BUSINESS

PLAN

Prepared by:
Honeylene Peregrine Corda
BSEntrep 1-6
 Executive Summary

 Grine’s Rice Retail/Wholesale Store is a standard and registered rice

retail/wholesale store business that will be located in Bldg. 15 unit 101
Paradise Heights, Balut, Brgy, 128 zone 10 district 1. Tondo manila We
have been able to lease a facility that is big enough to fit into the
design of the kind of standard rice retail store that we intend
launching.

 Grine’s Rice Retail/Wholesale Store will retail/wholesale short-grain

rice, medium-grain rice and long-grain rice (both in organic and non –
organic form), glutinous or sticky rice(malagkit) from different brands
here in the Philippines.

 We are aware that there are several large and small chains of rice
retail store around metro manila which is why we spent time and
resources to conduct a thorough feasibility studies and market survey
so as to be well positioned to favorably compete with all our
competitors. We have an online – service option for our customers, and
our outlet is well secured with various payments of options.

 Grine’s Rice Retail/Wholesale Store will ensure that all our customers
are given first class treatment whenever they visit our rice retail store.
We will ensure that we get our customers involved in the selection of
brands that will be on available in our store and also when making
some business decisions.

 Grine’s Rice Retail/Wholesale Store will at all times demonstrate her

commitment to sustainability, both individually and as a firm, by
actively participating in our communities and integrating sustainable
business practices wherever possible.
  We will ensure that we hold ourselves accountable to the highest
standards by meeting our customers’ needs precisely and completely
whenever they patronize our products. We will cultivate a working
environment that provides a human, sustainable approach to earning a
living, and living in our world, for our partners, employees and for our
customers.

 Grine’s Rice Retail/Wholesale Store is a family business that is owned

by Honeylene Peregrine Corda and her immediate family members.
Honeylene Peregrine Corda has a BS in Entrepreneurship, with well
over 5 years of experience in fastfood service.

Business Organization: Sole Proprietorship

I chose this form of business organization in my rice wholesale/retailing

business simply because one of which is that it is the easiest way to put up
business which do not require a lot of requirements and in terms of decision
making, I can easily execute whatever I may want to do with the business. In
the business of rice wholesale/ retailing, the variety of merchandize is
limited and only focuses on rice distribution in which the owner will use
limited machineries, space, manpower, equipment to be used.

 our intention of starting a rice retail store business is to build a

standard and one stop rice retail store

 We will ensure that we hire people that are qualified, honest, customer
centric and are ready to work to help us build a prosperous business that
will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to
all our senior management staff and it will be based on their
performance for a period of ten years or more.
  In view of that, we have decided to hire qualified and competent hands
to occupy the following positions

 Sales and Marketing Manager

 Information Technologist
 Accountants / Cashiers
 Sales Agents / Customer Services Executive
 Cleaners

Our Target Market

Possibly it will be safe to submit that the rice retail stores industry has the
widest range of customers; almost everybody on planet earth consume rice;
rice is indeed one of the most popular staple food in the world.
In view of that, we have positioned our rice retail store to service the
residence of balut tondo manila,
We have conducted our market research and feasibility studies and we have
ideas of what our target market would be expecting from us. We are in
business to retail well processed and bagged rice from different rice
production brands to the following groups of people and corporate
organizations;

 Households
 Restaurants/Canteens

Marketing Strategy and Sales Strategy

Before choosing a location for Ghrine’s Rice Retail/Wholesale Store, we

conduct a thorough market survey and feasibility studies in order for us to
be able to penetrate the available market and become the preferred choice
for residence of Balut Tondo Manila. We have detailed information and data
that we were able to utilize to structure our business to attract the numbers
of customers we want to attract per time.
We hired experts who have good understanding of the rice retail stores
industry to help us develop marketing strategies that will help us achieve our
business goal of winning a larger percentage of the available market in
Balut, Tondo Manila.
In other to continue to be in business and grow, we must continue to sell the
well processed and well packaged rice that are available in our store which is
why we will go all out to empower or sales and marketing team to deliver. In
summary Ghrine’s Rice Retail/Wholesale Store, will adopt the following sales
and marketing approach to win customers over;

