reconciliation
Title/ position: Service Crew

Reports to: Supervisor

Supervises: None

Job description and specification:

TABLE 3.3 Job description and specification of the service crew

JOB DESCRIPTION

 Greets guests and suggestively sells and fills food and beverage orders.

 Provides customers with a quick and accurate service and show

sensitivity to their individual needs.

 Prepares food and drinks offered involving use of a broad range of

equipment and tools.

 Handles cash, credit card and discount transactions with the assistance

of a POS (Point of Sale) register.

 Verifies a starting bank and completing a daily audit report when

balancing the drawer at the end of the shift.

 Straightens chairs and tables, and maintains a clean, sanitized food

service area by picking up litter and following established cleaning

procedures.

 Uses a variety of cleaning utensils and chemical cleaning products along

with the correct protective equipment.

 Ensures extraordinary guest service by providing positive interactions

with guests in a friendly and courteous manner.

 JOB SPECIFICATION

 Male or female

 Has at least a Vocational Diploma or Short Course Certificate, or

Bachelor's Degree in Culinary, Food and Beverage Services

Management, Hospitality or equivalent.

 Has knowledge in customer service.

 Has good interpersonal and communication skills

 Always maintain the cleanliness of the station

 Has at least 1 year of working experience in the food industry

 Smart and with pleasing personality

Proposed compensation and benefits

1. Supervisor

TABLE 3.4 Compensation rates given to the supervisor

Rates (₱)
Type of
Daily
employment Hourly
Regular day Regular Holiday Special day Rest day

Probation 62.50 500.00 1,000.00 650.00 650.00

Regular 72.12 576.92 1,153.85 749.99 749.99

Daily
Type of
Holiday / Special / Semi-Monthly Monthly Yearly
employment
Rest day Rest day

Probation 1,150.00 750.00 6,500.00 13,000.00 156,000.00

Regular 1,500.00 865.38 7,499.99 15,000.00 180,000.00

TABLE 3.5 Hourly overtime rates given to the supervisor
Hourly overtime rates (₱)
Type of
Regular Holiday / Special /
employment Regular day Special day Rest day
holiday Rest day Rest day

Probation 78.13 162.50 105.63 105.63 211.25 121.88

Regular 90.14 187.50 121.87 121.87 243.75 140.62

Benefits:

 Medicard Plan 18,000 (upon regularization)  Parental leave (for solo parent)

 Incentive leave (upon regularization)  Special leave for women

 Maternity leave (for pregnant woman)  Mandatory benefits (SSS, PhilHealth, Pag-IBIG)

 Paternity leave (for married male)  13th-month pay

 Incentive pay (Based on monthly sales goal)

2. Service crew

TABLE 3.6 Compensation rates given to the service crew

Rates (₱)
Type of
Daily
employment Hourly
Regular day Regular Holiday Special day Rest day

Regular / Probation
32.88 263.00 526.00 341.90 341.90
/ Temporary

Daily
Type of
Holiday / Special / Semi-Monthly Monthly Yearly
employment
Rest day Rest day

Regular / Probation
683.80 444.47 3,419.00 6,838.00 82,056
/ Temporary
TABLE 3.5 Hourly overtime rates given to the service crew
Hourly overtime rates (₱)
Type of
Regular Holiday / Special /
employment Regular day Special day Rest day
holiday Rest day Rest day

Regular / Probation
41.09 85.48 55.56 55.56 111.12 64.11
/ Temporary

Benefits:

 Medicard Plan 8,000 (upon regularization)  Parental leave (for solo parent)

 Incentive leave (for regular employee)  Special leave for women

 Maternity leave (for pregnant woman)  Mandatory benefits (SSS, PhilHealth, Pag-IBIG)

 Paternity leave (for married male)  13th-month pay

3. Accountant

TABLE 3.6 Compensation rates given to the accountant

Rates (₱)
Type of
Monthly Quarterly
employment Hourly Daily Yearly
(7 days) (3 months)

Temporary 97.50 780.00 2,340.00 7,020.00 28,080.00

Benefits:

 Food allowance worth P150 per day

 Transportation allowance worth P500 per day

Schedule of employees

Store Hours: 7:30 am to 8:00 pm

Inventory and maintenance schedules:

Beginning inventory 7:00 to 7:30 pm

Closing inventory 8:00 to 9:00 pm

Schedules of one-hour break:

Supervisor 1:30 to 2:30 pm

Crew 1 10:00 am to 11:00 pm

Crew 2 12:00 to 1:00 pm

Crew 3 3:00 to 4:00 pm

Crew 4 5:00 to 6:00 pm

TABLE 3.7 Schedules of employees
Day of the week
Position
Sunday Monday Tuesday Wednesday Thursday Friday Saturday

12:00 pm to 7:00 am to 7:00 am to 7:00 am to 12:00 pm to 12:00 pm to

Supervisor DAY OFF
9:00 pm 4:00 pm 4:00 pm 4:00 pm 9:00 pm 9:00 pm

7:00 am to 7:00 am to 7:00 am to 7:00 am to 7:00 am to 7:00 am to

Crew 1 DAY OFF
4:00 pm 4:00 pm 4:00 pm 4:00 pm 4:00 pm 4:00 pm

7:00 am to 7:00 am to 7:00 am to 7:00 am to 7:00 am to 7:00 am to

Crew 2 DAY OFF
4:00 pm 4:00 pm 4:00 pm 4:00 pm 4:00 pm 4:00 pm

12:00 pm to 12:00 pm to 12:00 pm to 12:00 pm to 12:00 pm to 12:00 pm to

Crew 3 DAY OFF
9:00 pm 9:00 pm 9:00 pm 9:00 pm 9:00 pm 9:00 pm

12:00 pm to 12:00 pm to 12:00 pm to 12:00 pm to 12:00 pm to 12:00 pm to

Crew 4 DAY OFF
9:00 pm 9:00 pm 9:00 pm 9:00 pm 9:00 pm 9:00 pm
Gantt chart

TABLE 3.8 Gantt chart of pre-business activities

Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016

Projection and

preparation of

business plan

Contribution of

partners

Store renovation

Canvassing and

contracting

suppliers

Recruitment and

selection of

employees

Training of

employees

Pre-operations

preparations

Start of

operations
 Part 5

SOCIO-ECONOMIC ASPECT

The business aims to become a coffee shop exhibiting the pleasing lifestyle

and culture of the Filipinos, to foster growth and empowerment of local farmers,

producers, and suppliers by bringing their products in the market, to reduce the

environmental impact of the business at all aspects and to encourage others to do

the same, and to maintain a satisfying work environment for the employees.

The employees

Aside from creating jobs to provide them their income, the employees must

have a satisfying work environment that shows care to them and their families.