 Open our rice store in a grand style with a party for all
 Ensure that we have a wide range of rice from different brands at all
times.
 Make use of attractive hand bills to create awareness and also to give
direction to our rice store
 Position our signage / flexi banners at strategic places around Balut
Tondo Manila
 Position our greeters to welcome and direct potential customers
 Create a loyalty plan that will enable us reward our regular customers
 Leverage on the internet to promote our business
 Engage in direct marketing and sales
 Encourage the use of Word of mouth marketing (referrals)

Five reasons why you think this business will be profitable

 Rice Retailing is a profitable business because rice is the staple food in

our country. There are many rice varieties that consumers can choose
from at low cost The preferred varieties for daily meals are white
short-grain rice, medium-grain rice and long-grain rice (both in organic
and non – organic form), and aromatic. Glutinous or sticky rice
(malagkit) are used for native sweets.
 The easiest way to put up business which do not require a lot of
requirements and in terms of decision making,
 I can easily execute whatever I may want to do with the business. In
the business of rice wholesale/ retailing, the variety of merchandize is
limited and only focuses on rice distribution in which the owner will use
limited machineries, space, manpower, equipment to be used
 Rice is not a very sensitive food product, but it is very easy for pests to
attack it. Your outlet must be designed so that rats, weevils (bukbok)
and molds (kala) will not be able to attack it while you are storing it.
  The rice retail store industry is a profitable industry and it is open for
any aspiring entrepreneur to come in and establish his or her business

Our Competitive Advantage

 A close study of the rice retail stores industry reveals that the market
has become much more intensely competitive over the last decade. As a
matter of fact, you have to be highly creative, customer centric and
proactive if you must survive in this industry. We are aware of the stiffer
competition and we are well prepared to compete favorably with other
leading rice retail stores Tondo manila.
 Grine’s Rice Retail/Wholesale Store is launching a standard one stop rice
retail store that will indeed become the preferred choice of residence of
balut tondo manila and every other location where our outlets will be
opened.
 One thing is certain; we will ensure that we have a wide range of well –
processed and well bagged rice from leading rice production companies
available in our store at all times. It will be difficult for customers to visit
our rice store and not see the type of rice they are looking for.
 One of our business goals is to make Grine’s Rice Retail/Wholesale Store
a one stop rice shop for both household and businesses
(restaurants/canteens) our excellent customer service culture, online
store, various payment options and highly secured facility will serve as a
competitive advantage for us.
 Lastly, our employees will be well taken care of, and their welfare
package will be amongst the best within our category (startups rice
retail stores) in the industry meaning that they will be more than willing
to build the business with us and help deliver our set goals and achieve
all our aims and objectives. We will also give good working conditions
and commissions to freelance sales agents that we will recruit from time
to time.

This is the summary of the SWOT analysis that was conducted for Grine’s
Rice Retail/Wholesale Store

 Strength:

Our location, the business model we will be operating on (physical store and
online store), varieties of payment options, wide range of well processed and
well – bagged rice from different rice production companies from within the
manila and other parts of the philippines and our excellent customer service
culture will definitely count as a strong strength for Grine’s Rice
Retail/Wholesale Store.
So also our management team members are people who have what it takes
to grow a business from start – up to profitability with a record time.

 Weakness:

A major weakness that may count against us is the fact that we are a new
rice retail outlet and we don’t have the financial capacity to engage in the
kind of publicity that we intend giving the business.

 Opportunities:

The fact that we are going to be operating our rice retail store in one of the
busiest streets in balut tondo manila, provides us with unlimited
opportunities to sell our rice to a large number of individuals and businesses
(canteens)
We have been able to conduct thorough feasibility studies and market
survey and we know what our potential customers will be looking for when
they visit our rice store outlets; we are well positioned to take on the
opportunities that will come our way.