They will be given salary increase every three years upon regularization. The

employees can also avail of Medicard Plan 8,000 and Incentive leave upon

regularization, and other mandatory benefits and leaves.

Advance training for both technical and social aspects will be given to the

employees which will be necessary for business operations. These trainings will

help the employees to be more exposed with these services that will surely benefit

to their over-all development which they can use in their future endeavors.
The community

This establishment will exhibit the pleasing lifestyle and culture of the

Filipinos by showing the Filipino hospitality and respect to every visitor. We will

also display the different landscapes and scenes of the Filipino culture and

traditions. The shop will only be playing OPM to raise support to Philippine music

industry. This can also boost the number of foreign tourists in the area.

The business also wants to foster growth and empowerment of local

farmers, producers, and suppliers. Their products from farms are brought in the

market in Manila to boost the growth of their produces.

The government

With this business, it will provide employment opportunities for unemployed

people within the area. The government will also benefit the business form the

collection of income, business and corporate taxes, licenses, and local fees. These

can increase the revenue of the government which can be utilized for local and

national government projects. The business can also participate in different

projects of the local government, including sponsorships in events.

The environment

The business also aims to reduce the environmental impact of the business

at all aspects. The solid waste and waste water are properly disposed. Rubbish
and recyclable wastes are segregated. Solid residual wastes will be collected by

the garbage collector thrice a week, which will be sent to a waste management

facility in Rodriguez, Rizal; recyclable wastes will be sent to junk shops or material

processing facilities in Pasig City. The business will ensure that all waste water is

tightly stored in the establishment’s septic tank and will be collected by Manila

Water for waste water processing and treatment.

To prevent a large volume of solid wastes, the business will use mugs and

plates in serving coffee drinks and glutinous rice cakes. Banana leaves, paper

cups and paper take-out cup carriers, that are biodegradable wastes, will be used

for take-out customers.

The business will also encourage other business and establishments to

lessen their environmental impact by joining campaigns by the local and national

government. The business will also raise environmental awareness to its

customers and employees.

Assessment of risk

SWOT Analysis

TABLE 5.1 Analysis of the strengths, weaknesses, opportunities, and threats (SWOT) of the business and its competitors
Company
Strength Weakness Opportunities Threat
Name

Kopinoy  A coffee shop that  Not all people want  Offers newly-  Price competition

serves coffee with the combination of developed products  Increasing number of

vanilla ice cream, coffee and flavored (flavored bico). cafes and

together with glutinous rice cake  Can create a good restaurants in the

flavored rice cakes, (Biko). name area

instead of pastries  New name in a  Using “word of  Increasing inflation

 Affordable price of coffee industry mouth” as a rates of coffee beans

coffee drinks  Limited food choices marketing strategy and rice

 Easily located for every satisfied

customer
 Company
Strength Weakness Opportunities Threat
Name

 Kopinoy offers  Government

products that are programs that pays

unique or newly- attention to SME’s

developed

 Excellent customer

service experience

Direct competitors

McCafé  High brand  More often  Meeting the  Successful

(McDonald’s) recognition perceived as changing customer competitors leaving

 One of the largest unhealthy due to its habits and the needs limited market share

fast food chain in the high calorie of previously  Customers

industry products untapped customer transferring to other

groups alternatives
Company
Strength Weakness Opportunities Threat
Name

 Fast speed of  Quick food service  Growing fast food  Rising number of

beverage service allows more room industry revealing local fast food

attracting larger for mistakes and potential profit of chains and their

marketplace sloppiness new products lower meal prices

 Offer a variety of  Low brand  Sophisticated taste

McDonald’s and identification of of consumers in

McCafe items to beverage promotion coffee drinks

attract customers campaign

 Ability to adapt to  Low expertise and

local taste high turnover of

 Drive-thru or delivery employees

options providing  Low differentiation

 Company
Strength Weakness Opportunities Threat
Name

convenience to its

customers

 Creative marketing

programs

Indirect competitors

Ministop  Ability to conceive  Poor customer  Expansion of  Other convenience

and implement service residential areas stores (7-11, small

product  Lack of clear (subdivisions and neighborhood

differentiation, such marketing and condominiums) groceries)

as the incorporation merchandising  Booming BPO

of fast-food items in focus industry which

the store translates to more

potential customers
 Company
Strength Weakness Opportunities Threat
Name

 24/7 service to  Poor use of point-of-

customers sale information

management system

Jollibee  High brand  More often  Growing local  Increasing number

recognition perceived serving businesses in the of foreign fast food

 One of the largest unhealthy food current Philippine companies entering

fast food chain in the  Quick serving time economy the market

industry allows more room  Adapting products  Consumers looking

 Quick serving time for mistakes and and services to local for healthier options

 Customization of sloppiness culture and tradition

meal tailor-fit to the  Poor customer  Expanding branches

consumers’ appetite service in other countries

Company
Strength Weakness Opportunities Threat
Name

 Options to drive-thru  Long time in

or delivery food developing new

ordered products to offer

 Positioning in  High employee

strategic locations in turnover

highly populated  Limited food options

areas offered to

consumers

 Inefficient delivery of

supplies

 Poor sanitary

practices
 Part 6

FINANCIAL ASPECT

Statement of assumptions

1. The business will be classified as a limited partnership with an initial investment

of ₱ 550,000.00.

2. The financial calendar of the business will presume to start on July 31, 2016.

3. Sales are estimated to increase by 20% based on the study on the growth of

coffee shops (see Sales Projection).

4. All transactions on sales will be on cash basis only.

5. Purchase of raw materials will be made in monthly and annual basis.

6. Rent expense is ₱14,560.00 fixed per month rate, excluding all utilities

expenses.

7. Utilities expenses, that includes electricity, water, telephone, and internet, are

to increase by 20%, inclusive of increase in price rates and usage, annually.

8. Salary and Allowances increase by 5% every four years starting the fourth year

of operation.

9. Partners are entitled to have a monthly drawing not exceeding ₱1,500.00 per

month. Furthermore, partners agreed that there would be no drawing for the

first year of operation and no loss shall be incurred in the equity upon drawing.

10. Share in net income (or loss) is based on the following:

Kind of Share Ratio

Partner
Partner Income Loss

Villanueva Limited 6% 6%

Gramonte Industrial 3% -

Cardano General 18% 18%

Antonio Limited 4% 5%

Semira General 21% 22%

Pulumbarit General 37% 38%

Merced General 11% 11%

 The limited partners are liable for losses only to the extent of his/her

contribution. The industrial partner is not liable for losses.

11. Provision for income tax are 30% since this type of business is subject to

corporate tax.

12. Depreciation of tools, equipment, furniture and fixtures are on a straight-line

basis. Materials and Supplies used in the operation are treated as expense

outright and will have annual 3% increase in consumption.

13. Ending inventories and supplies will be 5% of the total on-hand on the following

year.

14. A petty cash fund of ₱1,500.00 will be maintained on the cashier’s drawer.

15. Discrepancy in decimal places is due to rounding off.

Annual demand
Target area 2013 2014 2015 2016
Cainta, Rizal 336,314 344,756 353,409 367,475
Taytay, Rizal 331,744 344,948 358,677 372,952
Angono, Rizal 118,597 122,594 126,725 131,769
Total Population: 872,195

Computation:
Cainta, Rizal 367,475
Taytay, Rizal 372,952
Angono, Rizal 131,769
Total 872,195
Multiply by the employment rate 90.5% Note 1
Market size of employed/financially capable 789,337
Multiply by the average percentage
of respondents who eat biko and coffee 90% Note 2
Net potential market 710,403
Less: Served market 582,531
Yearly Market 127,873
Monthly market 10,656

Note 1: http://nerbac-calabarzon.com.ph/?page_id=51
90.5% of the total population are employed (2007 data)

Note 2: http://www.interaksyon.com/lifestyle/lets-drink-to-pinoy-coffee-this-october
9 out of 10 Filipinos drink coffee
Industry monthly sales of a newly introduced product
Monthly
Products Percentage
Serving
Coffee drinks:
Brewed coffee 8 5%
Frappuccino 32 19%
Chocolate 15 9%
Add-ons:
Ice cream 1 1%
Coconut milk 1 1%
Biko:
Original 35 20%
Langka 7 4%
Ube 11 6%
Chocolate 26 15%
Strawberry 11 6%
Banana 9 5%
Mango 8 5%
Pineapple 3 2%
Seafood 4 2%
171 100%

Estimated
Monthly Average Average
Products Percentage Monthly
Serving Frequency Serving
Serving
Coffee drinks:
Brewed coffee 4% 499 500 1 500
Frappuccino 18% 1,994 2,000 1 2,000
Chocolate 8% 935 1,000 1 1,000
Add-ons:
Ice cream 1% 62 70 1 70
Coconut milk 1% 62 70 1 70
Biko:
Original 20% 2,181 3,000 1 3,000
Langka 4% 436 500 1 500
Ube 6% 685 700 1 700
Chocolate 15% 1,620 1,700 1 1,700
Strawberry 6% 685 700 1 700
Banana 5% 561 600 1 600
Mango 5% 499 500 1 500
Pineapple 2% 187 200 1 200
Seafood 2% 249 300 1 300
99% 10,656 11,840 11,840

Note: A newly introduced product has an average frequency of one (1).

Schedule of Sales
For the years ending December 31, 2016-2020

Average Monthly 2016 2017 2018 2019 2020

Products Price
Serving Sales Annual Sales Annual Sales Annual Sales Annual Sales Annual Sales
Coffee drinks:
Brewed coffee 500 35.00 17,500.00 87,500.00 252,000.00 302,400.00 362,880.00 435,456.00
Frappuccino 2,000 60.00 120,000.00 600,000.00 1,728,000.00 2,073,600.00 2,488,320.00 2,985,984.00
Chocolate 1,000 50.00 50,000.00 250,000.00 720,000.00 864,000.00 1,036,800.00 1,244,160.00
Add-ons:
Ice cream 70 10.00 700.00 3,500.00 10,080.00 12,096.00 14,515.20 17,418.24
Coconut milk 70 10.00 700.00 3,500.00 10,080.00 12,096.00 14,515.20 17,418.24
Biko:
Original 3,000 35.00 105,000.00 525,000.00 1,512,000.00 1,814,400.00 2,177,280.00 2,612,736.00
Langka 500 43.00 21,500.00 107,500.00 309,600.00 371,520.00 445,824.00 534,988.80
Ube 700 43.00 30,100.00 150,500.00 433,440.00 520,128.00 624,153.60 748,984.32
Chocolate 1,700 43.00 73,100.00 365,500.00 1,052,640.00 1,263,168.00 1,515,801.60 1,818,961.92
Strawberry 700 43.00 30,100.00 150,500.00 433,440.00 520,128.00 624,153.60 748,984.32
Banana 600 43.00 25,800.00 129,000.00 371,520.00 445,824.00 534,988.80 641,986.56
Mango 500 43.00 21,500.00 107,500.00 309,600.00 371,520.00 445,824.00 534,988.80
Pineapple 200 43.00 8,600.00 43,000.00 123,840.00 148,608.00 178,329.60 213,995.52
Seafood 300 43.00 12,900.00 64,500.00 185,760.00 222,912.00 267,494.40 320,993.28
8,200 328,600.00 1,643,000.00 4,731,840.00 5,678,208.00 6,813,849.60 8,176,619.52

Note: http://www.e-importz.com/coffee-statistics.php
Specialty coffee sales are increasing by 20% per year
Schedule of Cost of Sales
For the years ending December 31, 2016-2020

Average Monthly 2016 2017 2018 2019 2020

Products Cost
Serving Cost Annual Cost Annual Cost Annual Cost Annual Cost Annual Cost
Coffee drinks:
Brewed coffee 500 15.24 7,620.00 38,100.00 109,728.00 131,673.60 158,008.32 189,609.98
Frappuccino 2,000 36.78 73,560.00 367,800.00 1,059,264.00 1,271,116.80 1,525,340.16 1,830,408.19
Chocolate 1,000 27.14 27,140.00 135,700.00 390,816.00 468,979.20 562,775.04 675,330.05
Add-ons:
Ice cream 70 4.69 328.30 1,641.50 4,727.52 5,673.02 6,807.63 8,169.15
Coconut milk 70 4.33 303.10 1,515.50 4,364.64 5,237.57 6,285.08 7,542.10
Biko:
Original 3,000 15.66 46,980.00 234,900.00 676,512.00 811,814.40 974,177.28 1,169,012.74
Langka 500 37.43 18,715.00 93,575.00 269,496.00 323,395.20 388,074.24 465,689.09
Ube 700 31.34 21,938.00 109,690.00 315,907.20 379,088.64 454,906.37 545,887.64
Chocolate 1,700 28.86 49,062.00 245,310.00 706,492.80 847,791.36 1,017,349.63 1,220,819.56
Strawberry 700 27.13 18,991.00 94,955.00 273,470.40 328,164.48 393,797.38 472,556.85
Banana 600 29.69 17,814.00 89,070.00 256,521.60 307,825.92 369,391.10 443,269.32
Mango 500 31.53 15,765.00 78,825.00 227,016.00 272,419.20 326,903.04 392,283.65
Pineapple 200 22.38 4,476.00 22,380.00 64,454.40 77,345.28 92,814.34 111,377.20
Seafood 300 34.72 10,416.00 52,080.00 149,990.40 179,988.48 215,986.18 259,183.41
8,200 204,157.00 1,020,785.00 2,939,860.80 3,527,832.96 4,233,399.55 5,080,079.46