 Threat:

Just like any other business, one of the major threats that we are likely going
to face is economic downturn. It is a fact that economic downturn affects
purchasing / spending power. Another threat that may likely confront us is
the arrival of a new rice retail outlet in same location where ours is located.
So also, unfavorable government policies may also pose a threat for
businesses such as ours.

FINANCIAL DATA

In setting up any business, the amount or cost will depend on the approach
and scale you want to undertake. If you intend to go big by renting / leasing
a big facility, then you would need a good amount of capital as you would
need to ensure that your employees are well taken care of, and that your
facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your
goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost
everywhere, and any difference in prices would be minimal and can be
overlooked. As for the detailed cost analysis for starting a rice retail store
business; it might differ in other countries due to the value of their money.
These are the key areas where we will spend our start – up capital;

 The Total Fee for Registering the Business. P10,000

 Marketing promotion expenses for the grand opening Grine’s Rice
Retail/Wholesale Store in the amount of P10,000 and as well as flyer
printing (2,000 flyers at 0.04 per copy) for the total amount of P10,080.
 The cost for hiring Business Consultant -P 20,000
 The cost for insurance (general liability, workers’ compensation and
property casualty) coverage at a total premium – P30,000.
 The cost for the payment of rent for 12 months at the total amount of
P 120,000.
 The cost for store remodeling (construction of racks and shelves) –
P10,000.
 Other start-up expenses including stationery (P5,000) and phone and
utility deposits (P15,000).
 Operational cost for the first 3 months (salaries of employees,
payments of bills et al) – P100,000
 The cost for Start-up inventory (stocking with a wide range of well –
processed and well – bagged rice from different rice production brands) –
P20,000
 The cost for counter area equipment – P15,000
 The cost for store equipment (cash register, security, ventilation,
signage) P15,000
 The cost of purchase and installation of CCTVs P35,000
 The cost for our opening party: P10,000
 Miscellaneous: P15,000

We would need an estimate of P400,000 to successfully set up our rice

retail store in Balut tondo manila, Please note that this amount includes the
salaries of all the staff for the first month of operation.

Estimated Investment Cost

 A. Basic Equipment

 Rice boxes, 6 pcs – 12,622.50

 Scooper – 250.00
 Pushcart – 600.00
 Weighing scale – 900.00
 Sub-Total – P4,250.00

B. Basic Weekly Supplies (from rice farmers/producers)

 Sinandomeng, 450 kilos @P28.05/kg – P12,622.50

 Dinurado, 400 kilos @34.00/kg -13,600.00
 Wag-wag, 350 kilos @25.50/kg -8,925.00
 Milagrosa, 250 kilos @25.05/kg -7,012.50
 Long Grain, 350 kilos @25.50/kg -8.925.00
 NFA Rice. 700 kilos @21.25/kg -14,875.00
 Malagkit, 50 kilos @34,00/kg -1,700.00
 Sub-Total – P67,660.00

C. Packaging

 Sando Bags, 3000 pcs – P450.00

 Estimated total investment cost – P72,360.00

D. Cost of Goods Sold

 Merchandise Inventory Beginning (20%) – P13,622.00

 Add: Purchases (80%) – 54,486.00
 Total Goods Available for Sale – 68,110.00
 Less: Merchandise Inventory, Ending – 13,622.00
 Cost of Goods Sold – P54,488.00
 Add: 15% Mark-up – 8,173.20
 Sales – P62,661.20

Estimated Weekly Income

 Sales – P62,661.20
 Less: Cost of Goods Sold – 54,488.00
 Gross Sales – P8,173.20
 Less Operating Expenses:
 Labor (P200 x 7 days x 1 worker) – 1,400.00
 Water and Electricity (weekly) – 350.00
 Transportation/Delivery – 500.00
 Estimated total weekly income – P5,923.20
Assumptions:

 80% of the items are being replenished weekly.

 80% of Cost of Goods Purchased is considered sold weekly.
 20% of the rice remains In the inventory per week.
 15% is the mark-up per item.