Note: http://www.e-importz.com/coffee-statistics.php
Specialty coffee sales are increasing by 20% per year
Schedule of Inventory
For the year ending December 31, 2016-2020

2016 2017 2018 2019 2020

Beginning Inventory - 51,039.25 149,545.00 183,868.90 220,863.42
Purchases 1,020,785.00 2,939,860.80 3,527,832.96 4,233,399.55 5,080,079.46
Balance 1,020,785.00 2,990,900.05 3,677,377.96 4,417,268.45 5,300,942.88
Ending Inventory (5%) 51,039.25 149,545.00 183,868.90 220,863.42 265,047.14
Inventory used 969,745.75 2,841,355.05 3,493,509.06 4,196,405.03 5,035,895.74

Schedule of Maintenance supplies expense

For the year ending December 31, 2016-2020

2016 2017 2018 2019 2020

Beginning Inventory - 4,272.94 4,614.77 4,763.90 4,907.35
Purchases 85,458.75 88,022.51 90,663.19 93,383.08 96,184.58
Balance 85,458.75 92,295.45 95,277.96 98,146.98 101,091.93
Ending Inventory (5%) 4,272.94 4,614.77 4,763.90 4,907.35 5,054.60
Maintenance supplies expense 81,185.81 87,680.68 90,514.06 93,239.63 96,037.33
Schedule of Office supplies expense
For the year ending December 31, 2016-2020

2016 2017 2018 2019 2020

Beginning Inventory - 1,739.60 1,878.77 1,939.48 1,997.88
Purchases 34,792.00 35,835.76 36,910.83 38,018.16 39,158.70
Balance 34,792.00 37,575.36 38,789.60 39,957.64 41,156.58
Ending Inventory (5%) 1,739.60 1,878.77 1,939.48 1,997.88 2,057.83
Office supplies expense 33,052.40 35,696.59 36,850.12 37,959.76 39,098.76

Schedule of Packaging supplies expense

For the year ending December 31, 2016-2020

2016 2017 2018 2019 2020

Beginning Inventory - 5,553.00 5,997.24 6,191.04 6,377.47
Purchases 111,060.00 114,391.80 117,823.55 121,358.26 124,999.01
Balance 111,060.00 119,944.80 123,820.79 127,549.30 131,376.47
Ending Inventory (5%) 5,553.00 5,997.24 6,191.04 6,377.47 6,568.82
Packaging supplies expense 105,507.00 113,947.56 117,629.75 121,171.84 124,807.65
Schedule of Furniture and Equipment
Furniture and fixture:
Description Qty. Unit cost Total cost
Table and chair 5 5,000.00 25,000.00
Filing cabinet 1 8,495.00 8,495.00
Kitchen sink 1 8,200.00 8,200.00
Office chair 1 2,995.00 2,995.00
Office table 1 3,650.00 3,650.00
Total 48,340.00

Equipment:
Description Qty. Unit cost Total cost
Air conditioner 1 30,899.00 30,899.00
Bundy clock 1 11,500.00 11,500.00
Chest freezer 1 16,999.00 16,999.00
Computer keyboard 1 450.00 450.00
Computer mouse 1 220.00 220.00
CPU 1 10,750.00 10,750.00
Digital timer 1 569.00 569.00
Electric coffee grinder 1 4,725.00 4,725.00
Exhaust fan 1 900.00 900.00
Exit and emergency light 1 1,579.50 1,579.50
Heavy-duty blender 1 24,500.00 24,500.00
Microwave oven 1 4,397.00 4,397.00
Monitor 1 4,599.00 4,599.00
Pastry case 1 13,000.00 13,000.00
POS cash register 1 42,000.00 42,000.00
Printer 1 5,000.00 5,000.00
Refrigerator 1 12,395.00 12,395.00
Telephone unit 1 700.00 700.00
Weighing scale 1 1,300.00 1,300.00
Wireless router 1 1,800.00 1,800.00
Total 188,282.50
Schedule of Tools
Description Qty. Unit cost Total cost
Calculator 1 112.50 112.50
Dinner knife 20 70.00 1,400.00
Dessert plates 20 78.30 1,566.00
Dish drainer 2 1,500.00 3,000.00
Fire extinguisher 2 2,900.00 5,800.00
Fork 20 88.00 1,760.00
Ice tong 1 596.26 596.26
Measuring cup 1 864.00 864.00
Mug 20 55.00 1,100.00
Serving trays 4 950.00 3,800.00
Stapler 1 49.00 49.00
Strainer 4 696.52 2,786.08
Tape dispenser 1 89.75 89.75
Teaspoon 20 47.00 940.00
Trash bin 2 3,819.75 7,639.50
Total 31,503.09

Schedule of Supplies
Office supplies:
Total cost Total cost
Description Qty. Unit cost
(monthly) (annually)
Ball pen 2 12.00 24.00 288.00
Bond paper 4 156.00 624.00 2,496.00
Clear tape 4 16.25 65.00 780.00
Printer cartridge 4 2,990.00 11,960.00 11,960.00
Record book 1 70.00 70.00 280.00
Scissors 1 144.00 144.00 576.00
Staple wire 4 7.75 31.00 372.00
Kraft roll 30 50.00 1,500.00 18,000.00
Time card 1 40.00 40.00 40.00
Total 14,458.00 34,792.00
Maintenance supplies:
Total cost Total cost
Description Qty. Unit cost
(monthly) (annually)
Brush and dust pan 1 1,990.00 1,990.00 5,970.00
Compostable trash liner 12 90.00 1,080.00 12,960.00
dishwashing liquid 2 350.00 700.00 8,400.00
Disposable food gloves 5 476.00 2,380.00 28,560.00
Glass cleaner 1 220.00 220.00 2,640.00
Hand soap 2 33.00 66.00 792.00
Industrial mop 1 399.00 399.00 1,197.00
Mop bucket 1 2,499.75 2,499.75 2,499.75
Multi-purpose cleaner 4 350.00 1,400.00 16,800.00
Sponge 8 10.00 80.00 960.00
Window wiper 2 700.00 1,400.00 4,200.00
Wiping cloth 4 10.00 40.00 480.00
Total 12,254.75 85,458.75

Packaging supplies:
Qty. Total cost Total cost
Description Unit cost
(Daily) (monthly) (annually)
Table napkin 4 9.75 1,170.00 14,040.00
Paper bag 5 11.00 1,650.00 19,800.00
Paper cup and lid 5 34.75 5,212.50 62,550.00
Coffee stirrer 1 10.75 322.50 3,870.00
Take-out cup carrier 1 30.00 900.00 10,800.00
Total 9,255.00 111,060.00
Schedule of Utilities Expense
For the years ending December 31, 2016-2020

Utility Monthly Annual 2016 2017 2018 2019 2020

Electricity 4,000.00 48,000.00 20,000.00 57,600.00 69,120.00 82,944.00 99,532.80
Water 800.00 9,600.00 4,000.00 11,520.00 13,824.00 16,588.80 19,906.56
Telephone and Internet 1,300.00 15,600.00 6,500.00 18,720.00 22,464.00 26,956.80 32,348.16
Total 6,100.00 73,200.00 30,500.00 87,840.00 105,408.00 126,489.60 151,787.52

Note: 20% increase for utilities expense per year

Schedule of Rent Expense

For the years ending December 31, 2016-2020

Monthly Annual 2016 2017 2018 2019 2020

Rent expense 14,560.00 174,720.00 72,800.00 174,720.00 174,720.00 174,720.00 174,720.00

Schedule of Pre-Operating Expense

For the year ending December 31, 2016

DTI Registration 1,000.00

SEC Registration 1,621.00
Total 2,621.00
Schedule of Business Expense
For the years ending December 31, 2016-2020

Annual
Barangay clearance 50.00
Mayor's permit 2,500.00
Electrical inspection fee 496.00
Sanitary permit 300.00
Health certificate 60.00
BIR Registration 530.00
Fire inspection fee 620.00
Garbage fee 900.00
Total 5,456.00

Schedule of Salaries Expense

For the years ending December 31, 2016-2020

Annual rate
Monthly
Position Daily rate 2016 2017 2018 2019 2020
rate
Manager 5,000.00 25,000.00 60,000.00 60,000.00 60,000.00 60,000.00
Supervisor 576.92 15,000.00 60,000.00 164,307.69 180,000.00 183,750.00 189,000.00
Crew 1 263.00 6,838.00 34,190.00 82,056.00 82,056.00 83,765.50 86,158.80
Crew 2 263.00 6,838.00 34,190.00 82,056.00 82,056.00 83,765.50 86,158.80
Crew 3 263.00 6,838.00 34,190.00 82,056.00 82,056.00 83,765.50 86,158.80
Crew 4 263.00 6,838.00 34,190.00 82,056.00 82,056.00 83,765.50 86,158.80
Accountant 780.00 20,280.00 11,700.00 243,360.00 243,360.00 243,360.00 243,360.00
Total salary expense 233,460.00 795,891.69 811,584.00 822,172.00 836,995.20
Schedule of Benefits Expense
For the years ending December 31, 2016-2020

Position Benefits 2016 2017 2018 2019 2020

Medicard Plan 800 6,331.00 6,331.00 6,331.00 6,331.00 6,331.00
Supervisor 13th-month pay 12,000.00 13,692.31 15,000.00 15,312.50 15,750.00
Incentive leave - 1,730.77 1,730.77 1,759.62 1,759.62
Crew 1 13th-month pay 6,838.00 6,838.00 6,838.00 6,980.46 7,179.90
Crew 2 13th-month pay 6,838.00 6,838.00 6,838.00 6,980.46 7,179.90
Crew 3 13th-month pay 6,838.00 6,838.00 6,838.00 6,980.46 7,179.90
Crew 4 13th-month pay 6,838.00 6,838.00 6,838.00 6,980.46 7,179.90
Food allowance 5,400.00 5,400.00 5,400.00 5,400.00 5,400.00
Accountant
Transportation allowance 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00
Total employee benefits expense 51,083.00 54,506.08 55,813.77 56,724.95 57,960.22

Schedule of SSS Expense

For the years ending December 31, 2016-2020

2016 2017 2018 2019 2020

Monthly Monthly Monthly Monthly Monthly Monthly
Position SSS Annual ES Annual ES Annual ES Annual ES Annual ES
salary ES ES ES ES ES
Supervisor 15,000.00 1,105.50 958.10 4,790.50 1,105.50 13,118.60 1,105.50 13,266.00 1,157.63 13,891.50 1,157.63 13,891.50
Crew 1 6,838.00 503.96 503.96 2,519.80 503.96 6,047.53 503.96 6,047.53 527.72 6,332.67 527.72 6,332.67
Crew 2 6,838.00 503.96 503.96 2,519.80 503.96 6,047.53 503.96 6,047.53 527.72 6,332.67 527.72 6,332.67
Crew 3 6,838.00 503.96 503.96 2,519.80 503.96 6,047.53 503.96 6,047.53 527.72 6,332.67 527.72 6,332.67
Crew 4 6,838.00 503.96 503.96 2,519.80 503.96 6,047.53 503.96 6,047.53 527.72 6,332.67 527.72 6,332.67
Total SSS expense 2,973.94 14,869.71 3,121.34 37,308.71 3,121.34 37,456.11 3,268.52 39,222.19 3,268.52 39,222.19
Schedule of PhilHealth Expense
For the years ending December 31, 2016-2020

2016 2017 2018 2019 2020

Monthly Monthly Monthly Monthly Monthly Monthly
Position PhilHealth Annual ES Annual ES Annual ES Annual ES Annual ES
salary ES ES ES ES ES
Supervisor 15,000.00 187.50 162.50 812.50 187.50 2,225.00 187.50 2,250.00 187.50 2,250.00 187.50 2,250.00
Crew 1 6,838.00 100.00 100.00 500.00 100.00 1,200.00 100.00 1,200.00 100.00 1,200.00 100.00 1,200.00
Crew 2 6,838.00 100.00 100.00 500.00 100.00 1,200.00 100.00 1,200.00 100.00 1,200.00 100.00 1,200.00
Crew 3 6,838.00 100.00 100.00 500.00 100.00 1,200.00 100.00 1,200.00 100.00 1,200.00 100.00 1,200.00
Crew 4 6,838.00 100.00 100.00 500.00 100.00 1,200.00 100.00 1,200.00 100.00 1,200.00 100.00 1,200.00
Total PhilHealth expense 562.50 2,812.50 587.50 7,025.00 587.50 7,050.00 587.50 7,050.00 587.50 7,050.00

Schedule of Pag-IBIG Expense

For the years ending December 31, 2016-2020

2016 2017 2018 2019 2020

Monthly Monthly Monthly Monthly Monthly Monthly
Position Pag-IBIG Annual ES Annual ES Annual ES Annual ES Annual ES
salary ES ES ES ES ES
Supervisor 15,000.00 300.00 260.00 1,300.00 300.00 3,560.00 300.00 3,600.00 315.00 3,780.00 315.00 3,780.00
Crew 1 6,838.00 136.76 136.76 683.80 136.76 1,641.12 136.76 1,641.12 143.60 1,723.18 143.60 1,723.18
Crew 2 6,838.00 136.76 136.76 683.80 136.76 1,641.12 136.76 1,641.12 143.60 1,723.18 143.60 1,723.18
Crew 3 6,838.00 136.76 136.76 683.80 136.76 1,641.12 136.76 1,641.12 143.60 1,723.18 143.60 1,723.18
Crew 4 6,838.00 136.76 136.76 683.80 136.76 1,641.12 136.76 1,641.12 143.60 1,723.18 143.60 1,723.18
Total Pag-IBIG expense 807.04 4,035.20 847.04 10,124.48 847.04 10,164.48 889.39 10,672.70 889.39 10,672.70
Schedule of Depreciation of Equipment, Tools and Fixtures
For the years ending December 31, 2016-2020

Depreciation Net book value

Equipment Price
(10 yrs.) 2016 2017 2018 2019 2020
Air conditioner 30,899.00 3,089.90 29,611.54 26,521.64 23,431.74 20,341.84 17,251.94
Bundy clock 11,500.00 1,150.00 11,020.83 9,870.83 8,720.83 7,570.83 6,420.83
Chest freezer 16,999.00 1,699.90 16,290.71 14,590.81 12,890.91 11,191.01 9,491.11
Computer keyboard 450.00 45.00 431.25 386.25 341.25 296.25 251.25
Computer mouse 220.00 22.00 210.83 188.83 166.83 144.83 122.83
CPU 10,750.00 1,075.00 10,302.08 9,227.08 8,152.08 7,077.08 6,002.08
Digital timer 569.00 56.90 545.29 488.39 431.49 374.59 317.69
Electric coffee grinder 4,725.00 472.50 4,528.13 4,055.63 3,583.13 3,110.63 2,638.13
Exhaust fan 900.00 90.00 862.50 772.50 682.50 592.50 502.50
Exit and emergency light 1,579.50 157.95 1,513.69 1,355.74 1,197.79 1,039.84 881.89
Heavy-duty blender 24,500.00 2,450.00 23,479.17 21,029.17 18,579.17 16,129.17 13,679.17
Monitor 4,397.00 439.70 4,213.79 3,774.09 3,334.39 2,894.69 2,454.99
Microwave oven 4,599.00 459.90 4,407.38 3,947.48 3,487.58 3,027.68 2,567.78
Pastry case 13,000.00 1,300.00 12,458.33 11,158.33 9,858.33 8,558.33 7,258.33
POS cash register 42,000.00 4,200.00 40,250.00 36,050.00 31,850.00 27,650.00 23,450.00
Printer 5,000.00 500.00 4,791.67 4,291.67 3,791.67 3,291.67 2,791.67
Refrigerator 12,395.00 1,239.50 11,878.54 10,639.04 9,399.54 8,160.04 6,920.54
Telephone unit 700.00 70.00 670.83 600.83 530.83 460.83 390.83
Weighing scale 1,300.00 130.00 1,245.83 1,115.83 985.83 855.83 725.83
Wireless router 1,800.00 180.00 1,725.00 1,545.00 1,365.00 1,185.00 1,005.00
Total depreciation expense - equipment 188,282.50 18,828.25 180,437.40 161,609.15 142,780.90 123,952.65 105,124.40
 Depreciation Net book value
Tools Price
(5 yrs.) 2016 2017 2018 2019 2020
Calculator 112.50 22.50 103.13 80.63 58.13 35.63 13.13
Dinner knife 1,400.00 280.00 1,283.33 1,003.33 723.33 443.33 163.33
Dessert plates 1,566.00 313.20 1,435.50 1,122.30 809.10 495.90 182.70
Dish drainer 3,000.00 600.00 2,750.00 2,150.00 1,550.00 950.00 350.00
Fire extinguisher 5,800.00 1,160.00 5,316.67 4,156.67 2,996.67 1,836.67 676.67
Fork 1,760.00 352.00 1,613.33 1,261.33 909.33 557.33 205.33
Ice tong 596.26 119.25 546.57 427.32 308.07 188.82 69.56
Measuring cup 864.00 172.80 792.00 619.20 446.40 273.60 100.80
Mug 1,100.00 220.00 1,008.33 788.33 568.33 348.33 128.33
Serving trays 3,800.00 760.00 3,483.33 2,723.33 1,963.33 1,203.33 443.33
Stapler 49.00 9.80 44.92 35.12 25.32 15.52 5.72
Strainer 2,786.08 557.22 2,553.91 1,996.69 1,439.47 882.26 325.04
Tape dispenser 89.75 17.95 82.27 64.32 46.37 28.42 10.47
Teaspoon 940.00 188.00 861.67 673.67 485.67 297.67 109.67
Trash bin 7,639.50 1,527.90 7,002.88 5,474.98 3,947.08 2,419.18 891.28
Total depreciation expense - tools 31,503.09 6,300.62 28,877.83 22,577.21 16,276.60 9,975.98 3,675.36

Depreciation Net book value

Furniture and fixtures Price
(5 yrs.) 2016 2017 2018 2019 2020
Table and chair 25,000.00 5,000.00 22,916.67 17,916.67 12,916.67 7,916.67 2,916.67
Filing cabinet 8,495.00 1,699.00 7,787.08 6,088.08 4,389.08 2,690.08 991.08
Kitchen sink 8,200.00 1,640.00 7,516.67 5,876.67 4,236.67 2,596.67 956.67
Office chair 2,995.00 599.00 2,745.42 2,146.42 1,547.42 948.42 349.42
Office table 3,650.00 730.00 3,345.83 2,615.83 1,885.83 1,155.83 425.83
Total depreciation expense - furniture 48,340.00 9,668.00 44,311.67 34,643.67 24,975.67 15,307.67 5,639.67
SUMMARY 2016 2017 2018 2019 2020
Total equipment, tools, and furniture cost 268,125.59 253,626.90 218,830.03 184,033.16 149,236.29
Total depreciation expense 14,498.70 34,796.87 34,796.87 34,796.87 34,796.87
Total net book value 253,626.90 218,830.03 184,033.16 149,236.29 114,439.42
Projected Income Statement
For the years ending December 31, 2016-2020

2016 2017 2018 2019 2020

Sales 1,643,000.00 4,731,840.00 5,678,208.00 6,813,849.60 8,176,619.52
Less: Cost of Sales 1,020,785.00 2,939,860.80 3,527,832.96 4,233,399.55 5,080,079.46
Gross Margin 622,215.00 1,791,979.20 2,150,375.04 2,580,450.05 3,096,540.06
Less: Expenses
Benefits expense 51,083.00 54,506.08 55,813.77 56,724.95 57,960.22
Business expense 5,456.00 5,456.00 5,456.00 5,456.00 5,456.00
Depreciation expense 14,498.70 34,796.87 34,796.87 34,796.87 34,796.87
Maintenance supplies expense 81,185.81 87,680.68 90,514.06 93,239.63 96,037.33
Office supplies expense 33,052.40 35,696.59 36,850.12 37,959.76 39,098.76
Packaging supplies expense 105,507.00 113,947.56 117,629.75 121,171.84 124,807.65
Pag-IBIG expense 4,035.20 10,124.48 10,164.48 10,672.70 10,672.70
PhilHealth expense 2,812.50 7,025.00 7,050.00 7,050.00 7,050.00
Pre-operating expense 2,621.00 - - - -
Rent expense 72,800.00 174,720.00 174,720.00 174,720.00 174,720.00
Repair and Maintenance expense 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Salaries expense 233,460.00 795,891.69 811,584.00 822,172.00 836,995.20
SSS expense 14,869.71 37,308.71 37,456.11 39,222.19 39,222.19
Utilities expense 30,500.00 87,840.00 105,408.00 126,489.60 151,787.52
Net Income (32,666.32) 343,985.54 659,931.88 1,047,774.52 1,514,935.63
Provision for Tax (30%) 186,664.50 537,593.76 645,112.51 774,135.01 928,962.02
Net Income after Tax (219,330.82) (193,608.22) 14,819.36 273,639.50 585,973.61
Statement of Changes in Equity
Antonio Cardano Gramonte Merced Pulumbarit Semira Villanueva TOTAL
Profit Share 4% 18% 3% 11% 37% 21% 6% 100%
Loss Share 5% 18% 0% 11% 38% 22% 6% 100%

Original investment 100,000.00 400,000.00 - 240,000.00 840,000.00 480,000.00 140,000.00 2,200,000.00

Add: Additional Investment - - - - - - - -
Balances 100,000.00 400,000.00 - 240,000.00 840,000.00 480,000.00 140,000.00 2,200,000.00
Add: Net Income (Loss) (9,969.58) (39,878.33) - (23,927.00) (83,744.49) (47,854.00) (13,957.42) (219,330.82)
Partner's Equity, December 31, 2016 90,030.42 360,121.67 - 216,073.00 756,255.51 432,146.00 126,042.58 1,980,669.18

Beginning balance 90,030.42 360,121.67 - 216,073.00 756,255.51 432,146.00 126,042.58 1,980,669.18

Add: Additional Investment - - - - - - - -
Balances 90,030.42 360,121.67 - 216,073.00 756,255.51 432,146.00 126,042.58 1,980,669.18
Add: Net Income (Loss) (8,800.37) (35,201.49) - (21,120.90) (73,923.14) (42,241.79) (12,320.52) (193,608.22)
Less: Withdrawal (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (108,000.00)
Partner's Equity, December 31, 2017 63,230.04 306,920.18 - 176,952.11 664,332.37 371,904.21 95,722.06 1,679,060.96

Beginning balance 63,230.04 306,920.18 - 176,952.11 664,332.37 371,904.21 95,722.06 1,679,060.96

Add: Additional Investment - - - - - - - -
Balances 63,230.04 306,920.18 - 176,952.11 664,332.37 371,904.21 95,722.06 1,679,060.96
Add: Net Income (Loss) 592.77 2,667.49 444.58 1,630.13 5,483.16 3,112.07 889.16 14,819.36
Less: Withdrawal (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (108,000.00)
Partner's Equity, December 31, 2018 45,822.82 291,587.66 444.58 160,582.24 651,815.53 357,016.28 78,611.22 1,585,880.33

Beginning balance 45,822.82 291,587.66 444.58 160,582.24 651,815.53 357,016.28 78,611.22 1,585,880.33
Add: Additional Investment - - - - - - - -
Balances 45,822.82 291,587.66 444.58 160,582.24 651,815.53 357,016.28 78,611.22 1,585,880.33
Add: Net Income (Loss) 10,945.58 49,255.11 8,209.19 30,100.35 101,246.62 57,464.30 16,418.37 273,639.50
Less: Withdrawal (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (108,000.00)
Partner's Equity, December 31, 2019 38,768.40 322,842.77 8,653.77 172,682.58 735,062.15 396,480.57 77,029.59 1,751,519.83
Beginning balance 38,768.40 322,842.77 8,653.77 172,682.58 735,062.15 396,480.57 77,029.59 1,751,519.83
Add: Additional Investment - - - - - - - -
Balances 38,768.40 322,842.77 8,653.77 172,682.58 735,062.15 396,480.57 77,029.59 1,751,519.83
Add: Net Income (Loss) 23,438.94 105,475.25 17,579.21 64,457.10 216,810.24 123,054.46 35,158.42 585,973.61
Less: Withdrawal (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (18,000.00) (126,000.00)
Partner's Equity, December 31, 2020 44,207.34 410,318.02 8,232.97 219,139.68 933,872.39 501,535.03 94,188.01 2,211,493.44
Pro-forma Statement of Cash Flow
Pre-operations 2016 2017 2018 2019 2020
Cash flow from operating activities

Net income (loss) for the year - (219,330.82) (193,608.22) 14,819.36 273,639.50 585,973.61
Adjustment to reconcile net income to net cash
provided by operating activities
Depreciation charges for the year - 14,498.70 34,796.87 34,796.87 34,796.87 34,796.87

Changes in operating assets and liabilities

Decrease (Increase) in:
Petty cash (1,500.00) - - - -
Inventory (1,020,785.00) 969,745.75 (98,505.75) (34,323.90) (36,994.52) (44,183.72)
Office supplies (34,792.00) 33,052.40 (139.17) (60.71) (58.40) (59.95)
Maintenance supplies (85,458.75) 81,185.81 (341.84) (149.13) (143.45) (147.25)
Packaging supplies (111,060.00) 105,507.00 (444.24) (193.80) (186.43) (191.36)
Benefits payable 10,216.60 (5,674.43) 108.97 75.93 102.94
Rent payable 14,560.00 - - - -
SSS payable 2,973.94 135.12 12.28 147.17 -
PhilHealth payable 562.50 22.92 2.08 - -
Pag-IBIG payable 807.04 36.67 3.33 42.35 -
Salaries payable 23,346.00 9,816.15 653.85 441.17 617.63
Tax payable 37,332.90 7,466.58 8,959.90 10,751.88 12,902.25
Utilities payable 6,100.00 1,220.00 1,464.00 1,756.80 2,108.16
Total changes in operating assets and liabilities (1,252,095.75) 1,283,889.94 (86,407.99) (23,523.12) (24,167.50) (28,851.29)
Net cash provided by (used in) operating activities (1,252,095.75) 1,079,057.82 (245,219.34) 26,093.12 284,268.87 591,919.19

Cash flows from investing activities

Payment to acquire equipment (188,282.50) - - - - -
Payment to acquire tools (31,503.09) - - - - -
Payment to acquire furniture and fixtures (48,340.00) - - - - -
Net cash provided by (used in) investing activities (268,125.59) - - - - -

Cash flow from financing activities

Capital Investment 2,200,000.00 - - - - -
Partners' withdrawal - - (108,000.00) (108,000.00) (108,000.00) (126,000.00)
Net cash provided by (used in) financing activities 2,200,000.00 - (108,000.00) (108,000.00) (108,000.00) (126,000.00)

Net increase (decrease) in Cash 679,778.66 1,079,057.82 (353,219.34) (81,906.88) 176,268.87 465,919.19
Cash balance at the beginning of the period - 679,778.66 1,758,836.48 1,405,617.14 1,323,710.26 1,499,979.13
Cash balance at the ending of the period 679,778.66 1,758,836.48 1,405,617.14 1,323,710.26 1,499,979.13 1,965,898.31
Pro-forma Statement of Financial Position
Pre-operations 2016 2017 2018 2019 2020

ASSETS

Current assets:
Cash 679,778.66 1,758,836.48 1,405,617.14 1,323,710.26 1,499,979.13 1,965,898.31
Petty cash - 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Inventories 1,020,785.00 51,039.25 149,545.00 183,868.90 220,863.42 265,047.14
Maintenance supplies 85,458.75 4,272.94 4,614.77 4,763.90 4,907.35 5,054.60
Office supplies 34,792.00 1,739.60 1,878.77 1,939.48 1,997.88 2,057.83
Packaging supplies 111,060.00 5,553.00 5,997.24 6,191.04 6,377.47 6,568.82
Total Current Assets 1,931,874.41 1,822,941.27 1,569,152.93 1,521,973.58 1,735,625.25 2,246,126.71

Non-current assets:
Equipment 188,282.50 188,282.50 188,282.50 188,282.50 188,282.50 188,282.50
Less: Accumulated depreciation - equipment - (7,845.10) (26,673.35) (45,501.60) (64,329.85) (83,158.10)
Furniture and fixture 48,340.00 48,340.00 48,340.00 48,340.00 48,340.00 48,340.00
Less: Accumulated depreciation - furniture and fixture - (4,028.33) (13,696.33) (23,364.33) (33,032.33) (42,700.33)
Tools 31,503.09 31,503.09 31,503.09 31,503.09 31,503.09 31,503.09
Less: Accumulated depreciation - tools - (2,625.26) (8,925.88) (15,226.49) (21,527.11) (27,827.73)
Total Non-Current Assets 268,125.59 253,626.90 218,830.03 184,033.16 149,236.29 114,439.42

Total Assets 2,200,000.00 2,076,568.16 1,787,982.95 1,706,006.74 1,884,861.54 2,360,566.13

 Pre-operations 2016 2017 2018 2019 2020

LIABILITIES AND EQUITY

Liabilities:
Benefits Payable - 10,216.60 4,542.17 4,651.15 4,727.08 4,830.02
Rent payable - 14,560.00 14,560.00 14,560.00 14,560.00 14,560.00
SSS payable - 2,973.94 3,109.06 3,121.34 3,268.52 3,268.52
PhilHealth payable - 562.50 585.42 587.50 587.50 587.50
Pag-IBIG payable - 807.04 843.71 847.04 889.39 889.39
Salaries payable - 23,346.00 33,162.15 33,816.00 34,257.17 34,874.80
Tax payable - 37,332.90 44,799.48 53,759.38 64,511.25 77,413.50
Utilities payable - 6,100.00 7,320.00 8,784.00 10,540.80 12,648.96
Total Liabilities - 95,898.98 108,921.99 120,126.41 133,341.70 149,072.69

Equity:
Antonio, capital 100,000.00 90,030.42 63,230.04 45,822.82 38,768.40 44,207.34
Cardano, capital 400,000.00 360,121.67 306,920.18 291,587.66 322,842.77 410,318.02
Gramonte, capital - - - 444.58 8,653.77 8,232.97
Merced, capital 240,000.00 216,073.00 176,952.11 160,582.24 172,682.58 219,139.68
Pulumbarit, capital 840,000.00 756,255.51 664,332.37 651,815.53 735,062.15 933,872.39
Semira, capital 480,000.00 432,146.00 371,904.21 357,016.28 396,480.57 501,535.03
Villanueva, capital 140,000.00 126,042.58 95,722.06 78,611.22 77,029.59 94,188.01
Total Equity 2,200,000.00 1,980,669.18 1,679,060.96 1,585,880.33 1,751,519.83 2,211,493.44

Total Liabilities and Equity 2,200,000.00 2,076,568.16 1,787,982.95 1,706,006.74 1,884,861.54 2,360,566.13
Financial Analysis
2016 2017 2018 2019 2020
1. Liquidity Ratio
Current asset 1,822,941.27 1,569,152.93 1,521,973.58 1,735,625.25 2,246,126.71
Divided by: Current Liabilities 95,898.98 108,921.99 120,126.41 133,341.70 149,072.69
Current ratio 19:1 72:5 38:3 13:1 15:1

2. Profitability Ratio
Net income after tax (219,330.82) (193,608.22) 14,819.36 273,639.50 585,973.61
Divided by: Sales 1,643,000.00 4,731,840.00 5,678,208.00 6,813,849.60 8,176,619.52
Profitability margin on Sales -2:15 -2:49 0:1 0:1 0:1

3. Return on Assets
Net income after tax (219,330.82) (193,608.22) 14,819.36 273,639.50 585,973.61
Divided by: Total assets 2,200,000.00 2,076,568.16 1,787,982.95 1,706,006.74 1,884,861.54
Return on total assets -1:10 0:1 0:1 1:6 1:3

4. Return on Equity
Net income after tax (219,330.82) (193,608.22) 14,819.36 273,639.50 585,973.61
Divided by: Partner's equity 1,980,669.18 1,679,060.96 1,585,880.33 1,751,519.83 2,211,493.44
Return on equity -1:9 -1:9 0:1 1:6 1:4

5. Asset Turnover
Sales 1,643,000.00 4,731,840.00 5,678,208.00 6,813,849.60 8,176,619.52
Divided by: Total assets 2,200,000.00 2,076,568.16 1,787,982.95 1,706,006.74 1,884,861.54
Asset turnover 3:4 16:7 19:6 4:1 13:3